Settlements

About Settlements

Settle for $0- Process settlements for $0 to remove old settlements that were not entered in BCSS, and/or to process mall charges that are equal to or more than the client's balance due. The program will create at least one payment record even if both payment types are 0 (for single settlements but not for batch settlements).

Settlements Grouped with Sales - BCSS reports now display settlements with their associated sales.

Client Bonus for Store-Credit Settlement - Give an automatic bonus to Clients who settle for store credit. In Program Setup on the Clients Screen, set the bonus amount in 'Bonus for Store Credit Settlement'. When 'Credit' is selected as the settlement payment method, the bonus is auto-applied. (not available with batch settlements)

Save paper! Print Settlements two per page. On the New-Settlement Screen check 'Print 2 settlements per page (for settlements with fewer than 5 items).' (This feature was recently added. If it is not present in your BCSS, please email support to update your program.)

Include Layaways in Settlements by checking 'Include Layaways in Settlements' in Program Setup, Clients Tab.

Deduct an Amount from Each Settlement by entering the amount on the Batch-Settlement Screen.

If Store Credit is being collected on the settlement, the payment method will be set to Store Credit.

Please Note: The prevailing consignor split percentage is the percentage recorded in each item record (which may be different from the default percentage recorded in the Client Record). Correct incorrect percentages (for unsold or unsettled items) using the Percentage Tool in the Clients Work Area.

When making settlement payments, the best thing is to pay settlements by check or use money not from the till. It will simplify matters to reserve the till for sales only. In most situations sales clerks won't be doing settlements. There is currently no way to know from whose till a payment was made, other than restricting employee access to settlements and not paying settlements from sales tills.


What Is a Consignment Settlement?

A 'Consignment Settlement' is the resolution of a sale, allocating sales proceeds to the shop, client (and employee if applicable). When a sale is completed the program places each client's proceeds in 'suspense' until you tell the program what to do with the proceeds (pay out by Check, Cash, PayPal, Store Credit or Gift Certificate).

A 'Sale' increases shop income, client and employee balances.

A 'Settlement' decreases shop and client balances due. Employee balance due remains the same.


What Is A Buy-Outright Settlement?

A 'Buy-Outright Settlement' is the completion of a purchase from an individual (as opposed to a business, which is 'Retail' in BCSS).

The information about settlements on this page relate mostly to consignment. For details about buy-outright settlement, go here. Use the browser's Back Button to return here.

Split Settlements

When the payment is automatically split on a new-settlement document, the first amount is the amount that the consignor owes for in-store purchases. The second amount is the amount remaining after covering store purchases.

Pay the first amount by selecting Store Credit from the drop-down list. Pay the second amount by Cash or Check. If the first amount is not paid by Store Credit, the account balance will become negative (which can be resolved on the next settlement, because the program will remember the amount owed.)


Using Consignment Software for Settlements

Best Consignment Shop Software records client inventory received and sold.

When a sale is saved, BCSS computes the amount owed the client (and sales person in Diamond and Virtual) and records the items sold in a 'Settlement Document' and prepares a Disbursement Record.

  • Settlements can be processed in batch or for one item at a time (with control of what items are to be settled and how).
  • Clients may be paid in Cash, by Check, by Gift Certificate or in Store Credit.
  • Payments to Clients may be split two ways using any two of the four options listed above.
  • A Settlement can be increased or decreased manually.
  • RIGHT-click on the Settlement Items for a menu of functions like edit, delete, etc. Double click on a settlement record to open its Edit Screen.
  • Settlements will not be listed for settlement if the amount of the settlement is below the amount stipulated in Program Setup (Clients).

If QuickBooks is used in conjunction with BCSS, QuickBooks requires that checks be written for all disbursements so BCSS only exports check disbursements to QuickBooks. This will cause a discrepancy in Current Funds between BCSS and QuickBooks, so follow the QuickBooks discipline of using checks for everything. This means no settlements for credit.


Correcting Settlement Errors

An erroneous settlement can be deleted. All related inventory entries will be reversed. The next time a settlement is processed for the consignor, the inventory items will be presented again for settlement.

It is not possible to delete a commission document. Related Settlement disbursement documents also cannot be deleted, but they can be edited. If a disbursement document status is set to 'Not Approved', the amount will not be included in report totals.

Settlement amounts can be credited to a client's account to fund purchases of store merchandise. To do this, choose 'Credit' as the payment method in the payment area at the bottom right of the Settlement screen. There are two payment lines in the payment area to facilitate splitting the payment into two parts as needed.

Corrections to settlements may be made for unsold items and sold items which have not been settled. To do that, select the client and click on Percentage Tool in the Client Work Area Menu, and make the appropriate changes.


Important Disbursement Adjustment

If a Settlement is deleted, go to the Disbursements Work Area and mark the corresponding disbursement as canceled.


