EÜ invoice; Approach operating income and expenses
Dear Sir or Madam,
At the beginning, for your understanding, I would like to provide some information about the business that I will start on 01.02.10. The business will be registered as a sales driver for rotisserie chickens (subcontractor).
Activity process:
I will drive 5km daily with my private car to the company location to pick up the sales truck (ST). The ST will be rented from the main contractor (MC). Then I will drive to my sales location, which will vary weekly. Before starting the journey, I will daily purchase baked goods (pretzels, etc.) at my own expense from a bakery. The rotisserie chickens will be provided by the MC. The bakery purchases will be partially reimbursed by the MC with the monthly commission statement (50-60%). I will generally cover the travel expenses (fuel receipts) for the sales truck out of my own pocket.
Now to my questions:
1. Operating income:
Recently, I received a commission statement. It includes an amount for the sold chickens plus baked goods with 19% VAT. Therefore, I have an account for revenue with 19% VAT in the accounting. Is this correct?
2. Operating expenses:
Cost of goods sold:
I set the difference between the costs for the baked goods and the reimbursement as cost of goods sold at 7%. The provided rotisserie chickens are not considered a cost of goods sold. Is this correct?
Travel expenses:
I claim the trips from my residence to pick up the ST with the distance allowance. The business/work mainly takes place on the ST. Does a travel activity come into consideration here? I claim the trips (with ST) for purchasing baked goods and trips to the sales locations with the collected fuel receipts. I book these on the account for ongoing vehicle expenses with input tax deduction of 19%. I book the rent for the ST under external vehicles. Or should I alternatively book the fuel receipts under external vehicles as well? Additionally, I book meal expenses on the account for travel expenses and meals. Are these bookings correct? Or do I need to make changes?
Thank you in advance.
Erol Aydin