I have a small retail business, and I just started selling online. I use quickbooks for my accounting. I am now collecting shipping. How do I post it? Would it be additional income that would then be used for a postage expense or is it not considered income because it is strictly for shipping?
2007-07-31 17:34:05 · 3 answers · asked by M L 1 in Business & Finance ➔ Other - Business & Finance
I presume what you meant was that your customers pay you for the shipping you incurred in sending the goods to them. If the shipping is included in your sales invoice, you can leave it in sales a/c. The shipping charges you incurred will appear as part of your operating expenses. If however you recover the shipping separately from the sale invoice, you can either take it to "revenue - others" or credit your shipping expense a/c to bring the balance down. If you recover exactly what you incur, the shipping charges a/c will end up with a zero balance. If you mark-up your shipping, you will have a credit balance in that a/c which you will have to take to misc income in the end. If you under-recover the charges, you can just leave the shipping charges a/c as it is, with a debit balance.
2007-07-31 17:53:35 · answer #1 · answered by Sandy 7 · 1⤊ 0⤋
I wouldn't record it as income because you are not in the shipping business - you are shipping your products. Therefore I would record it as a credit to your shipping expense / postage - basically what that saids is you're offsetting or recovering your expense / cost.
2007-08-04 13:08:54 · answer #2 · answered by Cutie-Pie-GG 2 · 0⤊ 0⤋
It is not considered profit. It is an expense in your ledger.
credit cash and debit shipping charges.
2007-07-31 17:39:11 · answer #3 · answered by Eve 7 · 0⤊ 1⤋