In the scenario you need to account for monies that were paid into your bank account for a future service your club will be providing to its members. For instance, you have collected £x deposits from your members during 2022. These will be used in 2023 to fund an overseas Member coaching trip.
To account for this you should treat the deposits as a Revenue Prepayment when received. This will increase your (Bank) Account balances and also record a liability/creditor on your BS (effectively cancelling each other out). Importantly, it won't report any income on your P&L.
When you come to pay for the coaching trip in the following year, you would simply:
1) create a Receipt transaction against the liability/creditor account which clears your liability balance and also shows the receipt as income in your P&L
2) pay for the coaching trip as a normal Payment transaction. Your P&L will correctly show the Income (Receipt) and Expenditure (Payment) in the same period.
Tips:
- You may want to create a new “Member Trip Liability” Account (Type = creditor) to separate these transactions from other creditor amounts, otherwise just use your default Creditor Account.
- If this is a regular club activity you can also create a separate "Member Trip" Fund to record all the above transactions against and allow you to better report this.
Please review the Accruals and Prepayments help page and scroll down to the Scenario 4: Revenue prepayments (monies received early) section - Method 2 is the simplest to use. https://clubtreasurer.com/blog/advanced-accounting-accruals-and-prepayments