Reversing structure: when your Customers are Vendors and Vendors are Customers

[Space*at*ObeliskConsulting.com]

Ok, I am trying to help a friend get started with QuickBooks and have
given a tutorial on how I set it up for my company. However, my friend
has a Talent Agency, so I am confused on how to configure it for her.

Specifically, since she receives money from, say, a movie production
company (ex: Star Pictures) as payment for a client's (ex: John Smith)
acting work, this to me reverses the traditional use of the Vendor and
Customer sections of QuickBooks.

Would one therefore enter her clients (actors) in as Vendors, and her
vendors (movie production co's) as Customers? I don't see another way
to use the traditional QuickBooks methods (such as "Customers > Receive
Payments", etc.).

Oh yeah-- she also takes a commission of each check recieved for a
client, and she doesn't normally send "invoices" to the film production
companies.

So, how should I configure QB for her so that she can track multiple
Actor:Role (Customer:Job) combinations as money PAID to them (through
her bank account) from Film Studio (Vendor), while deducting a
commission? I selected "Insurance Company" for her as the company type
during setup b/c it seemed like the closest thing (broker receives
payment from customers, deducts commission, and pays premiums to
Insurance co's).

Many many thanks in advance (especially because I convinced her to buy
QB b/c of how well it worked for me and now I am unable to make it
useful for her!),


CM

 

[myQBaccountant]

Hi !!!

What your friend dose is take a gross amount say $5000 from Star
Pictures deducts his commission say 20% and pays the balance to John
Smith. Create a new Item under type service and tag it with account
'Commission' under type Income. Create Star Pictures and John Smith
under type Customer and Vendor respectively. Raise Invoice for $5000 in
favor of Star Pictures and at the same time raise a Bill of $4500 (net
off commission) in favor of John Smith. While creating the Invoice and
the Bill select the new item created above in the 'Item' column.
The Profit and Loss report will show a net income of $500 under account
'Commission'.


Victor

myQBaccountant Team
Free unlimited Quickbooks Support
http://www.myqbaccountant.com/

 

[Space*at*ObeliskConsulting.com]

Victor--

Thx for the reply. Yes, this will work, but the problem with it is
that it means that her clients (the actors) are put into QuickBooks as
Vendors, not as Customers, so it becomes backwards conceptually.
Ideally it would be preferable to have her actors entered as Customers
and then individual projects (movies) for each of them as Jobs, the way
one would normally do.

Otherwise I think she would have to use Classes to achieve the same
Customer:Job hierarchy for easy categorization/searching/reporting in
QuickBooks re: her clients, right?

Thx again for the reply and any other thoughts on this.


Charlie