Invoicing as a subcontractor

by Keryn
(Australia)

How to invoice your contractual customer

How to invoice your contractual customer

Hi,


The business I work for is a subcontractor to a larger business. I am trying to work out how to best enter this information to reflect our earnings.

Company A gives a job and charge the client $150. Our charge is $100 BUT we have to receive the $150 in cash for Company A. We bank it and at the end of the month Company A gives us the difference for jobs that were paid to them by the clients who pay via bank transfer.

We use MYOB Essentials.

When I invoice Company A - should I invoice the $150 or the $100? And how do I reflect the difference in money?? Should I do a return?



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HI Keryn,

I haven't used MYOB since about 2000 so I'll say how I would approach it using QuickBooks and hopefully you can determine how to do this in MYOB.

When creating the invoice, I would setup a group containing two (2) items and possibly a subtotal in the "Lists>item List" ... one for the $150 deposits and another for their percentage. You'd need to play around a bit to get the best format presentation.

Create your invoice and call up the "group" you created on the "Item" tab of the invoice. Key in your data. The net of the two is the amount owing to you. This would allow both sides to track your deposits made. Depending on volume, you may create an invoice each time you have a transaction or as a daily, weekly, or monthly summary. Your contract may stipulate how and when you must bill.

Another option is to just bill the amount of your commission earned and not provide deposit detail if your contract doesn't require it.

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