Consignment Invoice Template

A consignment invoice records the sale of goods owned by a consignor but sold through a consignee's store, splitting proceeds by commission rather than transferring full payment for a direct sale. Unlike a standard sales invoice, it must show the original owner's name, the item's agreed sale price, the commission percentage retained by the retailer, and the net amount owed to the consignor. Antique shops, art galleries, and boutiques rely on this format because ownership doesn't transfer until an item actually sells, so the invoice functions as both a settlement statement and a sales record.

A consignment invoice should be issued only after an item actually sells to a customer, not when it's first dropped off at the store. At drop-off, most consignment businesses use a separate intake receipt or inventory log to track items received, since no financial transaction has occurred yet. The invoice comes into play during the settlement period - weekly, biweekly, or monthly - when the consignee calculates commissions on everything sold and reports the net proceeds owed to each consignor. Issuing invoices too early creates confusing records that don't match actual completed sales.

Commission rates should appear as a clearly labeled percentage next to each line item, or as a single rate applied across the whole invoice, followed by the resulting deduction and the net payout. For example, a $250 jewelry case sold at a 40% commission rate nets the consignor $150 after the retailer's cut. Listing the rate transparently, rather than only showing a final total, helps consignors verify calculations and reduces payment disputes. Many boutiques and galleries use tiered commission structures based on item value, so the invoice should reflect whichever rate applied to that specific sale.

Unsold items should not appear as billable line items on a consignment invoice, since no payment is owed until a sale occurs. Instead, unsold inventory stays on a separate consignment tracking sheet or inventory report until it either sells, is returned to the consignor, or reaches an agreed consignment period deadline. Including unsold stock on an invoice inflates totals and misrepresents actual revenue. A well-organized consignment invoice should only reflect completed transactions during the billing period, with a note referencing which items remain unsold for the record.

The consignee, typically the retail store, gallery, or boutique making the final sale to the customer, is generally responsible for collecting and remitting applicable sales tax, since they are the party completing the retail transaction. The consignment invoice between the store and the consignor usually reflects the net commission split and doesn't include sales tax charged to the end customer, which is tracked separately in the store's point-of-sale system. Tax obligations vary by jurisdiction, so consignment businesses should confirm local requirements rather than assume a single universal rule applies.

A consignee should include the item description, original listed price, actual sale price, commission percentage, net amount due, and the sale date for every item sold during the billing period. Adding the consignor's inventory or tag number, common in antique shops and galleries, makes it easy to cross-reference physical stock with invoice entries. Vague descriptions or bundled totals without itemization are the most frequent source of disagreements between consignors and consignees. A detailed, itemized consignment invoice builds trust and gives consignors a clear paper trail for their own tax and inventory records.

Consignment invoices are typically issued on a recurring schedule, weekly, biweekly, or monthly, depending on sales volume and the terms agreed upon in the consignment contract. High-turnover boutiques often settle biweekly, while art galleries and antique shops with slower-moving, higher-value items may issue invoices monthly. Consistent timing matters more than frequency itself, since consignors depend on predictable payment cycles to manage their own cash flow. The agreed schedule should be documented in the consignment agreement so both parties know exactly when to expect an invoice and payment.

The most common mistake is combining sold and unsold inventory on the same invoice, which distorts what's actually owed to the consignor. Other frequent errors include omitting the commission rate, failing to itemize each sale separately, forgetting to record the sale date, and using inconsistent invoice numbering that makes reconciling records difficult over time. Some stores also forget to note returned or damaged items, leading to disputes later. A reliable consignment invoice template with automatic calculations helps prevent these errors by keeping commission math, item details, and payment totals consistent every billing cycle.