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Level 2

How to record online sales through 3rd party vendor (Smugmug) and reconcile to bank deposits

I use a service called Smugmug to sell photos online. They display the photos online, collect payment and sales tax from customers, handle order fulfillment, retain a fee of 15% of profit, then pay me periodically with two bank deposits, one each for the balance of profit and sales taxes collected. They also provide a spreadsheet with individual sales details, such as total collected, cost of individual item(s), shipping cost, and taxes collected.

What QB workflow is needed to record individual online sales and match to the deposits received later from Smugmug? (The individual items sold can be tracked through the Smugmug spreadsheet if this level of granularity is not required to complete the QB sales entries.)

Since customer pays Smugmug at time of sale, not sure whether to use sales receipts or invoices for for the sales transactions in QB.

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QuickBooks Team

How to record online sales through 3rd party vendor (Smugmug) and reconcile to bank deposits

Good day, @Alan Coley.

 

We're happy to have you in the Community. I can help you record and reconcile your online sales and bank deposits.

 

I can share the difference between an invoice and sales receipt. You will only use an invoice if your customer will pay you later while sales receipt when your customer pays on the spot for goods or services.

 

In your case, since you have Bank Deposits, you can create invoices and link them with your deposit. This process won't make any duplication of your transaction and recordings.

 

Here's how to create an invoice:

  1. Select the Plus icon (+).
  2. Choose Invoice.
  3. Complete the fields with necessary information.
  4. Select Save and close.

To link the deposits, here's how:

 

  1. From the left menu, select Accounting.
  2. Select Chart of Accounts.
  3. Find the account you deposited the payment to, then select View Register (or Account History).
  4. Locate and choose the correct deposit.
  5. Select Edit.
  6. Scroll down to Add funds to this deposit, then find the fund you need to edit.
  7. In the Received From column, search and choose the appropriate Customer name.
  8. In the Account column, select Account's Receivable.
  9. Select Save and close

For detailed instruction, you can refer to this article: Should I use an Invoice or a Sales Receipt?. In reconciling your account, you can use this article as a reference: Reconciliation.

 

There you have it, @Alan Coley. I'm more than happy to jump back on if you have any other concerns about QuickBooks, please let me know by adding a comment.

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