Crediting Suppliers from product sales.

Xtreme Exposures · ‎August 05, 2024

Hello,

I am a photographer and have provided one of my clients with an online service selling images we took of his clients to them. My client would then receive the revenue from these sales.

My client facilitated the shoot, I took the images and uploaded them to a gallery and his clients then bought them online using Stripe. Stripe then combined the sales revenue, removed their fees and sent me a consolidated (£147.50 revenue - 2.81 fees) = 144.69 which I have since created a Sales Receipt in QB - ref 152. I've since transferred to my client.

I can't work out how to manage these transactions in QB.

So far, I've created a separate supplier profile for my client and an 'Other Creditor' account type in my CoA. My thought was the stripe payout (£144.69) would go into the Other Creditor account and that'd then allow me to track the payment to my client. However, it seems I can't do this.

Can anyone tell me what I should be doing to manage this?

John C · ‎August 05, 2024

Hi Xtreme Exposures Thanks for reaching out to us here on the Community. To account for Stripe sending you the net amount you could create the sales receipt for the full amount and allocate the deposit to the undeposited funds account rather than your bank account. You would then create a bank deposit, select the relevant sales receipt and in the account column of the add funds to this deposit section add the fees/expense account in the account field and enter the amount as a negative, ensure you select the appropriate VAT, save and you will then be able to match the net amount to the amount received in your bank, the following article references this process. https://intuit.me/3Sz1lij

You could then create an expense account specific to your client/s and then select that in the category field of the expense you create and send am expense to them.

As we're not accountants we recommend that you qualify the above with an accountant or they maybe a professional that reads this post to confirm the above is correct or they may recommend an alternative method.

View solution in original post

John C · ‎August 05, 2024

Hi Xtreme Exposures Thanks for reaching out to us here on the Community. To account for Stripe sending you the net amount you could create the sales receipt for the full amount and allocate the deposit to the undeposited funds account rather than your bank account. You would then create a bank deposit, select the relevant sales receipt and in the account column of the add funds to this deposit section add the fees/expense account in the account field and enter the amount as a negative, ensure you select the appropriate VAT, save and you will then be able to match the net amount to the amount received in your bank, the following article references this process. https://intuit.me/3Sz1lij

You could then create an expense account specific to your client/s and then select that in the category field of the expense you create and send am expense to them.

As we're not accountants we recommend that you qualify the above with an accountant or they maybe a professional that reads this post to confirm the above is correct or they may recommend an alternative method.

Xtreme Exposures · ‎August 05, 2024

Hi.

Thank you for your response. I should have included that I'm happy with managing the Stripe fees element. But thanks for the reminder.

The other bit - the receipt and payment of the extra bit, your solution is basically as I thought but you're using an expense account rather than a creditor account. Would you agree?

Thanks

GeorgiaC · ‎August 05, 2024

Hi Xtreme Exposures, thanks for getting back to us here

If the payment to your client is classed as an expense from the business, it would typically be posted to an expense-type account. As mentioned above, we always recommend checking with your accountant if you're unsure.

If you don't already have an accountant, you can find a QuickBooks certified advisor near you on our online directory.

Thanks again for reaching Intuit support. We're just a post away if you have further questions or require additional assistance.

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Crediting Suppliers from product sales.