I am a broker, i have purchased on behalf of customer (i have paid on behalf of customer, customer paid me end of week) and earn 5% commission on purchase. same i am purchasing from supplier and arrange to sale on behalf of supplier and earn 5% commission on seals. how can i record them?
Thanks
You could use Billable Expenses Record billable expenses | Manager
This assumes that you do not actually own the goods you purchase for re-sale.
If you do, (and you question is a bit ambiguous on this as you say “I am purchasing from supplier” then you need to use inventory Manage inventory - Part 1 Introduction | Manager
But without more information on how your business is structured (sole trader, partnership, limited company or other) it is difficult to be more specific
Since he is a broker, he doesn’t have to put any item inside his inventory. So he should use billable expenses taking care if the VAT is recoverable or not.
I noticed that, but sometimes people use the word “broker” loosely and while describing themselves as a broker, are in fact purchasing goods and reselling them even if they are not receiving and storing them themselves
It will depend on the contract terms of the various parties
Broker is not a Trader but a faciltator of trade. In its purest form this would the Broker not to put any of the trade transactions in accounts only the income received from the service. The description of an invoice could be used to explain what trade deal was brokered from which the “service” income derived. VAT is not at play here.
That’s not true. It completely depends on the jurisdiction.
Based on your local law you should understand what should go in your invoices and if you need to apply VAT, even at 0%, or if it is not subject to VAT.
You are right, the service may be vattable. I was referring to the items or funds being brokered.