Value of unsold stock

Value of unsold stock = cost price of closing stock + Proportionate of non-Recurring expenses (consignor & Consignee)

Value of unsold stock = = (Cost of goods sold+Proportionate of all expenses/Total Quantity) X unsold stock

Performa Invoice

A statement which is sent by consignor to consignee with details about quality, quantity and price to guiding the consignee for sale of goods is called Performa invoice. 

A pro forma document is provided prior to of AN actual dealing. Such a document is a model for the particular documents of the dealing. for instance, once a replacement corporation is visualised, its founders might prepare a business arrange containing professional forma monetary statements, like projected money flows and financial gain statements.

In Foreign trade transactions, a professional forma (or proforma) invoice may be a document that states a commitment from the vendor to order some merchandise to be oversubscribed to an exact person, the buyer. the client places AN order and if the vendor agrees, it extend a proforma invoice; once the client receives this invoice and agrees to any or all the terms laid out in it, the products square measure sent and also the proforma is replaced by an advertisement invoice (the definitive document). A proforma invoice does not establish any obligation of transfering cash from the client to the vendor.

Stock on Consignment

Good unsold at the time of sending account sales by the consignee to the consigner is called stock on consignment.

If you raise somebody United Nations agency has recently made a house, its value, what would he/she say? they might think the quantity they need spent on shopping for land, registration charges paid, materials for construction, labour payments, etc., add up identical and categorical that figure (sum) as its price.

Overriding Commission

An additional commission which is paid by consignor to consignee for introducing new product in the market is called overriding commission.

Overriding commission is commission that's earned  by the field office manager and is predicated upon the business that's created by the agents within the workplace. as an example, within the insurance trade, it's a commission paid to agents who have exclusive territorial or class-of-business agreements with an insurance company, for all policies written in their territory or for that class of business, even though the business is written by other agents.

Overriding commission is that portion of a commission received and preserved by a general agent once paying the opposite portion to a manufacturing agent whose business is supervised by that general agent. also known as overwriting commission.

Del Credere Commission

An additional commission paid to consignee who guarantees for payment in case of credit sale is called del credere commission.

An agreement by that an agent or issue, in thought of a further premium or commission (called a del credere commission), engages, once he sells merchandise on credit, to insure, warrant, or guarantee to his principal the solvency of the client, the engagement of the issue being to pay the debt himself if it's not punctually discharged by the client when it becomes due.

Commission

A remuneration paid by consignor to consignee or to seller by producer of goods for sale of goods or for provide services is called commission.

The payment of commission as remuneration for services rendered or merchandise sold is a common way to reward sales individuals. Payments typically will be calculated on the basis of a share of the goods sold. this can be some way for companies to resolve the principal–agent problem, by attempting to realign employees' interests with those of the firm.

One of the most common means of trying to align principal and agent interests is to design a contract with incentives that track agent performance. The principal–agent theory provides an explanation for the dissimilarities across the marketing companies in the varieties of compensation plans employed by them, like mounted salary, straight commission or a combination of each fixed salary and straight commissions.

Account Sales

A periodical statement sent by consignee to consigner that show the detail of goods sold, price realized, commission and expenses incurred by consignee on consignment is called account sales.

A statement showing the net results of a procurement or sale transaction created by one person on another's account or behalf with commission other alternative charges included.