Billing margin is set at 50% for
- sake of simplification and
- reducing the tax liability on brand arising at the time of sending goods to eshopbox warehouse.
Please note billing value doesn't correlate with the payment value received when the product is sold. It is only used to raise invoice at the time of supplying inventory to eshopbox.
Also it is not necessary to use billing margin at fifty percent while raising invoices to eshopbox.
In case you wish to get your billing margin set at different percentage, drop an email to care@eshopbox.com.
But it is very important to maintain consistency of billing margins for all products and from invoice to invoice. Changing billing margin at later stage involves a lot of manual work and following steps :
- Return of all the inventory to brand according to previous billing margin
- Product value needs to be updated across all our ERPs so that new purchase order raised are based on new billing margin.
- Brand sending all the inventory back raising new invoice based on new billing margin.
This involves a lot effort and costs for all the parties. It may also lead to loss of sales because inventory may not be visible on channels during the transition period. It is better idea to maintain a consistent billing margin throughout.