Hi I’ve just been going through months of bookkeeping due to being particularly lazy with it.
I have a slight issue which I’m wondering which is the best way to deal with it:
Example:
Client books a DJ from me for £200.
Invoice produced:
Deposit £50 (My commision)
Balance £150 (the amount I intend to pay subcontracted DJ)
Client decides to pay the DJ directly the £150 in cash on the night.
Now all have been paid correctly but now I have an issue, I have invoiced for £200 and only received £50.
The only way I can think to get around this is to go back and edit the invoice to have a -£150 payment direct to subcontractor? Somehow I feel there is a better way!
Hi @ukpartydj
If you have an invoice of £200, with £150 outstanding, there’s a few things you could do here.
- As you say, add a line for a £150 discount (enter it as -£150), which would reduce it to just £50 and mark it as unpaid.
- Raise a credit note against the invoice for the £150, which would show it’s also been paid in full.
I hope that helps?
Conceptually you’re still the one charging the client £200 and then hiring the DJ for £150 on their behalf, so I’d treat it as contra-invoicing - create a dummy merchant bank account, log a £150 payment on the sales invoice into that account and a £150 payment on a purchase invoice to the DJ out of the same account to return it to zero balance.
Thanks both of you. I may give Ian’s idea a try as that would allow the client to still get their invoice for the full amount. Maybe I’ll just tell the clients in future they need to pay me! 