Why does Consignment commission appear in both Payables & Receivables?
The Trust account must pay the commission, and the payment must be available to reconcile via the trust account. The commission must also be recorded as income to the dealer and the payment received will be reconciled to the dealer’s normal working account. Therefore you create 2 transactions: a vendor payment representing the vendor’s money you are retaining from the trust account, and a customer payment representing income to you into the working account. |
This situation can occur quite frequently. Say the sale to the customer includes some add-on extras sold by the dealer, and the customers pays one amount that covers both sale journals: the trust receivable and the dealer receivable. Or the customer has purchased more than one vehicle and they are not all consignment vehicles. In this situation you must manually transfer the excess payment back into your normal working account. A Transfer Money transaction within Dealerlogic will adequately handle the recording of the transfer, but don’t forget to actually transfer the money between the bank accounts. See also Pay yourself for commission and other items. |
The entire amount received on behalf o the vendor must be withdrawn from the Trust (bank) account, so it is not possible to use a Contra transaction in this instance, as the money will need to be withdrawn from the trust bank account and placed into the normal working bank account. You can pay the vendor net using this process: 1.Create a Customer Payment transaction from the vendor into your normal working account for the amount of the outstanding Vendor Consignment Transactions; 2.Create a Vendor Payment transaction to the Vendor against the outstanding sale proceeds from your Trust bank account for the amount of the Customer payment described in Step 1 (note that this will be a partial payment for just the amount you are withholding); 3.Actually move the money between bank accounts; 4.Create a Vendor Payment transaction to the Vendor from your Trust bank account for the balance of the payment to the vendor. |
There are items showing in Trust Creditors that don't have Purchase Numbers - how do I pay them?
These transactions are displaying to show you that a consignment stock item has been sold so there is a liability to the vendor but you haven't created the Vendor Consignment transaction - Net Selling Price - yet. From Trust Creditors, click Open Stock, then go to the Consign tab and create the Vendor Consignemnt transaction. Once you have done so, the Purchase Number and date will appear in Trust Creditors, and you'll be able to pay it. |