Okay... one of our businesses is a screen printing shop called Atomic T-Shirts (Atomic). Anyway, Atomic started managing these online fundraisers for our customers as a service. What we do is, customer comes in and says I want to raise money for our cheer team. So Atomic designs the shirt and puts it online for sale at whatever price the customer wants to sell them for. Let's say $12. Customer spreads the word through social media and people go on our online system (shopify) and place individual orders. At the end of the fundraiser we have collected let's say 100 orders at $12/each so $1,200. The cost of the shirt to the customer is let's say $6. So the customer netted $600. Customer never has to touch or collect a penny, but we owe her $600. How in the heck do you put all of that in quickbooks? Is it an invoice? We are NOT a non-profit. Tax IS collected and paid on each order also. I'm at a loss. Any help would be greatly appreciated.
create a liability account for the fundraiser, and a service item for the sale that posts to that account use that item on all sales
now write a check to the customer: line one, the liability account, enter the full amount of the sales line two, your commission income account, and your share as a negative number the check nets to the customer profit.