accounting question - to post a entry in quickBooks

Chris_Atlantic · ‎May 08, 2019

Hello

Had a question on posting a entry in QuicBooks

I would like to know how to treat an entry in quickbooks for a sale (fee) that is collected from customers in advance/arrears on behalf of govt

Basically the customer pays us the money and we inturn pay the same money back to the Govt at the end of the month. (VAT is exempted). As we just collect the fee, this would be a cost to the company and a liabaility because it is paid back to the govt.

How do I post this entry under customer account in QuickBooks? What changes should i be making in the chart of account, and when making payment from payables side how do I offset in QuickBooks? This fee collected should not form part of the total value of sales as it's a cost.

Any suggestions or thoughts would be helpful

Kind Regards,

Shaun Gonsalves

john-pero · ‎May 08, 2019

"and a liability" is exactly correct. Add a current liability account to track this and a service or item that posts to this account on sales receipts. Then when you cut a cheque to the government you will reduce this liability. Consider it similar to any other tax except is not s tax other than you collect and remit on behalf of clients

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accounting question - to post a entry in quickBooks

accounting question - to post a entry in quickBooks

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