To track consignment stock, you record what you deliver to each store, count what is on the shelf on a fixed schedule, and subtract. Delivered minus counted minus returned equals sold, and sold is what the store owes you. Losses and disputes happen when any of those steps is skipped.
If you want the background first, read about consignment inventory management. This guide is the day-to-day routine.
1. A delivery note for every delivery
Each time you drop off goods, leave a document with the date, store, product, quantity and price. Ask the person receiving to sign or confirm it. Months later, it is your proof of what was handed over.
Keep one copy and give one to the store. Note the condition of the goods on arrival, such as a dented box, so it is not disputed later. If you serve several stores, use the same format everywhere.
2. One product list, and a price list per store
Keep a master catalog with clear product codes. For each store, define which products it carries and at what price. Price mismatches between your list and the store’s are a common source of arguments when it is time to get paid.
When a price changes, tell the store in writing and note the date it takes effect. That way each sale on the statement uses the right price.
3. Pick a count frequency
Counting too rarely leaves you blind. Counting too often eats your time. Once a month is a reasonable starting point, and more often for fast-moving or high-value items.
Write down the date of the next count as soon as you finish the current one. What matters is that the schedule is fixed and the same for every store, so periods can be compared.
4. Reconcile: delivered, counted, returned, sold
Sold is calculated, not guessed. An illustrative example with simple numbers:
| Item | Units |
|---|---|
| Previous stock plus deliveries this period | 80 |
| Counted in the store | 52 |
| Returned to the supplier | 3 |
| Sold | 25 |
The math is 80 - 52 - 3 = 25. If the store also reports its own sales figure, compare the two. A mismatch is a difference to investigate.
5. Handling differences
A difference is any unit that is not on the shelf, not in the returns and not in reported sales. When you find one:
- Missing units. Check first for counting errors or deliveries that were never logged. If those do not explain it, apply what you agreed about losses.
- Damaged goods. Record the date and cause, then decide whether to return, discard or credit them.
- Returns. Log each one with its own note, quantity and condition.
The sooner you catch a difference, the easier it is to explain. Ask the store whether any sales went unrecorded, items were moved around, or product was given away. A gap from six months ago can rarely be rebuilt.
6. Settlement and the account statement
Once you know what sold, you know what the store owes. Send an account statement in the same layout every period: opening stock, deliveries, returns, closing count, units sold, amount due and outstanding balance.
A clear statement means collecting does not depend on anyone’s memory. For the agreements worth fixing before you start, see how to sell products on consignment to stores.
7. Follow up on payments
Record every payment with its date, amount and the statement it settles. Set a payment deadline and check weekly which stores are overdue.
A friendly reminder at the right time keeps balances from growing. When a store pays, note which period the payment covers so balances do not blur together. If a store is repeatedly late, review how much stock you leave there.
8. Replenish based on what sold
Counts also tell you what to restock. If most of a product sold, bring more. If it barely moves, hold back. Leaving more stock than a store can sell only ties up your goods.
Spreadsheet or dedicated tool?
A spreadsheet is enough with one or two stores, a short product list, and one organized person who updates it after every visit. It costs nothing and is flexible.
It starts to strain when:
- You have several stores with different price lists.
- Counts arrive through messages, photos and phone calls.
- It is hard to see what has been paid and what has not.
- Two people edit the same file and overwrite each other.
At that point a dedicated tool saves time and cuts errors. You can see what such a tool covers in the modules overview.
Monthly checklist
- Every delivery this month has a delivery note.
- Each store was counted on its scheduled date.
- Sold units were calculated and differences reviewed.
- Damaged and returned items are logged.
- An account statement went to each store.
- Payments received are recorded and overdue ones reviewed.
- You decided what to restock in each store.
Frequently asked questions
How do I track consignment stock?
Use a delivery note for each delivery, count each store on a regular schedule, and calculate sold as delivered minus counted minus returned. Use that figure to prepare the account statement.
How often should I count consignment stock?
Monthly is a good starting point. Count more often for items that sell fast or cost more. Keep the same schedule across all stores.
What do I do when units are missing from a store?
Rule out counting errors and unlogged deliveries first. If units are still missing, apply what you agreed about losses. Having that written down from the start prevents the argument.
How do I avoid losing money on consignment?
Document everything, count regularly, send statements on time and collect within the agreed deadline. Do not leave more stock than a store can realistically sell.
Saving the legwork
With COMPA, suppliers register deliveries to each store, stores report counts through a simple link without creating an account, and the platform reconciles what was delivered, sold and returned. It also produces account statements and records payments and replenishment. You can also contact us with questions.