Question

Difference between General Commission and Del Creder Commission

Answer 1

Commission given to the consignee in addition to the normal commission

Purpose of such incentive is to motivate the consignee to create market for new products.

· Sometimes, this additional commission is allowed to consignee where certain sales limits have been exceeded.

Del Credere Commission

Commission given to the consignee in addition to the normal commission

Purpose is for the consignee to bear/absorb the loss on account of bad debts if any, arising out of credit sales of consignment goods

Computed based on total sales unless it is agreed on credit sales.

· Once the consignee is given del credere commission, he become liable to all losses on account of non-recovery of debts

Answer 2

Overriding Commission

Commission given to the consignee in addition to the normal commission
Purpose of such incentive is to motivate the consignee to create market for new products.
· Sometimes, this additional commission is allowed to consignee where certain sales limits have been exceeded.


Del Credere Commission

Commission given to the consignee in addition to the normal commission
Purpose is for the consignee to bear/absorb the loss on account of bad debts if any, arising out of credit sales of consignment goods
Computed based on total sales unless it is agreed on credit sales.
· Once the consignee is given del credere commission, he become liable to all losses on account of non-recovery of debts.