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birdoflaments
October 14, 2021
Question

A Transaction

  • October 14, 2021
  • 1 reply
  • 0 views

I run a manufacturing business. Recently, I purchased some material from lets say (A) but not with the purpose of using it but selling it to another customer lets say (B). So, I am sort of a middle man between the two parties. The material purchased from (A) came to my factory and was simply be sent to (B). My earning from this deal is due to being the middle man. My question is, how do I record this transaction? I already have accounts for (A) and (B) in my software and they are normally used to make any transaction that occurs. In terms of this particular transaction, would the accounts of (A) and (B) be affected? Generally how would I record this? 

Secondly, I paid the carriage to (A) for the materials bought and will charge it from (B), how would I record this also?

1 reply

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Nick K
October 14, 2021

Hi birdoflaments.

 

Having your transactions tracked properly is a key part of good bookkeeping. QuickBooks Online makes tracking your entries a simple task made to save you time. I'd be happy to help you with this. 

 

In order to track this kind of situation I recommend entering the order as an expense coming from the supplier. This can be done by following the steps in this article. You can then enter the items using an invoice to the customer for the amount you sold it for. You can create the invoice by following these steps.

 

As for the tracking the carriage for the product I recommend reaching out to your accountant as they are trained in how to make these entries. If you don't have an accountant no worries, we can help. You can go to My Accountant>Find a pro to help to find one in your area.

 

If you have any questions let us know and we'd be happy to help.

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