1. Commission or Buyback By
When setting up commissions, you first choose how the commission or buyback is calculated:
Each (used for Buybacks)
Commission is calculated per individual item.
Example: If you enter an inventory item with a quantity of 10, each item is calculated separately—even if all 10 sell together.Invoice Line Item (not available for Buybacks)
Commission is calculated on the extended price of the invoice line.
Example: An inventory item with a qty of 10 sold together at $100 each ($1,000 total) will have commission calculated on $1,000 as a single line item.Consignment Order (not available for Buybacks)
Commission is calculated on the total sales across the consignment order.
Example: All lots assigned to one consignor are totaled and commission is applied to the grand total.
2. Commission Structure Type
After selecting the calculation basis, you define how the rate applies:
Sliding Scale
The commission rate/amount is based on where the sale $ falls in your defined brackets.Incremental
Commissions are accumulated across brackets, applying each rate to its portion of the price.Fixed
A single fixed rate/amount is applied regardless of price.
3. Examples
Below are worked-out examples using the following sliding/incremental structure:
Up to $100 → 25%
Up to $1,000 → 15%
Up to $9,999,999.99 → 5%
Example A: Commission by Each (Sliding Scale)
Sold Qty | Unit Price | Ext. Price | Calculation | Commission |
1 | $100 | $100 | 25% * $100 | $25 |
10 | $100 | $1,000 | 25% * $100 * 10 | $250 |
1 | $500 | $500 | 15% * $500 | $75 |
10 | $500 | $5,000 | 15% * $500 * 10 | $750 |
1 | $10,000 | $10,000 | 5% * $10,000 | $500 |
Total Commission: $1,600
Example B: Commission by Invoice Line Item (Sliding Scale)
Sold Qty | Unit Price | Ext. Price | Calculation | Commission |
1 | $100 | $100 | 25% * $100 | $25 |
10 | $100 | $1,000 | 15% * $1,000 | $150 |
1 | $500 | $500 | 15% * $500 | $75 |
10 | $500 | $5,000 | 5% * $5,000 | $250 |
1 | $10,000 | $10,000 | 5% * $10,000 | $500 |
Total Commission: $1,000
Example C: Commission by Consignment Order (Sliding Scale)
All sold items are grouped into one consignment order:
Total Sales = $16,600
Calculation | Commission |
5% * $16,600 | $830 |
Example D: Commission by Each (Incremental)
Sold Qty | Unit Price | Ext. Price | Calculation | Commission |
1 | $100 | $100 | 25% * $100 | $25 |
10 | $100 | $1,000 | 25% * $100 * 10 | $250 |
1 | $500 | $500 | (25% * $100) + (15% * $400) | $85 |
10 | $500 | $5,000 | ((25% * $100) + (15% * $400)) * 10 | $850 |
1 | $10,000 | $10,000 | 5% * $10,000 | $500 |
Total Commission: $1,710
Example E: Commission by Invoice Line Item (Incremental)
Sold Qty | Unit Price | Ext. Price | Calculation | Commission |
1 | $100 | $100 | 25% * $100 | $25 |
10 | $100 | $1,000 | (25% * $100) + (15% * $900) | $160 |
1 | $500 | $500 | (25% * $100) + (15% * $400) | $85 |
10 | $500 | $5,000 | (25% * $100) + (15% * $900) + (5% * $4,000) | $360 |
1 | $10,000 | $10,000 | (25% * $100) + (15% * $900) + (5% * $9,000) | $610 |
Total Commission: $1,240
✅ Tip: Use Each for precise per-item buybacks, Invoice Line Item for grouped sales, and Consignment Order when applying one rate across a consignor’s total.
Here’s a clean side-by-side comparison table showing the total commissions earned in each scenario you outlined. This will give your users a quick way to see how the different calculation methods and structure types affect the final results.
Commission Method Comparison
Commission Basis | Structure Type | Total Commission |
Each | Sliding Scale | $1,600.00 |
Invoice Line Item | Sliding Scale | $1,000.00 |
Consignment Order | Sliding Scale | $830.00 |
Each | Incremental | $1,710.00 |
Invoice Line Item | Incremental | $1,240.00 |
✅ Key Takeaways
Each generally produces the highest commission because every unit is evaluated against the scale individually.
Invoice Line Item results in lower commissions since items grouped together move into lower percentage brackets.
Consignment Order typically produces the lowest commission since the total sale price is lumped together and drops into the lowest percentage bracket.
Incremental structures tend to earn more than Sliding Scale at higher sale prices, since they apply multiple rate tiers instead of just one.