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LWAY1
April 28, 2020
Solved

Paying contractors from invoices

  • April 28, 2020
  • 1 reply
  • 0 views

Hello,

 

I work for a flooring company & my question is how to streamline the process to pay contractors.  I'll try to be as concise as possible.  Let's say we invoice Company A for a property that had both carpet & laminate flooring installed.  Our invoice will have materials & labor prices all separated out for each type of flooring.  So when it comes time for me to calculate what I owe the installers (which often can be 2 different contractors) currently I am manually writing each line out (each job can include many different line items associated with it) & looking up the associated costs on an excel spreadsheet.  So it is pretty time consuming.  We want to be able to track the materials & labor costs separately but we are doing it manually in an excel spreadsheet.  Is there something we could do differently so that all the invoice info would be funneled into a way for me to put it into each contractors payroll?  Hope I was clear in my intentions so that someone might be able to simplify things for us!  Thank you!

Best answer by JonpriL

You're on the right track, @LWAY1!

 

It would be best to utilise the Project feature since you're working with a job that is associated with your customers and contractors entered as your vendors. You'll want to learn more about this feature through the articles above.

 

Meanwhile, the purchase order is used only to track the items you'd like to order form your vendors, it is a non-posting transaction and it doesn't affect your vendor's balance.

 

Lastly, here's a few articles you can read to help manage your reports and related tasks: Reports and Accounting for QuickBooks Online.

 

Keep me posted in the comments if you have any other questions. I'll be here to lend a hand.

1 reply

J
JamesDuanT
April 28, 2020

Let's see how we can get through this, LWAY1.

 

I want to know how you set up your "contractors". Did you enter them as Employees or Contractors/Suppliers?

 

If you set them up as Contractors/Suppliers, we can create bills, checks, or expense that are billable to the customer's invoices. With that said, you'll need the billable expense feature which is available in QuickBooks Online Plus and Advanced. You can use this link for more information: Enter billable expenses.

 

If you set them up as Employees or Workers, we can make use the timesheet feature and make it billable to the customer's invoices. You can use this link for reference: Enter a weekly timesheet.

With this, you can include the timesheet to your employee's payroll.

 

In addition to that, you might find these links helpful, too: 

Feel free to drop more details if you have additional queries. Have a great day!

 

L
LWAY1Author
June 15, 2020

The contractors (W9 workers) are actually set up as Vendors.  If changed the QB platform so that things were entered as billable expenses would that info be visible to our customer on their invoice?  We do not want that. There are so many variables involved in both the labor & the materials with each job & often times those costs change.  I suggested using Projects to track things but the owner did not like it.  I need to discuss what he didn't like about it.  I just feel like there has to be a better way for us to do things.  Would turning on purchase orders help us keep costs together/streamline our process?  I am open to suggestions.  If there are any flooring companies out there willing to share how they do things I'd be very grateful.  Or where do I find out more about all the different QB platforms/varieties & how to decide which is the best fit for our business?  Thanks for any input!

J
JonpriLAnswer
June 15, 2020

You're on the right track, @LWAY1!

 

It would be best to utilise the Project feature since you're working with a job that is associated with your customers and contractors entered as your vendors. You'll want to learn more about this feature through the articles above.

 

Meanwhile, the purchase order is used only to track the items you'd like to order form your vendors, it is a non-posting transaction and it doesn't affect your vendor's balance.

 

Lastly, here's a few articles you can read to help manage your reports and related tasks: Reports and Accounting for QuickBooks Online.

 

Keep me posted in the comments if you have any other questions. I'll be here to lend a hand.

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