[WMcQueen]

Working on the books for a travel agent. I want to post the income from a direct payment from a client credit card to the supplier (AP). This transaction will not be an expense to the Travel Agent because it has been paid directly by the client. So, no entry.

For example, there was a fare $3,000 paid directly through the client’s credit card to the supplier. Would I post it as a regular invoice when I post the Income to Sales (credit) $3,000 and a debit to AR – Client $3,000.

If posted as an invoice, what is the best way to reduce the AR by $3,000 when the actual money is never received in order to zero out the receivable but still have the books in balance and the income recorded?

Racking my brain… can anyone make a suggestion?

[WMcQueen]

I think I figured it out? Direct entries to Income (credit) and to COS (debit) – a wash but still records the income as a non-financial entry. No receivable, no payable. Make sense?

[MSchappler]

OK. You could record the Sale and payment withing the client account and include a zero entry to the AP Vendor as a reference.

Regards to All,

Martin

[Author]

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