Works Financial Screen
In Artsystems Pro there are four possible types of ownership for a Work:
- Owned - Work that is purchased
- Consigned - Work that is consigned in
- Co-Owned - Work that is purchased by multiple parties
- Non-Inventory - Work that is not part of the inventory
NOTE: Because it is necessary to record different types of information for each type of ownership, the ownership of the work directly affects how the Financial Screen appears in Artsystems Pro.
All variations of the Works Financial Screen include:
- Date Received: The date of purchase or the date of consignment
- Source: The field on the left side of the Financial Screen displays the source or who the piece was purchased from/consigned from.
- Potential: Potential is the Retail Value less the Calculated Net (see below). Potential represents the potential amount that will be earned upon the sale of the work. (Note the label for this field will change to Profit when the work is sold.)
- Calculated Net: Calculated Net is the Cost plus any Expense Amount Incurred
Financial Screen For Owned Work:
In the example above, the aquamarine line indicates the Work is Owned.
The Financial Screen for owned Work shows Date Received, Source, Potential and Calculated Net fields, plus fields for Original Cost, Conversion Rate and Converted Cost.
- Enter the Date Received to record the actual date of purchase.
- The Retail value in this example is 50,000. The Calculated Net is 26,472.00 (which is the same value as the Cost). This means the work does not have any Expenses recorded (see Expense screen). Retail less Calculated Net equals the Potential amount of 23,528.00.
- Original Cost: Enter the purchase price for the work in the Original Cost field. The Original Cost field enables the user to record the purchase amount in the purchase currency.
- Cost: Values entered in the Original Cost field are converted to the Home Currency in the Cost field (that is, the same Currency which is set in the computer's Regions & Languages settings. If the Work was purchased in the Home Currency, the values for Original Cost and Cost will be identical. If the Work was purchased in a different currency a Conversion Rate will apply to convert the alternate currency value into the Home Currency value in the Cost field. If a Work was purchased in a different currency, select the correct Currency from the drop-down list.
Conversion Rate
Currency Conversion Rates are stored in the Artsystems Pro database. Select a Currency from the Original Cost drop-down menu, and the currency conversion rate will appear in the Conversion Rate field. When users select a particular currency for the first time from the Currency drop-down menu, the Conversion Rate will equal 0. In Artsystems Pro, Currency Rates are saved in the database. Currency Rates may be updated on the Works Financial Screen to the most recent rate published by Reuters (http://www.reuters.com/finance/currencies) or edited in Works Edit>Related Lists>Currencies. (See below.)
NOTE: The Currency Rate field on the Work record may be manually edited to reflect the rate on the exact date of purchase.
To Update A Conversion Rate
Users can update a Conversion Rate in the database two different ways:
- Update the Conversion Rate to the most recent rate published by Reuters:
- On the Financial Screen in Works, select a currency from the Original Cost currency drop-down list, and enter the purchase cost in that currency
- Right-click (or select [Command] + [Click]) in the Conversion Rate field
- Choose the option Refresh from Web
- The Conversion Rate for the selected currency is now updated in the database
- Or update the Conversion Rate using the Works Module>Edit>Related Lists option from the menu:
- Open the Works Module, select from the menu Edit>Related Lists>Currencies
- Find the desired Currency Type in the list to update and click on the Rate column
- Change the rate as needed, click the TAB key on the keyboard
- Change the Last Updated Date to today's date, click the TAB key on the keyboard
- Click Close
- Answer Yes to the prompt asking Do you want to save your changes?
- The Conversion Rate for the selected Currency is now updated in the database
NOTE: When the Conversion Rate is updated in the database, the conversion rates will not change on previously entered records. The new rate will apply only to records that are entered after updating the rate.
Financial Screen For Co-Owned Work
In the example above, the light purple line indicates the work is Co-Owned.
The Financial Screen for co-owned work shows Date Received, Source, Potential & Calculated Net fields, plus fields for Original Cost, Conversion Rate and Cost, and fields for partner ownership:
- % Owned: Percentage Owned is the percent of ownership the database owner has in the Work.
- Co-Owners: Co-Owners are entered when the Work is added, but the partnership information can also be edited. After setting the Partner Percentage Owned for the Co-Owners, the remainder percentage appears in the % Owned field.
- Partner Cost: Enter Partner Cost in one of two ways: If the Partner Percentage Owned is entered first, then Artsystems Pro calculates the amount shown in the Partner Cost field by multiplying the Work Cost field by Partner Percentage Owned; Or, if the amount is entered into the Partner Cost directly, Artsystems Pro changes the Partner Percentage Owned in proportion to the amount entered in the Partner Cost field.
- House Cost: Artsystems Pro calculates House Cost by multiplying the Cost field by the [House] Percentage Owned.
- House Profit: Artsystems Pro multiplies the Potential field by Percentage Owned to calculate the House Profit.
If partnership information changes during the time of ownership, the Partners, and respective Percentages Owned maybe edited. To add a new partner, click once on the first available line in the Co-Owner column, and select the new partner from Contacts, then edit Percentage Owned as needed.
Financial Screen For Consigned Work:
In the example above, the dark blue line indicates the work is Consigned.
The Financial Screen for consigned shows Date Received, Source, Potential and Calculated Net fields, plus fields for Net to Consigner, Conversion Rate and Net Cost, as well as Return, Due Consignor and Amount Paid. Net is a Percent and Base Net on Sales Price field appears when that box is checked.
- Return: Enter the date to Return the work as agreed upon in the consignment agreement.
- Due Consignor and Amount Paid: Payments to consignors are made in the Transaction module (See also Make Payment Transaction in Other Transactions). After the work has been sold and the consignor has been paid, the Amount Paid field displays the amount paid to the consignor in the Payment Transaction. These fields are non-editable on the Financial Screen and auto-populate when the Transaction is created.
- Net: For consignment agreements that dictate a concrete value is due to the consignor upon the sale of the work, enter the net value amount in the Net field.
- Cost: Artsystems Pro converts values entered in the Net field to the Net Cost field. In the example above, the net due is in USD, but note that users can enter the Net in other currencies, and the Conversion Rate will define the Net Cost.
- Net is a Percent: Click Net is a Percent when consignment agreements dictate that a percentage of the sales amount is due to the consigner upon sale of the work. A checkmark on Net is a Percent will alter the fields on the Financial Screen for consigned works:
- Net Percent: Enter the Net Percent due to the artist upon sale of the Work. The standard percentage due is based on the Retail Price.
- Base Net on Sales Price: Click to have the amount due to consignor based on the Sales Price.
- Net Cap and Percent above the Cap: A Net Cap is the limit on the amount a consignor may receive upon the sale, and Percentage above the Cap, is the total percent above the cap they may receive, in the example above, the consignor has agreed to split discount of up to a 10 % discount.
Show Accounts enabled
When Show Accounts is enabled, the Account fields appear in the following locations:
COGS: Works>Financial Tab> Bottom
Sales: Works>Financial Tab> Bottom
Account: Works>Financial Tab>Bottom
Partner: Works>Financial Tab> Partner list on Co-Owned Works (scroll to right)
