cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Experienced Member
Solved

Managing club minimums using QB

We are using Quickbooks Pro for a sailing club. The club has a snack bar and members are charged a $75/year minimum along with their dues and any other fees. Snack bar purchases are applied against the member's minimum until they hit $75 and then the member is charged for the additional purchases as they happen.

 

The challenge we've run into is accounting for the charges against the minimum when we produce monthly statements and invoices. Statements that list transactions show the ones that should be debited against the minimum but it's not clear that no payment is needed. 

 

The other challenge is once the season is over applying the balance of the $75 to each member's account. It's a lot of work for our bookkeeper to manually update the records for all 300+ members. We've discussed creating separate membership and snack bar accounts but that's a lot of work and confusion too.

 

Any suggestions?

 

Best answer 10-03-2018

Accepted Solutions
ProAdvisor

Re: Managing club minimums using QB

Hello @mjberns:

 

Well you have given us a great puzzle to solve but I think  Matthew @ParkwayInc and I have a good solution for you.

 

In the video below we show you how to set up the items to be used, how to produce a simple workflow that will eliminate the need to track the minimums manually.  Time savings at it’s best and one of our favorite things to demonstrate.

 

 

 

The steps are as follows:

 

  1. Set up Prepaid income account on Chart of Accounts (as an other current liability)
  2. Set up the items.  
    1. Food Minimum item that points to prepaid income
    2. Food Minimum Applied item that points to prepaid income account
    3. Food Purchase (in this case Hot Dogs) item that points to sale of product income.

The workflow:

  1. Create an invoice for your members (another time saving tip:  make them recurring so you don’t have to create the following year. Save to schedule them annually).
  2. Receive payment from the customer.
  3. Create a credit memo using the food minimum applied item to create the credit to have all future purchases deducted from.
  4.  Create invoices as purchases are made.
  5. Apply the credit memo against the open invoices until the credit has been exhausted.
  6. Send out periodic statements to notify members of their balances.

 

Note:  At year end, if a member did not use their entire minimum, an adjustment will need to be made to zero out that Prepaid income account to income.

 

We hopes this solves your issue of having to manually track the $75 prepayment.   Thank you for your challenging question and for being a member of the community. If this video and post helps you, we would love a cheers or a thumbs up.  Or just a note back.

 

Lynda @lynda and Matthew @ParkwayInc

11 Comments
QuickBooks Team

Re: Managing club minimums using QB

Hey there, @mjberns.

 

Welcome, and thank you for coming to the Community for help with setting up your sailing club in QuickBooks. It's important to me that you get the best help possible, and because of how specific your questions are, it's my recommendation you seek out a ProAdvisor.

 

By doing this, it will ensure you get into contact with someone in your local area that is QuickBooks certified; whether that be a bookkeeper or a CPA. You can find a ProAdvisor near you by following this link: https://quickbooks.intuit.com/find-an-accountant/.

 

Should you have any other questions about QuickBooks functions, be sure to let me know. I'll be here in the Community, ready to help. 

Experienced Member

Re: Managing club minimums using QB

Clay - thanks for the reply. We have asked one ProAdvisor, who didn't have a solution. Said essentially that while other accounting packages could handle this situation he didn't think Quickbooks could. We thought that seemed unlikely as many clubs have "minimums" for their restaurants and snack bars and it seemed unlikely that none of them used Quickbooks.

 

I thought that posting the question - which isn't all that specific when you think of the number of clubs out there - to this forum would be more efficient and effective than going from ProAdvisor to ProAdvisor. Hoped that someone else using QB had solved this.

 

It seems like the QuickBooks team hasn't, or you'd have been able to point me in the right direction.

 

We'll keep trying.

ProAdvisor

Re: Managing club minimums using QB

Hello @mjberns:

 

Well you have given us a great puzzle to solve but I think  Matthew @ParkwayInc and I have a good solution for you.

 

In the video below we show you how to set up the items to be used, how to produce a simple workflow that will eliminate the need to track the minimums manually.  Time savings at it’s best and one of our favorite things to demonstrate.

 

 

 

The steps are as follows:

 

  1. Set up Prepaid income account on Chart of Accounts (as an other current liability)
  2. Set up the items.  
    1. Food Minimum item that points to prepaid income
    2. Food Minimum Applied item that points to prepaid income account
    3. Food Purchase (in this case Hot Dogs) item that points to sale of product income.

The workflow:

  1. Create an invoice for your members (another time saving tip:  make them recurring so you don’t have to create the following year. Save to schedule them annually).
  2. Receive payment from the customer.
  3. Create a credit memo using the food minimum applied item to create the credit to have all future purchases deducted from.
  4.  Create invoices as purchases are made.
  5. Apply the credit memo against the open invoices until the credit has been exhausted.
  6. Send out periodic statements to notify members of their balances.

 

Note:  At year end, if a member did not use their entire minimum, an adjustment will need to be made to zero out that Prepaid income account to income.

 

We hopes this solves your issue of having to manually track the $75 prepayment.   Thank you for your challenging question and for being a member of the community. If this video and post helps you, we would love a cheers or a thumbs up.  Or just a note back.

 

Lynda @lynda and Matthew @ParkwayInc

ProAdvisor

Re: Managing club minimums using QB

@mjberns:  It was your lucky day!  The qb team told you to reach out to the ProAdvisor site and instead you got two Advanced ProAdvisors to help you!

 

I know the setup is tricky, but this workflow will work.  Obviously, since you are on QB desktop, the flow in online will look different, but it is really the same.  You access your items from the item list in Desktop and you access the chart of accounts.  All of these access points can be found on your home page.

 

Have a wonderful day and please reach out to let us know how you make out or if you have any questions.

 

Lynda & Matthew

Established Community Backer ***

Re: Managing club minimums using QB


@ParkwayInc wrote:


The steps are as follows:

 

  1. Set up Prepaid income account on Chart of Accounts (as an other current liability)
  2. Set up the items.  
    1. Food Minimum item that points to prepaid income
    2. Food Minimum Applied item that points to prepaid income account
    3. Food Purchase (in this case Hot Dogs) item that points to sale of product income.

 

 


 

Food Purchase is kind of confusing from my viewpoint, i would think Food Sales posting to income is more intuitive for a clerk to select it, and semantically it makes more sense to me.

 

 

ProAdvisor

Re: Managing club minimums using QB

I agree! 😊
Established Community Backer ***

Re: Managing club minimums using QB


@lynda wrote:
I agree! 😊

Let me mark my calendar, ROFL, we agree finally

Experienced Member

Re: Managing club minimums using QB

Lynda and Matthew - thanks so much for the effort you put into solving this puzzle for us. We'll look at this in our setting and see how to make it work.

 

FYI, another suggestion that came up elsewhere is to just charge people throughout the season as they use the snack bar and then true up at the end of the  season for those members who didn't reach $75. 

 

Again, thank you! 

ProAdvisor

Re: Managing club minimums using QB

I like our way better. Most clubs (we have them in our communities here in Florida) do it just this way. Every January the dreaded minimum and we work off of it.

Have a wonderful day! Smiley Happy

Lynda & Matthew
ProAdvisor

Re: Managing club minimums using QB

Don't get too excited @Rustler!
Experienced Member

Re: Managing club minimums using QB

Much appreciated. We'll walk through your solution with our bookkeeper. Again, thanks so much for your suggestion.