Forum Message

Sales Income Questions

Hi
Have just started using Solar and not quite sure how to do the following.
Our sales income comes from 3 different areas
Shop Sales (paid into bank each day)
Paypoint Bill payments (paid into bank each day and sent to Paypoint by direct debit 4 times a week)
Internet Sales (paid into bank by Amazon each month)
I believe it would make sense to keep these 3 incomes separate so can you tell me the best way to do it as I'm only guessing at the moment.
Many thanks


Posted by Duncan Farman on Apr 1, 2011 11:54 PM BST

Hi Duncan,

For shop sales create a Money Received transaction with the Type field set to 'General Payment', the From Account set to 'Sales Income' and the Deposit Into Account set to 'Cheque Account'.

For Amazon firstly create a new asset account called 'Amazon Account' (this will keep track of how much money they owe you) and a new expense account called 'Amazon Fees' (this will keep track of how much you have charged you). Record amazon sales by creating a Money Received transaction as above, except that the Deposit Into Account should be 'Amazon Account'. When they charge you a fee record a Money Paid Out transaction from this account to the 'Amazon Fees' account. When they pay into your bank account record a General Transaction from the Amazon Account to the Cheque Account.

For Paypoint create a new liability account called 'Paypoint Account' (this will keep track of how much money you owe Paypoint) and a new income account called 'Paypoint Income' (this will keep track of how much you charge Paypoint). Each day record a Money Received transaction with the Type set to 'General Payment', the Paid Into Account set to 'Cheque Account' and the From Account set to 'Paypoint Account'. When you charge Paypoint a fee record a Money Received transaction from the 'Paypoint Income' account to the 'Paypoint Account'. When you pay what is owed to Paypoint record a General Transaction from the 'Cheque Account' to the 'Paypoint Account'.

Regards,


Posted by Mark McLaren (Solar Accounts) on Apr 2, 2011 2:02 PM BST

Hi
I have the same problem and tried to apply what Mark said but when recording Money paid out, it's not possible to do it from Amazon Account to Amazon Fees. It only lets you record from a SUPPLIER (not an Asset).

Did you create a Supplier named Amazon Account?

An answer would be much appreciated.

Thanks


Posted by Barbara Pani on May 29, 2011 9:00 AM BST

Hi Barbara,

Sorry about the confusion. To be more specific: When recording the amazon fees, in the Money Paid Out window set the Paid From Account field to 'Amazon Account' and the Allocate To Account field to 'Amazon Fees'. The Paid To field can be any name you choose, as long as it's the same name you used in the Money Received window (eg. 'Amazon').

Regards,


Posted by Mark McLaren (Solar Accounts) on May 29, 2011 9:51 AM BST

Hi
Me again about Amazon.
Your system worked ok until I phoned the VAT Help line about VAT. They say I have to issue an invoice for every sale and charge VAT, whether to UK or EU customers, as sales to private. My problem is:
- do I first issue an invoice to Amazon customer (when I get the order) for total price (including VAT) ex: £45 - should I call this Amazon services or Amazon customer is ok?
- record Money Received from Amazon Services with Deposit into Account: Amazon Services ex.: £13.25
- record Money Paid out to Amazon from Amazon Services into Account: Amazon Fees: £31.75 (15% fee of £45 + the £25 monthly fee that was also due)
- finally a GENERAL TRANSACTION for money received in bank account from Amazon Services: £13.25

Thanks in advance
This way there are 4 transactions>? Is this correct?


Posted by Barbara Pani on Jun 16, 2011 3:59 PM BST

Hi Barbara,

Yes, when producing invoices there will be four transactions as you describe, but with the following amendments:

  1. The customer name on the invoice should be the person who bought your product (e.g. "John Smith"), not Amazon Services.

    2. The amount of the Money Received transaction should be £45 to match the invoice total. The Type field should be set to 'Invoice Payment' and the Received From field should be the customer name ("John Smith").

Regards,


Posted by Mark McLaren (Solar Accounts) on Jun 17, 2011 10:33 AM BST