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What are the difference between Delcredere Commission and Over-riding Commission?

The difference between Delcredere Commission and Over-riding Commission are:

Delcredere Commission:

  • It is allowed to consignee when he undertakes the risk of bad debts arising out of credit sales.
  • In return for this commission consignee guarantees the proceeds of the consignment sales.
  • It is usually calculated on the total sales.

 

 

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Over-riding Commission:

  • It is allowed to consignee as an in centive to push sales at a higher price.
  • In return for this commission, the consignee does not give any type of guarantee.
  • Depending upon terms of agreement, it may be calculated on total sales or on the excess of total sales over invoice price or minimum specified price of goods sold.

 

 

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