Pay-out to customer

Elbie

Good day. I manage a few airbnb properties. I get paid from airbnb company. This amount needs to go onto my client’s statement, I then invoice my client for service and then need to pay him the difference.

So I have done an invoice to my client as follows:
On then invoice I show the payment (credit) from airbnb and my service. His account is now in credit.

My question - what transaction do I do for payment to him and this showing on the statement. I tried to do a income transaction but this does not pull through to my client’s statement to clear his account

AlexL

Hi @Elbie , I'm having a hard time following your situation. Can you explain why the money you receive from Airbnb is being put on a statement for one of your customers?

I feel like being able to connect these dots will help me answer your question.

Let me know!

Elbie

Good morning Alex,
The money I receive from Airbnb is actually for this owner. I purely manage the listing and the cleaning. So I receive the income and need to pay out the difference to the owner after I have invoiced him for the cleaning. Hope that make sense. Not so clued up with this system yet but I thought of rather making him a vendor in that sense?

AlexL

Got it @Elbie , thanks for confirming. This isn't something that's directly supported in the software although we can definitely handle it, I just don't think it 's the exact flow that you're looking for as the outcome is a little bit different.

First off, in your chart of accounts, set up a liability called "Due to Owner" or something similar.
When AirBNB pays you, you will add an expense transaction in this liability account for the amount owed to the owner (their share of the ownership income). Categorise this owed portion as "Refund for Income," then select the income account the payment from AirBNB was associated to. This amount would be what's owed to the owner.
When you're actually making the payment to the owner, you can categorise them as transfers to this liability account to pay off the balance. Essentially the transfer will show money moving from your bank account to your liability account, thus paying it off.

Because you're not invoicing the owner in the method above, it won't send an invoice and thus it won't show on the statement. The method above will however properly keep track of all of your accounting needs.