cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 1

How to record art sales commission?

I am the bookkeeper for a small cafe that has different artists showing and selling their work on the walls each month. I am not sure how to categorize/account for income vs payments. We sell the art for the artist. Then write a check to the artist less our commission percentage. How do I record this on the chart of accounts? How do I correctly record this in order for accurate gross receipts tax payments? 

1 Comment
Highlighted
Level 15

How to record art sales commission?

Turn on classes and set up a class per artist

create a liability account, called something like artist sales

create a service item named the same and select that liability account on the item screen

Use that item on a sales receipt when the art sells, select the class name for the artist

 

the artist is set up as a vendor, and should be marked as 1099 eligible

 

when you write the check, report on the artist liability account to get the total sales per artist (class(

on each check
line one, the liability account and the total amount of sales for that artist

line two, your commission income account, the amount of your commission as a negative number

Need to get in touch?

Contact us