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Vendor Types and ACH Payment Process Documentation

1. Overview

In our system, we work with three main vendor types that represent different stages of product handling and cost allocation. Each vendor type plays a specific role in the production and fulfillment process.

This documentation explains: - Vendor types and how to manage them - How to configure products for different vendors - How to build ACH payments for completed orders

2. Vendor Types

We have three types of vendors in the system:

Vendor Type Name Description
Vendor 0 ECN Vendor (eComNow) Represents the internal eComNow entity responsible for Cost of Goods and overall campaign management.
Vendor 1 Supplier Supplies the raw items (e.g., blank apparel or base product). Does not perform any embroidery or customization.
Vendor 2 Embroidery Vendor Handles digitization and embroidery work on the supplied items. Each embroidery vendor has its own ShipStation account for fulfillment and shipping.

3. Managing Vendor Types

Vendor types can be managed and updated directly from the Admin Panel.

Steps to Change Vendor Type

  1. Log in to the Admin Panel.
  2. Navigate to Vendors.
  3. Find the vendor you want to update.
  4. Click Manage next to the vendor name.
  5. Locate the Vendor Type dropdown.
  6. Select the correct type:
    • Vendor 0 – ECN Vendor
    • Vendor 1 – Supplier
    • Vendor 2 – Embroidery
  7. Click Save Changes.

Tip: Always confirm vendor type assignments before running ACH reports to ensure payment accuracy.

4. Configuring Products for Vendor Types

Each product can have multiple cost components depending on the vendors involved. When configuring a product, ensure all cost fields are filled out correctly.

Cost Fields

Cost Type Applies To Description
Raw Cost Vendor 1 (Supplier) Base cost of the blank or raw product.
Additional Fee 1 Vendor 1 or 2 Any extra charge applied by the vendor (e.g., setup or handling fee).
Digitization Fee Vendor 2 (Embroidery) Fee for converting artwork into embroidery format.
Embroidery Fee Vendor 2 (Embroidery) Fee for embroidery work done on the product.
Additional Fee 2 Vendor 2 (Embroidery) Optional extra charge from the embroidery vendor.

How to Configure a Product

  1. Go to Admin Panel → All Inventory.
  2. Select the product you want to configure.
  3. Under the Pricing section, fill in:
    • Raw Cost (Vendor 1)
    • Additional Fee 1 (if applicable)
    • Digitization Fee (Vendor 2)
    • Embroidery Fee (Vendor 2)
    • Additional Fee 2 (if applicable)
  4. Click Save.

5. ACH Payment Process

Once a campaign ends and all orders are closed, ACH payments are processed for each vendor.

Step 1: Configure Product Prices and Close Orders

Before starting ACH payments: - Ensure all product prices and fees are correctly set. - Confirm all orders are closed in the system.

Step 2: Open the ACH Payment Tool

  1. Go to Admin Panel → Accounting → Build ACH Payment.
  2. In this section:
    • Select Group By Vendor.
    • Choose a Cutoff Date (determines which orders are included).
    • Click Generate Report.

Step 3: Review Vendor Orders

Once data loads: 1. Click the Vendor Name to open their details. 2. View all related orders. 3. You can: - Select specific orders to include, or - Select all orders for that vendor by checking all boxes.

Step 4: Save the Batch

  1. After selecting the desired orders, click Save Batch.
  2. The system creates an ACH payment batch for that vendor.
  3. You can view saved batches in the Saved Batches tab.

6. Payment Breakdown by Vendor

At the end of each campaign, ACH payments are made as follows:

Vendor Payment Covers Notes
Vendor 1 (Supplier) Raw Cost Paid via ACH or wire transfer. Not the official vendor in the system.
Vendor 2 (Embroidery) Digitization Fee + Embroidery Fee + Additional Fees Receives all orders in their portal, fulfills them, and ships using eComNow’s ShipStation account.
Vendor 0 (ECN Vendor) Cost of Goods (system record) Used for accounting and cost tracking within eComNow.

This ensures that: - The full cost of goods is recorded. - Each vendor is paid for their portion only. - The audit trail for all money transfers is maintained.

8. Example Workflow

  1. Vendor 1 (Supplier) supplies blank t-shirts → Raw Cost = $5.
  2. Vendor 2 (Embroidery) performs digitization and embroidery → Digitization Fee = $1, Embroidery Fee = $2.
  3. ECN Vendor (Vendor 0) manages the campaign → Total Cost of Goods = $8.
  4. End of Campaign Payments:
    • Vendor 1 receives $5 (Raw Cost).
    • Vendor 2 receives $3 (Digitization + Embroidery).
    • eComNow books total COGS = $8 for reporting.