Demurrage penalty

1

Good day!

Please advise on the best way to record transactions in the following scenario:

  1. Supplier has invoiced my company (the trader) for $100 demurrage charge.
  2. My company has invoiced the final consumer (who caused the demurrage in the first place) for the same amount ($100) which was later paid to me then paid by me to the supplier.

Do I need to create 2 new accounts (income and expense) to deal with this or is there an easier way? Thx

2

I would post your supplier’s purchase invoice line item to Billable expenses in a situation like this. It is not an expense of running your business, but one you are simply passing through to the customer. When you invoice it to the customer, it will automatically be transferred to Billable expenses - invoiced and Billable expenses - cost. Read the Guides having to do with recording and invoicing billable expenses.

If you retroactively adjust the selected accounts on your purchase and sales invoices, this should all happen automatically. And since accounts do not show on completed invoices, there will be no need to adjust anything you sent to the customer.

2 Likes
3

You could use the Billable expenses module

Is this a recurring item ?

4

Following the guide, I have created a billable expense through “Purchase Invoices” section and selected both the supplier and the final customer.
Then I invoiced it and the amount appears in both “acc/receivable” and “acc/payable” in relevant sections but I don’t seem to understand how to balance the two with the actual payments (money received and paid). Appreciate the help.

1 Like
5

Have you followed all the steps outlined in the guides?

  1. Create a purchase invoice from your supplier and post the amount to Billable expenses/Customer
  2. Invoice your Customer with the Billable expenses
  3. Receive the money from your customer - you use the normal Receive payment transaction
  4. Make a payment to your supplier using whatever method you normally use

There is no direct link between the receipt from the customer and the payment to the supplier

6

Got it. Thank you. Got so worked up, I have been posting the transactions to the wrong account.