Answers.Body: <p>I would create a new Financial Account and Payment Instrument called 'Work Trade'. And use 'Work Trade' payment instrument to record $200. And while exporting accounts you can handle 'Work Trade' accounts separately.</p>
  
  <p>Cheers</p>
  
  <p>Pradeep</p>
  
Answers.ContentLicense: CC BY-SA 4.0
Answers.CreationDate: 2019-05-13T08:27:35.203Z
Answers.LastActivityDate: 2019-05-13T08:27:35.203Z
Answers.UserDisplayName: Pradeep Nayak
Body: <p>We have a handful of people in our organization who pay for events partially with money and partially with work trades.  Let's say they owe us $1000 for an event.  In month 1, they make a partial payment of $100.  We record this via the back office.  In month 2, they work for 10 hours and reduce the balance they owe us by $200.</p>
  
  <p>How should we record this $200?</p>
  
  <p>What I would like to do is to create a Payment Method called "Work Trade" but I'm not sure what financial account it should relate to.</p>
  
  <ul>
  <li>What it should really do is reduce Accounts Receivable.  But I'm not sure how to record a negative amount to Accounts Receivable.</li>
  <li>It should not go against Payment Processor Account, because no actual cash is received.</li>
  <li>Should I set up another account type, called like "Work Trade Account" or something?</li>
  </ul>
  
  <p>Another option is to reduce the amount they owe us directly by reducing the $1000 down to $800 in their event registration.  But I don't really want to do this because many of our events are fixed price, and so this would introduce the need to modify event prices so I can change their registration.  Also, it's not correct -- they are giving us a value of $1000 for that event.</p>
  
  <p>Suggestions or best practices?</p>
  
  <p>Thanks</p>
  
Tags: <payment><partial-payments><payment-method>
Title: How to record work trades as payment on balance owed
ThreadText: # How to record work trades as payment on balance owed
  
  (Asked by: username_0 on 2019-05-13)
  
  We have a handful of people in our organization who pay for events partially with money and partially with work trades. Let's say they owe us $1000 for an event. In month 1, they make a partial payment of $100. We record this via the back office. In month 2, they work for 10 hours and reduce the balance they owe us by $200.
  
  How should we record this $200?
  
  What I would like to do is to create a Payment Method called "Work Trade" but I'm not sure what financial account it should relate to.
  
  * What it should really do is reduce Accounts Receivable. But I'm not sure how to record a negative amount to Accounts Receivable.
  * It should not go against Payment Processor Account, because no actual cash is received.
  * Should I set up another account type, called like "Work Trade Account" or something?
  
  Another option is to reduce the amount they owe us directly by reducing the $1000 down to $800 in their event registration. But I don't really want to do this because many of our events are fixed price, and so this would introduce the need to modify event prices so I can change their registration. Also, it's not correct -- they are giving us a value of $1000 for that event.
  
  Suggestions or best practices?
  
  Thanks
  
  **Tags:** payment, partial-payments, payment-method
  
  
  ---
  
  ## 1 answers
  
  ### Answer by username_1 on 2019-05-13. Score: 1
  
  I would create a new Financial Account and Payment Instrument called 'Work Trade'. And use 'Work Trade' payment instrument to record $200. And while exporting accounts you can handle 'Work Trade' accounts separately.
  
  Cheers
  
  Pradeep
  
  
  ---
  
  