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Subject Author Date
How to Manage a Reseller's Customer Payment Made to Me dms_90069 02-13-2008
Posted by dms_90069 on February 13, 2008, 11:45 am
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 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

Posted by QBConsultant on February 14, 2008, 12:37 am
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 On Feb 13, 10:45=A0am, dms_90...@yahoo.com wrote:
> 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. =A0They 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. =A0The
> Reseller said they would cover any merchant fees. =A0I said I would do
> so.
>
> When I process the credit card, I will charge the Reseller's customer
> the retail price. =A0I will then need to reimburse the Reseller their
> profit. =A0How do I manage this in QuickBooks? =A0I 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? =A0Then issue the Resellers a Credit/
> Refund for their amount due? =A0If so, to what COA do I assign the
> Credit/Refund? =A0Does it then become a Commission?
>
> Thank you for your input.
>
> Sincerely,
> DMS

Try this in a practice file first. When you process the credit card
payment, you can have it go to a 'due to reseller' other current
liability account instead of income. Then, when you would reduce this
account when you pay the reseller.

Michelle L. Long, CPA, MBA
Author of: Successful QuickBooks Consulting: The Complete Guide to
Starting and Growing a QuickBooks Consulting Business
http://www.SuccessfulQuickBooksConsulting.com
http://www.amazon.com/Successful-QuickBooks-Consulting-Comprehensive-Startin=
g/dp/1434810690


Posted by Macy on February 14, 2008, 9:18 am
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Your Reseller could set up a PayPal account. His customer could make a
payment to him through PayPal with a credit card.

Macy
wrote: "I stand corrected."

On Wed, 13 Feb 2008 08:45:46 -0800 (PST), dms_90069@yahoo.com wrote:

>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


Posted by dms_90069 on February 17, 2008, 9:21 pm
Please log in for more thread options
On Feb 13, 8:45=A0am, dms_90...@yahoo.com wrote:
> 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. =A0They 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. =A0The
> Reseller said they would cover any merchant fees. =A0I said I would do
> so.
>
> When I process the credit card, I will charge the Reseller's customer
> the retail price. =A0I will then need to reimburse the Reseller their
> profit. =A0How do I manage this in QuickBooks? =A0I 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? =A0Then issue the Resellers a Credit/
> Refund for their amount due? =A0If so, to what COA do I assign the
> Credit/Refund? =A0Does it then become a Commission?
>
> Thank you for your input.
>
> Sincerely,
> DMS

Thanks for all your help. I appreciate it.
DMS

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