Disbursements and Disbursement Ratios

Disbursements and Disbursement Ratios

What are the different types of disbursements and how do they work?

Disbursement Types  

Item Override Settings (this setting is only valid when the "Use Item Override Settings Disbursement Value" is checked). It controls the disbursement value for a particular item (fixed dollar amount or percentage of a sale).

This should be set when the store owner wants a percentage or fixed price of an item to override the Consignor Ratio, the Disbursement classes and the Default Disbursement Ratio. 
For example, a consignor wants to sell a "luxury watch" for a $1000, and when sold wants 85% of the sale or wants a fixed amount of $700 even though that consignor has Consignor Ratio set to 65%.

*This is recommended for single consignor stores and goes into effect only when the Use Item Override Settings Disbursements Value is checked. 

The Consignor Ratio is set at a consignor level which means that consignors can each have a unique disbursement ratio. 

For example, "Consignor Bob" can be set to 60% meaning they would receive 60% of the net sale of an item. 
                        "Consignor Mary" can be set to 80% meaning they would receive 80% of the net sale of an item. 

Disbursement Class is a monetary range that has a set consignor/store split. 

For example, if an item is sold for between $0.00 to $200, the consignor might receive 50% and you (the store owner) might receive 50%. 
However, an item is sold for between $201.00 and $500.00 there might be a split where the consignor receives 60% and the store owner receives 40%. 

The Default Disbursement Ratio is the percentage of a sale that will be paid to a consignor when an item is sold and payout is made. 

If the "Use Item Override Settings Disbursement Value" is checked, disbursements will be created using this value when there is no Item Override Setting, Consignor Ratio or Disbursement Class or if an item is sold outside of the Disbursement Class.
 
If the "Use Item Override Settings Disbursement Value" is unchecked, disbursements will be created using this value when there is no Consignor Ratio or Disbursement Class set or if an item is sold outside of the Disbursement Class.

Other

The Use Buy Outright Setting is used if you do not have consignors and do not need to set up a specific disbursement ratio for your store. It is used when items are store owned. In this case, you need to record how much you purchased the item for in the Cost field upon item entry. 

Note:
Disbursements do not include taxes, shipping fees, or the buyer fee. The disbursement is created based on the net sale of the item. 



Disbursement Override Hierarchy for the Use Item Override Settings Disbursement Value
*Recommended for Single Consignor stores.

The disbursement order of hierarchy for the Use Item Override Settings Disbursement Value is: 

1. Item Override Settings
2. Consignor Ratio
3. Disbursement Classes
4. Default Disbursement Ratio

What does this mean?

1. This means that if the disbursement Type is set (either % or fixed), in the Item Override Settings then this value is what the consignor will be paid. 

2. If the Item Override Settings is not set, and the Consignor Ratio is set, then the Consignor Ratio is what the consignor will be paid. 

3. If the Disbursement Classes are set, and the Override Settings and Consignor Ratio are not set, then the consignor will be paid depending on how much the product is sold for and what class or range it falls into. 
*Exception: If the item sells for a price that is outside of all the set classes, the consignor will be paid according to the Default Disbursement Ratio. 

4. If the Default Disbursement Ratio is set, and the Item Override Settings, Consignor Ratio and Disbursement Classes are not, this is what consignor will be paid *(Or see the exception in #3)

Single Consignor Hierarchy - when the box "Use Item Override Settings Disbursement Value" is checked.

Here's a visual representation of the Single Consignor Hierarchy when the box "Use Item Override Settings Disbursement Value" is checked.



1. Item Override Settings - If the Item Override Settings Disbursement Type and Disbursement Value have been set at the time of item creation or edited at any time before the disbursement, the disbursement will be based on Disbursement Type - percentage or dollar value set at the product level. 







2. Consignor Ratio - If the Item Override Settings have not been set or edited, the disbursement will be based on the consignor ratio entered in a consignor's settings if there is a value entered. 



3. Disbursement Classes - If no Item Override Settings have been set or edited AND a consignor does not have a Consignor Ratio value in their Consignor Settings, the disbursement will be based on the Disbursement Classes in Store Settings.
Note: 
If an item is sold at a price that falls outside of the Disbursement Classes, the disbursement will be created based on the Default Disbursement Ratio. 










4. Default Disbursement Ratio - If no Item Override Settings have been set or edited AND if there is no Consignor Ratio value in a Consignor's Settings AND no Disbursement Classes, the disbursement will be created based on the Default Disbursement Ratio.
OR
If an item is sold at a price that falls outside of the Disbursement Classes, the disbursement will be created based on the Default Disbursement Ratio. 



Item Override Settings

Item Override Settings should be set when the store owner wants a percentage or fixed price of an item to override both the Default Disbursement Ratio and the Consignor Ratio. 

a. Click Items.
b. Click on the item that you would like to apply disbursement Item Override Settings to.



c. Scroll down to the bottom of the page to Item Override Settings.
d. Click the arrow and select 'Percentage' or 'Fixed'.
e. Enter the percentage or amount.
f. Click Save.



