Brokered or Commission Sales

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

Sales Order (or Quote) Entry

In the screen shots above, we are a "broker" for ACME Manufacturing (1).  We've put together a sale to the end user/customer Arizona Sunny Riders (4).  We have arranged for ACME to sell a Big Appliance to Arizona Sunny Riders for $1,500 (2).  ACME will issue that $1,500 invoice directly.  Our commission on the sale, the revenue that ACME owes to us, is $300 (3).  ACME will drop ship direct to the customer (5), bypassing our inventory entirely.

On the Items Tab of the Order/Quote entry:

1. Enter the manufacturer, the company that will be paying your commission, as the Client on the Sales Order/Quote.

2. The product should be a NON-INVENTORY style Product record.  Since it is a commission sale, you will not have unit go through your inventory system at all.  Enter the "Brokered Price" to record what the end user customer will be paying for the product.  This is the amount that the manufacturer will bill to the end customer.  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. Enter your commission (what the manufacturer will pay you) as the Unit price on the Sales Order/Quote.  This is the amount that will be posted to AcctVantage as Sales Revenue, Accounts Receivable, etc.

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

4. Enter the end user Customer in the Drop Ship To Client field.  This will link the Order/Quote with that end user as well as the manufacturer (1).  Sales reporting can then be done for the end client as well as the manufacturer.

5. When the Drop Ship To Client field is entered, the Ship To values will be updated to show the end customer's information.  You can override as needed.

Sample Commission Order Form

Activate the Brokered Price Columns

To activate the Brokered Price columns for Sales Order entry, you will go to Administration > System Configuration. Click on the Line Items Tab.  Click on the Sales Document Detail/Line Items button.

In the pop up window, make the Brokered Price column both visible and enterable.

(Optional) Make the Brokered Ordered and Invoice Extended columns visible.