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T
theboatfolks
December 13, 2023
Question

How do I categorize a pass through payment?

  • December 13, 2023
  • 1 reply
  • 0 views

I set up lodging for my clients and pay for the charges of this lodging.  I then invoice the client for this lodging, at the cost I paid for it, on their invoice which also contains the fare we charge for our services (a boat trip).  Right now I have a product and service item set up and named "packages" to refer to what I package into their fare and it is an income account.  I select this on their invoice to add the charge for lodging that I paid for them.  When they pay the invoice it gets applied to that income account.  I don't want this to account as income for my business but am not sure how to do it differently.  

1 reply

Nicole_N
Nicole_N
December 14, 2023

I'm here to ensure you can receive your customer's payment successfully and get applied to the correct account.

 

Before doing so, can you verify if you're referring to the deposit to section where the invoice payments get deposited? If so, you have the option to select what account you want the payment it be deposited to. Here's how:
 

  1. Go to the +New button, then select Receive payment.
  2. Choose the Customer.
  3. From the Deposit to section, choose the correct account.

 

 

However, if you mean anything else, please add additional details below so we can provide accurate information to address your query.

 

Moreover, you can run dozens of reports that tell you about different aspects of your business. Some focus on sales, others focus on your spending, and some look at parts of each.

 

I'm just around the corner if you need additional help in QuickBooks.

T
theboatfolksAuthor
December 14, 2023

Thanks.  When I receive payment, I select my bank account for it to be deposited to.  Right now the payments look like income but they aren't income.  They just pass through me. I am looking to avoid having it categorized under an income acct. 

Rainflurry
Rainflurry
December 14, 2023

@theboatfolks 

 

"When I receive payment, I select my bank account for it to be deposited to. Right now the payments look like income but they aren't income. They just pass through me."

 

It is income to you, just not taxable income.  The lodging expenses you pay will offset the gross income (revenue) and you will have $0 net/taxable income.  If you record the lodging expenses and no income, you will have a loss, which you don't have in this case.  So, yes, you want to record it as income in QB. 

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