I think I know how to treat this but would appreciate confirmation or correction:
We are an events company. We sell tickets through third party sites (and have different arrangements with each of them) but our main seller retains 20% of sales to cover refunds, and releases 80% of sales on a weekly basis. The remainder is released after the event.
I'm just trying to work out the right postings.
I need to account for VAT on all ticket sales when the sale takes place, so I could create a sales invoice transaction, post the 20% to a retention account and the remainder to a deferred income account.
Should I set up a 'bank account' or maybe just a balance sheet account in my ledger to show the balance held with the third party?
[I am holding the costs for each event on the bal sheet and will expense both revenue and expenses once event has taken place.]
Thank you in advance for your time :)