Hey everyone I have a question. How do I properly record in Qbooks this scenario.
Borrower pays for roof(I am in the roofing business) via financing. The finance group then takes out their charge. How do I record this? Do I create a credit memo for the borrower? Do I record the payment minus the transaction charge?
Borrower pays $20,000.00 GE Financial 920.00 Net Deposit 19,080.00
A little help please?!! Thanks.
Best Regards,
Simon
It depends on your agreement with your customer. If you agreed to absorb the financing charge, then you would have an entry like:
Cash 19,080 Financing Fees 920 Sales 20,000
If you did not agree to absorb the fees, then the customer still owes you $920 on the $20,000 sale.
Cash 19,080 A/R 920 Sales 20,000
The only time you would wish to record a credit memo for the customer is if you are willing to reduce your sales figure to 19,080. Your margin will suffer.
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