You can use Auctria to track expenses for Consignment Items where you pay a percentage of the winning bid, or the item's value.
Before defining consignment categories, create an expense category for consignment items to register their cost against.
To use the consignment function, define a consignment category which sets the rules for your cost related to the consignment item. A consignment category is most useful when there are a several items with the same consignment rules. It saves entering the same rules for each item (similar to a Sales Tax category).
On the Item Dashboard, click Consignment Categories under the Actions sidebar menu.
The Consignment Categories window appears.
Click Add Consignment Category under the Actions sidebar menu.
Add/Edit Consignment Category
Click the Add Consignment Category big blue button to add a new consignment category.
Enter a name and select an expense category to be used from the drop-down selector. See Create an Expense Category for more information.
The Name is the only required field.
Click on an existing consignment category to edit it.
The Percentage Of Winning Bid is the percentage of the winning bid this item costs and will be used in calculating the expense. If minimum and maximum percentages are defined, the Percentage is only used if the expense amount falls between the minimum and maximum of the value.
Minimum Percentage Of Value is the minimum percentage of the item's value you must pay if this item is sold. This is the least amount you will have to pay, regardless of how low the winning bid is.
Maximum Percentage Of Value is the maximum percentage of the item's value you must pay if this item is sold. This is the most amount you will have to pay, regardless of how high the winning bid is.
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Save Consignment Category
Click Save Consignment Category, if this is a new consignment category; otherwise, save each section as needed when editing an existing consignment category. To remove a consignment category, click on the category to edit then click on the red Delete Consignment Category button.
Example Scenario - Percentage Rules
A travel package has a Value of $1000 and the Percentage of Winning Bid is set to 50.
The Minimum Percentage Of Value is set as 40; and, the Maximum Percentage Of Value is set 80.
- If the winning bid is $2000, then your expense would be $800 ($1000 x 80%)
- $2000 x 50% = $1000 is above the maximum of $1000 x 80% = $800, therefore the cost is the maximum percentage value
- If the winning bid is $1500, then your expense would be $750 ($1500 x 50%)
- $1500 x 50% = $750 falls between the minimum ($1000 x 40% = $400) and maximum ($1000 x 80% = $800) cost calculations, therefore the percentage of winning bid (50%) is used
- If the winning bid is $600, then your expense would be $400 ($1000 x 40%)
- $600 x 50% = $300 is below the minimum of $1000 x 40% = $400, therefore the cost is the minimum percentage value
Example Scenario - Fixed Consignment Value Owed
A consignment item valued at $250 will have an amount of $150 owed to the consignor if the consignment item is sold. Using this information, you would set the following:
- Value: $250
- Consignment Minimum: $150
- Consignment Maximum: $150
- Starting Bid: $160
The "Starting Bid" should be a value greater than the consignment value that will be owed.
For a one-off item (liked the "Fixed Consignment Value Owed" example) you could just use the Consignment "min/max" fields on the item rather than creating a Consignment Category ... it will still create the expense from the min/max but it won't have a specific category set.
Assign a Consignment Category to the Item
Consignment items will need to have an appropriate consignment category assigned to then in Item Details, in the Pricing section of the relevant item, select the appropriate consignment category from the drop-down selector.