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openclinics's avatar
openclinics
Contributing Cover User
2 years ago

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 them in MYOB to reflect the below situation.

 

Gross fees ($) 1100.00
adjustments 
Less 
GST included in gross fees100
Other -  
Net Receipts1000.00
Less: 
Mgt fee@30%300.00
GST@10%30.00
Amount Payable to your account670.00
Add: GST included in gross fees100
Add: Other -  
Subscription charges/ others-35
Amount transferred to your account ($)735.00

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  • SamaraM's avatar
    SamaraM
    Former Staff
    2 years ago

    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.


    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.