How do I show income received when charges/fees have already been deducted?

If you receive income from a management company or a third party who deduct fees or charges before the income is paid over it is important to record this in Scribe correctly, especially if VAT is charged on the fees/charges.

If this happens then the amounts should be entered as the overall totals, not just the net income received.

Let's use an example of £500 income with £20 fees being deducted. The actual amount paid over is £480.00:

• Enter a receipt for the total income, in this example £500. You may want to add a note referencing the payment (see next step) it relates to and the actual amount that was received on the bank statement. 
• Enter a payment for the fees/charges, in this example £20.00. If VAT is included then ensure this shows against the payment to allow you to reclaim it. You may want to add a note referencing the receipt it relates to and the actual amount that was received on the bank statement. 
• When the £480 is received on the bank statement this can be matched off on Scribe to both the receipt and the payment (£500 - £20 = £480).

💡  If you use the Stripe integration Scribe will automatically create the relevant entries for you when a customer pays an invoice and the Stripe fees are deducted. See here for more details: ▶️ Payment Integration