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 fees.
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!