How to Record issue a credit on specific customer invoices yet receipt the money for the same amount

You are already on the right track with invoicing, but since you actually receive money against the invoices you need to receive payments, not credits. You could still create credits (to build before use) by receiving their collected funds as payments but not against any invoice - this creates a credit.

 But that calls for extra steps you may not need. You can identify the sponsored funds by adding a different and unique payment type. Maybe call it "Sponsor Pay" and this could envelope cash or check and you just deposit it as is.

@THSSC

if I understand this issue, you need to track the duck sponsorships sold per player, and apply that amount to their dues.

the sponsorship item on the invoice should be linked to a liability account you create

each player should be set up as a class, and their sale is tagged with that class

periodically report on the player class, that will show the total sold for each player, then do a player invoice
line one - the dues item, qty is one, and amount
line two - the sponsorship item, qty is negative one, and that players sales amount

Thank you for your help.  Something I need to clear up and then see where that goes, is this:  Each player is invoiced a spirit pack a specific dollar amount.  We do not invoice or add to any invoice the sale of duck dash tickets, but rather sign them and credit their invoice for dollar amount sold.  If I invoice the tkts then receive payment, it is a wash and the player invoice is not decreased by their sold amount.  Does that make sense?  I really hoped this answer would be something simple - however it does not appear that way right now.  Typically the club has handled all financials using spreadsheets - this year I took it on to use QB so it would function better for us.  This one little issue is snagging me here.

You cannot "sell" ducks and apply that as payment for specific Members; there are regulations for not permitting one person specifically to benefit from your charitable purpose fundraiser for purposes of the Club.

You would separate your activities. The Selling of the ducks is its own activity, such as Sales Receipt.

If you then offer a scholarship discount for members' dues or "spirit packs" that has nothing to do with the fundraiser. It has to do with Discount or Write Off of the amounts no longer expected to be collected from that customer name. That is the credit memo, applied to their invoice for Spirit Pack. The credit memo is using an other charge item linked to an income account for "Sponsorship/Write off."

Never take public support funds and apply them as to benefit individual team members. That is a violation of fundraiser rules.

You are absolutely correct about the sponsorship - I feel confident my explanation was not completely accurate.  We have to run this through the powers that be before we are allowed to do this, I assure you we have broken no laws.  Each ticket is like a raffle allowing the top 3 winners of the race to win money.  It is a credit to the seller for the amount of tickets they sold.  My problem has been how to record the sale of the tkts and the credit to the seller.  

Thank you so much for your reply and concern.

I recommend the book Running QB for NonProfits, by Kathy Ivens.

Here is some specific guidance from the web. From:

https://parentbooster.org/Cooperative-Fundraising-IFAs

"Cooperative fundraising" is when a group's members join together (cooperatively) to raise money and then credit the funds raised (or the time spent volunteering) to the individuals who participated in raising the money (the accounts credited are known as "Individual fundraising accounts"). These types of activities, while common among booster clubs, are not considered a 501(c)(3) tax-exempt activity.

Tax-exempt 501(c)(3) organizations must be operated for a "public" purpose. Booster clubs, for example, often operate for public purposes such as supporting amateur athletics, supporting arts in the schools, community support for public education and the like. The IRS and tax court have both found that cooperative fundraising activities are operated for the private benefit of the individual members of the group involved in the fundraising. This type of cooperative fundraising may be engaged in by a for-profit, tax-paying organization, but not by a nonprofit, tax-exempt 501(c)(3) group. If cooperative fundraising comprises any significant part of your group's total activities (think more than 5% of total funds raised are credited to the individual accounts of parents/students participating in the fundraising although the IRS does not have a specific percentage test), then your group likely would not be considered to qualify for 501(c)(3) status by the IRS.

PBUSA highly recommends avoiding the use of Cooperative Fundraising or Individual Fundraising Accounts entirely. See the PBUSA IFA Policy. Other fundraising options include:

• Fair share donation plans -- in which your organization advises parents/students of the cost of participating and encourages, but does not require, that contributions of a set amount be paid
• Seeking out corporate, foundation and other donations, letting the donors know that contributions are tax-deductible provided nothing of significant value is received for the donation
• Using all funds raised to support the entire group, regardless of volunteer or fundraising participation