Meta



This article looks at the type of additional commission given by consignor to consignee and the purpose(s) of giving such incentives/commissions.

Overriding Commission

  • Commission given to the consignee in addition to the normal commission
  • Purpose of such incentive is to motivate the consignee to create market for new products.
  • Sometimes, this additional commission is allowed to consignee where certain sales limits have been exceeded.

 

Del Credere Commission

  • Commission given to the consignee in addition to the normal commission
  • Purpose is for the consignee to bear/absorb the loss on account of bad debts if any, arising out of credit sales of consignment goods
  • Computed based on total sales unless it is agreed on credit sales.
  • Once the consignee is given del credere commission, he become liable to all losses on account of non-recovery of debts

 

If you found this post useful, keep updated with future posts by subscribing to FMAccounting (for free) through RSS or email.


No Responses to “The Difference Between Overriding Commission and Del Credere Commission In Consignment Accounting”  

  1. No Comments

Leave a Reply


Bookmark and Share

Keep Updated

Recommended

Accounting Blogs/Sites