Forum Message

Processing someone else's payment through Solar

My wife and I have separate but overlapping businesses and this leads to some pretty complicated book-keeping manoeuvres. We both make and sell our own products, but one product we make between us and split the proceeds. I do the invoicing so the payments go into my bank account, and then I give her a cheque for half.
How can I set up Solar so that my Sales Income isn't inflated? I'm just processing the payment for her.
I'd be grateful for any help.
Cheers, Steve.


Posted by Steve Cormack on Jan 18, 2011 2:11 AM GMT

Hi Steve,

Create a new liability account called 'Payable to Mrs Cormack'. Then have two lines on your invoice - one with the Account set to 'Sales Income' (as normal) and the other with the Account set to 'Payable to Mrs Cormack'. When you pay your wife from your business bank account record a General Transaction from the Cheque Account to the 'Payable to Mrs Cormack' account.

Note that if you are VAT-registered you should create two separate invoices instead, with the VAT Treatment on your wife's one set to 'Out of Scope'.

Cheers,


Posted by Mark McLaren (Solar Accounts) on Jan 18, 2011 2:22 PM GMT

Hi Mark,
That'll do the job nicely.
Solar Accounts is a great programme and just as importantly, you supply great support. I pondered mightily before committing to it, but I am so glad I did.
Thanks for your help.
Steve


Posted by Steve Cormack on Jan 18, 2011 2:46 PM GMT

Hi Steve,

It's great to hear you like our software and support!

cheers


Posted by Mark McLaren (Solar Accounts) on Jan 19, 2011 8:58 AM GMT