One of my customers pays weekly for dog walking via standing order. When he goes on holiday he lets the standing order run as we have a 50% retaining fee. We regularly buy bags of dog food for our local dog rescue and the customer says to use the other 50% of the overpayment to go towards the dog food donations. How do I show this?
Are the overpayments sitting on the client’s account, or are they already attached to an invoice?
Hi
They are sitting as overpayment on the customers account.
It’s still income so it should really be tagged to an invoice, rather than sitting on the client account. The purchase of the dog food is a separate concern, as if you your company were making a direct donation.
You could create an additional sales invoice and pay it down with those account credits. Then a purchase invoice for the dog food.
I’m not an accountant or bookkeeper so you may want to also seek a professional opinion.