Q: Invoicing a Payable

Posted by A on December 13, 2007, 10:21 pm

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I have a group of customers that I charge an additional 2%, which I then
turn around and pay to their Head Office, as a clerical upcharge.

Any idea how I invoice this, so that I end up with the monies going to an
A/P account that I will pay-out once a quarter?

I tried 'Other Charge', but it won't allow me to set it up using an A/P
Account.

Any help is anppreciated.

Andrew

Posted by Marinus van der Lubbe on December 13, 2007, 11:54 pm

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A wrote:

> I have a group of customers that I charge an additional 2%, which I then

> turn around and pay to their Head Office, as a clerical upcharge.

> Any idea how I invoice this, so that I end up with the monies going to an

> A/P account that I will pay-out once a quarter?

> I tried 'Other Charge', but it won't allow me to set it up using an A/P

> Account.

> Any help is anppreciated.

> Andrew

This is like passing on costs of subcontractors to a customer. I don't
see the problem if you do it the easy way and have it showing on the
created invoice so you don't have calculate by hand later.

So treat it like a subcontractor with the debit being "kickback expense"
and credit "upcharge A/P"

Posted by Laura on December 14, 2007, 6:56 am

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>A wrote:

>> I have a group of customers that I charge an additional 2%, which I then

>> turn around and pay to their Head Office, as a clerical upcharge.

>> Any idea how I invoice this, so that I end up with the monies going to an

>> A/P account that I will pay-out once a quarter?

>> I tried 'Other Charge', but it won't allow me to set it up using an A/P

>> Account.

>> Any help is anppreciated.

>> Andrew

> This is like passing on costs of subcontractors to a customer. I don't see

> the problem if you do it the easy way and have it showing on the created

> invoice so you don't have calculate by hand later.

> So treat it like a subcontractor with the debit being "kickback expense"

> and credit "upcharge A/P"

QB is not going to allow a charge to A/P on a Customer invoice since that
would be mixing A/R and A/P in the same transaction.

Set up an item to Credit "kickback expense" as suggested above and then use
a vendor bill to Debit "Kickback expense". This account will net to zero
when all payments to the Head office are made. Depending on the terms of
these upcharges one might argue that they are a Payable and using an expense
account is not appropriate.