How do I deal with brokerage deals in Unit Sales?

Summary

The following article explains how to deal with a brokerage deal in Unit Sales.

A brokerage deal is where you are selling a unit on behalf of a third party (who will be referred to as the supplier in this article).

When you sell the unit, you will generally take a commission on the deal.

The unit itself may require some work to be done in your workshop beforehand, with the supplier funding this repair.

This article explains how to deal with this scenario.

Create the stock record for the unit being sold under brokerage and ensure that, on the [Purchase] tab, you select the "Value Excluded" flag to 'Yes'.
Once you know how much you will be selling the unit for, on the [Purchase] tab, enter in the amount you are going to invoice the supplier.
Press <F2> to raise the purchase invoice.
In the "Payment" field, enter how much you intend to pay the supplier less your commission (inc VAT) and, if applicable, the cost of the workshop job. This leaves a balance outstanding on the purchase invoice of your commission and the value of the workshop job.

Go into " Purchase Ledger Payments", enter in the supplier's account and pay off the value of the commission to a brokerage contra nominal centre.

If this centre doesn't exist then follow this article which explains how to do so. It should be a Balance Sheet - Asset/Liability centre.

Go into the " Sales Ledger Invoice/Credits" and create an invoice to account for the commission charge to the supplier. You may need to create a new customer account for them. This article explains how to create an invoice.

Enter the total commission including VAT in the "Line total" field followed by "1" in the quantity field then press <Enter>.
On the "Unit Price" field press <F6> to work out the nett value of the commission.
The "Centre" to allocate this sale to should be linked to a Profit & Loss - Sales centre for commission. Follow this article if you need to create a new Sales centre.
[Print] and [Accept] the invoice.
Go into " Sales Ledger Receipts", enter in the customer's account and mark the invoice as paid.
- The "Date" should be the date of invoice.
- The "Comment" should ideally be the stock number of the unit sold - this just helps with tracking postings at a later date.
- The "Centre" should be the brokerage contra nominal centre.

If any work has been done to the unit follow this process:

Go back into " Purchase Ledger Payments", enter the suppliers account code and pay the value of the workshop job off to "Payment Centre"'Z944'.
Next, post a negative expense against the unit record for the same figure.
Finally, go into the workshop job for the customer, invoice it off, and pay the balance off to the brokerage contra account.

Now sell the unit in the usual manner, ensuring that on the [Purchase] tab of the unit, the "Value Excluded" flag is now set to 'No'.