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alex at lm
Mar 5, 2019 3:23 AM UTC
Solved

Two businesses splitting an expense

My business (business A) and another's split our dumpster fee.  Business B pays me $50 for his share.  What's the best way to label these monies coming in and what's the best transaction to offset our costs?  I'm assuming they aren't taxable income. (quickbooks online)

Rustler
RustlerAnswer
Mar 5, 2019 10:07 AM UTC

Set B up as a customer

create a service item called dumpster fee and select an income account, other income wouuld be my suggestion

 

pay the expense for the dumptster

invoice company B and receive payment

 

on the P&L income is reduced by expense, so in this case if there were no other transactions the P&L would look something like

 

income, 50

expense, 100

net income, -50

 

-50 is your expense for the dumpster

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Rustler
RustlerAnswer
Mar 5, 2019 10:07 AM UTC

Set B up as a customer

create a service item called dumpster fee and select an income account, other income wouuld be my suggestion

 

pay the expense for the dumptster

invoice company B and receive payment

 

on the P&L income is reduced by expense, so in this case if there were no other transactions the P&L would look something like

 

income, 50

expense, 100

net income, -50

 

-50 is your expense for the dumpster

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