{"id":3974,"date":"2026-07-01T15:16:31","date_gmt":"2026-07-01T14:16:31","guid":{"rendered":"https:\/\/clubtreasurer.com\/blog\/?page_id=3974"},"modified":"2026-07-01T16:19:01","modified_gmt":"2026-07-01T15:19:01","slug":"accruals-and-prepayments-accounting-for-funds-held-on-behalf-of-members-for-3rd-party-purchases","status":"publish","type":"page","link":"https:\/\/clubtreasurer.com\/blog\/accruals-and-prepayments-accounting-for-funds-held-on-behalf-of-members-for-3rd-party-purchases\/","title":{"rendered":"Accounting for Accrued Funds held on behalf of Members for 3rd-Party Purchases"},"content":{"rendered":"\n

Scenario<\/strong>: Your club provides a free service to allow members to purchase club kit. The club collects kit orders and monies on behalf of its members, and places bulk orders to the kit supplier. Importantly, the club is only facilitating the ordering process; it therefore needs to record the member receipts into its bank account as liabilities\/creditors and importantly does NOT want to show the supplier payments in its P&L account as they are not club transactions.<\/em><\/p>\n\n\n\n

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  1. When kit monies are collected from members, create Account Transfer transactions <\/strong>from Creditor A\/c<\/strong> to Bank A\/c. <\/strong>If you have already entered or imported these as a normal Receipt Transactions you can bulk convert them into an Account Transfer – see below<\/em>\n