Please Note: The prevailing consignor split percentage is the percentage recorded in each item record (which may be different from the default percentage recorded in the Client Record). Correct incorrect percentages using the Percentage Tool in the Clients Work Area.

Client % by Category - Assign different client %'s to different categories. Go to Main Menu then Inventory then Categories. Select a Category and enter the appropriate percentage. Click Save/Exit.

Settle for $0- Process settlements for $0 to remove old settlements that were not entered in BCSS, and/or to process mall charges that are equal to or more than the client's balance due. The program will create at least one payment record even if both payment types are 0 (for single settlements but not for batch settlements).


Settlement Adjustments

A Settlement can be increased or decreased manually.

Click on a settlement in the Main Menu:

Enter Additions or Deductions in the appropriate fields:

Settlement totals will be adjusted accordingly.

Enter notes to appear on the settlement statement and notes that are for 'shop eyes only':

Note that neither individual nor batch Settlement will take account balance adjustments (pluses) or account balance credits (minuses) into account. The Settlement will be exclusively for amounts owed Clients for inventory sold.

To clear a negative client account balance, process a Settlement amount for credit.

To clear a positive account balance left after all settlements have been processed, process a Client Credit Purchase or adjust the balance to zero in the Client Edit Screen, Account Status tab.


Delete a Settlement

BCSS does not automatically reverse payments associated with cancelled settlements. The program allows the user to decide in each instance what adjustment should be made to the client's account.

  1. If payment was by cash or check, go to the Disbursement Work Area and mark the disbursement 'Not Approved' by editing the disbursement record.
  2. If the payment was Store Credit, edit the consignor record, setting Store Credit to whatever it should be. If the settlement is to be reentered, Store Credit should probably be reset to its value prior to the deleted settlement.

Correcting Settlement Errors

An erroneous settlement can be deleted (reversed). All related inventory entries will be reversed but the disbursement record for the settlement will not be reversed. If payment was by cash or check, go to the Disbursement Work Area and mark the disbursement 'Not Approved' by editing the disbursement record.

The next time a settlement is processed for the consignor, the inventory items will be presented again for settlement.

Clear a wrong settlement amount by doing a settlement for the item. If a payment needs to be made, change the amount of the payment on the settlement to the correct amount. To make the record go away, process the settlement for zero amount.

It is not possible to delete a commission document. Related Settlement disbursement documents also cannot be deleted, but they can be edited. If a disbursement document status is set to 'Not Approved', the amount will not be included in report totals.

Settlement amounts can be credited to a client's account to fund purchases of store merchandise. To do this, choose 'Credit' as the payment method in the payment area at the bottom right of the Settlement screen. There are two payment lines in the payment area to facilitate splitting the payment into two parts as needed.

Corrections to settlements may be made for unsold items and sold items which have not been settled. To do that, select the client and click on Percentage Tool in the Client Work Area Menu, and make the appropriate changes.


Settled Items and Voided Invoices

If an invoice is voided that contains settled items, BCSS does not adjust consignor balances or settlement records. Since actual settlements are tied to actual disbursements (that might or might not be recoverable), it makes sense to let those records stand when a supporting invoice must be voided.

Voiding an invoice adjusts the consignor balance if the items have NOT been settled. For items that have been settled, delete the settlement to adjust the consignor record.

If the settlement/payment is left standing while the consignor record is adjusted by a voided invoice, the settlement record is not supported by item records. Later on it will not be possible to know what transpired.


Important Disbursement Adjustment

A Disbursement Record is created for every Settlement. When a Settlement is deleted, change the corresponding Disbursement Record to 'Not Approved'. Otherwise a higher amount of disbursements will be recorded than has actually been paid.

Find (Orphan) Disbursements with No Corresponding Settlements

Go to Reports then Disbursements and click on Print the Report. (The number of entries in the report can be reduced by setting a Date Range. Remember to check the box.) Orphan Disbursements will display a negative Settlement ID. Find the Disbursement in the Disbursements Work Area and change its status to 'Not Approved'. Repeat the process to find all Orphan Disbursements.


Sold Items Missing After Deleted Settlement

After deleting a settlement and re-doing it, some items may be missing (because they were deleted). In the Client's Work Area, select a consignor and click on the Undelete Button to recover them.


(This feature is available in BCSS Deluxe, Diamond and Virtual.)

Aged Batch Settlements

Please Note: The prevailing consignor split percentage is the percentage recorded in each item record (which may be different from the default percentage recorded in the Client Record). Correct incorrect percentages using the Percentage Tool in the Clients Work Area.


Aged Batch Settlements

Aged Batch Settlements includes only sales for prior months. Use Batch Settlements for sales in the current month.

Note: Aged-Batch Settlements will include the current month's settlements if a minimum days between settlements is specified on the Clients Tab in Program Setup.

Note: Setting a minimum amount for settlement on the same Clients Tab will exclude all settlements for less than the amount stipulated (for Aged-Batch Settlements).


