receiving payments for someone else
Hi, I stuck my hand up and said I would transfer our horse club's accounts into a more formal process, the old spreadsheet just wasn't doing the job, I think I might be out of my depth here....
I am just setting up our book and am wondering how to deal with payments we receive from members (customers) for ground fees that we collect then pay to the owner of the grounds that we use? We collect the ground fees with the nomination payment from each competitor. The nomination fee stays with us, the ground fee goes to the owner of the grounds. Is there a way I can show the payments as a liability rather than revenue? Sometimes these payments are made a couple of weeks in advance and it would be good to be able to show the amount separate to our revenue.
Any advice would be appreciated.
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Canโt you setup the income to a separate income account, and either offset the payment to that same account, or open a corresponding expense account. The difference between the 2 will show the amount still to be paid
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thanks Kris, could you please explain that a little more, I'm thinking I will create an invoice with the nomination fees and the ground fee against two separate income accounts but I'm not sure how I make the ground fees show up as something we owe, is that possible? It will still be sitting as income?
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Can you call me 0415940843?
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When you pay the ground fees you could post it to the same income account so the amount will decrease as you go. Or you could setup an expense account of the same name, and the difference between the 2 will be what you owe
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