lottery sales and commission

Question

A retail store which sales lottery in Ontario, and ONTARIO LOTTERY will pay the store commission in the name of a discount. for example, on Dec 06, the store sold on-line products $1,429.2, instant products $1,869 , commission is $334.95. ONTARIO LOTTERY charged the store 1429.2+1869-334.95= $2963.25, 
 do I need to record all transactions? because lottery sales in Canada are tax-free, but I am not sure the commission is tax-free or not. 
 If needed, how can I record the transactions? 
 
 At now, just for reconciliation, I just recorded ONTARIO LOTTERY charges and did not record commission.

Agate · Answer

Hi Sage8102: 
 There are several thoughts on this issue you have. On the one hand daily sales and deposits must be reconciled either daily or weekly which means sales must be recorded. On the other hand costs have to be recorded as a well. Generally, if you have a cash register your sales will be broken down by category which should show your daily or weekly sales which means you will have a summary of the categories of sales. Entering each sale will be cumbersome, I would summarize on a daily basis. 
 For your next question record the total costs less the commission as a cost of sales. The difference is your commission or gross profit. Commission would be taxable. 
 I hope this solves your dilemma!

Sage 50 Canada

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