Consignor Ratio

The Consignor Ratio should be used when the store owner wants the consignor ratio to override the Default Disbursement Ratio. This is set at a consignor level which means that consignors can each have a unique disbursement ratio.

To set a consignor ratio: 

a. Click Consignors.
b. Click Settings.
c. Enter the percentage of the sale that you would like the consignor to receive. 



Disbursement Classes

Disbursement Class is a monetary range that has a set consignor/store split. 

For example, if an item is being sold from $0.00 to $200, your consignor might receive 50% and you (the store owner) might receive 50%. 
However, an item that is being sold for between $201.00 and $500.00 might have a split where the consignor receives 60% and the store owner receives 40%. 

To create a disbursement class:

a. Enter the start range
b. Enter the End Range
c. Enter the Consignor profit (this is the percentage 
of the sale that will go to the consignor minus any surcharges)
d. Click Submit. 

Repeat this until all disbursement classes have been completed. 




To edit a class that you have already created

a. Click on the ellipsis (3 dots) on the right side of the columns.
b. Click Edit.









Default Disbursement Ratio

Default Disbursement Ratio is the percentage of a net sale that will paid to a consignor when an item is sold and payout is made. 

Aravenda will use this percentage to payout consignors unless:

1.  There is a percentage or fixed amount set at the item level in Item Override Settings
2. The consignor has a Consignor Ratio set in their profile. 
3. There are Disbursement Classes created. 
4. The item sells for a price that is outside of the Disbursement classes.

To set the Use Item Override Settings Disbursement Value:
 
a. Click Store Settings.
b. Click Disbursements.
c. Check the box 'Use Item Override Settings Disbursement Value'.
d. Enter the desired  Default Disbursement Ratio. 




Disbursement Override Hierarchy for the Use Item Override Settings Disbursement Value


Multi-Consignor Hierarchy - When the "Use Item Override settings Disbursement Value is unchecked.
*Recommended for Multi-Consignor stores.
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Here's a visual representation of the Multi-Consignor Hierarchy when the box "Use Use Item Override Settings Disbursement Value" is unchecked.



1. Consignor Ratio - The disbursement will be based on the consignor ratio entered in a consignor's settings if there is a value entered. 












2. Disbursement Classes - If a consignor does not have a Consignor Ratio value in their Consignor Settings, the disbursement will be based on the Disbursement Classes in Store Settings.

Note: 
If an item is sold at a price that falls outside of the Disbursement Classes, the disbursement will be created based on the Default Disbursement Ratio. 



3. Default Disbursement Ratio - If there is no Consignor Ratio value in a Consignor's Settings and no Disbursement Classes, the disbursement will be created based on the Default Disbursement Ratio.
OR
If an item is sold at a price that falls outside of the Disbursement Classes, the disbursement will be created based on the Default Disbursement Ratio. 



Consignor Ratio

The Consignor Ratio should be used when the store owner wants the consignor ratio to override the Default Disbursement Ratio. This is set at a consignor level which means that consignors can each have a unique disbursement ratio.

To set a consignor ratio: 

a. Click Consignors.
b. Click Settings.
c. Enter the percentage of the sale that you would like the consignor to receive. 



Disbursement Classes

Disbursement Class is a monetary range that has a set consignor/store split. 

For example, if an item is being sold from $0.00 to $200, your consignor might receive 50% and you (the store owner) might receive 50%. 
However, an item that is being sold for between $201.00 and $500.00 might have a split where the consignor receives 60% and the store owner receives 40%. 

To create a disbursement class:

a. Enter the start range
b. Enter the End Range
c. Enter the Consignor profit (this is the percentage 
of the sale that will go to the consignor minus any surcharges)
d. Click Submit. 

Repeat this until all disbursement classes have been completed. 




To edit a class that you have already created

a. Click on the ellipsis (3 dots) on the right side of the columns.
b. Click Edit.









Default Disbursement Ratio

Default Disbursement Ratio is the percentage of a net sale that will paid to a consignor when an item is sold and payout is made. 

Aravenda will use this percentage to payout consignors unless:

1.  There is a percentage or fixed amount set at the item level in Item Override Settings
2. The consignor has a Consignor Ratio set in their profile. 
3. There are Disbursement Classes created. 
4. The item sells for a price that is outside of the Disbursement classes.

To set the Use Item Override Settings Disbursement Value:
 
a. Click Store Settings.
b. Click Disbursements.
c. Check the box 'Use Item Override Settings Disbursement Value'.
d. Enter the desired  Default Disbursement Ratio. 



Use Buy Outright Setting

The Use Buy Outright Setting is used if you do not have consignors and do not need to set up a specific disbursement ratio for your store. It is used when items are store owned. In this case, you need to record how much you purchased the item for in the Cost field upon item entry. 

To set the Use Buy Outright Settings:

a. Click Store Settings.
b. Click Disbursements.
c. Check the Use Buy Outright settings box. 
























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