This guide shows you how to create a three way split invoice forOn consignment/Consigned out artworks in your database.
When three way split invoices are applicable
When you receive works on consignment from an artist and then consign these works to another gallery, you may agree for them to sell the works at an agreed price.
When these works are sold, you will invoice the consignee gallery for your share and the artist's share. Artlogic supports this type of three-way invoice and correctly calculates the share for each party taking into account any production costs.
1. In order to do a financial three-way split, you'll first need to make sure your artworks have the correct financial settings.
Three-way split invoices are only possible for artworks that have been consigned to you (On consignment), usually by the artist, and then consigned by you to an external third party (Consigned out); therefore, the only applicable status and availability setting is 'On consignment-Consigned out'.
2. Next, scroll down and add the information for the three way-split to the 'On consignment/ Consignor details' and the 'Consigned out' fields. If the artwork does not have the correct 'On consignment/ Consignor details' or the 'Consigned out' information, the invoice will flag this as a warning.
3. Then, sell your artwork/s to create your invoice.
4. In order to create this type of invoice you just need to select this invoice type on the right-hand side when creating an invoice and then add the percentage for each share.
5. Add the 'Price achieved / sold at' value, any production costs attributed to the sale and your chosen tax status. The invoice will automatically update the 'Total due' value.
6. When you have completed customising your invoice, press Save. When you are ready to finalise the invoice, click Action > Generate, which will update all associated records and add this to your Accounts records.