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O
Oonie
October 7, 2024
Question

How to account for annual disbursements invoiced in advance

  • October 7, 2024
  • 2 replies
  • 0 views

Hello all,
I'm wondering how I account for annual disbursements payable that only get paid to the supplier if the client/customer renews.

 

Example:

I supply a registered office for many companies.  Each year for each company there is a fee payable of $500 to my supplier.  I invoice the customer in advance for my annual fees plus the $500 payable to my supplier (there is no mark up on the supplier amount).  However, if the customer decides not to renew then the $500 disbursement is not payable.

 

I'm sure there is an easy way to do this but I just don't know what it is - I really don't want to have to create over 1000 vendor bills to add to the customer invoices.

 

Any suggestions gratefully received.

 

2 replies

R
rvrfrf
October 7, 2024

Welcome to the Community, Oonie.

 

To properly identify how you should be accounting for annual disbursements payable transactions, I'd recommend working with an accounting professional. If you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

 

Here's how it works:

 

  1. Go to our Find a ProAdvisor page.
  2. Use the City or ZIP search field to specify a location.
  3. Select Find a ProAdvisor.
  4. Browse through your results and find one that works best for the business. You can click on each ProAdvisor's profile to learn more information about them.

 

Once you've found an accountant, they can be contacted through their Send a message form:
 

  1. Use the available text box to introduce yourself. Be sure to include details about which services you're looking for.
  2. Enter your appropriate info in the Your name, Your email, and Your phone number (optional) fields.
  3. Select Send message.

 

There's also another great service available through our website called QuickBooks Live Expert Assist. Each live expert can provide guidance and help you with the best practices for managing your books.

 

If there's any additional questions, I'm just a post away. Have a great Monday!

    Rainflurry
    Rainflurry
    October 7, 2024

    @Oonie 

     

    "I really don't want to have to create over 1000 vendor bills to add to the customer invoices."

     

    How does the payment to your supplier work?  Do you receive a bill from your supplier for the renewals or do you just pay the supplier when the customer renews on a monthly/annual basis without receiving a bill?  There are a few options but IMO it depends on how the supplier bills/doesn't bill you.    

      O
      OonieAuthor
      October 7, 2024

      @Rainflurry 

       

      Thanks for your input.  We do not receive any bills from the supplier. As you correctly identified, once the customer pays us we pay the supplier.

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