how to enter lump sump paid to a company for working on their behalf.

[yoshu]

Hi, we do some work for a big company as their agent. They take a certain amount from each job ( we do not charge GST to the customer) and at EOM the company direct debits the lump sum. When we get the job we make the customer pay the amount. and enter in Myob sales as FRE. The big company deducts the GST that we would have earned from the total amount. for example we do 50 of their jobs a month. they take 30 per job = $1500 . They deduct GST from that and only debits the balance from our account. Every month they send us a RCTI which has that GST amount and says we need to pay that to ATO. 

How do I enter the lump sum thats gone from our bank at EOM in mYOB?

and how do i show this so it it gets included in BAS or how do i pay it to ATO?

[Steven_M]

Hi @yoshu

I would recommend speaking to an accountant in regards to the processes required for that situation.

Generally, in similar situations, I have seen a contra or holding account used. This is where you would have an account that would store values for the future. For example, a customer would pay into that account i.e. the Receive Payments transaction will be done to the holding account. You can then deduct a portion of that for another purpose before depositing the rest of the money to the main bank account.