Widen the yard with consignment stock, without buying the machines

Taking units on consignment is one of the cheapest ways an equipment dealer can widen the yard: you get an excavator, dozer or tractor on the lot to sell without tying up cash or a floorplan line buying it. The problem is the accounting. Bolt a machine you don't own onto normal wholegoods inventory and you overstate your assets, because it's sitting on your books as stock you paid for. Try to keep it separate with spreadsheets and sticky notes and the numbers fall apart the moment it sells, because nobody remembers to raise the bill to the owner or move the cost into inventory at the right figure.

MDMS handles consignment as its own kind of ownership, distinct from floorplan and from stock you've bought. You record the unit against a consignment agreement that captures the consignor, the agreed cost, the due date, the terms and the status, and receiving it posts nothing to the ledger, it's a memo only, so the machine stays off your balance sheet while it's held. When it sells, MDMS raises a back-to-back supplier bill to the consignor and reclassifies the unit into wholegoods inventory at the agreed cost in one step, so cost of goods sold equals that agreed cost and accounts payable reconciles. If a unit doesn't sell, you return it to the consignor with no accounting impact at all.