#TipTuesday - Processing a payment for invoices issued to multiple clients 💵📄

John G

How do I process a payment from a 3rd party that is payment for invoices
issued to a number of my clients

Today's #TipTuesday puts a spotlight on a situation encountered with NDIS clients, where you provide goods
and services to a number of NDIS patients, and receive payment from the NDIS
Plan Manager. The one payment you receive is for a number of invoices for
different clients.

Reckon One does not allow you to accept one payment to split among different
clients (you can split a payment across a number of invoices for the same
client).

Below is a suggestion on how to handle this situation. This is only a suggestion and you may want to speak with your accountant or bookkeeper who may have a better way, or a preferred way, of handling this situation.

ℹ️ Steps

1. You will need a virtual bank account – call it Bank Clearing Account.
   
   
2. Accept the payment from the NDIS Plan Manager to your bank account
   as a Transfer Money from the bank clearing account (Banking > Bank transfer)
   
   Use the Description field to list the details of this transaction. The entry in your bank ledger account will show as a transfer.
   The Reference field will show what you entered in the
   Description field
   .
   Your bank clearing account will now have a negative balance.
   
3. Manually accept payment for each invoice involved against the bank
   clearing account (Receive Money > Bank: Bank Clearing Account > Contact: NDIS patient).
   These transactions will return the bank clearing balance to zero.
   
   Your bank ledger account will now show a receipt of the monies as a transfer
   from your bank clearing account with the Reference field showing the entry in
   Description of the Transfer Money. Your bank clearing account will contain the
   payments received for your customer invoices.

Hopefully this tip helps! Again, consider consulting your accountant for qualified accounting/taxation advice.