Offsetting invoices with reimbursements
whpc
Member Posts: 3
Hi,
A member of our club has been invoiced a quartlerly fee, by the club, for $500. They have since purchased a couple of items on behalf of the club for $400, which they should be reimbursed for. They have also given us $100 cash to go towards the balance remaining on the invoice. The $100 cash (which I assume is counted as cash on hand) will end up being deposited in the clubs bank account.
How do I account for all these transactions properly in wave, such that the $500 invoice would appear as paid, offset by the reimbursements and cash with the cash component being later deposited in our bank account?
additional info:
- the raised invoice has a line item for a product called "fees" for $500 with the income account being "membership fees"
- the purchased items would be categorised as "equipment"
0
Comments
This is a little bit of a hassle, but I think I can help.
Making your invoice: Create your invoice with your usual "fees" item. Add a second item called Discount (with an income account called Equipment Discount or something) and price it at $-400
For the $100 deposit: Call it Deposit for invoice #XX and leave it unassigned. When the invoice is created, assign it to the "Payment for an invoice made in Wave" category and choose the appropriate invoice.
For the equipment: Create a journal entry that debits the Equipment asset account and credits Equipment Discount income account.
This should make it so your invoice is paid in full, your Discount account is empty and your asset account is appropriately up $400.
Does that all make sense, @whpc?
Thanks @Dante_Bulluck - makes sense. Thanks so much!
No problem!