Different profit depending on payment methods

Hi,

Is there a way to reflect the different profit margins depending on mode of payments?

Here’s my problem, if the customer purchase directly from me, the profit is 25%. However, if the purchase is made through an app (e.g. GrabFood) the app, I will only get 15% profit and the 10% goes to the app company.

Profit doesn’t depend on a payment mode but on sales less expenses (or costs of sales). How did you do it before?

I have a fixed COGS of 312 and selling price 390 (profit is 78 or 25% of COGS).

Now, if a customer bought via the app, the app gets 40% of my profit (31.2 or 10% of COGS).

You will have to add in the App’s commission

How you do this will depend on how you record the sale - as a cash sale or a credit sale with invoice

You already told that. I asked you which accounting entries you used to make before using Manager.

@MNLCream, transactions are not entered based on profit margins, but on actual pricing and amounts paid to various parties. If processor fees are involved, they need to be separate line items. How those separate line items are entered depends on the actual mechanics of the process, who assesses the fees and to whom, and how they are paid. There have been many discussions about such situations on the forum. Most relate to arrangements with organizations like PayPal or Amazon. Search for those terms to turn up options.

If you don’t find your answers, you need to provide a very detailed description of how a typical transaction works and everything that happens.

You are right that your net profit is less when using the app. The gross profit / margin remains the same because your sales price and your cost of goods sold remain the same. The difference is the additional expense you incured because of payments to GrabFood. In accounting you should thus add a line that expends the extra expense. In the summary you could then click on the amount of GrabFood to see how much you expended to them and as such get an idea how much this has affected your net profit.