Skip to main content
S
sothtreasr
May 6, 2024
Question

bank deposits - with a wrinkle

  • May 6, 2024
  • 1 reply
  • 0 views

as part of our funding - we receive some checks via a middleman who takes 2% for their trouble. For instance client a sends a check for $10 to the middleman - who forwards 9.80 to me. A governing body has decided to treat the $10 as a donation and the $.20 to a funding expense. How do I account this to show correct balance and records on my books?

 

any suggestions?

1 reply

Rainflurry
Rainflurry
May 6, 2024

@sothtreasr 

 

Create a service product called 'Processing Fee' or 'Funding Expense' and assign the appropriate expense account under 'Income account' on the service product set-up page.  Then, add that service product to the invoice/sales receipt as a negative amount.  That will book $10 to income and $0.20 to the expense account, leaving $9.80 due on the invoice/sales receipt that can be matched to the payment received. 

Terms & ConditionsAccessibility statement