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BarbaraKD
Level 1

Accepting Payments on Behalf of Vendor

We are a non-profit animal rescue and one of the services we offer is to transport personal pets to a low-cost clinic on the days we take animals from our rescue. The pet owner pays us for the clinic services, usually by PayPal or CC, and we write one check for all animals we transported to the clinic that day. The pet owner is actually a client of the clinic, we are simply transporting the pet for them.

Example:
Pet owner pays us $50
We pay the clinic $45
The remaining $5 is to cover our transportation costs and CC fees.

 

Since we are just passing the funds received to clinic, how do I show this in QB? Other than the $5, it really isn't income for us but I don't know how else to show it.

2 Comments 2
Rustler
Level 15

Accepting Payments on Behalf of Vendor

I know it does not seem as though it is income, but it is

 

the customer pays you, that is income

you pay the expenses

on the P&L income is reduced by expense

so in your example if that was ll there was, there would be a $5 net profit

Malcolm Ziman
Level 10

Accepting Payments on Behalf of Vendor


@BarbaraKD wrote:


Example:
Pet owner pays us $50
We pay the clinic $45
The remaining $5 is to cover our transportation costs and CC fees.

 

 


An option is to create an Item where the income account is linked to a liability account, and use that item in a Sales Receipt for the $45, and on the next line use the item you use for income for the $5. Then when you pay the vendor the $45, use the same item that is linked to a liability account.

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