Financial Process: Flow of Funds
1. Inventory Purchase
Ahead of launch, Flaviar will coordinate with its retailer network to source inventory through each retailer’s local distributor, ensuring full three-tier compliance.
2. Consumer Purchase
When a customer completes a purchase on the brand site, funds flow from the payment partner directly to the retailer fulfilling the order.
⚠️ Important: All transactions are retailer sales. The brand is not the seller of record, does not receive funds, and does not have visibility into individual transactions, including associated sales tax.
3. Reconciliation Report
The Accounting team sends a reconciliation report to brands mid-month. This report includes:
Products fulfilled
Retail Markup (Credit Owed per Bottle)
Associated wholesale value
Shipping costs
Discounts
Other applicable fees
Reconciliation Report
Timing
On the 15th of each month (or the next business day if the 15th falls on a weekend or holiday), Flaviar's accounting team will notify you that the previous month's report is available on Dropbox.
This comprehensive report covers sales, fulfillment, and shipping costs to maintain a clear and accurate financial overview.
What's Included in the Reconciliation Report
Product Fulfilled in the Month
A summary by SKU of products fulfilled in the reporting month, including the wholesale value.
The wholesale value is included for informational purposes only, as all products sold have already been purchased from your distributor and are owned by the retailers.
Quantities on reconciliation reporting may differ from Shopify reporting — Shopify is based on the date the order is placed, while reconciliation is based on the date the order is fulfilled.
Retail Markup: Credit Owed Per Bottle
A summary of the Credit Owed per Bottle, calculated as the retail price less the wholesale price and fees, per the Client Workbook.
The markup credit is applied to offset shipping expenses, discounts, and other associated fees. A per-SKU breakdown is provided below the monthly summary.
Discounts
The total amount of discounts applied to orders fulfilled in the month, including any promo codes utilized.
Line item discounts, by order, can be found in the Excel file accompanying the Summary Report.
Fulfillment Cost
Shipping expenses, including the fulfillment fee, minus the amount collected from the consumer.
Calculation details can be found in the Excel file accompanying the Summary Report.
Warehouse Services
Any ad hoc billings for warehouse service requests.
Third-Party Shopify App Fees
Any costs billed to Speakeasy from Shopify related to apps installed on the brand website. Costs are billed to the brand in the month bills are received from Shopify.
Balance from the Previous Month
Any amounts below the payment threshold that have been carried forward from a previous month's reconciliation.
Shipping Credit
Credits received for successful carrier claims, and charges for any refunds or discounts applied after an order has been placed.
Due to Flaviar or Due to Brand
The amount due to Flaviar or the Brand as a result of the month's reconciliation.
If the reconciliation results in a charge of less than $50 due to Speakeasy, the balance is carried forward to the next report until the billing threshold is reached.
If the reconciliation results in an amount due to the brand, it remains on file as a credit until the balance exceeds $200. Once over $200, the balance can remain as a credit or be paid out, at the client's discretion.
A separate email will follow with a link to the invoice in the payment processing system. Payments are processed around the 25th of each month.
Questions? Please email your account manager or [email protected] for assistance.