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Sherbert99
September 7, 2024
Question

Domain Sold on Behalf of a Customer. How to categorize into QuickBooks?

  • September 7, 2024
  • 1 reply
  • 0 views

Hi I sold a registered website domain on behalf of a customer/friend. And am going to give the customer the money I sold the domain for. What categories so I use for this in QuickBooks? For example. I sold a domain I was managing for them for $3000. I have the $3000 the domain sale made in my bank account and am going to write the customer a check for $3000 so it's a wash. How should I categorize the money I received and how should I categorize the check I write out to the customer?

 

Thanks

1 reply

J
JohnBishop1
September 23, 2024

Hi @Sherbert99,

 

As I know, you can create a liability account. Go to Settings --> Chart of Accounts --> New, and create a new account. Set the account type as "Other Current Liabilities" and name it something like "Funds Held for Customer" or "Customer domain sales."

 

Then record the deposit. When the $3,000 hits your bank account, categorize the deposit under the "Funds held for customer" liability account. This ensures it’s tracked as money you owe to your customer, not as income.

 

When you write the $3,000 check to the customer, categorize the check to the same "Funds held for customer" liability account. This will reduce the liability and show that the money was passed through without impacting your income.

 

I think it should help

    S
    Sherbert99Author
    September 24, 2024

    Hi I was thinking something along those lines.

     

    Thank you so much!

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