Charge vendor fees

Many consignment agreements let you charge the vendor for the space and work its stock takes: storage per pallet or bin, handling per unit received or shipped, or a fixed monthly rent for a room or a cage. Bitta Consignment has no fee setup of its own, because standard Business Central already does this well. Pick the route that fits how the fee is agreed.

The fee	Route
Changes every month and you settle every month	A negative line on the vendor's settlement invoice
Is charged on its own, or is larger than what you pay the vendor	A purchase credit memo, with recurring purchase lines for the fees that come back
Is a fixed rent under a contract	Subscription Billing, a Business Central feature

Deduct fees on the settlement invoice

1. Create the vendor's settlement invoice with Consignment Settlement. See Settle with vendors.
2. Open the invoice. Add a line with Type G/L Account and the income account you use for consignment fees, for example a Consignment Fees account under other income.
3. Enter a Description that the vendor understands, such as the fee and the month, a negative Quantity and the fee per unit in Direct Unit Cost. The line amount is negative.
4. Check the total against the vendor's invoice, enter the Vendor Invoice No. and post.

The fee line credits your income account and lowers what you owe the vendor. The consignment lines and their settlement are unchanged.

Charge with a purchase credit memo

1. Create a Purchase Credit Memo for the vendor.
2. Add a G/L Account line with the fee account, a positive Quantity and the fee in Direct Unit Cost.
3. Enter your reference, such as the fee and the month, in Vendor Cr. Memo No. and post. Apply the credit memo to the vendor's open invoice, or let the next payment take it.

Recurring charges with a standard code

When the same fees come back every month, keep them as recurring purchase lines:

1. Search for Recurring Purchase Lines (the standard purchase codes) and create a code, for example CONSFEES, with a G/L Account line for each fee.
2. On the vendor card, choose Recurring Purchase Lines and add the code. Set Insert Rec. Lines On Cr. Memos to Automatic.
3. Each new credit memo for the vendor gets the lines. Change the quantities to the month's figures and post. On a credit memo where the lines are not added, choose Get Std. Vend. Purchase Codes.

Fixed monthly rent with Subscription Billing

For a fixed rent under a contract, such as a rented room, you can use Subscription Billing. It is a Business Central feature from Microsoft, not part of Bitta Consignment. The rent is income, so it is billed to the vendor as a customer:

1. Create a customer for the vendor, linked to the same company contact as the vendor.
2. Set up a customer subscription contract with a monthly subscription line for the rent. Recurring Billing then creates the sales invoice every month.
3. To offset the rent against what you owe the vendor, use Net Customer/Vendor Balances in the payment journal.

For the setup, see "Welcome to subscription billing" on Microsoft Learn.

Worked example

In October you sold 12 units of a vendor's stock at a settlement price of 250.00. The agreement charges 35.00 per pallet position a month for 4 positions, and 1.50 per unit received; the vendor delivered 60 units. You deduct both fees on the settlement invoice:

Type	Description	Quantity	Direct Unit Cost	Line Amount
Item	Consignment receipt lines, October sales	12	250.00	3,000.00
G/L Account	Storage, October, 4 pallet positions	-4	35.00	-140.00
G/L Account	Handling, October, 60 units received	-60	1.50	-90.00
	Total			2,770.00

You pay the vendor 2,770.00, and the fee account shows income of 230.00. With the credit memo route instead, the invoice is 3,000.00 and a credit memo of 230.00 is applied to it: the same 2,770.00 to pay.

What's next

Return unsold stock or buy aged stock: Returns and Buy-out and aging.