These settlements require special processing and are not included in Aged Batch Settlements:

  1. Clients with negative store credit
  2. Clients owing mall charges
  3. Clients from whom items have been purchased items outright
  4. Transfer Accounts

Why are values carried out to 4 and 5 decimal places in BCSS? For accuracy. With only 2 decimal places, a sum of (percentages times amounts) won't equal the percentage applied to the total of the amounts. The inaccuracy becomes more important for large settlements.


Process Aged Batch Settlements

Access Settlements from the Work-Areas Menu:

Select Aged Batch Settle from the Settlements Menu.

The screen lists all Clients who have Settlements due along with Client ID, Settlement #, Amount, Sales Value and Date of Last Settlement (if any).

Check all Clients whose accounts are to be settled. (Use 'Check All' and 'Check None' for convenience.)

Select a Payment Method. If groups of Clients are to be paid by different methods (Cash, Check, PayPal, Credit, Gift Certificate), select the payment method and only select Clients who are to be paid by that method. (Ignore the check # if Clients are being paid other than by check.)

Click 'Save, Print, Exit' to print or 'Save and Exit' to save the transaction without printing.

The Batch Settlement screen will close leaving the Settlements Work Area in view.

In the background BCSS will make the necessary calculations and adjustments to accounts and prepare checks for printing where appropriate.

Proceed to Disbursements to print checks and/or to Employees to pay commissions, or do these at another time.


Important Disbursement Adjustment

If a Settlement is deleted, go to the Disbursements Work Area and mark the corresponding disbursement as canceled.


Situation: We settled accounts for last month and didn't print the checks until we made a few corrections to final settlements. When I went back to print the multiple checks the settlements were no longer available and somehow the consignors were settled for the 1st and 2nd of this month. I thought I could go back to the previous settlements by selecting the aged batch settlement tab and they aren't there either.

Solution: Delete settlements for last month and cancel the payment records, then redo the settlements using Aged Batch. That will automatically exclude settlements for the current month.


Batch Settlements

Please Note: The prevailing consignor split percentage is the percentage recorded in each item record (which may be different from the default percentage recorded in the Client Record). Correct incorrect percentages using the Percentage Tool in the Clients Work Area.

As of 8/17/13 with v. 6.0.418, Batch Settlements can be disabled by checking 'Hide Batch Settlements' on the consignors tab in program setup.


Batch Settlements

A time-saving feature is the ability to process all or a select number of settlements at one time. All accounts are updated and disbursement checks are prepared when appropriate.

Helpful Tip: Process settlements in 'batch' by grouping settlements. For example, if settlements greater than a certain amount (like $15) are to be treated differently from settlements less than a certain amount (like $15), set the minimum settlement amount to $15 (in Program Setup on the Clients Tab).


The following transactions and situations require special processing and are not included in Aged Batch Settlements:

  1. Clients with negative store credit
  2. Clients owing mall charges
  3. Clients from whom items have been purchased outright
  4. Transfer Accounts

Why are values carried out to 4 and 5 decimal places in BCSS? For accuracy. With only 2 decimal places, a sum of (percentages times amounts) won't equal the percentage applied to the total of the amounts. The inaccuracy becomes more important for large settlements.


Process Batch Settlements

Select Batch Settle from the Settlements Menu: (Intro: Select Batch Settlement from the Clients Menu.)

The screen lists all Clients who have Settlements due along with Client ID, Settlement #, Amount, Sales Value and Date of Last Settlement (if any).

Check all Clients whose accounts are to be settled. (Use 'Check All' and 'Check None' for convenience.)

Select a Payment Method. If groups of Clients are to be paid by different methods (Cash, PayPal, Check, Credit, Gift Certificate), select the payment method and only select Clients who are to be paid by that method. (Ignore the check # if Clients are being paid other than by check.)

Click 'Save, Print, Exit' to print or 'Save and Exit' to save the transaction without printing.

The Batch Settlement screen will close leaving the Settlements Work Area in view.

In the background BCSS will make the necessary calculations and adjustments to accounts and prepare checks for printing where appropriate.

Proceed to Disbursements to print checks and/or to Employees to pay commissions, or do these at another time.


Important Disbursement Adjustment

If a Settlement is deleted, go to the Disbursements Work Area and mark the corresponding disbursement as canceled.


Buyer Fee

(This feature is part of an optional module ($19.95/month) which includes passing credit-card charges on to consignors and buyers where allowed by law.)

Note: Enter percentages in decimal format in BCSS Program Setup. For example, enter 5% as .05. Do not enter '5'. (That would be 500%.)

What is a 'Buyer Fee'?

A 'Buyer Fee' is an amount taken off the top of the sale for the store prior to applying the Consignor Split.


Why Have a Buyer Fee?

Apparently some store owners use a Buyer Fee as a means of 'increasing store profit'.

BCSS does not advocate charging fees that are not fully disclosed. Consignment Agreements should include disclosure of any and all fees.


