Recipient Generated Tax Invoice

Hi, I am setting up the books for an arts society, and when we sell art at an exhibition on behalf of members, we need to issue them with an invoice at the end of what they sold and what we then pay them for. I can do the function through a Purchase Invoice, but need an easy way to stop it having Purchase Invoice on the top and have a more accurate title. Is there either A) a way of customising the title or B) a way to get the invoice to be copied to the clipboard so I can drop it in to a word document and edit it myself?

If you search the forum or read the guides you will find the info required…but anyway

Thank you for replying, I see the custom title on the sales invoice, but I have to pay them, so was using the purchase invoice. Doesn’t seem to have the same function. Will deal with it externally as I see no other way.

I wondering why you want to change the title. What would be “more accurate?” They have supplied you with art for which you did not pay upon receipt. That is what a purchase invoice is for.

Delving a little deeper, though, did title to the art ever transfer to you? If not, a purchase invoice is not appropriate because you did not buy the art. If you are just collecting a commission for selling the art, it would be more appropriate to simply issue them a sales invoice for the commission. You can use non-inventory items for the commission, if you want.

If you are holding funds received from end buyers for art you never owned, you should post those receipts to a liability account. Then issue a payment to the artist, posting the payment to the liability account.

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The artist needs to declare the sale price as income and the commission as an expense, especially if they are GST registered in Australia. Also it is good practice to give the artist such a statement for stock control purposes because they need to know which artworks are sold and which are not.
I have artwork in a commercial gallery and they provide me with an invoice they generate showing the artworks sold, sale price, less the commission retained by the gallery and the net balance they pay me for every month

From the point of view of when the society has an exhibition, we need to make sure all funds are distributed to our members accurately so the total income from an exhibition needs to equal the payments to members less commission. I can’t see how to do that simply with sales invoices for each artist, only purchase invoices.


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You need to talk with a qualified accountant to see how this should be done in your jurisdiction. Then come back with questions if you can’t figure out how to implement what your accountant tells you in Manager.

Irrespective of your use I would support that @lubos reviews why custom title can not be consistently apply across invoices, payments and receipts. In the absence of useable custom themes this is even more important.

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Why not use a Payment?

It is a requirement of the ATO… from the ATO here

show the document is intended to be a recipient-created tax invoice, not a standard tax invoice

Remember, they are making out a Sales Invoice on your behalf.
I make out a Sales Invoice and rename it to Recipient Created Tax Invoice and fill it in exactly as the supplier has issued it. I then enter a normal Reciept against the invoice which in your case should be the total commission received.

Payment function works, thank you Mark, my problem solved!