What is the best way to enter fees for selling?
Farmer_Frank
Member Posts: 13
We are selling some of our products through an online website that acts like a wholesaler, providing us and others a website to sell our goods and they also deliver to the customers. For that service they take a 20% cut of the sales price. We have been raising our prices to cover that extra cost but need to know how to account for that in our books. Do I just use our cut for the purchase price? or do I use the price the customer pays and put their cut into a different bucket?
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I have been trying to figure this out to for Venmo processing fees. I invoice $30 I recieve 29.33, and not sure how to account for the balance. I would have guessed you could do a journal to credit the Sale .67 and debit merchant fees account the .67, so it 0's out the actual net income but the invoice gets the credit.
The problem is Journal won't let you input a category, just an account, so you can't actually put the .67 to the invoice.
Maybe just as two separate transactions, but it's going to get really obnoxious to do that, so I'm hoping for a different solution.
You can add Sellings Fees in under Products and Services, and check Buy this. Then just add it as a line item in the invoice.However, this will not automatically calculate the fees. Alternatively, you can add it in as a Sales Tax and make sure it compounds so you can add in the real sales tax and it. This will automatically calculate fees but then you'd have to do an adjusting entry to move it from the Sales Tax to Selling Expenses. No solution is perfect.