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Record sale of International Calling Airtime commission in Quickbooks

Good Morning


We buy international calling airtime by credit card. This airtime is bought and sold on daily basis. It creates a prepaid asset when we buy the airtime. At end of month, we get a report which shows the amount of commission earned on the sale of the airtime.


On credit Card Purchase of Airtime

Dr      Airtime Prepaid Asset Account         $1000

Cr      Credit Card Payment                          $1000


On Sale of Airtime daily basis

Dr     CASH                       $100

Cr     Sales of Airtime        $100


At end of month we have a report from vendor

Opening Balance of Prepaid airtime            $300

Add Purchases during Month                      $5000

Commission                                                 $400

Closing Balance of Prepaid airtime             $500

Sales                                                             5200


Our income regarding this transaction is only the commission made. We do not want to record sale of airtime like our inventory or not inventory sales items. Any suggestion, how we can record it in quickbooks? 


Best Regards



1 Comment
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Re: Record sale of International Calling Airtime commission in Quickbooks

Using your example of the monthly roll up

pre-paid asset, 5300

You should have a sales income account and a sales discount income account set up
and an expense account titled, Cost of Sales (COS)

then a journal entry
Sales income 5200 Credit
Sales income discount, 4800 Debit
Cost of Sales, 4800 Debit
prepaid asset, 4800 Credit

Income nets to 400, your commission
pre paid asset lowers and the balance is 500



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