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I'm not sure what discussion topic this should go in -
I have a client who uses a 3rd party company to manage his website and inventory.
They (the vendor) manages the website and the online storefront and collect all payments.
They produce a weekly activity report that is based on a Wednesday - Tuesday schedule and the report is sent to my client on Wednesday morning. On the report is every order, and it includes Sales Subtotal, Shipping, Sales Tax Collected, Total Sales, Inventory Costs, and Shipping Costs, and other incidental charges if there are any.
My client receives a deposit in his account from the Vendor on Friday for the total amount collected based on the Activity Report.
Currently, I am waiting for the deposit and then breaking the deposit out to the necessary accounts (Income, COGS, and Expenses).
The only time this could be an issue is when the end of the month is on Tuesday or later, and the payment then comes in the next month. The client is on accrual accounting. This can also be an issue at the end of the year.
What would be "best practices" for entering the information from the report on Wednesday and then matching it to the deposit that is received on Friday? The client is not interested in entering individual sales, just the totals for the week.
Thanks
EJ
Solved! Go to Solution.
In accrual based accounting, the date the payment comes in has no bearing on anything, the date that counts is the date of the transaction
Currently, I am waiting for the deposit and then breaking the deposit out to the necessary accounts (Income, COGS, and Expenses).
The deposit is income. The gross sale is the amount you split up between the various expenses. Create an invoice template that uses items which posts to the various expense accounts. You have to create those items first of course, and when you use them enter the quantity as negative one, then the amount. So an invoice might look something like
Weekly sales, income, qty = 1, $$$$$.$$
COGS, expense, qty = -1, $$$
shipping expense, qty = -1, $$.$$
etc etc
save the invoice, use make deposits on Friday, then download banking and match
In accrual based accounting, the date the payment comes in has no bearing on anything, the date that counts is the date of the transaction
Currently, I am waiting for the deposit and then breaking the deposit out to the necessary accounts (Income, COGS, and Expenses).
The deposit is income. The gross sale is the amount you split up between the various expenses. Create an invoice template that uses items which posts to the various expense accounts. You have to create those items first of course, and when you use them enter the quantity as negative one, then the amount. So an invoice might look something like
Weekly sales, income, qty = 1, $$$$$.$$
COGS, expense, qty = -1, $$$
shipping expense, qty = -1, $$.$$
etc etc
save the invoice, use make deposits on Friday, then download banking and match
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