Purchases and payments on behalf of client

Question

Our immigration law practice often makes payments on behalf of clients and is reimbursed for this, i.e. government visa application fees and payments to other government departments.

What is the best way to record these transactions in MYOB?

Thank you.

DuncanS · Answer

@ABing@Shella_A@Princess_R

I would treat the Payments as a Cost of Sale.

One Account called Visa Application Fees and another Account called Visa Application Fees Recovered.

You may have a Sub-Total.

Real Estate Agents follow this method with their Advertising Spend.

Take Care with the GST or no GST with Fees charged by Government Departments.

I would be speaking with your Tax Accountant.

Duncan

Princess_R · Answer

Hi @ABing,

Yes, we have the Spend Money feature to record payments and then create an invoice for the reimbursement. However, we're not accountants, so we can't give specific advice for your situation. Hopefully, someone in the community can help you out.

Cheers,

Princess

ABing · Answer

Hi Shella,

Thank you.

However, there must be a standard category in MYOB where this could be recorded without the help of an accountant?

Thanks.