Hello!

I am having trouble wrapping my head around how to properly handle a payment I receive and thought I might ask other Zoho Books users.

I do work for another organisation, like a contractor. I'll call that organisation "Company XYZ".

I submit my hours for a job to Company XYZ.

Company XYZ invoice and collect payment from the client.

Company XYZ deposit my pay for that job, and take a percentage for the service they provide.

For example: I get a job for a person called John sent to me by company XYZ. I take 2 hours to do the job for John and submit that job information to Company XYZ.

Company XYZ sent John an invoice for $100 and John pays Company XYZ.

I get a deposit in my bank account from Company XYZ for $90, but the $10 they took, I also need to track.

I have a couple of different thoughts about how this could be handled, but I haven't attempted any in Zoho Books yet, because I don't want to break anything, or choose the wrong option!

1. I was going to make a "clearing account" called Company XYZ and then each time I submit my hours for a job, make an entry in the clearing account for the amount the client would be invoiced ($100) as "Sales without Invoice". Then when the payment is received in my bank account ($90) make a transfer between my bank account and the clearing account, and make an additional transaction in the clearing account to an expense account called "Company XYZ Fees" ($10).

2. Create an expense account called "Company XYZ Fees." Create a normal invoice to Company XYZ with a line item for the hours I worked ($100), and a negative line item for the fees (-$10). I don't know if I can put an expense line item in an invoice.

3. Learn how to make journal entries and do it with journals. I think this might be overcomplicating what I need?!

Does anyone know which way would work best, or if there is a better way I don't know about?

Thank you for taking the time to read my problem!

- Ben