Internet and Drop-Ship Vendor Review Worksheet
A reusable form for documenting outside vendor facts, classification, margin monitoring, and diligence readiness.
Author
Status | Working Draft 0.1 | Review Copy |
|---|---|---|
Primary audience | Practice leaders, managers, advisors | Prepared August 22, 2026 |
Use | Complete one worksheet for each outside vendor/source reviewed | Companion to the VizVet Best Practice workflow |
Purpose: This worksheet is intended to help leaders keep core practice performance, actual ancillary contribution, and gross-reported activity visible at the same time.
How to Use This Worksheet
Use one worksheet for the primary outside vendor or source. If the practice has multiple vendors, repeat this worksheet for each vendor/source rather than forcing unrelated facts into a single table.
Complete the fact sections first, then select the classification and reporting treatment. If the facts are unclear or material, hold the conclusion until the practice's accountant, CPA, auditor, or advisor reviews the treatment.
Vendor / Source Setup
Vendor/Source | Practice | Review Owner | Review Date |
|---|---|---|---|
Field | What to Document |
|---|---|
Vendor/Source Type | Online pharmacy, online diet, drop-ship product, rebate, commission, platform, or other source. |
Source Documents | Contract, dashboard, settlement report, bank deposit, merchant activity, or journal-entry source. |
Cash Flow | Gross customer deposits, net remittance, fee, commission, rebate, credit, profit share, or mixed pattern. |
Related Costs | Product COGS, fulfillment, platform, shipping, sales tax, credit-card, merchant, or supplier costs. |
Primary Business Question | Which decision this review needs to support: margin trend, reporting view, pricing, diligence, or accounting policy. |
Classification Snapshot
Check the best current classification. If two rows seem true, use review-needed until the cash flow, cost responsibility, control posture, and reporting policy are documented.
Classification | When This Fits | Next Action |
|---|---|---|
Practice sale or practice controlled drop-ship activity | Practice bills or collects from the client and owes the supplier/distributor. | Record actual gross revenue and related costs when appropriate; tag separately for trend review. |
Third-party activity with actual gross cash flow | Gross customer proceeds flow through practice accounts and related costs are paid or deducted from practice accounts. | Record what actually happened, separate the management view, and track margin directly. |
Third-party net-remittance activity | Provider collects from the client, retains product/fulfillment amounts, and deposits only practice earnings. | Show actual contribution without automatically grossing up revenue and COGS in the management view. |
Ancillary contribution, rebate, or vendor credit | Practice receives a rebate, credit, commission, or vendor calculated amount after activity occurs. | Classify separately and decide whether it offsets costs, appears as other income, or is shown as ancillary contribution. |
Review-needed or mixed fact pattern | Contracts, dashboards, deposits, and accounting entries do not tell the same story. | Hold interpretation until facts, accounting rationale, dashboard treatment, and policy are documented. |
Task Checklist
Use the Done column as the check-off box. The evidence column should point to the source file, dashboard, report, or note that supports the conclusion.
Done | Task to Complete | Evidence / Notes | Owner / Date |
|---|---|---|---|
Identify the vendor/source and related dashboard, report, or contract. | Vendor portal, contract, settlement report, or source list location. | ||
Confirm what the practice receives. | Gross customer deposits, net remittance, fee, commission, rebate, credit, or profit share. | ||
Document related costs and who pays or retains them. | Product COGS, fulfillment, platform, shipping, sales tax, credit-card, merchant, or supplier costs. | ||
Review control/accounting posture when material or unclear. | Advisor review, principal-versus-agent rationale, or policy note. | ||
Select and document the reporting treatment. | Total reported, management contribution, core practice, separate margin view, or review-needed. | ||
Configure the separate internet/drop-ship margin view. | Dashboard, spreadsheet, or VizVet view showing revenue, COGS, fees, rebates, margin dollars, and margin percentage. | ||
Review vendor cost changes against practice pricing or margin settings. | Last price/margin review and whether client prices were updated. | ||
Assign review cadence. | Monthly, quarterly, annual, or before lender, buyer, or consolidator diligence. | ||
Draft the gross-versus-net diligence answer. | Standard answer and source location for future diligence requests. | ||
Set the next review date. | Owner and due date. |
Margin Review Log
Use this log to make sure the practice is not losing internet or drop-ship margin when vendors pass along increased product, fulfillment, platform, shipping, or processing costs.
Period | Sales / Volume | Costs / Fees | Net Contribution | Margin % | Price Settings Reviewed? | Notes |
|---|---|---|---|---|---|---|
Diligence Answer
Use this section to prepare a consistent response when a lender, buyer, consolidator, or advisor asks whether online pharmacy, online diet, or drop-ship activity is booked gross or net.
Question | Practice Answer / Source |
|---|---|
Is this vendor/source booked gross or net? | |
What facts support that treatment? | |
Where are the source documents kept? | |
Who reviewed the accounting or reporting treatment? | |
When should this answer be reviewed again? |
Boundary: This worksheet improves management information and decision quality. It is not legal, tax, audit, or formal accounting advice.