I am a small car / motorcycle dealer that occasionally "passes through"
vehicle sales so that the legitimate taxes and DMV fees are paid and the
vehicle is licensed correctly.
I need the forum's help on how I can enter these transactions correctly (in
QuickBooks) so that my revenue reporting and tax payments are automatically
generated. Any help would be appreciated.
This might only happen 2-3 times per year but it's really a pain to process:
a) A person buys a vehicle from an auction and pays for the vehicle there,
essentially buying it for me).
b) They bring the invoice to me and I enter it as the buyer showing the full
amount as cost of good sold, autos. I now have an outstanding invoice.
c) I "sell" the vehicle to the new vehicle owner and charge the full taxes,
DMV fees etc.
d) I receive payment / money from the buyer in QuickBooks for the taxes and
Although my revenue and tax reporting is right on, I have issues that I need
help in correctly clearing:
a) I now have an accounts payable to the auction. If I discount this amount,
I show a huge (artificial) profit.
b) If I mark the invoice "paid" it will never clear.
c) They buyer has paid me for the taxes, DMV fees etc. and really owes me
nothing. If I discount the invoice for the amount of the vehicle, I'll show
a huge loss.
Thanks in advance!