From consignment to invoice: the auction-house workflow

Every auction house follows the same basic chain, whatever it sells. Objects come in, are described and estimated, appear in a catalogue, attract bids, are sold, invoiced and paid for; the consignor is settled and the lot is shipped. The differences lie in the details, and the details are where time is lost and errors creep in.

This article follows one lot through the whole chain, with the points to watch at each stage and how Selloff handles them.

Everything starts when a consignor entrusts objects to the house. The consignment receipt records what was delivered, by whom and on what terms:

Signed by both parties, it is the reference for every question that follows.

In Selloff, a receipt belongs to a consignment and carries its sales terms. Its status shows where the work stands (not delivered, delivered and awaiting description, describing, completed), and the house can require a signed receipt file before a receipt moves on. The storage location is recorded too, so the cataloguer can find the objects. See consignment receipts & signed documents.

The specialist describes each lot: title, description, dimensions or weight, condition, provenance, categories and images. Well-structured data pays off later. It feeds the printed catalogue, the website, the platforms and the searches staff will run years from now.

Selloff's description screen combines a title and description with a secondary title and description (often used for a second language), up to ten configurable additional fields, taxonomies, tags and images sorted by scan type. Every lot receives a permanent internal reference and can carry a barcode label from day one. See lot descriptions and lot references & barcode labels.

Each lot receives a low and high estimate, a starting price and, where agreed, a reserve. These figures are discussed with the consignor, who usually receives a description list to confirm before the catalogue goes to print.

In Selloff, estimates, starting price and reserve sit on the lot. The printed estimate is generated automatically and can be adjusted by hand. The description list can be printed or emailed to each consignor from the receipt or from the sale's consignments screen. See estimates & reserves.

Lots are assigned to a catalogue, put in order (by category, consignor or theme) and numbered. Large sales are split into sessions. Before publication, a systematic check catches missing images, estimates or descriptions.

Selloff lets you order lots by rules or by hand, number them from a chosen first lot number, run an error check and then activate the catalogue. From there it can be printed as a PDF, exported for InDesign, as Excel or as images, prepared in the file formats of platforms such as Drouot or Interenchères, and published on your own website. See catalogue building & numbering and online catalogue publishing.

Unsold lots are not the end of the story. Many houses accept after-sale offers, often at or near the reserve and with the consignor's agreement. In Selloff, offers on unsold lots can stay open after a live sale. Each offer is shown with the lot's estimate, reserve and consignor, and is accepted or refused in one click. See offers & after-sale.

Buyer's invoices should go out quickly, ideally the same day. Each combines the hammer prices, the buyer's premium, insurance where charged, VAT and any fees.

In Selloff, the bidders to invoice screen lists every buyer with lots not yet invoiced. Invoices can be created for all selected bidders at once, and a client who bid under several numbers can receive a single invoice. The buyer's premium is defined per sale and can be overridden per client; platform fees are added according to each bid's origin. Invoices are printed or emailed in batches. See automatic invoicing.

Payments arrive by bank transfer, card or online payment. They must be matched to invoices, and late payers reminded politely but firmly.

Selloff records payments against invoices, offers online payment through connected payment gateways and manages three reminder levels, each with an optional fee. An aging report and an unpaid lots list show what is outstanding. See payment tracking & reminders.

Finally, lots leave the house: collected in person, sent by post or handed to a carrier. Each shipment needs a slip, suitable packaging, a tracking number and a check that the invoice has been paid.

Selloff links shipments to invoices, calculates shipping costs from a cost matrix and uses barcode scanning to check that the right lots go into the right parcel. See shipments & shipping slips.

Throughout the chain, every invoice, payment and statement creates accounting entries. Selloff groups them by period, currency and branch and exports them to your accounting software. An all taxes report provides the VAT figures for your returns. See accounting export.