Entering a sale that has charges/commissions deducted from payments.

adimauro
adimauro Member Posts: 2 ✭

I was wondering if I can help on how I record this transaction. I have been doing it incorrectly and I have been told to entry the transaction via journals.

We have a third party that looks after our online orders. On a daily basis we get the funds less any charges/commissions. What is the correct way of recording the GST and expense. I have been told a journal entry is easiest. This would be daily transaction.


Thank you.

Answers

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,366 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    The best method is using a Clearing account - This is a dummy "Bank" account that you put the transactions through to account for both sides.

    As it's a bank account, you can receive payments "in" to it as well as also record payments paid "out" of it.

    • You would use a Sales Receipt to record the full amount of a sale (including any GST component) with it depositing to this Clearing Bank account.
    • You then create a Write Chq(s) from this clearing bank account for the applicable charge(s) / commissions etc leaving the net balance (which should match the final amount you actually receive)
    • You can then use Transfer Funds or Write Cheque to move these funds from the clearing account to your actual bank account. (I prefer Write Chq as it allows for more detail)


    This process correctly accounts for all:

    • Income
    • Expenses &
    • GST


    It also allows matching transactions in the bank account for reconciling 😊

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • adimauro
    adimauro Member Posts: 2 ✭

    Thank you so much for responding to me. Shaz.

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,366 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    You're very welcome @adimauro - Feel free to contact me direct if you get stuck 😊

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)