Recording dues as a fee payment
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Recording dues as a fee payment Can you share what complications in Bivio's accounting arise if partner's annual dues are recorded as a "fee" opposed to a "payment?" If recording as a fee is not recommended by Bivio, is there any other way to record annual dues whereas this payment does not contribute to a partner's units owned but goes directly into the Investment Club's account as cash only? On the template that was provided by Bivio for creating a Partnership Agreement, it was suggested that if dues are not paid in any given month, the next month's contribution for their monthly payment can cover dues. How can this be done if there is no other way to record a contribution other than as a payment? If recorded as a payment, the amount contributed automatically increases a partner's unit percentage, so please advise how a "payment" can be rerouted. Thanks.
On Mon, Jan 20, 2020 at 3:33 PM Christopher J. Daniel via bivio.com <user*35673700001@bivio.com> wrote: Can you share what complications in Bivio's accounting arise if partner's annual dues are recorded as a "fee" opposed to a "payment?" If recording as a fee is not recommended by Bivio, is there any other way to record annual dues whereas this payment does not contribute to a partner's units owned but goes directly into the Investment Club's account as cash only? All dues that a member pays should be payments which get credited to their account. So, for example, $50 a month dues would get credited every month that the member pays. If the member chose to pay $100 every other month they should get credited every other month for the $100. the missing month would have no credit. Fees on the other hand only add to the club balance and don't enrich the person paying them. Fees should only be applied to late fees (negated in my example) or when using a swear jar or beer/chocolate money (sub in your club vise). Seriously though if the club needs something like that it would be better for the club for the members to buy it outside the club finances. On January 20, 2020, at 3:33 PM, "Christopher J. Daniel via bivio.com" <user*35673700001@bivio.com> wrote: Can you share what complications in Bivio's accounting arise if partner's annual dues are recorded as a "fee" opposed to a "payment?" If recording as a fee is not recommended by Bivio, is there any other way to record annual dues whereas
this payment does not contribute to a partner's units owned but goes directly into the Investment Club's account as cash only?
On the template that was provided by Bivio for creating a Partnership Agreement, it was suggested that if dues are not paid in any given month, the next month's contribution for their monthly payment can cover dues. How can this be done if there is no other way to record a contribution other than as a payment? If recorded as a payment, the amount contributed automatically increases a partner's unit percentage, so please advise how a "payment" can be rerouted. Thanks. I do not understand your question. It seems like your club has a distinction between dues and monthly payments. And why would you want a contribution by a member to go anywhere but to equity? If I miss a payment and pay the missed payment together with a subsequent payment, why would not both payments go to equity? Why would one payment go to fees? Under our club's system, if you miss one quarterly dues payment, you can pay double at the next quarter and your dues requirement will be met. However, your purchase of units or percentage of equity might not be the same if you skip a payment and pay more later to cover two payments (of dues). That is a result of value changes of equity over time. For example, if you miss a dues payment, and between that "miss" and the time when you do pay the stock market and, therefore, your club's portfolio, has a big run up, you will be buying a smaller percentage of equity than you would have had you made timely payments. Only payments go to equity. Fees are club revenue and do not increase a member's equity. Peter Dunkelberger
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