Buyer Fees Applied in BCSS

  • There can be up to 6 fees configured: 3 by dollar amount and 3 by percentage.
  • The fee will not be deducted from price labels or prices on invoices.
  • Consignor Account Balances and Reports take the fee into account.
  • The fee is disclosed to the seller in the Unit Price on the Settlement.
  • The fee has no effect on past settlements. It does affect all settlements after the fee has been applied.
  • If the fee schedule is changed, the new fee will be applied at time of settlement. After settlement, the fee for the sale of an item cannot be changed.
  • Shop Totals (Reports > Sales Recap) shows the total of fees.
  • The fee can be displayed on Inventory Lists or not. (Choose this option in Program Setup on the Sales tab.)
  • The fee can be applied (or not) for each item on the invoice.

Setting Up the Buyer Fee

Up to 6 different fees may be entered in BCSS, then when processing a Sales Invoice, a different fee may be selected for each item on the Invoice.

Click on File, Program Setup, then the Sales tab.

Check any box and enter a value for Flat Fee or Percentage (in decimal form). Up to 6 values may be entered.

Check the following option to show the fee deducted from the 'Brief Inventory List' and the 'Detailed Inventory List':

buyer fee

Click OK to save the entries and exit Program Setup.


Applying the Buyer Fee on Sales Invoices

The Default Fee (see below) will be auto-entered for each item added to the Sales Invoice.

If no fee or a different fee is desired, click in the Buyer-Fee Field; click on the blue arrow that appears and make a selection.

buyer


The Default Buyer Fee

The Default Fee is auto-entered on the Sales Invoice for each line item. The default is determined by position among the six boxes (in Program Setup) which have priority from top to bottom and from left to right.

For example, Flat Fee 3 on the left will be the default (if Flat Fee 1 and Flat Fee 2 are not set), taking precedent over any percentage on the right.


Buyer Fees for Multiples of the Same Item

Upon settlement, BCSS reduces the Unit Price by the amount of the fee then multiplies by the number of units. The Settlement Amount is that result times the Consignor Percentage.


Settlement Checks

Test Print allows for settlements to be printed without finalizing them, leaving the option to finalize them later and print checks. (Once settlements have been finalized, checks must be printed one at a time from the Disbursements Work Area.)

Checks Not Delivered

Occasionally a settlement check is not delivered. The settlement can be voided and the disbursement canceled - but the items that were settled won't show up in the client's account. Here's what to do:

In BCSS the items were probably moved to Deleted Items. To add them back to the 'to-be-settled list', from the Client Work Area, select a consignor and click on Undelete Items on the right. A list of items for the selected consignor will be presented. check the items to be restored then select Record/Exit. The items will now appear on the New-Settlement Screen.


Pay One Client by Check (See Pay Multiple Clients below.)

When a settlement is finalized with 'Check' as the payment method, BCSS saves the settlement, prepares a check for printing and lists it in the Disbursement Work Area.

To pay a consignor by check, after the settlement has been processed -

  1. Go to the Disbursement Work Area.
  2. Select the check to be printed from the table by clicking on it.
  3. Select Print Check from the Disbursements Work Area Menu (lower left).

  4. On the next screen (not shown), select a print position for the check (top, middle or bottom).
  5. Click the X in the upper-right corner of Check-Position Window to close the window.
  6. The print that will appear on the check is presented in a Print-Preview Window.
  7. If the information is correct, click the Printer Icon on the top menu:

  8. The next screen to appear is the Windows Print Setup screen.

    The settings should be:

    • Name: The correct printer name should appear here.
    • Size: Letter
    • Page range: Current page
    • Orientation: Portrait (Never 'As Preview')
    • Number of copies: 1
  9. When settings are correct, load a blank sheet of paper in the printer and press OK to start printing.
  10. Place the printed page over a check page, square them and hold them up to the light to verify that the print will appear in the correct positions on the check.
  11. If the print position is incorrect, follow the procedures for Adjusting Print Position on Checks.
  12. If the print positions are correct repeat the printing of the check but load the sheet of checks into the printer.

To pay a consignor by check for a settlement not yet finalized -

  1. In the Settlements Work Area, select Batch or Aged-Batch Settlements.
  2. Click on 'Check None' to uncheck all accounts.
  3. Check the account to be settled.
  4. Make any other necessary adjustments (total amount, date, deductions, check #).
  5. Verify that Payment Method is 'Check'.
  6. Click Print Settlements - Settlements are created and will automatically be sent to the printer. DO NOT CLOSE THE WINDOW.
  7. Verify correctness. If any changes need to be made, delete the settlement, void the disbursement and manually re-create the settlement using 'Settle New' (F7).
  8. Click 'Print Checks'.

All checks will be sent to the printer. It might be advisable to only feed one sheet of checks at a time to assure proper printing and avoid issues with paper jams, out-of-ink runs, etc.

