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Receiving payments from resellers
We receive payments from resellers. For our software sold in the US, we export this at 0% VAT, and the US reseller will sell the software and every month will settle the outstanding balance with us.
The balance will be an amount of money (incoming in USD), minus their processing fees.
I need to account for this amount of money. Can I just mark this as a "Misc Receipt"?
I was thinking that I could specify the reseller as a "Client", and the sale of products as a project, "Sale of Products". We don't invoice them though, so it would be technically incorrect for me to create invoices in FreeAgent simply in order to explain the income.
Any ideas welcome.
The balance will be an amount of money (incoming in USD), minus their processing fees.
I need to account for this amount of money. Can I just mark this as a "Misc Receipt"?
I was thinking that I could specify the reseller as a "Client", and the sale of products as a project, "Sale of Products". We don't invoice them though, so it would be technically incorrect for me to create invoices in FreeAgent simply in order to explain the income.
Any ideas welcome.
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Inappropriate?Hey Mike.
Yep, just mark it as Misc Income Receipt - you won't see this in the P&L this week since it only considers Invoiced sales - but you will next week.
I suppose we could rename this category 'Cash Sales' or something. Would that be better?
As per the thread on Paypal fees (http://getsatisfaction.com/freeagentc...) , you can 'overexplain' the transaction to account for your total sale, then explain the payment difference as Bank/Finance Charges.
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this answers the question
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Inappropriate?I've just done that - perfect.
Re: "Cash Sales", um, yes I think that would work. I'm not an accountant, but it sounds ok. I don't have invoices for every item that is paid in. In my particularly situation, these receipts don't need to have VAT accounted for as they are 0% VAT exports. I've met a few hundred other people who do a similar thing, so it's not that unusual.
We definately need to see uninvoiced income in the P&L, so that's great news. I think all the bases are now either covered or getting covered :)
Warm Regards,
Mike Wilson
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