2

We have a handful of people in our organization who pay for events partially with money and partially with work trades. Let's say they owe us $1000 for an event. In month 1, they make a partial payment of $100. We record this via the back office. In month 2, they work for 10 hours and reduce the balance they owe us by $200.

How should we record this $200?

What I would like to do is to create a Payment Method called "Work Trade" but I'm not sure what financial account it should relate to.

  • What it should really do is reduce Accounts Receivable. But I'm not sure how to record a negative amount to Accounts Receivable.
  • It should not go against Payment Processor Account, because no actual cash is received.
  • Should I set up another account type, called like "Work Trade Account" or something?

Another option is to reduce the amount they owe us directly by reducing the $1000 down to $800 in their event registration. But I don't really want to do this because many of our events are fixed price, and so this would introduce the need to modify event prices so I can change their registration. Also, it's not correct -- they are giving us a value of $1000 for that event.

Suggestions or best practices?

Thanks

Improve this question

1 Answer 1

Reset to default
1

I would create a new Financial Account and Payment Instrument called 'Work Trade'. And use 'Work Trade' payment instrument to record $200. And while exporting accounts you can handle 'Work Trade' accounts separately.

Cheers

Pradeep

Improve this answer

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service and acknowledge you have read our privacy policy.

Not the answer you're looking for? Browse other questions tagged or ask your own question.