How to reconcile RC Invoice?

For a set period, I receive 2 invoices from Vendor (Invoice and RC Invoice).

First invoice has total amount ( lets assume $1000 ) for the service(GST Free) that vendor provided to sell it to my customers.

Second (RC) invoice has my commission (lets assume $25) details that I earned including GST.

Now the payment is auto-debited, as per above example, it's $975 that is debited from my account.

So, how do I put these two invoices the correct way.

Thanks.

Answer

Hi M Dhanda 

This is a fairly complex situation so it'd be worthwhile engaging with your Accountant or Bookkeeper on this to ensure it is done correctly, however here is a way you could treat this situation.  

  1. The first Supplier Invoice should be entered as a Bill (Click the + Symbol and select Bill to start the process) 
  2. Secondly you'll want to create a "Service" item, Name it "Commission" and ensure you allocate it to an Income Account.  
  3. For the RCTI create a Supplier Credit select the Supplier and add the "Commission" as a line item. 
  4. Finally apply the Supplier Credit to the Bill

Hope this helps

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