How to record a sale when the distributor collects payment

Hi there, @dialedin.

It's good to have back here in the Community. I'm here help share some information about recording your customers' transaction as a sale in QuickBooks Online.

To record your transaction as a sale in QuickBooks Online, I'd like to ask some clarifications so I can provide you with the correct resolution. May I know what's the nature of the transaction? Did receive any income from it or you've gained commission of from it?

Please get back to me with more details about this concern so I can walk you through in the right process of recording the sales transaction in QuickBooks.

I'll be keeping an eye out for your response on this. Have a good one.

We can sometimes receive commission checks for these sales months later.  Although we did not receive payment (we gave the customer's credit card number to the distributor), we did make the sale and would like our records to reflect that.

Thanks for the details, dialedin.

The simplest way to record your sale is to write an invoice for the commission. You can create a commission item, and on your invoice you can write the reference numbers of the credit card payments in the Description field of the line item. That way, your customers has a reference of what you're invoicing for.

On the bookkeeping side, it's best if you can seek advice from an accountant. You can ask if is it still necessary to include the credit card payments to your invoice and add a commission line to it, this may affect your sales tax. Or, you can just invoice them with the commission item.

We'll be here if you have more questions.

Hmm. I like the commission invoice idea, and being able to track receipt of the commission that way.  That would be entirely internal.  It would not be appropriate for customers to see that.

How can I add the credit card payment to the invoice when the funds do not go into our bank account?

Thanks for getting back to us, @dialedin.

Let's create a new service item for your credit card payment and add it to your invoice.

Here's how:

1. Go to Sales, then select Products and Services.
2. Click New.
3. Select Service.
4. Enter Credit Card payment under the Name section.
5. Hit Save and close.

Here's an article for your reference: How to Create and Use a Products and Services List

Then, you can now create an invoice with the credit card payment. Let me guide you how:

1. Click the Plus (+) icon.
2. Select Invoice.
3. Choose the Customer's name.
4. Under the Product/Service column, select the commission item on the first line and enter the amount.
5. On the second line, select the Credit Card payment and enter the amount as a whole number, not in percentage.
6. Click Save and close.

Also, I still recommend seeking help from your accountant. He/she could guide you which option to take based on your recording practice and business needs.

Please keep in touch with us here should you need any further assistance. We're always here to help.