How To Change Payout Formula?

In our business model Prices do not include Taxes and we will take care for Shipping, so we require to calculate Payout = (Subtotal [before taxes] - Promotion) * (1 - Vendor Commission) + Taxes

Following attached sample Order #483:
- Subtotal [before discount] = 250.oo
- Promotion [discount] = 50.oo
- Subtotal [after discount] = 200.oo
- Shipping Cost = 10.oo -> We take care of this
- Taxes = 20.oo (10%)
- Vendor Commission = 10%
* Total = 197.oo = Subtotal [after discount] + Shipping Cost + Taxes = 200.oo + 10.oo + 20.oo = 230.oo

In our case we require to Payout = Subtotal [after discount] * (1 - Vendor Commission) + Taxes = 200 * (1 -10%) + 20 = 200.oo * 0.9 + 20.oo = 180.oo + 20.oo = 200.oo

So, we keep 10% (Vendor Commission) of Net Goods (\$200) = \$20.oo plus Shipping Cost = \$10.oo, Total = \$30.oo

Finally, our required formula is:
Payout = Subtotal [after discount] * (1 - Vendor Commission) + Taxes
The formula applies to all sales regardless of where the money comes from, whether debit card, gift certificate or reward points.

How and where can I change the Payout formula?

Sample-order-483.jpg

Hello,

I think, modification is need for such payout formula. You can write us and we will answer more detailed.

Thank you.

If you have PHP knowledge, please edit the fn_mve_place_order function in the app/functions/fn.multivendor.php file

I want to modify vendor comission to add one dollar (and up to five) for every product that the each vendor sold. It shouldn't be too difficult but I can't find where to do the commissions mod. Any ideas? Thanks!

Definitely need more flexible commissions systems!
For example, instead of simply fixed % or fixed \$, should be able to be a combination of fixed % and fixed \$. Such as 13% + \$0.30/item.
Also, should have ability to select if commission take pulls out of shipping and/or tax as well. Basically need flexibility.
Should be able to configure this by vendor, by category, and also if so desired even ability to customize it for a particular product.
Maybe there is a special product you want to encourage the vendors to sell in your store, so set commission lower.
Also should have ability to do tiers, such as 15% of first \$50 and then 10% of up to \$500 and then 5% of anything over \$500 or something like this.
I would imagine this is simply adding some basic formula options to the commissions area and hopefully wouldn't be too much work!

We are working on an extended commissions module for a client as we speak. Generally it allows for various "amounts" to be applied to the vendor or merchant. Hence, something like ability to assign:

+ catalog promotion (when vendor, commission % is applied to this amount)

+ cart promotion (when vendor, commission % is applied to this amount)

+ shipping

+ shipping freight

+ taxes

+ payment_surcharge

These are selectable by-vendor and the admin chooses on the companies.update page.

We're building the as a separate module to a larger automatic payment project that allows for "escrow" of funds and automated payouts/reporting.

But we could make the extended_commissions portion available as a separate addon once development is complete if there was enough interest.

A more flexible commissions tool would be extremely valuable!

At a minimum it would need to be able to have formula based commission schedules and ability to select which variables in the calculation apply.

Such as first define variables like:

Price = A

Shipping = B

Tax = C

Transaction Fees = D

Product Count = E

F, G, H, I etc. as necessary for other variables

Multiplier = X%

Fixed Amount = Y\$

Fixed Amount Per Unit = Z\$

Admin Collects this from customer: A + B + C

Admin retains: X%*(A) + D + Y\$ + (Z\$*E)

Vendor receives: ((1-X%)*A) - D - \$Y - (Z\$*E) + B + C

Admin can set the formula and inputs for the variables as negotiated by vendor, with optional to do by category and/or by product.

Hope this makes sense and would be easy to do!

Makes sense, but I think it is overly complicated for the vast majority of merchants. I don't really think it needs to be formulaized (though that would be most flexible).

Note that current model is about VENDOR commission (versus merchant commission) and generally a vendor gets a percent of the products purchased plus the shipping. The others would be either applied to merchant retention or given to vendor. Since merchant sets promotions and they are out of the control of the vendor, then the vendor should get a percentage of the value of the promotions which comes straight out of what the merchant's gross (which could be more than they net on the sale).

In most environments (though this is probably country/jurisdication specific) the vendor should be the one paying the appropriate taxes given taxes are usually based on origin/destination being in the same location. However, there is no provision in cs-cart for a vendor to specify the taxes for a purchase. Only the merchant can define/maintain the taxes in cs-cart MVE.

We think it should be something akin to:

I'm not sure I fully understand the above --- in this example, is "Merchant" the marketplace Owner/Operator and "Vendor" the party owning and shipping the item?

If so, does your example work as follows? A "worked example" showing how the dollars flow between customer, marketplace operator, and vendors would be helpful! (and if any \$ disappears out of this directly to 3rd parties like payment fees)

Vendor gets everything EXCEPT what MERCHANT is eligible to retain.

And then it defines what MERCHANT can retain as follows: X% (let's call it 10%) of sum of (sales price, products tax, shipping tax, shipping freight)

So if item sold for \$100, added 5% sales tax, 10% shipping tax, \$8 shipping freight, cart discount of \$1 and catalog discount of \$2 and payment processing charges of 3% then the following:

Customer Payment = (\$100 price - \$1 cart - \$2 catalog) + \$4.85 sales tax + \$9.70 shipping tax + \$8.00 freight = \$119.55

Assume payment payment processor takes 3% of the \$119.55, so leaves \$115.96

Of this \$115.94, "Merchant" gets 10% of (\$100 + \$4.85 + \$9.70 + \$ 8) = 10% of \$119.56 = \$11.95 for "Merchant".

