This article defines seller deductions and describes the process for applying or deleting a seller deduction.
What is a Seller Deduction?
We use this term when a seller/consignor both sells items and buys items in an auction and the auction house wants to apply the purchased items towards the amount owed on the seller settlement.
John Doe is a seller/consignor and agrees to a 10% commission to sell his tractor with the auction house. The tractor is sold for $50,000 during the auction so the seller is owed $45,000. However, John Doe also decided to purchase $1,000 worth of lots in the same auction. So instead of John Doe having to pay the auction house $1k, the amount owed for the purchased lots can be applied towards what the auction house owes John. Once applied, John Does seller settlement will reflect that he's owed $44,000 and a historical record that he made purchases in this auction.
Applying a Seller Deduction
- Starting from a bidder invoice, select Seller Deduction as the payment method.
- Search for/select the applicable seller consignor
- Click Save. This will both apply the payment to the bidder invoice and the selected Seller Settlement/Invoice.
Deleting a Seller Deduction Payment
- If a seller deduction payment is deleted from the bidder invoice, it will also automatically be deleted from the corresponding seller settlement
- If a seller deduction payment is deleted from the seller settlement, it will not be deleted from the bidder invoice.