Used Vehicle Consignment

In accounting, consignment of used vehicles can occur, but it depends on the nature of the business. Typically, vehicle dealerships or businesses dealing in second-hand vehicles might use consignment arrangements. In this scenario, the owner of the used vehicle consigns it to the dealership, which sells the vehicle on behalf of the owner.

Accounting for Consigned Vehicles

• Consignor's (Owner's) Perspective: The vehicle remains in the consignor's books until it is sold. Revenue is only recognised once the sale occurs.
• Consignee's (Dealership's) Perspective: The dealership does not record the vehicle as an asset, as it does not own it. Instead, it may record a liability or a payable amount for commissions or proceeds owed to the consignor upon the sale.

This being said, it isn't common to consign used vehicles within Navigator, these are usually mapped together on the TB so it doesn't appear. This would usually be nominal codes 1.31.60.81 and 1.31.60.85.

How to remap nominal codes to contra 60.85 & 60.81 Vehicle consigned stock / suspense