Then "Vendor" would get \$115.96 minus \$11.95 retained by "Merchant = \$104.01

I figure somewhere in there I made some incorrect assumptions about how your calculation works, but it is really difficult for me to follow it without a fully worked out example since everyone seems to use different words for similar concepts and may apply them differently... but numbers are easier for me to understand!

thanks!

I'm not sure I fully understand the above --- in this example, is "Merchant" the marketplace Owner/Operator and "Vendor" the party owning and shipping the item?

Yes

Vendor gets everything EXCEPT what MERCHANT is eligible to retain.

No, actually the reverse. The MERCHANT retains everything except what is provisioned to the VENDOR.

Assume payment payment processor takes 3% of the \$119.55, so leaves \$115.96

The whole point of payment surcharge is to account for the payment processor transaction fees. There is no way to know what those fees are from the cart and can vary depending on monthly volume, etc.

Okay, here's an example:

CUSTOMER purchases 1 item from VENDOR A for list price of \$100.00

Shipping is \$10.00

MERCHANT offered a 'catalog discount' of 25% on the \$100.00 item

There is a Shipping Freight setup for \$5.00

And there is a payment transaction fee of \$5.00

And tax is \$5.00

The CUSTOMER total is 100 - (.25 * 100) = \$75.00

Plus shipping: \$10.00

Customer sees \$25.00 discount shown on the item line of the product purchased in their order summary

Plus shipping freight: \$5

Plus payment surcharge: \$5

Plus Tax: \$5

CUSTOMER TOTAL is \$100. This is the payment amount received by the merchant (store owner) from the order (not that payment processor fees are not included).

Assume a commission setup as follows:

Vendor Commission 30%

Catalog Discounts -> Vendor (to compensate for merchant marketing choices)

Cart Discounts -> Vendor (to compensate for merchant marketing choices)

-- Note that the above items for Vendor are at the commission rate and below are full amounts

Shipping -> Vendor

Shipping Freight -> Merchant

Payment surcharge -> Merchant

Tax -> Merchant

So in calculating the commission for the vendor it becomes:

\$75.00 (products minus catalog promotion) * 30% = \$25.00

Catalog discount \$25.00 * 30% = \$7.50

Shipping = \$10

Total to pay vendor: 25 + 7.5 + 10= \$42.50

Merchant (store owner) retains everything else (\$57.50)

Note that if the "Merchant" were designated to receive the catalog discount above, then the whole \$25.00 of the discount would be deducted from the Vendor's commission (payout) leaving the result as Vendor: (\$25 + \$10 - \$25) \$10, Merchant gets \$90.00.

As you can see, assignment of promotions can radically change commissions/retention.

Most of this is pretty straight forward except for the handling of discounts (I.e. money goes in one bucket or another). The concept is that if the merchant creates a discount, the vendor shouldn't be penalized for it. And if the vendor requests the merchant to apply a discount, the merchant shouldn't get penalized for it.

Note that there are basic issues in MVE that should be addressed within the core:

1) Taxes - The merchant shouldn't be responsible for taxes and they shouldn't be the one to setup/maintain taxes (since local could drive you nuts). Taxation should be by Vendor (products and shipping) and the Vendor should control what taxes are applied and should then receive the tax amounts from orders.

2) Catalog discounts should be available to vendors so they can advertise promotions on the Merchant's site without the Merchant having to manage them.

3) The companies.balance page is a mess and makes no sense to anyone who runs a business. The "period" is actually a "date" and not a period. The Amount should be the amount due as commission on that order, not the order total, etc.

Is it possible to only include "completed" orders in the vendor balance in payout section? Currently it will include orders that are still processing.. we want the Vendor Payout Balance to only calculate from orders marked complete. Please advise.

Has a solution or workaround been found for this topic?

I would like the transaction fee to not consider the surcharge.

Am I asking for too much?

for example. a \$1 item

with a surcharge of \$.33

and 10% transaction fee

Should only send the vendor. \$.90 when a customer purchases that item.

Hi, i need a modifiction in price calculation. Products are canvas and the price depends on width and height. Customer will change the dimension with a slider. Like this site https://www.houseart.gr/pinakes-se-kamva/paidika/mikri-prigkipissa-18383

Not sure I see a slider on your link for setting dimensions.

Are you wanting the slider implemented as well? Or just the backend side that sets/updates the pricing based on the dimensions?

You can request a quote by submitting your requirements via the link in my signature.

Update: Not quite sure what this has to do with Vendor payouts, this is a product pricing question.

Assuming you are referring to EZ Vendor Plans Plus addon? If so, yes. https://ez-ms.com/ez-vp-plus.html

Is it possible to only include "completed" orders in the vendor balance in payout section? Currently it will include orders that are still processing.. we want the Vendor Payout Balance to only calculate from orders marked complete. Please advise.

I just did this for a client using the following hook. Note that they wanted reporting for all statuses.

```// Force vendor balance page to get orders for all statuses
function fn_my_changes_get_order_payout_statuses(&\$statuses) {
if( Registry::get('runtime.controller') == 'companies' && Registry::get('runtime.mode') == 'balance' ) {
\$statuses = db_get_fields("SELECT ?:statuses.status FROM ?:statuses WHERE type = ?s", STATUSES_ORDER);
}
}
```