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Entering an MPIX/Zenfolio Sale in QuickBooks

I live in MN. I was blessed with a sale [:D]. I sold an MN customer two 8x10's at $10 a piece through Zenfolio/MPIX. The Zenfolio Report breaks this down as:

Net Revenue: Mpix Lab ... 26.45 <-- This is what customer paid Zenfolio<br />Total Cost of Products .... 2.00 <-- $1 per 8x10<br />Gross Profit              .....24.45 <-- i.e. 26.45 - 2<br />Shipping                    ...6.45 <-- Zenfolio charged the customer this for shipping<br />Zenfolio Service Fees ...2.16   <-- Zenfolio fee<br />NET PROFIT              ...15.84 <-- i.e. 26.45 - 2 - 6.45 - 2.16</p>

How should I enter all this in Quickbooks? 
I already have Zenfolio setup as a Vendor. Do I need to change that?
I am thinking I need to create a new customer "ZenfolioSales" is this correct? Under this new customer's Terms, what do I put (Consignment, Due on Receipt, Net 30?)
How about "Is the customer "ZenfolioSales" taxable?" Yes/No?

I would then invoice ZenfolioSales each time I make an online sale. This would keep track of how much Zenfolio owes me. 

Ok, so I create an invoice to ZenfolioSales:
Qty:2 8x10 @$10 .... $20
Shipping Charges .....$6.45

But how do I come up with what Zenfolio owes me (15.84)?

Any detailed help would be greatly appreciated.

