Hi, as part of our campsite business we can only accept bookings from members of a camping club. When non-members book to stay with us we can join them up and take their annual membership fee as part of their booking. We are then invoiced quarterly by the club for the fees we have collected and pay these out to them. How do I record the fees coming in as I’m not sure it should be a direct sale item, and how do record the money going back out? thank you
The answer will depend on a couple of factors.
Are you an intermediary which receives the fee on behalf of someone else who you pass the fee on to?
If the answer is yes, and you are certain that the fee does not form part of your turnover, then you could just record the money in as a transfer out from a membership fee account.
So you could create a new bank account, when you receive a fee, enter a money out transaction and tag it as a transfer to your bank account, matching it up to the money in.
When it’s paid back out, simply tag it as a transfer back to this new bank account.
That will keep it away from your turnover. But as I say, only if you are certain that it does not form part of your income.