From time to time we receive payments relating to the disposal proceeds of equipment that we sell on behalf of a deceased club member (known as ‘Silent Keys’). They are not ‘Suppliers’ as such.
Quickfile understandably tries to treat all receipt into the bank accounts as ‘Income’ but in these particular instances the DEBIT entry in the bank account needs a corresponding CREDIT in a ‘Supplier’ account. I have tried various ways to do this in Quickfile - without an elegant solution so far.
As an example please look at Payment: #SP000048 on our system. This related to money I collected from a member by Direct Debit in respect of such a sale. Currently this is showing as ‘Unallocated’
Your help and advice would be greatly appreciated
Create another bank account called “3rd Part Non Sale Money” , any money you receive in your main bank a/c tag that as bank transfer between accounts, pick 3rd Part Non Sale Money and save. Once you make payment from main account to relevant person, again tag the payment to 3rd Part Non Sale Money through bank transfer between a/c. This way figures wont touch your P&L
Follow FK’s advice and create a holding account called “3rd Part Non Sale Money”, as GC deposit the aggregate DD collections, it may be easier to tag as follows:
GoCardless (GC) Entries:
First Input the GC charges for the 3rd party DD collection, then tag both the payment received on behalf of the 3rd party and the GC charges as a ‘Bank transfer between accounts’ to the new holding account:
Now, tag the GC Charges:
Bank Entries: Transaction 1: Money in from GC:
Tag as a ‘Bank transfer between accounts’ to the GC Holding Account:
Transaction 2: Payment to 3rd Party:
As FK explained “Once you make payment from main account to relevant person, again tag the payment to 3rd Part Non Sale Money through bank transfer between a/c.”:
You can now see that the balance on the ‘3rd Party’ holding account is £0 and the balance on the GC Holding Account is correct:
I was thinking on similar lines, but then came up with the fact that the ‘bank account’ as such is only virtual. Although everything is still traceable it makes the bank reconciliation a bit messy.
What I might do however, and accounting wise this would be the correct solution I suppose, it to actually open a second current account at the bank called “Clients Money” and then properly transfer the balance to there.