OK, this may sound strange. For our glider club when a new member joins we invoice them for:
- First years annual dues and
- Initiation - which is really the purchase of 4 x $50 shares in the club.
We have been using a Non Inventory item ‘Initiation’ which we point to an initiation fee clearing account and then immediately make a Journal entry to Dr. back out of that account and Cr. over to Outstanding Shares in the Equity section.
Would be great to be able to point the Non-Inventory Item direct to an equity account but when setting up a Saleable Non-Inventory Item you can only relate it to an Income Statement or Liability account. Any change of allowing Non-Inventory items to point to an Equity account?
Granted this is a bit unusual and specific to the nature and arrangement of a club where we ‘sell’ (well really bill and collect) the share buy ins from members directly. I understand that such an approach wouldn’t make sense for a ‘company’ where the shares can change ownership after sale but for a club structure like ours it would be great to be able to directly build the member shares held when we bill a new member upon joining?