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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

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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

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