How to handle income where the fees are already taken out
tristpt
Member Posts: 3
I mainly sell products that I make on one specific website and they pay monthly. When they pay they deduct their fees automatically. For example, I may have sold $8000 worth of product for one month but their expenses (percentage of products sold) would be $1000. So they actually send me $7000 instead of $8000.
The issue is I need to document this as $8000 being my sold amount and subtracting the $1000 for expenses.
I tried doing an invoice payment of $7000 and then adding $1000 to an expense account, but now the dashboard shows that I'm negative due to it subtracting $1000 from the $7000.
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It appears I can't split the deposit to do this so I must document it separately. My issue was I didn't put the payroll amount under Payroll Liabilities which was causing my dashboard to be off.
Hi @tristpt! You mentioned you created an invoice payment? Do you create an invoice and send it? If so, you could create an invoice for a total amount and add a negative line item to it. Otherwise, you can split a transaction to show both income and expense. You would just have to follow the steps in this Wave guide to do so: Transactions splitting in Wave.