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Level 1

Investing in client's company by taking a partial payment

We have a client doing a podcast. We are helping the client expand the reach of the podcast via Social Media and other activities, including finding advertisers/sponsors. We have decided to invest in the client's company. We bill the client as if we are going to collect the entire amount (invoice for full amount). The client makes a partial payment on the invoice and the rest of the amount is intended as our investment in the client's company. How do I book the invoice amount left over after the client's partial payment?

 

I would like to track the investment in a chart of accounts entry but don't have a clue how this is done to show full credit for the invoice (as if we received full payment) and the amount left over after partial payment (expense? credit? other? special chart of account entries?)

 

Inquiring minds just gots to know! Thanks in advance for any advice on this issue.

Solved
Best answer January 07, 2020

Best Answers
Level 15

Investing in client's company by taking a partial payment

the investment in another company is booked to an asset account, create that asset account in the chart of accounts.  then create a service item named for the investment that is linked to the asset account.

 

On the invoice list your sales items at full price

follow them with the asset item, qty is negative one, and the amount you will be investing, the customer pays the balance.

 

If you do not know the amount to be invested ahead of time, it is dependent on how much they pay in other words, receive their payment, then create a customer credit memo using the investment item, qty=1, and the amount, then apply the CM to the invoice

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3 Comments
Level 15

Investing in client's company by taking a partial payment

the investment in another company is booked to an asset account, create that asset account in the chart of accounts.  then create a service item named for the investment that is linked to the asset account.

 

On the invoice list your sales items at full price

follow them with the asset item, qty is negative one, and the amount you will be investing, the customer pays the balance.

 

If you do not know the amount to be invested ahead of time, it is dependent on how much they pay in other words, receive their payment, then create a customer credit memo using the investment item, qty=1, and the amount, then apply the CM to the invoice

View solution in original post

Level 1

Investing in client's company by taking a partial payment

Perfect. Worked great. Thanks much!

Level 1

Investing in client's company by taking a partial payment

Perfect. Worked Great. Thanks Much!

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