The same question for two packages. The mechanics are close enough to cover together, and what matters most is the account structure. This is general guidance, not accounting advice, so confirm the setup with your bookkeeper or accountant.
Set up once
Create these accounts (names are suggestions):
- STC sales, an income account, with the GST code you use on income.
- STC receivable or STC clearing, a current asset account, for claims lodged but not yet paid.
- A customer record for each trader, using the trader’s legal name and ABN exactly as they appear on the RCTI.
In Xero, add these under Accounting, then Chart of accounts, and add the trader under Contacts. In MYOB, use Accounts List and the Cards List.
For each job
- Customer invoice. Show the system price, the STC discount line, GST and the amount payable. The discount reduces what the customer pays; it is not a separate receipt.
- When the claim is lodged and priced. Optionally record the expected STC value against STC receivable, so your balance sheet shows money owed to you.
- When the RCTI arrives. Record it as a sale to the trader: in Xero, a sales invoice to the trader contact; in MYOB, a sale in Sales, Enter Sales. Coded to STC sales, with GST as shown on the RCTI. If you had booked a receivable in step 2, clear it here.
- When the deposit arrives. Match it to the invoice in bank reconciliation (Xero: Reconcile; MYOB: Bank Register, Receive Money).
If your trader pays several claims in one deposit, split the match across the matching RCTIs rather than coding the lump sum to one.
Handling the awkward bits
- Rejected or recalled claims. The trader will issue a credit note or an adjustment. Record it against the original invoice, not as a new expense.
- Rate differences. Use the rate on the RCTI, not the rate on the quote.
- GST-exclusive rates. If the trader quoted ex GST, your invoice total will be higher than the headline number. See GST on STC sales.
A monthly routine
Once a month, run an aged receivables report for the trader contact. Compare it to the trader’s remittance statement. Chase anything older than the agreed terms. See STC payment not received for how to do this.
What this means for installers
A clean ledger shortens your BAS, makes cash-flow forecasting easier and catches payment errors early. Our guides to RCTIs for STC sales and how STCs are accounted for cover the thinking behind the setup. For how remittances read, see STC remittance advice. Rates and settlement for partners are on pricing, and the claim flow is on how it works.