I have a “managed vending” business. For example, I own a vending machine which is located on a site. The stock for the machine I purchase and the sales/revenue generated are from clients using the machine at the site. I then pay the site a commission based on units of sale.
How can I set this up with QF?
To date I have shown the site as the client, the revenue as an invoice to the client and the commission paid as a credit note but this is not correct accounting. (As now shows in my profit and loss sheet
Strictly speaking, I buy the stock, I sell the stock, I pay out commission
How do I put this into a manageable working order?
Post all your stock purchases under the supplier set up in point 1.
Post all your sales under the customer set up in point 1.
Post any commission paid under the supplier’s account set up in point 1, as a new purchase using the category ‘Sales Commissions’.
Using the above method will mean that the full amount of the sales for each site will be posted, along with all the purchases made and commission paid, you will now also be able to obtain both sales and purchase information for each site.
If a purchase invoice contains (for example) 6 different cases, each case with 100 stock units and then those units are distributed in varying quantities across 3 sites, does that mean I should break down the invoice case into units for each site? If that is the case, then am i correct in assuming that the invoice cannot be fully posted until all the stock has gone into the sites?
I think I’m up to speed with the principal but just need it confirmed that it will work before I start changing things. Thanks Steve
