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anonymous6
Level 2

Track employee's purchase and sales of employees on an e-commerce website

I have a scenario where the owner wants to track the purchase and sales of employees who purchase products from the owner's online e-commerce business. The owner buys products from a manufacturer and sells the products to customers online. However, employees are allowed to purchase products and sell the products to online customers. Can I setup this transaction activity?

Owner

Purchase the product (from manufacturer)

Dr Inventory

Cr  Cash

 

Sell the Product (to Employee A)

Dr Cash

  Cr  Sales

 

Dr  Cost of Goods Sold

  Cr  Inventory – Owner

 

Customer (Employee A)

Purchase the Product (from owner)

Dr Inventory – Employee A

Cr  Online Bank Wallet – Employee A

 

Sell the Product (to a customer)

Dr  Online Bank Wallet -  Employee A

     Cr  Sales  - Employee A

 

Thank you in advance for your help.

 

Solved
Best answer February 04, 2020

Best Answers
Rustler
Level 15

Track employee's purchase and sales of employees on an e-commerce website

Journal entries should be the exception when using QB, they often do not work as you think they should, and when you use inventory type items they never work for inventory. It is much better to use the forms on the home page the way QB is designed to be used. Journal entries also bypass accrual/cash reporting, and will not show on many reports.

If you are NOT using inventory items at all
 where does the account "Inventory owner" come from? I see nothing that enters value in that account to show there is inventory that can be sold which is different than the company inventory.

 

The employee is a customer, he buys from the company, that is recorded no differently than any other sale. If you want to track a particular customer and the sales, create a class and tag those transactions so you can do class reporting. What the employee does with the product he buys has nothing to do with the company. It would seem the employee is running a business, and should be dong his accounting. His sales should not be in your company books at all.

View solution in original post

2 Comments
Rustler
Level 15

Track employee's purchase and sales of employees on an e-commerce website

Journal entries should be the exception when using QB, they often do not work as you think they should, and when you use inventory type items they never work for inventory. It is much better to use the forms on the home page the way QB is designed to be used. Journal entries also bypass accrual/cash reporting, and will not show on many reports.

If you are NOT using inventory items at all
 where does the account "Inventory owner" come from? I see nothing that enters value in that account to show there is inventory that can be sold which is different than the company inventory.

 

The employee is a customer, he buys from the company, that is recorded no differently than any other sale. If you want to track a particular customer and the sales, create a class and tag those transactions so you can do class reporting. What the employee does with the product he buys has nothing to do with the company. It would seem the employee is running a business, and should be dong his accounting. His sales should not be in your company books at all.

View solution in original post

anonymous6
Level 2

Track employee's purchase and sales of employees on an e-commerce website

Hi Rustler,

 

Thanks for the reply. Basically, they want to mirror the processes which occur on the e-commerce website and match it in QuickBooks Online. The goal is to sync QBO to the website, and download the transactions directly into QBO. So the website has a "wallets" which holds cash amounts for customers who buy and sell products through the website. I setup the transactions in journal entries to show the website transactions and I was trying to figure out how to use the QBO's forms to mimic this activity: -

 

Owner

Purchase the product (owner purchase the product from a manufacturer’s website)

Dr Inventory – Owner

Cr  Cash - Owner

 

Sell the Product (Owner sells product to Customer)

Dr   Cash  – Owner

  Cr  Sales – Owner

 

Dr Cost of Goods Sold - Owner

  Cr  Inventory - Owner

 

Owner funds the Employee’s online Wallet Bank a/c (i.e. paying a salary)

Dr Online Wallet Bank Account – Employee

  Cr  Cash – Owner

 

Employee A purchase product from the manufacturer’s website

Dr  Inventory– Employee A

  Cr Online Wallet Bank Account – Employee A

 

Employee A sells the product to another customer

 Dr Online Wallet Bank Account – Employee A

  Cr  Inventory – Employee A

 

 

 

 

 

 

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