• From: Canada, QC, Montreal
  • Registered: 05/16/2010
  • Posts: 167

Topic: Charges for services by a third party on an invoice

I cannot figure out how to do the following.

The members of our small organisation register to one of our services through the assistance of a third party (who is taking care of the online registration process and the payment). When we receive the final payment, it is the published service amount, less the administrative fees from the third party.

At the end If have an invoice to the member of, as an example, 100$, and a payment after processing by the  third party, of 90$. The final amount paid by the third party is dependent on the work done by him, therefore it is not a fixed percentage or a fixed amount.

What is the right way of doing that using FA?

Thanks.

  • joe
  • Administrator
  • Offline
  • Registered: 03/15/2007
  • Posts: 5,107

Re: Charges for services by a third party on an invoice

This is a tricky one. The Invoiced member is not the same legal entity as the payer. However one way could be to act that the payer is the same as the invoiced member, and let the Discount part of the Customer payment be the fee to the third party.
You should then use a relevant account for the discount to be of type service fee.

Well this is just an approach. Maybe there are better approaches out there. Please help us.

Joe

  • From: Canada, QC, Montreal
  • Registered: 05/16/2010
  • Posts: 167

Re: Charges for services by a third party on an invoice

I really can't figure it out.

Is there a way to move all individuals transaction to a receivable account, and then transfer the real deposit to the bank account (from the receivable account), and then make an expense against the remaining receivable account ?