How to make a payment on behalf of the client in ERPNext?
Scenario:
Paying in advance fees on the behalf of the client. At a later date, the fees paid on his behalf are invoiced to the customer.
Consider the project module. You can create a purchase receipt and assign it to a project in the Accounting Dimensions section. Then you can invoice against the project and related expenses.
Another solution may be considering it a loan. There is a Lending app, which may be more than you need.
You may consider it a subcontracted item.
You’ll need to decide how you’d like the accounting result.
Will this fee be a line item on the customer’s invoice? If so, it will be considered income, which is offset by the expense transaction when you paid the fee.
If you don’t want the customer’s payment to be considered sales, you may have to create a separate transaction to show repayment of the loan.
Thank you for the answer.
To clarify:
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There can be a expected “on behalf payment” which I would like to register for the client without creating accounting. Where would be the best place? Project Module?
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Then there should be the actual “on behalf payment”
Accounting here in Spain could be:
Debit: 43800000 (Customer)
Credit: 57000000 (Bank)
- Fund provision (in Sales Order or Invoice)
Simplified example:
Debit: 57000000 (Bank)
Credit: 43800000 (Customer)
Neither of your examples indicates the paid fee. This is not best practice in my opinion but you are in control.
If you’d like to record transactions without impacting accounting, then you can create a new doctype for this purpose.
In your examples, you won’t be able to list the item on sales invoice because it will incorrectly increase sales by the amount of the fee.
I think you should look into lending as it seems to fit your desires the best.