In Dynamics 365 Finance & Operations (D365 F&O), handling customer jewelry for repairs involves tracking inventory that is not owned by your company but is in your possession for the purpose of service. Using a consignment model is a suitable approach for managing this situation. Here’s how you can handle it step by step:
a. Create a Consignment Inventory Location:
b. Set Up Consignment Items:
a. Create a Sales Order for Repair:
b. Record the Receipt of Jewelry:
a. Perform the Repair Work:
b. Create an Invoice for the Service:
a. Inventory Adjustment for Returned Jewelry:
Since the jewelry is on consignment and does not belong to you, it should not affect your financial book value. The service revenue from the repair work is recorded on your financial statements, but the jewelry itself remains a liability (or off-balance sheet item) until returned.
Utilize inventory reports to track the consignment jewelry separately from owned inventory. Ensure you have the right filters and queries set up in your reporting tools to maintain visibility.
Using the consignment model allows you to manage customer jewelry effectively while keeping your financial books clear. Each step ensures that the jewelry is tracked correctly without affecting your financial position, and service revenue is recognized appropriately. Be sure to train your staff on these processes to ensure smooth operations.
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