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tiffish
Level 1

Entering Third Party Delivery Service Fees (Grub Hub, Slice, Amazon)

I own a pizza restaurant and have contracts with several third party vendors like Grub Hub, Slice, Amazon, etc. Customers order off my regular menu, but the money is collected by the third party vendor. Two to four weeks later I receive income from them, but it is less the commissions, fees and sometimes sales tax. My POS system records them as "customer account" and the balance gets fed into an account called "due from online ordering" which is an "other current assets" account. 

 

My problem is because if the total order is $100 and GH takes 30% or $30, (speaking generally, they are all different commission scales) the total that comes in via the bank feed is only $70 and then I have a total growing in the "due from online ordering" that never goes away. I think I need to have an account for the expense of the commissions, but never know the exact amount since several of the companies do not send detailed invoices, we just receive a deposit. I have not been able to reconcile these for over 3 years, and it it becoming a big problem on my balance sheet. I have scoured the internet and no one else seems to have this problem, but these third party vendors are everywhere and we cannot escape using them. 

 

I use Sales Receipts to transfer the information out of my POS and into QBO. The net sales go in as a positive number and then the Customer Account amount (the third party order) is a negative number line entry. Again, both of these entries are 100% of the order, as at the time of entry, I do not know what the total amount I will ultimately receive will be. Going back to the sales receipt after the fact is difficult because they often lump several orders together (ie 1 week or 1 month of orders) and pay as a lump sum so you never really know what has been included.

 

Any suggestions? I know there have to be other companies that have the same problem. These vendors are just too prevalent now.

2 Comments
Lain
Level 3

Entering Third Party Delivery Service Fees (Grub Hub, Slice, Amazon)

This is a simple fix if you just need to fix the problem in your QB. Those service fees are an expense to your business and should not hang out in an Other Current Assets account. In QB you can do a journal entry crediting the asset account and debiting an expense account called delivery commissions (or something like that). The journal entry can be done each time you receive a payment, quarterly, or annually. Whatever is easier for you.

 

If you are trying to account for this in your POS, I am not sure since you didn't mention what POS you are using.

 

 

 

parksbarbie
Level 2

Entering Third Party Delivery Service Fees (Grub Hub, Slice, Amazon)

How do you account for the sales tax they are collecting and paying?

 

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