How to transfer payments directly to another contact

Question asked by Asher Jacobsberg 7 years ago

We have been sent some payments that our clients have mistakenly made out to a charity we support.

As we were going to make a donation to the charity anyway, it seems like the simplest thing to do is to just send these cheques on directly to the charity.

So although there will be no income or expense showing in our bank account I need to show the invoice as paid and a donation of the same amount made to the charity. What's the best way to record this in Clearbooks?

Thanks.

4 Replies

Hi Asher,

When you say you need to show the invoice as paid, do the cheque payments that were sent to you mistakenly also include an amount that relates to an invoice?

The short answer is yes.

This is the process (re-reading what I originally posted I see it wasn't very clear):

  1. The client places an order with us.
  2. We invoice the client - inv101.
  3. They send us a cheque to pay this invoice, but mistakenly make it out to 'Charity.org' rather than 'Us.com'.

    We were going to make a donation to Charity.org anyway so rather than sending the cheques back, having them reissued by the client to Us.com I was intending on just sending them straight on to Charity.org. So what I would like to show up in our accounts is:

  4. Inv101 is shown as paid.
  5. A donation to Charity.org (of the same value as inv101) is recorded.

    I'm trying to do this to make things simpler for myself and the client, but maybe I'm over-complicating things. Anyway, I hope this makes sense.

You might want to discuss with an accountant

In terms of accounting for this on the system, you could create a bank account on the Money>Bank accounts menu and call it contra account or perhaps even just Cheque account.

You can then create a receipt on the Sales>Money in menu (using the bank account above), and allocate this to the invoice, or you could use the quick pay form.

Once you have done this you can create the donation expense as explained in the previous post, however make sure to again use the bank account that you created earlier.

Ah, I hadn't thought about creating a contra account. That makes sense.
Thanks very much for your quick help on both of these issues.

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