My client paid me directly for a payment that went to the vendor. Once the payment entered my account, I sent the payment to the vendor with my credit card (I know this was not wise).
How should I categorize the payment from the client?
How should I categorize the payment to the vendor on behalf of the client?
It's great to hear that you're happy you joined the QuickBooks Community, travelqueen! We feel the same!
You'll only need to make the vendor payment (credit card payment) as a billable expense. This step will then create a billable expense charge transaction for your customer that you can turn into an invoice. Then, that invoice will be a matching entry to the downloaded payment in your checking account. Or, you can choose a longer method. Pay the invoice first, deposit the payment to your checking account, and match it with the downloaded payment.
I got a sample below where I got a downloaded transaction for the supplies I paid using my MasterCard. Then, I made it billable to Customer Andy.
Looking at Andy's profile, he now has a billable expense charge that I can turn into an invoice.
Since Andy paid me in advance and it's deposited to my checking account, I can just pay the invoice and deposit the payment to my checking account as well.
See more info about categorizing and matching downloaded transactions.
Feel free to reach out if you have more questions. Enjoy the rest of the weekend!
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