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The etymology from consignment refers us to the Latin word consignatio. Its about act and consequence of consign . This verb, on the other hand, may refer to establishing an item or an economic outlay for the attention of certain expenses; to determine a place to do something in it; to allocate certain funds to the payment of income or debts; to deposit or assign something; or to leave an opinion, a fact or a vote in a formal or reliable manner.

A commissioner, for example, can decide the consignment of two agents to a park since in that public space there were several crimes in the last weeks. This means that the commissioner assigns two of his staff to the custody of the place in question.

In the field of right , it is called consignment to a way to pay which consists in the deposit of the required amount or the thing itself available to a judge or the creditor himself. This process is carried out when the creditor refuses to receive the corresponding payment or cannot do so for some reason.

The purpose of consignment payment is to interrupt the interests and transfer to the creditor the expenses of conservation and the risk of the good. The appropriation requires that the debtor, previously, has tried to specify the payment to the creditor on different occasions. These attempts must also be corroborated by a notary.

A consignment contract On the other hand, it consists of an agreement where the consignee assumes the obligation to commercialize the consignee's merchandise, previously agreeing on a price to be paid to him. The consignee, in this context, makes the value of sales and pays the consignee the agreed price. Merchandise that could not be sold must be returned within the corresponding period.

Precisely, we talk about consignment goods to refer to those that a person named consignor, sender or customer send to another, known as consignee, addressee or commission agent, so that you sell them in your name or representation, following a series of terms well defined in advance.

To register the operations that are in this area it is necessary to carry out certain procedures, many of which are also used within a company, such as the following: inventories (these can be continuous or perpetual); detailed or analytical of the goods; general or global merchandise.

It is known by the name of accounting record of perpetual inventories to which it is carried out taking into account the operations that involve consignment merchandise to be able to know the amount of the final inventory that is in the hands of the commission agent at all times, as well as the amount of the sales that it has made and the cost of Sale of the goods. Thanks to this method it is possible to determine the utility or loss reliably and accurately.

From the total sales made by the commission agent it is mandatory to deduct certain expenses necessary for the operation, such as the amount of carry, freight , insurance, commissions and storage, among others that have been originated by the administration, the shipment and the sale of the consigned goods, whether made by the principal or the commission agent. The balance of this amount is debtor and is the cost of selling the goods; When the fiscal year ends, a payment against profit and loss is made.

The amount of net sales of consigned goods is charged from sale price of those units that are again in the power of the commission agent, of the discounts on sales and of the sales. Its balance is creditor and is paid against profit and loss when the year ends.

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