Brokered or Commission Sales

A Brokered or Commission-only sale is most often used when acting as a Manufacturer's Rep.  

By activating some extra columns on the Sales Order entry screen we can capture the full sale amount for the end user (customer) as well as your commission earned from the manufacturer.

Setup the order entry screen to display the brokered columns

To activate the Brokered Price columns for Sales Order entry:

  1. Navigate to Administration -> System Configuration.
  2. Select the Line Items tab.  
  3. Click the Sales Document Detail/Line Items button.
  4. Double-click in the Visible and Enterable columns to enable the Brokered Price column in the order entry screen.
  5. Click OK to save when you are finished.
System Configuration - Invoice Detail Column Editor

Optional additional columns to add:

  • Double-click in the Visible and Enterable columns to enable the Buyer Part Number, Mfg Part Number and/or Vendor Part Number columns.
  • Double-click in the Visible column to enable the Brokered Order Extended and Brokered Invoice Extended columns.
System Configuration - Invoice Detail Column Editor optional columns

Sales Order (or Quote) Entry

  • In the screenshots below, we are a "broker" for ACME Manufacturing (1).
  • We've brokered a sale to the end user/customer Arizona Sunny Riders (4).  
  • We have arranged for ACME to sell a custom appliance to Arizona Sunny Riders for $5,000 (2). ACME will issue a $5,000 invoice directly to the customer.  
  • Our commission on the sale (i.e. the amount that ACME owes to us) is $500 (3).  
  • ACME will drop ship direct to the customer's address (5), bypassing our inventory entirely.

Enter the header and line item info

On the Items tab of the order entry screen:

  1. Enter the manufacturer or supplier (i.e. the company that will be paying your commission) as the Client on the Sales Order/Quote.
  2. In the detail area, the product(s) should be NON-INVENTORY items. Since it is a commission sale, you will not have inventory go through your warehouse at all.  
    • For the Brokered Price, enter the amount the end user (customer) will be paying for the product. This is the amount that the manufacturer will bill the customer for. This number is NOT posted to your general ledger in any way. It is simply a record of what you have arranged for the manufacturer to sell the product for to the end customer.
  3. For the Unit Price, enter your commission (i.e. what the manufacturer will pay you for brokering the sale). This is the amount that will be posted to AcctVantage as accounts receivable (debit) and sales revenue (credit).
Sales Order - Items tab

Enter the drop ship client

On the Bill To/Ship To Tab of the Sales Order/Quote...

  1. Enter the end user (customer) in the Drop Ship To Client Name field. This will link the order with that customer as well as the manufacturer. Sales reporting can then be done for the customer as well as the manufacturer.
  2. Ship To Address will be updated to show the end user (customer) information. You can override as needed.
  3. Bill To Address will be the manufacturer's address.
Sales Order - Bill & Ship to