Hello All,
Thank you in advance for your assistance.
I am inquiring about how to manage a credit card payment from a Reseller's customer.
One of my Reseller's owns a small part-time business, which only accepts cash. They have one customer who really wants the product, but can only pay by credit card.
As I accept credit cards for my customer's, the Reseller asked if I could process their customer through my merchant services. The Reseller said they would cover any merchant fees. I said I would do so.
When I process the credit card, I will charge the Reseller's customer the retail price. I will then need to reimburse the Reseller their profit. How do I manage this in QuickBooks? I don't want the retail price the Reseller's customer paid to show as income for my business, only the wholesale price.
Should I create an Invoice for the Reseller and pay the Invoice with their customer's credit card? Then issue the Resellers a Credit/ Refund for their amount due? If so, to what COA do I assign the Credit/Refund? Does it then become a Commission?
Thank you for your input.
Sincerely, DMS