What Is a Seller Deduction and How Do I Use One?
A seller deduction subtracts the amount a buyer owes on an invoice from the settlement of the same person as a seller. Use a seller deduction when one person is a buyer and a seller in the same auction. The deduction decreases the amount you pay the seller on their settlement.
When to Use a Seller Deduction
Auction companies often sell items for a person who also buys items in the same auction. That person owes money on an invoice, and the company owes that person money on a settlement. A seller deduction nets the two amounts, so the company pays or collects only the difference.
How a Seller Deduction Works
You add a seller deduction on the buyer's invoice. When you add the deduction, you must select the seller from the same auction. The platform subtracts the deduction amount from that seller's settlement. The amount also shows on the Auction Summary.
A deduction added on a settlement is different. That deduction does not make you select a buyer, and the amount does not show on the Auction Summary. Add the deduction on the invoice when you want it connected to the buyer's invoice.
How to Add a Seller Deduction to an Invoice
Open the invoice for the account the seller used to bid with.
Choose Add Payment, and select Seller Seduction. Select the corresponding Seller account from the drop-down and Save:
The payment line now includes a link to that seller's settlement:
One the seller's Settlement, that invoice 'payment' is shown, and deducted from the amount owed to the seller. The payment line also includes a link to the relevant invoice.
When the Buyer and the Seller Are in Different Auctions
A seller deduction works in one auction only. The platform does not move a deduction from one auction to a different auction. The platform also does not hold settlement money as credit toward a future purchase. For these balances, use the Custom payment option or credit on the invoice to record the amount that you net against the settlement.
FAQ
Can I move a seller deduction from one auction to another? | No. A seller deduction connects an invoice and a settlement in the same auction only. For a balance across two auctions, record a Custom payment on the invoice. |
Does a seller deduction show on the Auction Summary? | Yes, a deduction added on an invoice shows on the Auction Summary. A deduction added on a settlement does not show there, because that amount is money paid to the seller and not income. |
Can I hold a seller's settlement money as credit for a future auction? | No. The platform does not have a feature that applies settlement money as credit toward a future purchase. Record a Custom payment on the future invoice when the seller uses that money. |
What's the difference between a seller deduction and a seller buy back? | Use a buy back when a seller purchases their own item back, with zero charges on the invoice and a buyback fee on the settlement. Use a seller deduction when the same person buys other items and you net the invoice against the settlement. |
What's the difference between a deduction and an expense or credit on a settlement? | Expenses and credits change the settlement total directly. The settlement grand total equals the subtotal, minus commissions, minus expenses, plus credits. A seller deduction is different because it connects to a buyer's invoice in the same auction. |
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If you have questions about a deduction or a settlement, please contact us at helpdesk@bidwrangler.com. We are happy to help.