Sales payments made net of commission and shelf rental charge

Accounting
1

I make jewellery and sell in a local shop. They charge me 30% commission on all sales and a ‘shelf ‘ rental fee of £45 per month. They then pay me the sales, minus the commission and shelf rental fee.

My question is how do I account for this. Currently I am raising a sale and inputting 3 lines on the monthly sale. One for the Sales, and two debits (minus figures) One for the 30% commission deduction and one for the shelf rental.

Should i be putting these as one sale and 2 purchases. However, the sale will assume a payment of the total sales, which won’t tally with what I receive directly to my bank account.

apologies for the confusing explanation!

2

Hello @pixidaisy

I would reccomend setting “local shop” up as a merchant account in the banking screen.

  • Record the sales invoice for the actual sale and pay it using the merchant account
  • Record the purchase invoice for the £45 shelf rental and the commission
  • Transfer the money they actually pay you from the merchant account to your bank when they pay you.

More info
Handling payments from merchant accounts