Income where payer retains a fee

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  • Updated 2 years ago
I receive a payment from an agency but they retain a percentage as a fee. eg, - company A owes me $110 and they retain $10 so they pay me $100. How do I account for the $10 as an expense?

Thanks
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Grant Dempsey

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Posted 2 years ago

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Qwerty

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28/02/17

Hi Grant,

Here is my suggestion.

a) In the 'Allocate' tab of the receipt you pay the full invoice amount of $110.00
b) In the 'New' tab of the receipt you select the applicable expense account that you wish to use to track the fee & specify the fee as a negative amount -$10.00 (negative income is treated as an expense in the P&L report)
c) The receipt total will equal $100.00

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Grant Dempsey

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Cheers for that, appreciate your help. 
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Stuart Wright

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Only problem is, discount of 0 is greater than negative expense, so not a valid transaction. Any more thoughts?
Screen shot attached...
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Qwerty

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27/03/17

Hi Stuart,

When using the 'New' tab within the receipt, the grid section requires you to use either an item or an account for each row entry. If you use an item then the discount field is enabled. However if you use an account the discount field is not enabled.
So my suggestion would be to use an account not an item to avoid the discount validation.
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Stuart Wright

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Yes, finally I get it and this makes sense! Thanks Qwerty