Split Transactions which include costs

gavin.smith's Avatar

gavin.smith

23 May, 2014 11:49 PM

I'm self employed, but my "Head Office"assigns most of my account work, bills the customer, clips the ticket (6%), and pays me the balance by Direct Credit.

How do I record the Bank Deposit for $100 of work done, less $6 commission, leaving $94 net. The bank deposit?

When I try to enter the full split transaction, Easy Books does not allow me to enter -$6

I have been recording the deposit as $94 of work done, but as I understand it, that is not quite correct

  1. Support Staff 1 Posted by Admin on 24 May, 2014 12:48 PM

    Admin's Avatar

    Hi Gavin,

    I get what you're saying.

    Can I assume you're creating a Sale transaction in Easy Books for $100 and linking it to a customer account? After the sale you'll have $100 recorded as income and $100 balance on your customer account (owed to you).

    When you enter the payment received, it's not going to be the whole $100, it's going to be $94 with $6 recorded as a cost to you. I would record it as Cost Of Sales, as it's directly linked to that particular sale and you couldn't have made the $100 without it.

    I added a slight enhancement to Easy Books a while back to make this quite easy. At least I hope it comes over that way...

    I'm going to assume you're using the Mac app, but the process should be the same on iOS. On the Mac, I receive payment by finding the sale, right-clicking on it and choosing "Receive payment". (On iOS that's at the bottom of the sale form). I then get to enter some details about the payment, and the app pre-fills the customer the description and the amount. The linked account should be pre-filled in as your Bank Account. I set the date, but leave the amount alone. Add a split, and choose the account "Cost of sales". This is going to record the commission payment, so set the amount in the second split to 6.00. You'll find (I hope) the amount in split 1 changes automatically to $94. Save the transaction and you should have recorded the full $100 as income, $94 into the bank and $6 as an expense.

    See the screenshots, as they may help explain it better.

    All the best,
    Mathew

  2. 2 Posted by gavin.smith on 24 May, 2014 10:55 PM

    gavin.smith's Avatar

    Thank you,

    Such a simple solution, make the adjustment on the invoice receipt rather than the bank deposit. I'd previously tried adding negative amounts to the invoice, but that didn't work either. The answer was literally on the next line down.

    I couldn't see the forest for the trees!

    I'm using iOS, but the principle is the same

    regards

    Gavin

  3. Admin closed this discussion on 25 May, 2014 06:31 PM.

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