Deposit and Finders Fee
I procure products on behalf of my customers as follows:
1. I identify the product that the customer wants to purchase.
2. I put a deposit of $2,000 to hold the product.
3. The customer buys the product from the seller. I don't get any money in this transaction.
4. I send an invoice to the customer for $7,000.
5. The customer pays me $7,000. Out of the $7,000, $2,000 is my deposit, $5,000 is my commission.
1. When I send the invoice and receive payment, all $7,000 looks like income which is not the case.
2. How do keep track of how much money I have in deposits?
3. How do I allocate the correct distribution of the $7,000 into the proper places.