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).
See ∞ Add Consignment Category for additional reference.
Example - Using Consignment 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 - Using Fixed Consignment Value Owed
A consignment item, for example a diamond necklace, 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 Consignment Category To 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.
Last Revised: March 2023