Record consigned goods separately from stock the shop owns. At handover, identify the owner, product, quantity, condition, agreed selling price, commission, and receipt date. Both parties should keep a copy of the signed or otherwise confirmed record.
Agree in writing how sales are reported, when the owner is paid, who bears loss or damage, and when unsold goods can be collected. Do not treat an estimate as a confirmed count; reconcile the actual units received and sold against the record.
Before settlement, count the remaining goods and compare sales with the agreed terms. Keep consigned stock clearly marked so it is not confused with shop-owned items, and record any return or adjustment. Seek advice if the arrangement or tax treatment is unclear for your business. Give the owner a copy of each settlement and returned-stock count.
