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Kalee Guzzo
July 17, 2020
Question

Non Monetary (Payment to Vendor, but not by my company)

  • July 17, 2020
  • 1 reply
  • 0 views

Let's say I have a customer, that would ultimately need to pay direct to a vendor, but then I find out that the payment was made direct to the vendor, but was not brought through my company, so no money was brought through my company, but I would like to give my customer credit for making this payment.

 

Lets take for example:

John Smith (my customer) needs to pay Jane Doe (my vendor), normally payments would come through my company, but this time, John Smith paid directly to Jane Doe and told me about if after the fact. 

I want to offer a credit for John Smith's account since he "did" make a payment to the vendor.

How would I handle this?

Thank you, 

Kalee 

1 reply

AddieC
AddieC
July 17, 2020

Hi there, 

 

QuickBooks Desktop is an awesome tool for your business accounting needs. With tons of convenient tools and resources, you'll be able to spend less time on your bookkeeping and more time doing what you love. I'd be happy to point you in the right direction for support with this. 

 

In this case, your best bet is to speak to an accountant. An accountant is well-equipped to help direct you on how to enter these types of transactions. If you're not yet connected to an accountant, you can find one in your area here: Find a ProAdvisor. The great thing about ProAdvisor accountants is their certification and training in the QuickBooks product, so you'll be able to ask their advice on not only the accounting side of things, but also how to enter that into your QuickBooks account. 

If you've consulted an accountant and you need assistance putting their recommendations to action, please reach out to our tech support team. Once we have an idea of what you're trying to record, we can direct you on how to enter that into your QuickBooks account. 

 

Have a wonderful day. 

J
John_VanIsle
November 27, 2024

Same question, except I knew the customer was going to make a payment to the vendor.  Short of discounting my invoice to properly account for the value of the payment (with sales taxes figured out to come up with a net value of the payment), I don't know either how you'd do this. 

 

I supposed you could make a paper trail by "receiving payment" as cash and then "making payment" against some current or future invoice, but then that might be opening oneself up to scrutiny by tax authorities?

A
Alex M
November 27, 2024

Hi there John_VanIsle,

 

Thank you for reaching out about your customer and vendor transactions. QuickBooks Desktop is a great tool able to help you keep track of sales and expenses so you know the profitability of your company. I can point you in the right direction for assistance with entering this in your books.

 

To know how you should be entering this payment in your books. I recommend reaching out to your accountant. Their expertise will be able to guide you in entering these amounts in your books so that all your balances are accurate in case of being reviewed by tax authorities. You can find an accountant near you that has experience using QuickBooks software by going to our Find a ProAdvisor page.

 

If you have any other questions, feel free to reach out here.

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