Skip to main content
J
Johamike
February 2, 2022
Question

How to record payments received from clients to be paid to a third party by us

  • February 2, 2022
  • 1 reply
  • 0 views

Hello,

My client has paid me an amount to pay it on their behalf to a third party; then, this third party had issued me a refund for a portion of the amount, which I should pay back to my client.

- How to record the amount I received from my client and pay the third party?

- How to record the refund I received from the third party and return it to my client?

Thank you

1 reply

T
Trish_T
February 2, 2022

Hi Johamike,

 

Welcome to Community!  QuickBooks Online is a dynamic program for getting your work done with peace of mind.  It's essential that you're on the right track for entering the third party payment and refund so your client's books are aligned.  I'll be happy to help!

 

When you receive funds from your client you can set it up as a deposit or retainer to be used toward paying for products or services.  These can also be turned into credits on invoices.

 

If you have any other questions, feel free to reach back out.  We'd be glad to assist!

 

J
JohamikeAuthor
February 2, 2022

Hello Trish,

Thank you for the response. However, this is not what I am looking for.

 

Allow me to explain further. I am looking to record two transactions:

 

1- I have a client let's say ABC, who gave me money to pay this money for a fee for services provided by a third party, let's say XYZ, so I am just the middleman in this operation. So how to record receiving the money from ABC and paying to XYZ?

 

2- After paying the fee to XYZ, they discovered that they overcharged my client ABC and Issued a refund to me to pay it back to the client, again I am only the middleman in this transaction. How to record receiving the refund from XYZ and paying the refund to ABC? 

 

Thank you

J
JamesM4
February 2, 2022

Hello Johanmike. Thanks for elaborating. Making sure you're recording your transactions the right way is a good exercise for keeping your books accurate. To ensure accuracy in your books, I recommend contacting an accounting professional to get expert advice on this. Doing this will help prevent any future discrepancies in your books. You can also reach out to accounting professionals on our site using this link here. 

 

I'll also leave this question here so other accounting professional members can chime in and share their expert advice. Let me know if you have other questions, I'm here to help.

Terms & ConditionsAccessibility statement