Categorizing vendor payments.

I'll be more than happy to guide you in categorizing the payments Melbeez14.

You can set up special accounts/items for the fee and sales to be used when you paying your vendors. Before diving in, let's turn on the class tracking feature so you'll see the money you've made and how much you have paid out to them. Here's how:

1. Go to Settings.
2. Choose Account and settings.
3. Select the Advanced tab.
4. In the Categories section, click Edit.
5. Tick the Track classes checkbox.
6. Hit Save and close, then Done.

Second, assign each of your consignors to a class for reporting purposes:

1. Head to Settings.
2. Under Lists, choose All Lists.
3. Select the Classes item, then click New.
4. Enter the consignor's name and hit Save and close.

Third, create two accounts to help track your sales and payouts:

1. Go to the Accounting menu.
2. Choose Chart of Accounts, then click New.
3. In the Account dialog, select Income from the Account Type dropdown list.
4. From the Detail type dropdown list, choose Sales of Product Income.
5. In the Name field, enter "Consignment Sales" and tap Save and Close. 
6. Head back to the Chart of Accounts, then click New again.
7. In the Account dialog, select Income from the Account Type dropdown list.
8. From the Detail type dropdown list, select Sales of Product Income.
9. Enter "Consignment Payouts" in the Name field.
10. Tick the Is sub-account checkbox and select the Consignment Sales income account you just made.
11. Click Save and Close.

Once done, you are now ready to set up the consignment sales item.

1. Select Sales from the sidebar menu.
2. Go to the Products and services tab.
3. Click New, then choose the Service item.
4. Enter information about the service in the appropriate fields.
5. In the Income Account dropdown list, select Consignment Sales and then tap Save and Close.

After that, enter an invoice for the sales using the consignment item. Don't forget to set the appropriate vendor in the Class field.

When documenting the payment, you may issue a check to the consignor. Make sure to pick the correct class and use the the Consignment Payout category to record the amount.

For more information about the process, feel free to read this article: How to record consignment sales.

Do you need more help in handling your other business transactions? Please don't hesitate to post them below. It's always my pleasure to assist.