Invoicing for Sale of Shares

1

OK, this may sound strange. For our glider club when a new member joins we invoice them for:

  1. First years annual dues and
  2. 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?

Thoughts?

2

You can do exactly what you want - point the Non-Inventory Item to the Equity account.

Create the Equity Account

Create the Non-Inventory Item using the Equity Account

Create the Sales Invoice

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Ends up posted directly to the Equity Accoint

2 Likes
3

Thanks. Wow, not sure what I was doing last night couldn’t see the account in the list of values on the item screen but my eyes seem to be working this morning and there it is! Thanks for taking the time to review.