Recording sales through third parties

[JKO]

Occasionally, I sell my jewelry at an event or through a third party where they actually do the sale, charge the tax, and take a cut. I want to be able to record the sale but not have Square take tax on it or actually charge me for the sale. How do other people handle these sorts of "consignment" sales--I surely am not the only person with this problem. If I record it as a cash transaction, does that address the problem?

[HC_Charlie]

Hello @JKO thanks for your post. This sounds like a transaction that may be better suited to include in your general accounting software. Do you use Quickbooks or another program for your business accounting, or just use Square?

I'd recommend setting up an invoice in your accounting software for this so you'd have a record of it; since Square is not processing any payment for this sale, it's not essential to even use your Square account for this.  Then when you receive payment from the third-party you'd add a deposit for this invoice in your accounting software.

You could also create a sales receipt in your accounting software for this. It's important to be using a program that will also keep track of your expenses in addition to your sales/income. If you are being charged  a commission (or cut) of the sale, then you'd want to record that expense in your business records too.