Below are the steps on how to reconcile inbound Snag-A-Slip payments and account for commission fees in Xero.
- In this example you have received 2 payments totaling $300 in June that are expected to be paid out on July 1.
- On July 1 there is a deposit in your bank account for $273.
- Use the Transfer Function to move these funds from your Bank Account to the virtual bank account for Snag-A-Slip Payments.
- From the Dashboard in Xero click on the virtual bank account for your Snag-A-Slip Payments (aka clearing account.)
- Now click Manage Account --> Spend Money to record the commission.
- Enter Snag-A-Slip as the contact. The Date will be the month in which that posts to your Income Statement (P&L). You need only enter a Description, Quantity of 1, and the Unit Price should be the commission amount. Under Account pick the relevant Expense account. Many marinas choose to make a dedicated expense or COGS account just for online booking fees. Consult with your accountant or tax advisor on the best approach for your business.
