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  • #976280
    TehCamel
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    Part of what I offer is the ability to “pre-buy” support hours – so a client could buy a block of say, 10 hours, with a finite life.

    I need a way to account for this – the fact that they’ve paid me upfront, and then the outstanding hours are a liability.

    As I use saasu, I came across their help file for “gift certificates’ which is similar I guess.
    I’ve created a “liability” account called “Liability: PrepaidHours” and made it the account for when I esll the item.

    However, I now want to keep track.
    when i tick “i inventory this item” it asks me to select an account again.

    Should this be the same liability account, or another? I’m a little confused..?

    Basically, I would issue an invoice to a client, with 10 “PrePaid Hours” as a line item.
    Those hours would go to my liability account.

    Then, when they are used, I’d issue another invoice, with a “-1 Prepaid hours’ as the line item.

    Do I make sense… ?

    #1080454
    MyGreatIdea
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    Yes, you make sense lol

    I don’t know Saasu, but from a bookkeeping perspective I think I can help.

    If you want to track the prepaid hours through inventory you will need to create an inventory account called Pre-Paid Hours under assets. You will need to create a new item for each client eg Smith, Jones etc as the item, value for each unit as your hourly rate, unit will be an hour. Your “stock” would always be in negative numbers, until the prepaid hours were used up at which time the stock on hand for that item would return to zero.

    So the sales invoice for Mr Smith for say 10 hrs @ $50/hr would be issued to the client as buying 10 units of inventory item “Smith prepaid hours”, (to the liability account as you’ve set up), your stock item Smith would be showing as having negative 10 in stock. Mr Smith then uses up 2 hrs and your next invoice would show 2 hrs of time for $100 (to you usual sales account to show the income) and -2 hrs of the stock item Smith Prepaid Hours (against your liability account). So the client’s invoice would simply show the activity with a zero balance and stock item Smith would now have negative 8 in stock.

    You can always see your total hours prepaid in your liability account, and get the individual tracking you’re after through your inventory.

    Hope this helps!

    Wendy :)

    #1080603
    MyGreatIdea
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    Yes, you make sense lol

    I don’t know Saasu, but from a bookkeeping perspective I think I can help.

    If you want to track the prepaid hours through inventory you will need to create an inventory account called Pre-Paid Hours under assets. You will need to create a new item for each client eg Smith, Jones etc as the item, value for each unit as your hourly rate, unit will be an hour. Your “stock” would always be in negative numbers, until the prepaid hours were used up at which time the stock on hand for that item would return to zero.

    So the sales invoice for Mr Smith for say 10 hrs @ $50/hr would be issued to the client as buying 10 units of inventory item “Smith prepaid hours”, (to the liability account as you’ve set up), your stock item Smith would be showing as having negative 10 in stock. Mr Smith then uses up 2 hrs and your next invoice would show 2 hrs of time for $100 (to you usual sales account to show the income) and -2 hrs of the stock item Smith Prepaid Hours (against your liability account). So the client’s invoice would simply show the activity with a zero balance and stock item Smith would now have negative 8 in stock.

    You can always see your total hours prepaid in your liability account, and get the individual tracking you’re after through your inventory.

    Hope this helps!

    Wendy :)

    #1080456
    TehCamel
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    Head….hurts :P
    But hopefully only cause it’s early in the morning. If I read over this more a bit later, it might make sense.
    I might play around with the sample account a little bit.

    thank you :)

    Couple It, post: 100828 wrote:
    Yes, you make sense lol

    I don’t know Saasu, but from a bookkeeping perspective I think I can help.

    If you want to track the prepaid hours through inventory you will need to create an inventory account called Pre-Paid Hours under assets. You will need to create a new item for each client eg Smith, Jones etc as the item, value for each unit as your hourly rate, unit will be an hour. Your “stock” would always be in negative numbers, until the prepaid hours were used up at which time the stock on hand for that item would return to zero.

    So the sales invoice for Mr Smith for say 10 hrs @ $50/hr would be issued to the client as buying 10 units of inventory item “Smith prepaid hours”, (to the liability account as you’ve set up), your stock item Smith would be showing as having negative 10 in stock. Mr Smith then uses up 2 hrs and your next invoice would show 2 hrs of time for $100 (to you usual sales account to show the income) and -2 hrs of the stock item Smith Prepaid Hours (against your liability account). So the client’s invoice would simply show the activity with a zero balance and stock item Smith would now have negative 8 in stock.

    You can always see your total hours prepaid in your liability account, and get the individual tracking you’re after through your inventory.

    Hope this helps!

    Wendy :)

    #1080604
    TehCamel
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    • Total posts: 873
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    Head….hurts :P
    But hopefully only cause it’s early in the morning. If I read over this more a bit later, it might make sense.
    I might play around with the sample account a little bit.

    thank you :)

    Couple It, post: 100828 wrote:
    Yes, you make sense lol

    I don’t know Saasu, but from a bookkeeping perspective I think I can help.

    If you want to track the prepaid hours through inventory you will need to create an inventory account called Pre-Paid Hours under assets. You will need to create a new item for each client eg Smith, Jones etc as the item, value for each unit as your hourly rate, unit will be an hour. Your “stock” would always be in negative numbers, until the prepaid hours were used up at which time the stock on hand for that item would return to zero.

    So the sales invoice for Mr Smith for say 10 hrs @ $50/hr would be issued to the client as buying 10 units of inventory item “Smith prepaid hours”, (to the liability account as you’ve set up), your stock item Smith would be showing as having negative 10 in stock. Mr Smith then uses up 2 hrs and your next invoice would show 2 hrs of time for $100 (to you usual sales account to show the income) and -2 hrs of the stock item Smith Prepaid Hours (against your liability account). So the client’s invoice would simply show the activity with a zero balance and stock item Smith would now have negative 8 in stock.

    You can always see your total hours prepaid in your liability account, and get the individual tracking you’re after through your inventory.

    Hope this helps!

    Wendy :)

    #1080458
    MyGreatIdea
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    TehCamel, post: 100843 wrote:
    Head….hurts :P

    hahaha and here I was trying to explain it in simple terms ;) mission failed…

    Use the sample account and try setting it up as I explained. If all else fails, don’t inventory the pre-paid hours, simply use your liability account to sell and use the client’s name in details to record who is actually using up their hours.

    Wendy :)

    #1080605
    MyGreatIdea
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    • Total posts: 2,278
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    TehCamel, post: 100843 wrote:
    Head….hurts :P

    hahaha and here I was trying to explain it in simple terms ;) mission failed…

    Use the sample account and try setting it up as I explained. If all else fails, don’t inventory the pre-paid hours, simply use your liability account to sell and use the client’s name in details to record who is actually using up their hours.

    Wendy :)

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