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GoldSeal_mike
May 26, 2021
Question

Subcontractor - Client is a vendor as well. How to add purchased product to the same billable invoice?

  • May 26, 2021
  • 1 reply
  • 0 views

Hello,

 

We are a subcontractor and have a client who supplies the materials required for the job and applies the amount we owe for these materials on our invoice we provide for the service. How can I create the expense to reflect the invoice entered into quickbooks?

 

Example:

$5000 materials purchased from client

$20,000 Service OWED from client

 

We receive a cheque for $15,000 however in quickbooks how can I track this expense to reflect the entered invoice? The amount we receive obviously does not line up with the invoice we send them.

 

Thank you in advance.

Mike

1 reply

T
Tammy_H
May 26, 2021

Hi GoldSeal_mike,

 

It's fantastic to hear from new members in the QuickBooks Community, and it's a great place to get answers to your questions. QuickBooks Online is a comprehensive program. For record-keeping accuracy, it maintains the Accounts Receivable module separate from the Accounts Payable module. I can explain what this means to you.

 

With the A/R and A/P being independent of each other, you can not take a payment on an expense and put it directly on a customer's invoice. You can make the two transactions, create an expense and record an invoice payment, using undeposited funds as the payment account. Another option would be to create a customer credit or delayed credit. Here are a few articles that you can read through:

If you're still unsure how to record the transaction, I suggest contacting your accountant. They can advise you on the best choice for your business. If you don't have one you work with, you can find one through this link: Find an Accountant. 

 

I'm here if you have any other questions. Have a great evening!

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