Finance guide

Make every line of a settlement explainable.

A clear settlement helps your client understand how the commercial result was reached. This guide walks through what makes each line explainable — from the agreement to the evidence behind every adjustment.

By the RazorERP team · Updated November 2026

Request a Demo Consignment & settlements

From agreement to payout

Reviewing these six areas together makes it possible to explain the calculation and resolve client questions with records rather than recollection.

01
Agreement
The client contract defines the pricing model — purchase, revenue share, or fee-based — and the requirements that apply.
Decisions
- Pricing model and share
- Which charges apply
You prepare
- Signed agreement
- Contract requirements
02
Valuation basis
How each unit is valued — for example from a valuation template by model and expected grade.
Decisions
- Valuation source and date
- Who maintains values
You prepare
- Current valuation template
03
Grading devaluation
Adjustments when tested condition differs from what was expected.
Decisions
- Deduction per grade step
- Treatment of non-resaleable units
You prepare
- Grading standard
04
Charges
Logistics, processing, and other charges allowed by the agreement.
Decisions
- Per-unit, per-weight, or per-job
You prepare
- Rate schedule
05
Reconciliation
Received units, graded units, and settled units agree; exceptions are resolved.
Decisions
- How shortages are treated
You prepare
- Receipt and exception records
06
Evidence
Each line points to the records that justify it.
Decisions
- What the client receives with the settlement
You prepare
- Grade, test, and recycle records

An illustrative ledger

Hypothetical amounts for a hypothetical lot. Open a line to see the arithmetic and the evidence behind it.

Illustrative settlement

LOT-24817 · JOB-7712

54-unit settlement lot from JOB-7712 (214 assets in the job)

Hypothetical · not a quotation

01Latitude 5420 · 24 unitsAdjusted line value$3,960.00

Valuation basis: 24 × $180.00 = $4,320.00
Grading devaluation: 4 units graded B instead of A: 4 × $45.00 = −$180.00
Units not resaleable: 1 unit recycled (board failure): −$180.00
Adjusted line value: $4,320.00 − $180.00 − $180.00 = $3,960.00

Evidence: Grades and test results on each asset; recycle record for the failed unit.

02EliteBook 840 G8 · 18 unitsAdjusted line value$3,510.00

Valuation basis: 18 × $210.00 = $3,780.00
Grading devaluation: 3 units graded C: 3 × $90.00 = −$270.00
Adjusted line value: $3,780.00 − $270.00 = $3,510.00

Evidence: Grades with condition photos from the bench.

03ThinkPad T14 · 12 unitsAdjusted line value$1,500.00

Valuation basis: 12 × $150.00 = $1,800.00
Units not resaleable: 2 units recycled (screen fault): 2 × $150.00 = −$300.00
Adjusted line value: $1,800.00 − $300.00 = $1,500.00

Evidence: Diagnostic results and recycle records for two units.

Gross valuation: $9,900.00
Grading devaluation and non-resaleable units: −$930.00
Adjusted value: $8,970.00
Client share at 70%: $6,279.00
Logistics charge (per agreement): −$350.00
Processing charge: 54 units × $4.00: −$216.00
Net to client: $5,713.00

Assumptions

Hypothetical unit values and a hypothetical 70% client revenue share
Charges as they might appear in a client agreement
Not a quotation, not an actual customer settlement, and not a statement of a formula RazorERP applies — your contract defines the calculation

What makes a line explainable

It names the contract term it applies
The arithmetic can be repeated by the client
Every deduction points to an asset-level record
Non-resaleable units are listed, not netted silently
Charges match the agreed schedule
The approver and approval date are recorded

Walk through a settlement with your own terms.

Bring a contract and a settlement you have issued.