Trouble in Sales Receipts


Let’s say, we have a customer “A” and the rule is " Every time he will pay, deducts the 20 percent fee.
So,if the actual account receivables will be 100, and 20 will be the expense as 20 percent fee, so that means he will pay 100 and 20 will be shown in my expense and in account receivable, it would be 80.

In sales receipt, i am not showing to add the expense from that

How will it be possible ?

Your question is not clear. You say both “the actual account receivables will be 100” and “account receivable, it would be 80.” Which is it? What is the 20 expense for? Why would “A” pay 100 if the account receivable is 80?

Hi, are you able to setup the Manager to my desktop ? I will hire you on hourly rate ?

No. As I already informed you by private message, all help provided to members of the Forum is free of charge. And offers or solicitations for paid support violate the rules of the Forum. Continued violation of Forum rules will result in termination of your account.

If you want help with the issue you addressed when you opened this topic, please answer the questions I asked.

Let’s say, I have the business of Web Development, I have employers to work on the projects, and our source of income is “Freelancer”.
So i need to do accounting for this.
First the project is awarded to me for 100$, and its freelancer policy, they will deduct 10% for every project amount.
I have awarded this project to my employer at 50$, so accounting will be ;
Profit= 100$ - 10$ (fee) - 50$ = 40$ will be profit

That case, the freelancer will be our Customer, so i need to create the 100$ sale invoice, so how can i show the 10$ fee there ?

First, from your description, I believe that when you wrote “I have employers,” you meant “I have employees.” My comments below are based on the assumption that my belief is true: you have employees who work for you.

Second, when Freelancer (your customer) deducts 10%, why are they doing that? What is the 10% for? (This is the same question I already asked.) Is it a tax withheld at the source? If not, is it some kind of discount Freelancer is demanding from you? Is it a discount you are offering to Freelancer, or an early payment discount? What?

Third, you mention awarding a project to you employer (by which I assume you mean employee). Did you really award this to someone as a subcontract for 50? Or did you only assign it to an employee of your company whose wages for the job will be 50?

Finally, why do you think your sales invoice should be for 100 if you know the customer is only going to pay 90?

Hi, yes it means Employees.

For 10%, a freelancer is deducting the fee, as we use their platform to work on.

My employee is on project base with me, so I get the projects from freelancer on 10% deduction for the projects and give this to my employee on low price, and the difference will be the process.

For this, I make the Payslip for the employee, once i award him job and after completion, make this payslip paid via bank spent money option.

Now the question is; i need to do the accounting for the customer too. what should i do ?>

Thanks for the additional information. Steps are as follows:

  1. Be sure Freelancer is set up as a customer.

  2. Make sure you have a suitable income account in your chart of accounts. This could be something like Freelance sales, or any other income account where you want this revenue to appear.

  3. Choose or add a suitable expense account for the fee charged by Freelancer. This could be something like Platform use fees, or really anywhere you want to account for these fees.

  4. Continue to account for your employee’s costs on the project exactly the way you are, with a payslip and later bank transaction. This part of the situation is unrelated to your invoice. But your resulting expense in Wages & salaries will be 50.

  5. Raise a sales invoice to the customer with two lines:

    • First line, posted to the income account, Freelance sales, at 100.
    • Second line, posted to the expense account, Platform use fees, at -10 (note the minus sign).

The result will be an invoice showing a balance due of 90. At the same time, the customer will see that you charged 100 for the job and deducted 10 for the platform use fee. Accounts receivable will increase by 90. Freelance sales will increase by 100. Platform use fees will increase by 10. Wages & salaries will increase by 50.

If you had no other transactions, your net profit would now be 40. (This all assumes you are using accrual basis accounting.)