The term "auction settlement" refers to the process of settling and processing an auction after its conclusion. This involves analyzing the bids, determining the successful bidders and closing the transactions. This includes the proceeds from auctioned properties as well as fees, commissions, taxes and other costs. The aim is to ensure transparent, legally compliant and comprehensible accounting vis-à-vis bidders, vendors and, if applicable, tax authorities.
Proceeds Allocation: Automatic calculation of revenue shares for consignors, auction house, and any applicable commissions.
Invoice Generation: Issuing invoices for buyers and credit notes for sellers.
Fee Management: Handling auction fees, buyer's premiums, transport costs, and additional charges.
Tax Calculation: Automated VAT/sales tax calculation and display based on the legal status of buyer and seller (e.g., intra-EU delivery, reverse charge).
Payment Processing: Recording incoming payments, linking them to transactions, and triggering dunning processes if necessary.
Bank Reconciliation: Automatic import and matching of bank data to open items.
Multi-Currency Support: Managing auctions conducted in various currencies with exchange rate handling.
Reporting & Settlement Summaries: Generating overviews of auction revenues, fees, customer accounts, and tax-relevant data.
An auction house issues credit notes to consignors showing proceeds, buyer’s premiums, and logistics costs.
An art auction house automatically generates invoices for buyers including VAT and shipping charges.
An industrial auctioneer processes an international online auction and ensures invoices comply with EU tax regulations.
A system automatically reconciles incoming payments with outstanding invoices and triggers reminders for overdue payments.
A bidder receives a post-auction summary listing all purchased lots along with total amount due and payment instructions.