Paying contractors as % of revenue
We work with contractors who are offered management services for a management fee. The management fee is charged at 30% of revenues that the contractors generate. How can we generate invoices for t...
Forum Discussion
Hi openclinics
Sorry to see that no one has offered assistance with your query. From my understanding of your explanation, it sounds like you have a supplier who you owe $1100, who owes you $365, so instead of paying those amounts, you have agreed to pay the difference of $735?
When dealing with this sort of situation, is it usually done as what is called a contra payment, which is when you offset sale and purchase amounts and pay the difference.
To record this type of payment, you'll need to set up a contra account. For details and steps please refer to our Help Article on how to set it up: Dealing with a supplier who is also a customer.
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