So technically, consignment inventory doesn't belong to the store so it shouldn't be included in our inventory i.e. I should not receive it into inventory. On the other hand, it's a lot easier to keep track of what's sold if I know how many were received and how many I have on hand. It occurred to me that I could receive the inventory at zero cost so it wouldn't hit my 'on hand inventory' bottom line. The problem is that when it sells, if there is no cost associated with the item, which over-inflates my profit on the item: this messes up my COGS reporting!
(I already use a consignment category for such items, so that is not an issue/solution)
The title of this post has been edited from the original: "Should I receive a purchase order for consignment inventory?"