Here's another way to finalize the settlement and print the check:

  1. In the Clients Work Area, select the consignor to be settled.
  2. Press F7 or click 'Settle New F7' (top right).
  3. Make any other necessary adjustments (total amount, date, additions, deductions, check #) and/or notes.
  4. Verify that Payment Method is 'Check'.
  5. Change the check # if necessary.
  6. Click 'Save, Print, Exit' to save the settlement, or
  7. Click 'Save and Exit' to just save the settlement.
  8. Go to the Disbursements Work Area.
  9. Click on 'Today':

  10. Select the check.
  11. At the lower left, click on Print Check.
  12. Press View All to display all records again.


Pay Multiple Clients by Check

  1. Select Aged-Batch Settle or Batch Settle from the Settlements Work-Area Menu:

    Sales eligible for settlement will be listed. Uncheck those that are not to be processed and make sure 'Check' is the Payment Method selected.

    (Settlements for less than the amount stipulated in Program Setup will not appear in the list.)

  2. Place enough checks in the printer tray.
  3. Click on Print Checks:

    Checks should start to print. (It might be advisable to load one sheet at a time to control printing and monitor for print errors.)


Credit-Card Charges Deducted from Settlements

BCSS has 3 optional features for passing the cost of credit-card processing on to clients.

  1. A % can be auto-deducted from settlements of credit-card sales. Any individual's record can be flagged to not participate.
  2. A % can be added to credit-card sales at POS. The surcharge can be removed per invoice.
  3. A % or dollar amount can be deducted from all settlements prior to splitting sales proceeds with clients.

Several stores use this option to increase income (by reducing credit-card costs, including the $19.95/mo for these options).


After signing up for these features:

1. Deduct a % from Settlements

  1. In BCSS go to File, Program Setup, Sales tab.
  2. Enter the % to be deducted from each settlement amount (of an item purchased by credit card) as a decimal value:

    deduct
    (There will be no deduction for other forms of payment like cash, check...)

When a settlement is opened, the amount to be deducted will be displayed in the Deductions field.

If any person is to be exempt, on the new-client or edit-client screen, check 'No Credit-Card Fee'. If police reporting is activated, look for that option on the Details tab.


2. Add a % to Credit-Card Sales

  1. In BCSS go to File, Program Setup, Sales tab.
  2. Enter the amount to be added to each credit-card sale as a decimal value:

    credit card sales

The surcharge can be removed.


3. Deduct a 'Buyer Fee' % or $ Amount

  1. In BCSS go to File, Program Setup, Sales tab.
  2. Under Buyer Fee Options, enter up to 3 flat or percentage amounts to deduct from all sales proceeds prior to applying the Consignor %.:
  3. ...and check this box:

The Buyer Fee will be deducted from each settlement and can be adjusted on the settlement screen.


How to Process Credit Cards

  1. You'll first need a Merchant Account (bank account) and a credit-card processing service. They provide a card swiper/pin pad and complete instructions for processing credit cards.

    At POS:

  2. In BCSS, process a new sale and select the card type (Visa, MC, Discover, Debit, Amex).
  3. Swipe the card and process the card transaction. (Do this before saving the sale in case the card is declined.)
  4. Save the sale or save the sale and print an invoice (receipt).

BCSS Credit-Card Payment Reports


Reports for Single Credit-Card Types

  • Click on Reports on the Main Menu and select Sales.
  • Select the card type (Visa, MC, etc.) from the drop-down list for '1st Pay Method'.
  • Use other settings on the page to narrow the scope of the report.
  • Click on Print the Report or View the Report.

Reports for All Credit-Card Types

  • Click on Reports on the Main Menu and select Sales.
  • Select 'All Methods' from the drop-down list for '1st Pay Method'.
  • Use other settings to narrow the scope of the report.
  • Click on Sales Recap.
  • Uncheck all options except Payment Recap.
  • Click Preview/Print.

QuickBooks Merchant Services

Intuit's QuickBooks is not a good software program for consignment shops because QuickBooks doesn't support consignment settlements or payments other than checks. Intuit's credit card processing is integrated with QuickBooks software, which requires that an Intuit Sales Invoice be completed in addition to completing the BCSS invoice. It has been suggested that a card swiper could be used that doesn't incorporate Intuit's software but we are unaware of anyone who has used that work around successfully.


Make the follow entries to give cash back on a credit-card transaction: Put the credit-card amount in Payment 2 and make payment 1 for cash with 0 for the amount. BCSS will deduct the amount of change due from Payment 1 (cash), making it a minus number. Cash total and credit-card totals for the day will be correct.


Delete a Settlement


A Settlement cannot be changed after it is saved.

To correct a Settlement, delete the existing Settlement and create a new Settlement.

Select  a Settlement in the List of Settlements.

Select Delete Settlement from the Settlement Menu.

The item is deleted from the list.


Important Disbursement Adjustment

If a Settlement is deleted, go to the Disbursements Work Area and mark the corresponding disbursement as canceled.


