Subscription payment to supplier and a credit received from supplier.
Hello. Each month I pay $50 to my supplier for a coffee subscription. They in turn give me a $5 credit giving me a total of $55 to use - each month. I then place an order which is less than the total of $55 and a credit is left adding to the $55 next month. How do I record the $50 going out? How do I record the credit of $5 added to my subscription? And then how do I record the actual purchase? I have tried to explain it as clearly as I can. Thanking you in advance.
Hi Margaretf
Thanks for your post. One way to record this would be as a supplier prepayment. I'll give the help article to guide you through recording these transactions but basically you would:
- in Enter Purchases record a $0 bill for your coffee supplier
- in Pay Bills tick Include Closed Purchases and apply a $50 payment to that $0 bill
- in Enter Purchases record a credit for the $5
- when you make your monthly purchase, say $25, record a bill in Enter Purchases
- go to Purchases Register>>Returns & Debits tab, select the $50 debit note and click Apply to Purchases
- when the Settle Returns and Debits window opens change the debit amount to the actual purchase amount, say $25, and apply to the purchase bill
- in this example you would be left with a $30 credit with this supplier
Please let me know if you need further help.
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