Quickbooks 2010 mac


  • kthompsonkthompson Member Posts: 2,473
    <p>Zenfolio is a vendor for you.. you have it setup correctly.</p>
    <p> </p>
    <p>your customer is the person that bought the photo.  for ease of use, I would use zenfolio as the vendor for the total cost of goods sold... $2 + $6.45 + $2.16 = $10.61.  That is the money Zenfolio collected from you so that is the cost of you selling the photos.</p>
    <p>so you enter Kevin as customer, with a sale of $26.45, Zenfolio as Vendor with a Fee (account 'cost of goods sold') of $10.61 and you have a net profit on the sale of $15.84.</p>
    <p> </p>
    <p>I am not an accountant.  I use quickbooks and when I actually make a sale, that is what I will do.</p>
  • kpepinkpepin Member Posts: 226
    <p>Zenfolio is the Vendor the product was purchased
    from. Shipping and service fees are all part of the COGS.</p>
    <p>I think it's a little tricky because you don't actually see a bill if you use PayPal.  The customer pays Zenfolio the total then Zenfolio puts the profit in your account.  You just have to enter everything as if you were actually handling the transactions.  Create a purchase Order to Zenfolio, Receive the PO, Enter a payment to Zenfolio, Create an Invoice for the Customer, Enter a payment from the customer.  I'm not quite sure what you would set up for an account to receive payments and make payments with.  It wouldn't match a bank statement.  You wouldn't see the $26.45 going into the account or the $10.61 coming out of the bank account, just the $15.84 being deposited.  I guess they could be cash accounts.</p>
  • RollinMcCartyRollinMcCarty Member Posts: 7
    <p>Kevin Thompson and Kevin Pepin, Thank you so much for answering my questions. Here is the procedure I use to record a Zenfolio Sale in Quickbooks (QB):</p>
    <p>CREATE A VENDOR "Zenfolio"</p>
    <p>QB > Items > New Item: Type = Non-Inventory Part; Name: Print 8x10; Subitem of: Zenfolio Items; ? This Item is purchased for and sold to a specific Customer:job; Description on Purchase Transactions: "Small Format Prints by Mpix Lab: E-Surface Color Paper"; Description on Sales Transactions: "Print 8x10"; Cost 1.99; Sales Price: 10.00; ? Taxable; Expense Account: Cost of Goods Sold; Preferred Vendor: Zenfolio; Income Account: Sales.</p>
    <p>QB > Items > New Item: Type = Service; Name: Zenfolio Service Fee; ?This service is performed by a subcontractor; Description on Purchase Transactions: "Commission that zenfolio charges for a sale"; Description on Sales Transactions: "This is the commission that Zenfolio charges for an online sale"; Cost: 2.16 (this will change for everysale, so put dummy value; Sales Price:  2.16 (this will change for everysale, so put dummy value; ? Taxable; Expense Account: Cost of Goods Sold; Preferred Vendor: Zenfolio; Income Account: Sales.</p>
    <p>QB > Items > New Item: Type = Other Charge; Name: Zenfolio Shipping; Description: "Cost that Zenfolio Charged customer for shipping customer's order to customer"; Amount: 0.00 (this will change for everysale, so put dummy value;  ? Taxable; Expense Account: Cost of Goods Sold.</p>
    <p>CREATE A BANK ACCOUNT "Acct Rec - Zenfolio"</p>
    RMC PHOTO --> PO--> Zenfolio 
     (2x$1 8x10; Zen Fee $2.16, Zen Delivery Charges $6.45)  </p>
    RMC PHOTO --> INVOICE --> Customer 
    (Zen Items: Print 8x10 2X: 2x $10; Zen Delivery Charges: $6.45)</p>
    RMC PHOTO <-- Customers > Receive Payments <-- Customer
    Select Customer, Balance due auto populates, Deposit to: "Accts Rec - Zenfolio"  </p>
    <p>(4) PAY VENDOR:
    RMC PHOTO --> Vendors: Enter Bills --> Zenfolio
    Open PO exists!: YES</p>
    <p>(5) VENDORS > Pay Bills
    Check; Assign Check Numbers; Payment Account: "Accts Rec - Zenfolio"; $5.02</p>
    <p>(6) QB> Accounts > Accts Rec - Zenfolio: Balance
    Should match exactly Zenfolio > Selling > Account Statement > Expand dates to show all history; Scroll to the bottom to see matching balance</p>
    <p>I use Paypal too, so I also created another QB bank account "Paypal", and select it as a target for items when applicable. Both my Paypal and Zenfolio QB accounts are now in sync. I like that.</p>
    <p>If there is something wrong with the way I am doing things, please let me know so I can make things better.</p>
    <p> </p>
    <p> </p>
  • kpepinkpepin Member Posts: 226
    <p>To quote Zack Arias, the first thing you should do is "Hire an Accountant!"</p>
    <p>It sounds to <b>me</b> that what you're doing is correct but I'm not an accountant.  If it works for you, great.  Maybe talk to a professional and get their opinion.  Spending a little for an accountant consultation now could save a lot later.</p>
  • RollinMcCartyRollinMcCarty Member Posts: 7
    <p>Kevin, You are right, paying an accountant is a good investment. I did indeed hire an accounting service and they did help me get my books up to speed and also file my taxes on time. After I organized my business, that should have been the second thing I should have done right then, instead of waiting one month before April 15th and have to crank like crazy to figure everything out. </p>
  • Brad SchaferBrad Schafer Member Posts: 1
    <p>I saw your post about using Qbks with Zenfolio. It
    seems very thorough and well explained. It surprises me that there has
    not been much more discussion on this topic. Has that been working well
    you? </p>
    <p>I'm new to Zen but have been using Qbks for several years. Did you
    up a subitem of Zenfolio Items for each item you sell? If I do not need
    to track sales of specific size prints, could I set up general subitems
    such as "prints," "digital images" or "press items?" I wasn't real clear
    about your use of RMC Photo vs QB. Do I actually need to use a PO or
    could I just enter it as a bill?</p>
    <p>Thanks for the detailed explanation.</p>
    <p> </p>
  • JerryInOCMDJerryInOCMD Member Posts: 1
    <p>Thanks for that detailed post Rollin. It's very thorough.</p>
    <p>I'm trying to get all of this figured out as I set up my company file in QB. Does anyone have a suggestion on how to set up an entry that includes sales tax collected by Zenfolio?</p>
    <p> </p>
    <p>Thanks in advance.</p>
    <p> </p>
  • picturesbypapepicturesbypape Dubuque, IAMember Posts: 1
    <p>Thanks to Rollin for that post back in 2010. Very thorough. I am a business person first and help support my wife's photography business.  Since all the details are available through Zenfolio, I simply do one transaction for Zenfolio when receiving the payout.  I'd really like to run everything through Zenfolio, including sitting fees, etc. as services we provide, but there are things that we order for customers, that happen outside of Zenfolio, etc.  I have tried different approaches to managing those orders, but haven't really decided most efficient methods....perhaps I will comment back after this tax season.</p>
  • Stackhouse ImagesStackhouse Images Member Posts: 2
    Because this was an old discussion, I started a new one at https://forums.zenfolio.com/discussion/17470/zenfolio-and-quickbooks which is detailed, step-by-step, with attached screenshots of how I do this.
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