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treasurer69
Level 1

How does one account for annual membership dues in a private club which requires receipt of a single pmt by a specific date, but posting of 1/12 of revenue every month?

 
1 Comment 1
ReymondO
QuickBooks Team

How does one account for annual membership dues in a private club which requires receipt of a single pmt by a specific date, but posting of 1/12 of revenue every month?

Let me help you record this transaction in QuickBooks, @treasurer69.

  

You can set up a retainer process for your company in QuickBooks Online. This will be treated as a liability to show that, although your business is holding the money from a deposit or retainer, it doesn't belong to you until it's used to pay for services. 

 

First, you need to create a liability account to track the amount of the retainers you receive from your customers.

 

Second, create a retainer item. The retainer item can now be selected when creating an invoice or sales receipt for a deposit or retainer payment. 

 

Once done, let's now create a trust liability bank account.

 

  1. Go to Settings, then select Chart of Accounts.
  2. Click New and select Other Current liabilities from the Account Type drop-down.
  3. From the Detail Type drop-down menu, select Trust Accounts- Liabilities.
  4. Enter a Name for the account.
  5. Choose an option from the When do you want to start tracking your finances from this account in QuickBooks? drop-down list.
  6. Select a Default Tax Code and enter an Unpaid balance and as of date.
  7. Click Save and close.

 

After that, create a deposit to record a single payment. Then, create an invoice for each month to disperse the income or revenue throughout the year. 

 

Other detailed steps are also provided in these article: Record a retainer or deposit.

 

If you have any other questions please let me know. I'm always glad to help any way I can.

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