Consignor Bonus for Store-Credit Settlement - Give an automatic bonus to Consignors who settle for store credit. In Program Setup on the Consignors Screen, set the bonus amount in 'Bonus for Store Credit Settlement'. When 'Credit' is selected as the settlement payment method, the bonus is auto-applied. (not available with batch settlements)

Please Note: The prevailing consignor split percentage is the percentage recorded in each item record (which may be different from the default percentage recorded in the Consignor Record). Correct incorrect percentages using the Percentage Tool in the Consignors Work Area.

What is a 'Consignment Settlement'?

When a consigned item is sold, the Consignor is due a percentage of the sale (and if applicable, a salesperson is due a commission). Payment to the Consignor (and employee) finalizes or 'settles' the process of selling consigned items and distributing the proceeds to the Consignor (and employee).

Consignment Accounting

A 'Sale' increases shop owner income, Consignor (and employee) account balances. A 'Settlement' decreases owner income and Consignor account balances.

(BCSS provides an 'employee commission process' for recording payments made to employees. Commissions processed for employees do not affect Consignor account balances. Settlements processed for consignors do not affect employee account balances.)

Accounting Example

$100 in sales has been made for Consignor Joe by employee Sam. Joe is to receive 40% of the sales price and Sam has earned a 5% commission. These amounts must be disbursed but first, the sales transactions must be 'settled'.

Sales of $100 increase shop income by $100. Joe's account balance becomes $40. Sam's account balance becomes $5.

After settling with Joe, the store's income is $60 ($100 in sales less the Joe's share of $40). Joe's account balance is zero, and Sam's account balance remains unaffected at $5.

After paying Sam's commission, the store's income is $55 ($60 - $5). Joe's account balance is unaffected and remains at zero. Sam's account balance is zero.

In this example, Joe's account balance before Settlement was $40. BCSS would display this as:

Account Balance + Store Credit         $40

Store Credit     $ 0

When his Settlement is processed, you might choose to pay $30 by check and $10 as credit. His account balance will then be:

Account Balance + Store Credit         $10

Store Credit     $10

Notice that the store credit amount is the amount of credit transferred on his Settlement document.

Now Joe wants to buy a bicycle for $5. After processing this sale his account balance is:

Account Balance + Store Credit         $ 5

Store Credit     $ 5

Notice that store credit decreases as he purchases merchandise. If some of Joe's consigned merchandise is sold for $12 for example, his account balance would be:

Account Balance + Store Credit         $17

Store Credit     $ 5

When Joe purchases another $5 worth of merchandise his account balance will be:

Account Balance + Store Credit         $12

Store Credit     $ 0

Joe is owed $12 for the sold merchandise and he has no more credit available for making purchases.

BCSS provides comparable functionality for handling employee purchases of store merchandise from their commissions. The process is the same for employees as it is for consignors.

Important Disbursement Adjustment

If a Settlement is deleted, go to the Disbursements Work Area and mark the corresponding disbursement as canceled.

Email Support (Add the domain name mm.st to your email program's Approved Senders List or White List to lessen the chance that spam filters will block our emails to you. (Instructions) For phone and remote PC help, contact: Joy Archer, enJoy Consigning Services, 972-898-7921 (NY), Email, or Computer Mechanics, 800-448-1436 (MI), email.