What's the best way to record franchise transactions in QuickBooks?

dukealexmoore · ‎April 29, 2020

The franchisor provides the franchisee with clients.

The franchisee gets paid from the franchisor, in the franchisee's check includes the gross sales per client minus the franchisor's expenses such as royalties, sales tax, advertising, chargebacks, and others with a paper check.

The check is cashed in the franchisee's bank account and the franchisor sends a monthly revenue statement.

What's the best way to record these transactions in Quickbooks?

Rustler · ‎June 11, 2020

duplicate the statement

deposit the full amount, then reduce that amount by each expense as a negative number

I find this easier to do as a sales receipt with items listed for each type of expense, the qty for the expense is set to negative one, then the sales receipt will net to the amount deposited, then use make deposits to enter the deposit

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Rustler · ‎June 11, 2020

duplicate the statement

deposit the full amount, then reduce that amount by each expense as a negative number

I find this easier to do as a sales receipt with items listed for each type of expense, the qty for the expense is set to negative one, then the sales receipt will net to the amount deposited, then use make deposits to enter the deposit

dukealexmoore · ‎June 11, 2020

Hi Rustler,

You always seem to have the answer and I appreciate you taking the extra time in your busy day to help others and myself. Thank you Rustler

dukealexmoore · ‎June 29, 2020

Hi Rustler,

What's the best practice to track how much each client spent when using a sales receipt.

For example, in the revenue statement, the franchisor will include income from 5 different clients' incomes along with the franchisor's expenses. When creating a sales receipt I can only list one customer in the source section.

Avaughn · ‎July 27, 2020

When you say duplicate the statement do you enter the entire amount as a sales receipt then create a separate sales receipt for each expense

Avaughn · ‎July 27, 2020

When you say duplicate the entry do you meant create a sales receipt for the entire amount then offset it with a sales receipt for the interest

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What's the best way to record franchise transactions in QuickBooks?