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I have to create an invoice to a customer for trailer hire which we earn 30% of the total hire wit

Sandra_7045342

I have to create an invoice to a customer for trailer hire which we earn 30% of the total hire with gst. I'm not sure how to put this in to reckon i have reckon accounts plus

Comments

unknown

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gazza73

Sounds like the cost of the trailer will be 70% of the selling price, and that COST needs to come in as a COGS. Somebody must be charging Sandra for the trailer in the first place (as a cost),

Gary Pope
An Accredited Partner- Consultant (VIC. Aust)

"Working with Accountants/Bookkeepers PPs/APs, as an
independent IT Professional and retired FCPA Accountant"

unknown

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Sandra_7045342

NOT SURE WHAT YOU MEAN, BY WHERE DOES IT END UP? THE BALANCE WILL BE RECORDED AS INCOME BACK TO OUR BUSINESS.

TO RECKON COMMUNITY

THIS IS MY DELIMA

WE ARE REGISTERED FOR GST

WE RUN A CATTLE STATION & TRUCKING CO

WE HAVE HIRED OUT SOME OF OUR TRAILERS TO A CUSTOMER

BELOW IS WHAT I NEED TO PUT ON A TAX INVOICE.

1. 4X $ 1.76 X 910 KM’S = $6406.40 X 30% = $1921.92

2. 4 X $ 1.87 X 405 KM’S= $ 3029.40 X 30% = $ 908.82

3. 4 X $ 1.87 X 434 KM’S = $3246.32 X 30% = $973.89

TOTAL OWING TO US $ 3804.63

gazza73

Sandra. Perhaps my answer about costs (below) is irrelevent. Perhaps you don't have any issue with any costs of the trailers in the first place, or else that aspect of bookkeeping has been handled already, and so it is unrelated.

So back to your main question, you want to charge the custoemr a total of $3804.63 which I assume is INC GST.

You've not mentioned whether you're trying to track quantities and or kms and so forth as items (perhaps that too complex - but had to ask....
Otherwise, why not put the following into the description:
4X $ 1.76 X 910 KM’S = $6406.40 X 30%
and just put the   $1921.92 as a GST inclusive figure in the AMOUNT?

What is not clear, is whether you intend to disclose to the end-customer that you are charging a 30% factor on some "per KM rate, ie: $1.76/km"......
Otherwise perhaps you should disclose a reduced rate/KM of $0.528c/KM
and then use the combination of TRAILERxKMS as the QTY ....

I guess your question raised the 30% aspect, and my mind immediately turned to the whole P&L aspect of where you show income and costs.

We're obviously lacking the full story in attempting to help you faster, but we're prepared to try....

Cheers

Gary

Sandra_7045342

Hi Gary

No we don’t have any costs associated with the trailers.

Yes I want to charge the customer $ 3804.63 this includes GST

NO I don’t need to track quantities or KMS

YES the end customer is aware of this 30% factor, this is a mutual arrangement between us and them.

What I really meant was when filling in the invoice, what to put in the item area and connecting it to the right income account. I got confused when reading some other conversations about making discount items and subtotals etc.

We hire out our trailers to the customer so they can use them to cart their stock and we receive 30% of the total charge.

We could have made $12682.12 incl GST

But instead we will be getting 30% $ 3804.63

Thanks Sandra

unknown

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cosmic

Looks like this thread is going to some while now, i would seek to get your tax accountant to get advise. What Kev is saying is correct, seek your tax agents advise.
Ultimately any Revenue and cost must be properly accounted for and your tax accountant must get correct info from you to lodge tax returns .

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cosmic

Yes, Kev agreed, thats why we have hanged around for so long now with QBKS now Reckon Accounts. It is very important for the business to understand the concept of Income matching with cost both for management and tax purposes. Ultimately, if the income /cost is not shown correctly in tax returns, and if there is ATO audit your tax accountants gets responsible for this,and onus is on the taxpayer always seek and discuss with your tax agents .

Sandra_7045342

NO WORRIES I WILL CONTACT MY ACCOUNTANT, THANKS FOR ALL YOUR HELP ANYWAY.
SANDRA

unknown

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Kwikbooks (Professional Partner)

Hi Sandra, from this I gather your customer earned $6406.40 using your trailers (4X $ 1.76 X 910 KM’S = $6406.40,) They had 4 items and got paid $1.76 per item carried over 910klm, and for your hire charge you are asking 30% of what they made with your trailers.

If I have this correct, it is the same scenario I have used for my trucking client who carts cotton bales in cotton season.

If this is not used often, I always create a '0' item code - no desciption - track it to the only income account or a suitable income account like 'Misc.' or 'other' income, then use the description you typed above i.e.

Item Description QTy Rate GST Amount
0 4X $ 1.76 X 910 KM’S = $6406.40 X 30% = 1 6406.40 582.40 6406.40
0 4 X $ 1.87 X 405 KM’S= $ 3029.40 X 30% = 1 908.82 82.62 908.82

I am working on the theory that these are your trailers and you have stated their is no cost involved as would if you hired them then rehired them out.

Graham Boast

HI Sandra

I think what you are actually asking is how to set up the item...

When you invoice it, ensure "amts incl tax" is ticked at the bottom of the invoice, use 0.3 in the Quantity Column and $12682.12 in the Price column. This will calculate the correct amount and show the customer the calculation.

Graham Boast 0409317366
Reckon Accredited Consultant
graham@reckonhelp.com.au
http://reckonhelp.com.au/remotesupport.htm