I am not a qualified accountant but can do basic book keeping. I am new to OBO. I have the following query and I am hoping you can help as I have googled lots!
My partner runs a takeaway and uses Just Eat to fulfil orders. Each week we receive an invoice from Just Eat. I have set upJust Eat as a Customerand in the Chart of Accounts I have set up Just Eat as an Income Account (sub account under Sales), and Just Eat Fees as an Expense account
The invoice has the following items: Total Sales, Card Sales, Cash Sales, Commission. Each week the Cash Sales, and Commission are deducted from the invoice (as our driver collects the cash) and the remaining is then deposited into my Bank Account. VAT is charged on Commission.
I am struggling as to how to add this into QBO. This is what I did:
1. I set up the following products:
- Card Sales
- Cash Sales
2. I then create a Sales Receipt where I add all three products above and I placed a -ve amount plus VAT for the Commission
I have the following issue, this amount doesn't match the amount that is deposited in the bank (because it includes the Cash Sales).
How do I account for the cash sales that are in the Cash Register. I have created a Cash Register Bank Account, but it seems like the Sales Receipt only lets me direct these products to ONE bank account.
Also we are not VAT registered at the moment (as we are new and below the threshold) so for income should I put "No VAT" or "Zero VAT" and tick 'amounts are exclusive of Tax' on the overall receipt. But then how do I mark the Commissions which do have VAT.
I was hoping I could do this all in one transaction, but it seems like I will have to create separate ones - especially for the cash?
Please see attached how I have done this. Also please note that the
Total invoice amount is £510.24 + 102.05 VAT = 612.29
Total Sales is £2607.60 (£2,524.07 sales in the Bank Account, £85.53 in the Cash Register).
So you can do the sales receipt for all of it. Also have it set as exclusive of vat and then put the vat code as no vat. You will need to minus off the commission in order to be able to match it up. Also you will need to minus off any money form the cash sales and set it up in the products and services section.
So for Cash Sales would I have to create a separate Sales Receipt as that goes into the Cash Register bank account? Or is there another way? Should I just point it to the actual Bank Account and then I would always know that revenue in the bank will have to be minus cash sales product?
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