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nubeez
06-14-2006, 03:18 AM
Hi I'm a noob,

Please forgive my acounting ignorance.

I am a distributor who sells product to resellers in different countries. I would like to give my resellers a commission for their sales. My question is, is it better to sell the product to them at the regular price, have them pay me in full and then cut them a check for their commission, just to have that money track on the books, or is it o.k. to do things the easy way and just charge them less.
Does it matter to banks or for tax reasons?

Any help you can offer is greatly appreciated.
Many thanks!

BusinessMan
06-14-2006, 05:00 AM
Both approaches are tenable.

We actually do the latter. We have a special purchase link for each reseller so that they can procure at the reduced rate directly. The reason is simply that it is easier for us to do this from an accounting perspective in that we simply treat it as a sale (with no calculation or further transaction needed downstream).

nubeez
06-14-2006, 09:44 AM
Makes sense, thank you. Do you know if you have to file any special tax forms for sales outside the US?

BusinessMan
06-14-2006, 11:13 AM
I don't think so.... but there may be something needed in the annual return. Hopefully someone will pop along and confirm.

pahagwl
02-14-2014, 02:04 AM
I think you would be better off if you charged less from them as it would reduce the amount of paperwork and effort required from both ends. It would also reduce the effort of calculating the amount of commission due to them. You would also benefit in the sense that you won'y have to maintain an extra account in your books with regards to the commission. I would also recommend you to introduce a cash discount as an added incentive so that they clear their dues in time.

crimsonghost747
02-14-2014, 04:31 AM
Charging them less would certainly seem like the easier way to do it. The other way requires a lot more work from your end and will probably result in more paperwork.

delusional
02-14-2014, 09:29 AM
I also think both have their ups and down sides. If you let them pay less, you have less paperwork. I would go with charging them in full and letting giving them a commission afterwards because this way they don't just buy a lot of products cheap and risk having too much stock and not being able to pay you.

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12-23-2020, 07:45 AM
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Vicskyyy
01-03-2021, 08:08 AM
www.adabba.com - It will certainly be better to charge them less, it will help your productivity, and reduce the stress you have to go through.

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maaccountancy
03-17-2021, 08:29 AM
Once you set up your Reseller account and sell products, your storefront can earn commissions. Resellers receive commissions at the end of every month for the previous month's earnings. For example, the commission you earned during December will be paid out at the end of January.

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04-14-2021, 01:36 PM
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RaniaRanii3
05-03-2021, 12:46 PM
Affiliate commission is determined as a contrast between end cost and affiliate cost of parent account. The parent record can be either ace affiliate or parent sub-affiliate. There are two unique cases: Sub-affiliate utilizes ace affiliate costs.

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