Explaining transactions with a purchase AND sale

Question asked by Natalie Ramsell 10 years ago

I'm wanting to explain some of my income on my bank statements using both a sale and a purchase. So what I mean is that I sell my goods online, and I get paid weekly by the online website. They pay me less their commission though (so just one transaction on my bank statement) rather than me getting the full turnover and then paying them the commission and having two transactions to explain. However, I need to be able to input the actual turnover and commission as I think I need to become VAT registered, which obviously is based on turnover rather than profit - so is there a way I can explain the one transaction with one incoming and one outgoing?

Hopefully this makes sense to someone!

Thank you!

Write reply5

5 Replies

Hello Natalie,

You will need to follow the guide below in order to show allocations for the invoice and the commission charges. https://www.clearbooks.co.uk/support/guides/payment/how-to-create-a-contra-payment/

Alternatively, you will need to make an invoice for the full amount and allocate the amount which shows up in your bank account. Eg invoice 100 has an amount of £400 and you have allocated £395.

You will then navigate to that invoice 100 and then scroll to the bottom where you will see options under the payment history box. That will let you write off the remaining amount to an account code of your choice. This account code will be set to Bank Charges or similar rather than bad debt.

This will show the full allocation of the invoice as well as make a bill for the bank charges you faced.

The second method maybe more prudent in the long run as it will be easier to reconcile your invoices rather than moving them to a contra system bank account and getting confused as to what that amount refers to.

Vanish

Best answer
10 years ago

Hello Natalie,

The account will show up as SBD and will be default by Bad Debt. When you go to the half unpaid invoice, you will use the write off and then choose the account code to Commission.

Vanish.

10 years ago

Hi Vanish,

When I follow the steps you suggested, it shows the commission that I pay as "bad debt" - no matter which account code I put in?

Natalie

10 years ago

Hello Natalie,

You will need to click on Write Off, yes.

The account code option will show up when you do this.

Vanish.

10 years ago

Thanks Vanish,

So would I click 'write off' in that section? I don't see anywhere to enter an account code though - or does that come up once I've clicked 'write off'?

Natalie

10 years ago

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