Managing Online Payments

Accounting for Payouts of Online-Payment

RACE RESULT is often asked about the correct accounting rules for the online payment payouts. This article provides a proposal. RACE RESULT does not take any liability for the correctness of this information. Please consult a local tax consultant for open questions.

How should I account for the payouts of the online-payment?

The registration of a participant creates accounts receivable. By receiving the payout these cumulated accounts are reduced.

 

Account regularly for new sales (e.g. weekly or monthly). The function "Sales List" under "Overview > Online-Payment" lists all sales for the given period.

DEBIT CREDIT

Accounts Receivable

1,190 EUR Revenues at 19% VAT 1,000 EUR
19% VAT 190 EUR

Is the payout 500 EUR worth of entry fees and 11.90 EUR payment fees are deducted, book the accounts as follows:

DEBIT CREDIT
Bank 488.10 EUR Accounts Receivable 500 EUR
Costs of money transfer 10.00 EUR
Input VAT 19% 1.90 EUR

Please note that RACE RESULT 12 tracks when a sale is created. In case you use the online self-service and athletes can book chargeable services after the initial registration - e.g. by booking a shirt - this may result in different creation dates of the sales items.