Recording third party cost of sales.
Hi
I've tried to look through all the existing help articles and a couple of forum posts, but I haven't found a solution to my current problem. I am using MYOB Business.
I run a beef cattle operation. When I sell cattle, there are numerous third-party fees and charges associated with this which are taken off the total of the sale before I am paid. So I need to somehow recover the cost of sales.
For example
I sell 10 head for $1000 totalling $10,000
Taken out of the $10,000 are third-party charges such as yard fees, commission, marketing fees, transport fees, levies and so on totalling $1000. (approx 10% of my total sales)
So in my bank account, I will receive $9,000
My issue is how/where do I record and recoup the cost of sales that have occurred to the amount of $1000. I use bank feeds in MYOB business and of course, can not do it in the bank transactions section as it will not balance.
Any help would be appreciated
Regards
Hi Summertime1,
Thank you for your post, and welcome to the community forum.
Some of the customer payments or sales may have some fees, such as operating costs associated with running your business, which are deducted before being deposited into your bank account. How you record these sales will depend on how the transaction is shown on your bank statement. In this matter, I would suggest recording a journal entry. I would highly recommend speaking to your accounting advisor about how to handle this, so it'll be recorded correctly.
Please let me know if you need any further assistance with this. I'd be more than happy to assist.
Cheers,
Princess
