When items sell, ConsignCloud automatically credits the Account the Item is associated with. But what happens if an Item is sold under the wrong Account or Split? This article explains how to correct those mistakes and provides tips to help prevent them in the future.
Consignment Items
Items with the inventory type “Consignment” require a Split. In ConsignCloud, that Split is automatically assigned based on either the default category Split or, more commonly, the Account’s Default Split. Because of this, it’s important to make sure the Item is created under the correct Account and Category from the start.
If an Item is created under the wrong Account, the Balance from the sale will be applied to the incorrect Account. To correct this, you’ll need to perform a Balance Adjustment.
For example:
A $100 Item should have been created under John Doe, whose Account Split is 50/50.
Instead, the Item was accidentally created under Jane Smith, whose Split is 60/40.
The Item sells before the Account assignment is corrected.
John Doe should have received $50, but instead receives nothing.
Jane now has a $60 Balance for an Item that does not belong to her.
NOTE: Even if you later edit the Item and move it to the correct Account, the Balance from the completed sale will not automatically transfer. You’ll need to manually remove the Balance from the incorrect Account and add it to the correct one.
To remove the incorrect Balance:
Go to the incorrect Account’s Balance History in the Account Detail page.
Click the three dots next to the sale.
Select “Delete.”
This removes the Balance Entry from the Account history but does not delete the sale.
Next, go to the Account that should have received the Balance and create a Balance Adjustment for the correct amount.
More information on settling Accounts and editing Balances can be found in the article here:
In the example above, the Item sold for $100 and should have been under a 50/50 Split Account, so the correct Balance Adjustment would be $50. Be sure to Account for any Discounts, Surcharges, or additional fees when calculating the final amount.
For example, if a Consignor's fee at a flat rate of $5 was applied to the Item, the correct Balance on the Account should be $45 instead of $50. You can always look back at the Price Breakdown on the Sale Detail Page to make sure that all Discounts and Surcharges on the Item are accounted for.
For more information on how Discounts and Surcharges are calculated to affect consignor splits, see the related articles below.
Buy Outright Items
The same process applies to Buy Outright Items. However, for these Items, the Balance is typically affected at the time the Item is created. When making corrections, calculate the adjustment based on the Item’s Cost Per Item rather than the Consignor Split.