Handling Disbursements

[QFSteve]

Hello @ChrisA14

The below article may help.

How to record disbursements

Disbursements on behalf of clients are generally recorded on the balance sheet, not the profit and loss account (P&L), as they are not considered part of your business’s income or expenses. Practical Example Scenario: You pay £100 to a gas engineer for a safety test on behalf of a client. You charge the client £100 as a disbursement and £20 as your service fee. We’ll use this example below for you to follow along. Identify the Purpose To ensure correct VAT treatment and reporting, you …