Accounting & Bookkeeping & Small Business Forum

It's common in my business for my customer to have his customer make payment directly to our company and include a portion of payment that is to be returned to my customer. "Since we are only the "collecting agent" for the portion that belongs to my customer I don't want my sales to be inflated by it. How do I post monies collected on behalf of others?

As a current liability to your clients. Then that amount is tracked on your balance sheet instead of your Profit and Loss statement.