Ans: Sales invoice ( I sell 50 via an intermediary). I attached two screen shots of what I did in manager.io. (Sorry that did not copy the word sales invoice).
2- why is your intermediary sending you an invoice? What was on it?.
Ans: The intermediary send me an invoice because: he sell to the final client, collect the money from this final client and send me an invoice discounting his comission+shipping and transfer to me the remaining amount. The invoice attached previously as pdf explains better what I am trying to write. Now I am sending an image just in case the pdf do not download properly.
How? Do you send your intermediary a sales invoice?
(The text below is only correct if you have sent your intermediary agent a sales invoice).
The invoice of the intermediary agent consists of two different things. On the one hand, the costs charged by the intermediary agent and, on the other hand, the transfer of the money (EUR 50.00) that he received from his customer.
The invoice sent by the intermediary agent is therefore actually a purchase invoice on the one hand and a payment statement on the other.
You could therefore book the purchase invoice part as a purchase invoice.And with the receipt (by bank?) of the EUR 23.01, book the purchase invoice as paid (by you) (EUR 26.99) and book the sales invoice as paid (by the middleman) (EUR 50.-).
On balance, the amount you received as payment (by bank?) remains.
@A.S, as I understand the situation, your intermediary is not sending you a sales invoice for goods you sold. A sales invoice is a demand for payment from a seller (supplier) for goods or services provided to a buyer (customer). Your intermediary sent you a sales invoice for commission earned and mailing costs (plus tax on both) that you owe him. But he is also reporting that he sold €50 worth of merchandise to an end customer and therefore owes you that money. The two offset, so he only owes you €23,01 of the €50. But he made a mistake on his sales invoice (Factor), because the €23,01 should be a negative amount.
From an accounting viewpoint, that makes the document he sent a credit note (from his perspective), which you would enter in Manager as a debit note (from your perspective). As @ries said, this puts your intermediary into the position of being both a customer and a supplier to you. And there are a number of ways you could enter transactions to settle all accounts. Some are simpler than others.
Option 1: Issue a €50 sales invoice to your intermediary as a customer for the goods delivered to the end customer. Apply your BTW tax code on the only line item. Enter a €26,99 purchase invoice from your intermediary as a supplier for his commission and shipping costs. Apply the same BTW tax code to both lines. Designate both invoices as tax-inclusive or tax-exclusive depending on the pricing structure.
Option 2: Issue a €50 sales invoice to your intermediary as a customer. Enter negative lines for commission and shipping on the sales invoice. Apply BTW tax code to all lines. Use your intermediary’s document only as evidence to support the negative amounts on your own sales invoice.
Option 3: Enter a purchase invoice for the commission and shipping costs. Enter your intermediary’s document as a debit note. When your intermediary pays, enter a receipt posted to Accounts payable.
There are actually even more complex way to do this. But I won’t confuse you with those. My personal recommendation would be Option 2. That is fairly closely to what you illustrated in your first post, although you never said what type of invoice you were using. However, I have no idea what the line item for “Btw Plant Clips” at €10,50 is for. You have not mentioned anything about that.
No, you should only switch if you choose Option 3, the most difficult to understand. For Option 1, you must define the intermediary as both customer and supplier. For Option 2, you need to have your intermediary only as a customer in order to create a sales invoice.
Wrong, except for Option 3.
For either Option 1 or 2, you must send a sales invoice to your intermediary. No matter what you do, you do not send anything to the end customer, because you have no accounting relationship with them.
This is all mudled. He mentioned that he sold 50 items/units but he put Qty as i with Unit price of Euro 50. This should be Qty 50 with Unit price Euro 1. As recommended the simplest is to
Create both a Customer and a Supplier account for the Intermediary (when creating one you can copy to the other from view)
Create a sales invoice for the intermediary as customer for the 50 clips including 21% BTW and assign it to sales which in the Chart of Accounts is an Income Account.
Create a purchase invoice for the intermediary as supplier and put the Commision including 21% BTW and the Postal costs including 21% BTW to an expense account in the Chart of Accounts such as Intermediary Fees.
Hello Tut, thank you very much! Indeed, I see that I tried the option 2.
This amount ¨¨€10,50¨¨ is the btw 21% of the €50. I honestly dont know how to post it and that´s why is in the suspense account.
If I post in manager.io the €50 with no taxes the bill is numerically correct but the tax report should be incorrect, cause am not transferring to the tax authorities the btw of the sales. ( I modified the bill to explain this example).
In order to find a solution to the point above, I thought that I could post the €50 with 21%btw and add a negative line sending this amount to another account ( not sure which one yet) and then pay to the tax authorities the btw of the 50 eur sales and match the bill of the intermediary. That is why I have -10,50 eur in the original post below.
You apply the tax code to the line item on which tax is levied. In this case, that is the plant clips. But you still have not explained what you are showing in your screen shots. Is this a sales invoice? (You keep referring to a “bill,” but nothing in Manager is called a bill.) Whether the tax is levied on the plant clips depends on local tax law. Based on what you have said so far, it seems you are actually selling the plant clips to your intermediary, so that would be a taxable event. As for matching the document from your intermediary, your attempt to do that with the -€10,50 do not result in anything matching, so I am still uncertain what you are trying to do.
Please believe I mean no disrespect. But you seem to be a novice at accounting. I suggest you consult a qualified local accountant to understand how your particular business model should be set up. She or he will be able to advise you what is taxable, what is not, and which types of transactions you should be entering. The purpose of this forum is not to design your accounting system for you or educate you about local tax laws. Our purpose is to help you implement your requirements in Manager.
While you may spend some money on the accountant, the cost will be well worth it, because it will simplify your business life and keep you out of trouble with the tax authorities. It will also help you understand exactly what your relationship is with your intermediary.