Deduct Miscellaneous Charges

Set a percentage to be deducted automatically from settlements for credit-card sales.


Deduct Extra Miscellaneous Charges

Deduct any additional amounts (repair, cleaning, pickup, delivery, etc.) automatically from settlements.

  1. Edit the applicable consignor record.
  2. Select Current Charges.
  3. Use one of the pre-defined charges or enter your own, starting with line 8.
  4. Edit or add an optional Description for fee.
  5. Enter the Amount.
  6. Prior to settlement, check the box under 'Pay This?' to apply the charge to the settlement.
  • Click OK to save the entry and process the payment later (via a settlement or store credit).
  • Click Exit to close the window and not save the entry.
  • Click Save and Continue to save the entry and continue editing.
  • Check the 'Pay This?' box and select Pay Selected to start processing the payment from Store Credit.

When this window is next opened, entries appear at the top, plus the 7 predefined types and blank lines below ready to be used again.


Collect Payment from Store Credit

  1. On the Current-Charges Screen, check the box(es) of the charges to be paid.
  2. Select Pay Selected. A Credit-Sale Screen will open with the amount of store credit available.
  3. If the amount of store credit exceeds the payment, click Save to save the transaction, or click 'Save, Preview, Print' to save and print the transaction.
  4. If the amount of store credit is less than the payment, additional payment may be collected by completing the payment information in Pay Method 1. Click Save to save the transaction, or click 'Save, Preview, Print' to save and print the transaction.

BCSS will debit the client's account for the amount of store credit used. If the payment exceeded store credit, store credit will be negative.


Collect Payment Via Settlement

  1. In Program Setup on the Mall tab check 'Deduct other charges from settlements.
  2. Select the client.
  3. Press F7 or select New Settlement.
  4. The amount of the charge will be displayed as a deduction and can be increased, decreased or removed.

A thought: Make these minor expenses work for you instead of against you. Waive them. Let consignors know the fees have been waived and see if they don't bring friends with them on their next visits. Find other ways to increase profit and let the store across town drive business your way by irritating their consignors with deductions for this and that on their settlement reports.


A consignor has a store-credit balance and wants to take part of the balance in cash and leave a store-credit balance. Here's what to do:

  1. Select the consignor from the list.
  2. Press F7 or click on Settlement on the top row, or choose New Settlement from the lower-left menu.
  3. Make sure all items for settlement are checked. Use 'Check All' if necessary.
  4. Uncheck one item at a time until the settlement amount reaches the desired cash payout amount.
  5. Choose 'Cash' as the payment method.
  6. Save, Print and Exit.

The program will remove the items from future settlements that were settled in this transaction and leave the items for future settlement that weren't processed.

The remaining unsettled items can remain as unsettled or they can be processed for store credit.


Test Print - No Settlements Finalized or Checks Printed

  1. In the Settlements Work Area choose Batch or Aged Batch Settlements.
  2. Check the settlements to be printed.
  3. Click Test Print Settlements.
    • The print job will be sent to the printer.
    • 'Test Print Settlement' will be printed at the top of each page.
    • NO Settlements will be created.
  4. Click Cancel to close the screen. No entries will be saved.
  5. If necessary, make changes to any transaction that is to be settled.
  6. Go back to the settlement screen and test print again, or process settlements.

Trial printouts don't include settlement adjustments, except for minuses applied to all settlements in the trial batch being printed.


Create and Print Settlements but Don't Print Checks

  1. In the Settlements Work Area choose Batch or Aged Batch Settlements.
  2. Check the settlements to be printed. Click Print Settlement (Settlements are created and will automatically be sent to the printer.)
  3. Close the window and hand write checks, or see the section below for printing checks after settlements have been finalized.

Print Checks After Settlements Have Been Finalized

  1. Go to the Disbursements Work Area.
  2. Use the date filters to reduce the number of entries in the table:
  3. Highlight the check to be printed.
  4. Click Print Check (lower left menu).
  5. The program will present a preview of the check to be printed. (If 3 checks per page has been selected in Program Setup, the program will present a box so you can choose which check is position is to be printed.)
  6. Click the Printer Icon to proceed with printing.

Create and Print Settlements and Print Checks

Before proceeding, it's advisable to test print settlements until all settlements are correct. If settlements are finalized and the settlements window is closed, checks must be printed one at a time from the Disbursement Work Area.

  1. In the Settlements Work Area choose Batch or Aged Batch Settlements.
  2. Check the settlements to be printed.
  3. Click Print Settlement (Settlements are created and will automatically be sent to the printer.)
  4. Settlements will be created and checks will be prepared for printing.
  5. Do not close the window. If the window is closed at this point, checks must be printed one at a time from the Disbursement Work Area.
  6. Click Print Checks.
    • The print job will be sent to the printer. (If there are more than 3 checks, a print-position screen will appear. Close it to proceed with printing. To help control printing, checks will be presented 3 at a time in print preview. Make sure there are a sufficient number of sheets of checks in the paper tray.)

