Adding Item Charges 💰

To add a new item charge, go to the Item Charges area of the System Settings.

Click Add Item Charge.

The name chosen for the charge. This is how the charge will appear in all relevant areas of Snoofa and will appear on client-facing paperwork.

Target

Choose Buyer or Vendor depending on who the charge applies to e.g. choose Buyer for Buyer’s Premium.

System Type

In Snoofa there are some charges which are controlled or set automatically by the system e.g. Vendor Commission or LDL (Loss & Damage Liability).

A good example is Vendor Commission. When creating an item you are presented with a drop down input field. Snoofa needs to know which of all the charges it should show in this drop down as it wouldn’t make sense to select e.g. a Photography Charge as the vendor commission.

If the charge isn’t one of the specified types in the options, then select “-”.

Is Default

There are some scenarios where the system needs to know whether a charge is default or not. For example, when creating a new consignment, the vendor commission field will pre-populate with whichever vendor commission is selected as the default. This can of course then be charged if desired.

When a charge is marked as Yes for Is Default, any charge with the same system type which previously had been marked as default, will change automatically to not default.

Value

The options will differ depending how what type of value is selected.

Constant

This type of charge is a flat fee irrespective of the value of the sale price.

If the charge is the same amount every time, choose No for Has variable value and specify the flat fee e.g. a £10 lotting fee.

If the charge has a variable value, the user will need to specify the amount when adding the charge to an item/consignment etc.

Choose Yes for Has value options to specify the different amounts that can be selected.

Hammer bound rate

This type of charge is a percentage of the hammer price e.g. 20% buyer’s premium.

If the rate can vary, choose Yes for Has variable value and anyone adding the charge must specify the rate when adding the charge.

The Waive Threshold is the amount below which the charge won’t be applied e.g. if the lot sells for under £100 this charge won’t be applied.

A Min and Max value for the rate can also be specified.

Similarly to the Constant charge, different value options can be specified for the user to select when adding the charge.

Hammer bound table

This type of charge is a percentage and has some specific logic depending on which option is chosen.

Thresholds

This allows you to specify the rate of the charge depending on what value the final hammer price is. In the example here, if the lot sells for £70, 10% will apply, if it sells for £150, 20% will apply.

Sliding Scale

This allows you to charge different rates on different parts of a hammer price. In this example if a lot sells for £150, 20% will apply on the first £100 and 10% for the remaining £50. The total rate would be £25.

This type of charge can also have a Waive Threshold, Min Value and Max Value as explained above.

A VAT rate can be selected to apply to the charge e.g. commission on books might have 0% VAT. Different VATs can be added in the VAT Rates area of the settings.

Accounting Code

Accounting codes allow you to map charges with your integrated Xero account. The accounting code works like a tag that can be added to every row of an invoice or settlement. It then allows the accountants to file the specific income/expense into an account. Most charges can be allocated Snoofa’s Default Accounting Code.

Eligible for Margin Schema

This determines how the VAT on this charge calculated when the item is sold under a Margin Scheme.

When this is set to true the VAT may be displayed differently (inclusive) on the final Invoice or Settlement. The VAT treatment of this charge also depends on other factors e.g. the item itself must be consigned under the Margin Schema.

Customisable Name

Choosing Yes allows the user to edit the name of the charge when applying it.

Lot Dependent

If a charge is lot dependant it is specific to a Lot rather than to the item. If the charge can change depending on the auction, it needs to be marked as Lot dependent. For any charge except Buyer Commission this can be used if for you want the charge to ‘expire’ with that Lot i.e. it is not automatically carried over onto a re-offered lot.

Is Revenue

If a charge is marked as revenue, it will be included in post-auction reporting on how much revenue has been made. For example, buyer’s premium is part of auction house revenue, but Artist Resale Rights isn’t, as this money is passed on.