What is on the Works Financial Pane?

Click on Financial to open the Financial Pane of the Work record.

The Financial Pane holds all information regarding purchase/consignment and is broken up into three parts:

• Source/Purchase/Consignment information
• Current Values and Value History
• Expense Information

The fields on the Financial Pane will vary depending upon Ownership. The Example below is a Owned work. 

Use the scroll bar on the right side to see the Expense information at the bottom of the form:

Purchase/Consignment Information: Owned Work Record

• Users will always fine the Source of the work (where it originated from) in the upper left of the Financial Pane no matter what type of ownership the work is.
• The center displays the Purchase Price, and Users have the ability to track Original Costs in multiple currencies.
  • • The Conversion Rate is stored in the database an may be updated by selecting the Recycle icon .  Users will be prompted to  either 'Look-up current exchange rate' or 'User the saved rate of XXX as of XXX'. Select the first option to get the most up-to-date conversion rate. Users can also simply type in a conversion rate if documenting a rate from the time of purchase. 

• The upper right section shows Potential and Calc. Net.
  • •  
    • Potential is the potential amount the user will gain upon sale of this work. 
    • Calc. Net is the total net cost of the work (plus expenses added if applicable).

In the example above the Retail is $50000, the Calc. Net is $28,543 therefore the Potential is $21,457

(50000- 28,543= 21,457).

Purchase/Consignment Information: Consigned Work

The Consigned work information is a bit different as a consigned work needs to track additional information. In the example below the Net is straightforward, entered as a set amount ($1500).

However users can choose to use the Net Is a Percent option. Check Net Is a Percent and users can plug in the Net Percent, Net Cap, Percent above Cap and opt to Base Net on Sales Price (to account for discounts).

Purchase/Consignment Information: Co-Owned Work

Co-Owned work includes information about Co-Ownership: % Owned, House Cost, House Potential.

% Owned: Is percent the user owns the work. Co-owners and their percentage is listed on the left.

House Cost: Is the cost of the users share (note the Calc. Net in upper right is calculating for the entire work and not just the user share).

House Potential: Is the amount the user will gain upon sale. (note the Potential in upper right is calculating for the entire work).

Current Values and Value History

Scrolling down on the Financial Pane, Users will see 6 fields for Current Values and below that, a grid for Value History. All databases have Retail, Insurance, and Appraisal Value fields plus 3 additional User Value fields that may be renamed to track any particular type of value of interest. In the example below User1Value was renamed to 'FMV' (Fair Market Value). To rename User Value Fields SEE Works Module Settings: User Value Fields.

The Current Values will always show the most recent values and the Value History grid below tracks past values. NOTE: All New Values added will be entered into the Value History grid.

Note also that Users can track other currencies in the grid, but the Home Currency will appear in the Current Value fields. Scroll to the right to see Home Currency Fields.

To Add A Value:

1. Select the Type of Value to add: Click in the Type column on the first available line in the Value History Section, and select the desired type of value to add (Retail, Insurance, Appraisal or any customized User Value).
2. Add the Value Date: Click in the Date column and the data entry date will appear, adjust the date if necessary to an earlier date, by typing over the date displayed.
3. Enter the Alternate Currency if needed: Click in the Currency field to select the desired currency from the drop-down list, then click to add the Currency Rate field. 
4. Enter the value amount in the Value column.
5. Add any comments as needed in the Notes column.
6. The most recently added Value will appear in the Current Value Section (upper section of the grid). These are the Values which will generate on your standard A5Artsystems reports.

Expense Information

The primary function of the Works Expense Information is to document all expenses associated with a particular work. Expenses may include costs associated with shipping, framing, restoration, photography, etc. The Expense Information records both Amount (total amount of the expense) and Incurred Amount (amount which you incurred) of the expense. In cases where another party incurs the expense, add the amount only in amount column (see first entry on image above).

Incurred Expenses added on the Expense grid are added to the Calculated Net (Calculated Net appears on the Financial Pane, in order to show the overall costs associated with a Work. Incurred Expenses will also affect Net due to Consignor.

To Add An Expense:

1. Add the Expense Type: In Works, on the Expense grid, click in the Expense column on the first available line in the view and select the desired Expense Type from the drop-down list. If this is a new Expense Type, click once in the Expense column to open edit mode and type the new Expense Type directly into the field, then click the TAB key. Click YES to the prompt asking if you want to save the entry to the Expense Types list? If it is possible that this type will never be used again, it is OK to click NO.
2. Add the Expense Date: Click once in the Date column and the date of entry will appear, if a different expense date is desired, edit the date as needed.
3. Add the Expense Contact: Expense Contact is linked to the Contacts Module. Click in the Expense Contact field and click the Eye icon to open the Contact Selection List. Search to find the Contact, and click OK. If the Expense Contact is not in the list, click the Add New  button to add a new Contact.
4. Enter the full Amount: Enter the full value amount of the expense in the Amount column.
5. Enter the Amount Incurred: Enter the value amount your gallery incurred in the Incurred column. If the expense is split with a partner, enter half the amount into Incurred. If no expense was incurred, leave the Incurred field blank.

The manner in which expenses are entered into the Expenses grid may affect the database owners overall cost of the artwork including the amount that may be due to the artist/consignor and the gallery’s profit. It is imperative that this information be entered correctly for the financial information to calculate accurately within the program. Below are four examples of how to account for expenses:

EXPENSE EXAMPLE 1

The consignor or artist has already paid for the expense (e.g. framing, shipping, etc.) of the piece in full. The consignor/artist is to be reimbursed a portion or the entire amount of that expense. The expense is actually incurred by the gallery and should be listed as such.

Enter the total amount of the expense incurred by the gallery in the Incurred column. This entire amount will now be added to what is due to the consignor/artist. The financial information for this work will adjust in the Calc.Net and Potential/Profit fields of the Financial Screen in Works.

NOTE: If the amount is split equally and entered equally in both columns (Amount and Incurred) it will adjust the Calc.Net/Potential financial information of the work but the amount due to the gallery will be unaffected. If an amount is split equally it has balanced out and neither party owes the other. This situation may occur if the parties are billed separately and are intending to pay separately.

EXPENSE EXAMPLE 2

The gallery has paid or will be paying for the expense associated with this work in full. The gallery is due the entire amount back. The expense is actually incurred by the consignor/artist and should be listed as such.

Enter the total amount of the expense incurred by the consignor/artist in the Amount column. This entire amount will now be deducted from what is due to the consignor/artist.

EXPENSES EXAMPLE 3

The gallery has paid or will be paying for the expense associated with this work in full. The gallery is due a portion of the amount back. This expense is actually shared by the gallery and the artist/consignor.

Enter the total amount of the expense in the Amount column and enter the amount of the expense that the gallery was/will be responsible for in the Incurred Column. The difference of these amounts will now be deducted from what is due to the artist/consignor.

EXPENSES EXAMPLE 4

The gallery has paid or will be paying for the expense associated with this work in full. This situation applies when the gallery owns the work. This expense is incurred by the gallery alone and will not affect the artist/consignor. The artist/consignor is not associated with this expense at all.

To document expenses incurred by the gallery alone for a particular artwork (when the expenses do not have anything to do with the artist/consignor) enter the total amount of the gallery expense(s) both in the Amount and Incurred Columns. This will adjust the financial information for the gallery’s expenses and potential profit.