Hello,
I’m considering moving from Xero to Quickfile. I like the interface and some of the functionality is easier to use. I’m unsure about Suppliers and Customers though. I run a publishing company where authors might pay for something - say book stock, and also receive royalty payments on sales. As I’m paying royalties at the moment I’ve set them up as suppliers. I’m not making a refund when I pay them, so I’ve logged it as a sales commission. Can I invoice them as a supplier though, or do I have to set up a duplicate record for them as a Customer? I really want them to be able to log in to track payments to them and invoices they owe, but I’m not sure if this will work?
I looked at the contra account on another thread, but confess to not fully understanding if/how this would help.
Any advice welcome.
Thanks,
David
Hi @Wordcatcher
Welcome to QuickFile!
I just wanted to make sure I understand the set up here, if that’s OK?
Am I correct in thinking that you, as the publisher, can sell the books (and therefore pay the author a commission), and you can also sell copies of the books to them to be sold?
Exactly, yes.
I’ve tagged a load of payments already from bank feed and set them up as suppliers.
Is there a response to this query please?
Hi @Wordcatcher
Apologies for the delayed response.
I think the scenario you have here would be similar to that of an estate agent managing rental properties for example (where they collect rent from tenants, taking their fee and paying out the rest to the landlord).
For the publishing side of things, where you sell the books, you would naturally have the invoice for the sale itself. Whether you issue these individually or bulk these together (e.g. having a client saved as “Web Sales” rather than “Mr Jones”) would depend on your set up and how you operate. If it’s sales through a website for example, I would opt for the bulk sales option as your web site probably issues it’s own invoices as a record.
So in this case you would just have:
- Sales invoice(s) for the general sales
- Payment for this invoice, tagged in your bank account (or merchant account, again depending on your setup)
- Purchase invoice to the author
- Payment tagged to the invoice
The balance between the 2 being your profit, like a normal sale.
The difficulty comes when the supplier becomes your client. You could use the contra account if you’re not actually taking any money from them, or paying them the net of what you owe/they owe. There’s no direct way to have the client and supplier as the same entity in QuickFile, but there are some feature requests you may wish to add your vote to:
Hope that helps, but please let us know if you have any further questions
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