Recording Auction Transactions

Hi SHanley, thanks for posting on the Community

To ensure that the transactions and VAT is accurately recorded in QuickBooks, please reach out to your bookkeeper or accountant for advice. If you don't already have an accountant, you can find a QuickBooks Certified ProAdvisor on our online directory. 

My Accountant cannot assist with the setup on QBO

I want to record the following on a Buyers Sales Receipt/Invoice 

Auction Item Sales - Funds to go to Clients Bank Account

Commission - Funds to go to General Bank Account

VAT on Commission - Funds to go to General Bank Account

I need to record the following on a Sellers Payout (Supplier Bill)

Auction Item Sales - Funds from Clients Bank Account

Sellers also pay Commission + VAT (on Commission) so I can do a Customer Invoice for the Commission but I need to receive the payment inclusive of VAT from the Clients Bank Account

Reporting Wise 

Auction Item Sales should net off

Buyers pay and this money should is is paid to the sellers, sellers commission & VAT on sellers commission

I have an auction system so just need to record the money in and out on Quickbooks but do need to know a figure for Auction Sales if possible

Any help is appreciated

Hello, SHanley.

Let me help you with step-by-step instructions on recording and accounting for all these transactions to the correct bank accounts. First, create an Invoice for the Auction Item Sales and Include the tax. Please follow these detailed steps: 
 

1. Click the + New icon, then select Invoice.
2. Make sure under Product/Service, enter the Auction Item Sales.
3. Enter the information needed. Then make sure under Amounts are choose Inclusive of Tax.
4. Save and close once done.

Next, make a bank deposit for the Commission and VAT on the Commission. To do this, you must create an account specifically for Commission and VAT on the Commission if you don't have one. You can then add a general bank account under the account field to make the deposit. 
 

Please note that when making the deposit, you must exclude the tax to ensure you only deposit the appropriate amount to exclude the VAT. Here's how:

1. Click the + New icon. Then, choose Bank Deposit.
2. Select the Account (General Bank account).
3. Under Add funds to this deposit, select the Commission and Vat on Commission on the Account.
4. Click Save and close.

Lastly, if you're looking for guidance on accurately recording seller payouts, you can create a Journal Entry. However, I suggest contacting your accountant for assistance. They'll be able to provide you with more detailed information on how to properly process payouts and help you select the correct Account to avoid any potential discrepancies. By working closely with your accountant, you can ensure that your bookkeeping is accurate and up-to-date while mitigating any potential issues arising from incorrect recording. So, it's always a good idea to consult a professional to ensure you follow best practices regarding recording seller payouts.

If you need any further assistance with this process, please don't hesitate to let us know. Have a great day!