Previously, when settlements or checks were printed on the Batch-Settlement Screen, settlement records were finalized and not available for reprinting. Now settlements may be 'test printed' which allows for repeated printing without finalizing settlements.

Test-Print Procedures

  1. In the Settlement Work Area, select Batch Settle (lower left).
  2. Uncheck settlements which aren't to be processed.
  3. Press the Test-Print-Settlements button.
  4. A list will be presented giving the opportunity to remove unwanted settlements.
  5. Settlements will be printed with the settlement number of 'None'. The pay-method entries will be zero. The heading will show 'Trial Printing'.
  6. If the settlements are OK to process, click on Print Settlements or Print Checks or Save/Exit.

Test-Print Alternative

Test Print is not necessary with the following procedure:

  1. Open the Settlements Window.
  2. Click Print Settlements.
  3. Before closing the program, click Print Checks. (The program will go into the check-printing process.)

If you do not want to print checks and have already chosen Print Settlements, exit the program and the settlements will be complete.


Settle with One Client

  1. In the Clients Work Area, select the consignor.
  2. Press F7.
  3. Remove the check from any item that is not to be settled. Use Check None to remove all checks, or Check All to check all items. (Unchecked items will reappear the next time this client is chosen for settlement The total settlement due is automatically calculated and entered. A Settlement # is auto-displayed in the Settlement # field.)
  4. Enter any additional amounts or deductions.
  5. Enter notes for the client and/or for the shop.
  6. Payment can be made by Check, Store Credit, Gift Certificate or PayPal. Payment may also be split by selecting two methods of payment and designating the amount for each payment.
    • For Check: Leave 'Check' as the Payment Method, change the Check # to the correct value and enter the amount to be paid in 'Amount'. When the settlement is finalized, the check will be listed in the Disbursements Work Area. It can be printed by selecting it and clicking on Print Check.
    • For Store Credit: Use the drop-down menu under 'Select Payment Method' to choose Store Credit. When the settlement is finalized the program will credit the client's account for the amount of Store Credit. (See Store Credit for processing purchases using Store Credit.)
    • For Gift Certificate: Use the drop-down menu under 'Select Payment Method' and choose Gift Certificate. Issue a certificate for the amount due. When the consignor uses the gift certificate:
      • If the amount of the certificate is less than the total purchase, enter the amount of the certificate as the second payment and enter the remaining payment as the first payment.
      • If the certificate is more than the purchase, reissue the certificate for the reduced amount.

      There is no accounting in BCSS for certificates.

    • For PayPal: Use the drop-down menu under 'Select Payment Method' to choose PayPal. Send the amount to be paid to the customer's PayPal-account email address.
    • Split the Payment by selecting two different methods of payment and the amount to be paid by each method.
  7. Click 'Save, Print, Exit' to print or 'Save and Exit' to save the transaction without printing.

Important Disbursement Adjustment

If a Settlement is deleted, go to the Disbursements Work Area and mark the corresponding disbursement as canceled.


Client Bonus for Store-Credit Settlement - Give an automatic bonus to Clients who settle for store credit. In Program Setup on the Clients Screen, set the bonus amount in 'Bonus for Store Credit Settlement'. When 'Credit' is selected as the settlement payment method, the bonus is auto-applied. (not available with batch settlements)

Please Note: The prevailing consignor split percentage is the percentage recorded in each item record (which may be different from the default percentage recorded in the Client Record). Correct incorrect percentages using the Percentage Tool in the Clients Work Area.


What is a 'Consignment Settlement'?

When a consigned item is sold, the client is due a percentage of the sale (and if applicable, a salesperson is due a commission). Payment to the client (and employee) finalizes or 'settles' the process of selling consigned items and distributing the proceeds to the client (and employee).


Consignment Accounting

A 'Sale' increases shop owner income, client (and employee) account balances. A 'Settlement' decreases owner income and client account balances.

(BCSS provides an 'employee commission process' for recording payments made to employees. Commissions processed for employees do not affect client account balances. Settlements processed for consignors do not affect employee account balances.)


Accounting Example

$100 in sales has been made for client Joe by employee Sam. Joe is to receive 40% of the sales price and Sam has earned a 5% commission. These amounts must be disbursed but first, the sales transactions must be 'settled'.

Sales of $100 increase shop income by $100. Joe's account balance becomes $40. Sam's account balance becomes $5.

After settling with Joe, the store's income is $60 ($100 in sales less the Joe's share of $40). Joe's account balance is zero, and Sam's account balance remains unaffected at $5.

After paying Sam's commission, the store's income is $55 ($60 - $5). Joe's account balance is unaffected and remains at zero. Sam's account balance is zero.

In this example, Joe's account balance before Settlement was $40. BCSS would display this as:

Account Balance + Store Credit         $40

Store Credit     $ 0

When his Settlement is processed, you might choose to pay $30 by check and $10 as credit. His account balance will then be:

Account Balance + Store Credit         $10

Store Credit     $10

Notice that the store credit amount is the amount of credit transferred on his Settlement document.

