Matching 3rd party sales and deposits in QB Online
I use a service called Smugmug to sell photos online. They display the photos online, collect payment and sales tax from customers, handle order fulfillment, retain a fee of 15% of profit, then pay me periodically with two bank deposits, one each for the balance of profit and sales taxes collected. They also provide a spreadsheet with individual sales details, such as total collected, cost of individual item(s), shipping cost, and taxes collected.
What QB workflow is needed to record individual online sales and match to the deposits received later from Smugmug? (The individual items sold can be tracked through the Smugmug spreadsheet if this level of granularity is not required to complete the QB sales entries.)
Since customer pays Smugmug at time of sale, not sure whether to use sales receipts or invoices for for the sales transactions in QB.
This is a great question. Since you have the details of the individual sales by customer in Smugmug, it’s not necessary to enter the details in QuickBooks. Instead, use a sales receipt to enter the total sales for each day (it will be easier to reconcile than doing a whole week one one sales receipt). Sales receipts do not require that you enter a customer, you could simply put Sales for Monday, November 5 in the customer field instead.Be sure the date on the sales receipt is close to the date when you received the funds in your bank account. It will make it much easier to reconcile.
We have a video tutorial that covers how to enter 3rd party credit card sales. I think it would be helpful for you to watch that video because it is similar to how you will handle your sales from Smugmug. I have included the link the tutorial below:
Best of luck,
Crystalynn Shelton, CPA
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