This article defines seller deductions and describes the process for applying or deleting a seller deduction.
What is a Seller Deduction?
The term "seller deductions" is used to describe a situation in which a seller/consignor is selling items in an auction while also purchasing items in that same auction. In this situation, the auction house wants to apply the purchased items towards the amount owed on the Seller Settlement.
For example, John Doe is a seller/consignor who is owed $45,000 for the sale of a tractor at auction, but he purchases a lot for $1,000 at that same auction. Instead of John having to pay the auction house $1,000, that amount can be applied to the $45,000 the auction house owes John. Once applied, John's Seller Settlement will show that he is now owed $44,000, while also providing a historical record of the purchase he made in this auction.
Applying a Seller Deduction
- Navigate to the seller/consignor's bidder invoice (Auction > Accounting > Invoices).
- Click on the Dollar Sign icon in the top right corner of the page
- Select Seller Deduction as the payment method.
- Search for/select the applicable seller/consignor
- Click the Save button. This will both apply the payment to the bidder invoice and the selected Seller Settlement.
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.