A consignment stock ownership check should establish the arrangement before goods held at the company’s premises are treated as purchases. Physical custody, a delivery note and an invoice reference may describe different stages of a transaction. Ask the accountant to assess the actual terms and relevant reporting framework.

Accounting records, calculator and glasses on a desk
Illustrative photograph by Cht Gsml.

Identify the arrangement

Obtain the consignment agreement, delivery records, stock list and settlement statements. Confirm the parties and goods, including quantities, batches and location. Determine which records describe custody and which evidence an actual sale or purchase.

Do not decide ownership solely from whose warehouse stores the items or whose employee counted them.

Reconcile movement and settlement

Track goods received, sold or used, returned, damaged and still held. Compare the movement schedule with any supplier invoices and sales reports. Keep the physical count visible even if the accountant concludes that some goods are not the company’s inventory.

Ask the reviewer to explain which event triggers recognition under the arrangement. This checklist does not impose one accounting outcome on every contract described as consignment.

Example: a delivery note was posted as a bill

The warehouse receives goods to sell on another party’s behalf, and an administrator enters the delivery note as an ordinary purchase. Preserve the source and trace whether any settlement or invoice later created a second entry.

Give the accountant the agreement and movement history before adjusting purchases, stock or a payable. Do not remove the delivery from the custody record just because its ledger treatment changes.

Keep the closing evidence

Retain confirmations and the approved reconciliation for goods on hand and amounts due. Explain differences between the stock count and accounting schedule. Raise disputed ownership or loss responsibility for advice instead of resolving it by choosing a convenient account code.

Related practical guidance

For the surrounding records and responsibilities, see bookkeeping basics, company records to keep, bookkeeping and accounting.

Official guidance: IRAS official guidance.

Help with your company records

For accounting, bookkeeping and related compliance support, contact Raffles Corporate Services at [email protected] or WhatsApp +65 8501 7133. Tell us which records or process need attention so we can discuss the relevant next steps.