I am searching for the best way to set up a running liability account for my client. The client has a liability due monthly, similar to a tax (private lease concession agreement). To mitigate the expense, my client charges customers a "concession fee," which it uses to pay this liability.
While the amount due to the concession collector varies (different percentages of different revenue categories), my client charges a flat rate. The concession cost is always more extensive than the fee collected to mitigate the expense. Setting it up as a liability account would mean the account would be steadily growing since the fees collected are never enough to cover the expense.
Currently, the account is set up as a contra-expense account to the "rent expense" account.
Is there a better way to do this?
