Difference between general commission and del credre commission
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The Difference Between Overriding Commission And Del Credere Commission
April 27th, 2009 Comments off
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This article looks at the type of additional commission given by consignor to consignee and the purpose(s) of giving such incentives/commissions.
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