Holding an amount received for next financial year
Pip
Member Posts: 20
Hi! We're a non-profit group and have stopped term charging fees until next year, because of C-19.
While refunding people for a cancelled event (again, c-19), 2 have asked us to just keep that money towards the fees we'll charge next year.
I'd prefer this amount does not appear under term fees income for this year, so where do I still these amounts until next year?
I believe it'll be some kind of suspense account, but what kind of account is it etc?
Thanks!!
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I have actually sorted this out for now by one agreeing to a refund and one agreeing to donate the money to the group. Hooray. But I'd still love to know an answer to this in case it come up in the future.
@Pip Glad to hear you were able to sort this out but still want to learn more - we love people who continuously expand their knowledge base!
From the sounds of this, you likely will want to follow a method similar to our invoice pre-payment and deposits, which will make it a liability instead of an income account. As well, consulting a trained accountant is always best for making sure this is being book-kept properly!
Well, guess what. THEN I discovered someone had overpaid their fees, and so these instructions came in handy very quickly. Thank you!!