At a Glance
- Consignment settlement runs weekly for every active cannabis vendor
- Calculation: net sales x category splits - aging discounts - credits - platform fee = payout
- All math uses integer-precision arithmetic, rounded to the penny
- You review the summary — we generate the check and deliver it to the vendor
How Consignment Settlements Work in Cannabis
Every week, ShelfSpace calculates a consignment settlement for each vendor with active inventory on your shelves. We pull sales data directly from your POS, apply the terms defined in your consignment contract, and produce a settlement that both you and the vendor can review. The result is a single check amount — no spreadsheets, no manual math.
The settlement engine is the core of the ShelfSpace consignment service. Here's how each step works.
The Settlement Calculation, Step by Step
1. Gather sales data. We pull every transaction for the vendor's consigned products during the settlement period. Each sale record includes the product, category, sale price, and date.
2. Apply category splits. For each sale, we look up the vendor's percentage for that product category. If flower has a 60/40 vendor/retailer split, a $50 sale yields $30.00 to the vendor and $20.00 to the retailer. When no category-specific split exists, the contract's default split applies. If no default is set, the system falls back to 50/50. See category splits and profit sharing for details.
3. Calculate aging discounts. Products that have sat on the shelf past agreed thresholds receive aging discounts. The system checks each item's age in days against the vendor's aging tiers. For example, a tier might apply a 12.5% discount on flower aged 30–60 days. Aging deductions reduce the vendor's share.
4. Subtract credits. Any outstanding credit memos — returns, expirations, or co-marketing credits — are deducted from the vendor's gross payout.
5. Apply the platform fee. ShelfSpace charges a small tiered fee based on the settlement's net sales volume. Fees are tiered: settlements under $1,000 pay $15, scaling up to $100 for settlements above $10,000. Fee waivers apply during the pilot period.
6. Round and finalize. Every monetary calculation uses integer-precision math — we multiply by 100, compute in whole cents, then convert back. This eliminates floating-point rounding errors that plague spreadsheet-based settlements. The final payout is rounded to the penny.
What Happens After Calculation
Once the settlement is calculated, we generate a detailed settlement report and a Check 21 payment. The vendor receives both through the vendor portal. You see a summary in your retailer dashboard with the option to review before the check is delivered.
If either side has questions about a settlement, our team investigates. Every calculation is backed by an audit trail that traces each line item back to the original POS transaction.