Now Joe wants to buy a bicycle for $5. After processing this sale his account balance is:

Account Balance + Store Credit         $ 5

Store Credit     $ 5

Notice that store credit decreases as he purchases merchandise. If some of Joe's consigned merchandise is sold for $12 for example, his account balance would be:

Account Balance + Store Credit         $17

Store Credit     $ 5

When Joe purchases another $5 worth of merchandise his account balance will be:

Account Balance + Store Credit         $12

Store Credit     $ 0

Joe is owed $12 for the sold merchandise and he has no more credit available for making purchases.

BCSS provides comparable functionality for handling employee purchases of store merchandise from their commissions. The process is the same for employees as it is for consignors.


Important Disbursement Adjustment

If a Settlement is deleted, go to the Disbursements Work Area and mark the corresponding disbursement as canceled.


Encourage Clients to Settle for Store Credit with a Bonus

Please note that this feature is not possible with batch settlements.

Settling with Clients for store credit increases potential for more in-store sales and eliminates time-consuming and costly check writing. It also reduces the strain on 'cash management' (keeping enough cash on hand to pay settlements).

The bonus does not affect the client's share. The store's share is reduced by the amount of the bonus.

BCSS can be configured to automatically bonus a set percentage on settlements to those consignors settling for store credit.

If Store Credit is being collected on the settlement, the payment method will be set to Store Credit.


Bonus Setup

Click on File (not shown), then Clients:

In the 'Bonus for Store Credit Settlement', replace 0.0000 with the desired bonus amount (in decimal form, like .10 for 10%):

When settling for one client, selecting 'Credit' (on the New-Settlement Screen) will cause the bonus to be auto-computed and entered in the Additions box.

If an amount does not appear in the Additions box, close the Settlement Screen and check the 'Bonus for Store Credit Settlement' in Program Setup.

Please note that this feature is not possible with batch settlements.


Settlement with Vendors Renting Space - Deducting Rent from Settlements


Aged Batch Settlement (for the previous month)

Important: At the close of the last day of the fiscal month, create a report to see who had insufficient sales proceeds to pay rent. (This report will be inaccurate if it is generated after the last day of the month because it will include sales for the following month. Make a habit of saving the database of the last day of the fiscal month for future reference.)

Create the Report

  1. Click on Reports on the Main Menu.
  2. Select Clients.
  3. Select 'Balance Doesn’t Cover Rent Space'.

  4. Click Print The Report.

The report will list the active consignors (only), rents due, balances, and the differences owed.

The last column will show the rent paid-to date. For example, if the rent was paid on 5/1, the paid-to date will be 5/31. Save this document until ready to start settlements later in the month.


Create Test Copies of Settlements

Use the following procedures to obtain test copies of settlements prior to deducting rent. If test copies are not needed, skip down to Deduct Rent.

  1. Go to the Mall tab in BCSS Program Setup.
  2. Uncheck 'Deduct Rent From Settlements' and 'Deduct Rent From Batch Settlements'.

  3. Click Save/Exit.
  4. Close the program and reopen it.
  5. Go to the Settlements Work Area.
  6. Choose Aged Batch Settlements. (Please wait while the program builds settlement records for all consignors with a balance due as of the last day of the previous month.)
  7. Uncheck consignors for which settlements do not need to be printed.
  8. Change the settlement date to the day the settlements are to be dated.
  9. Click 'Test Print Settlements'. (All settlements will be sent to the print queue for printing.)
  10. Close the window to go back to the main page.
  11. Review settlements for accuracy.
  12. Make any necessary changes.

The test print also provides a printout of sold items for those who are upside down.

Create Actual Settlements

Process settlements (with rent deducted) for those accounts with sufficient sales:

  1. Go back to the Mall tab in BCSS Program Setup and check 'Deduct Rent From Settlements' and 'Deduct Rent From Batch Settlements'.
  2. If there are other charges to be deducted, check 'Deduct Other Charges From Settlements'. (Rent and credit-card fees are deducted from batch settlements. Miscellaneous Mall (other) charges are not.)

  3. Click Save/Exit.
  4. Go to the Settlements Work Area.
  5. Select 'Aged Batch Settlements'. (Vendors with sufficient sales proceeds to pay rent will be listed. Vendors with amounts under the minimum settlement amount (set in program setup) will not appear.)

Compare Test Settlements with Actual Settlements

Compare the lists for accuracy, looking for data-entry errors. If irreconcilable errors are discovered, contact Realize Technologies, for an audit.

Print Settlements and Checks

  1. Change the date to the correct date for the settlements.
  2. Change the beginning check number.
  3. Click 'Print Checks'.

The program will create the settlements, deduct rents due, change the dates of 'Last Rent Paid' in Program Setup and present the batch of checks to be printed.