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nate34
April 13, 2022
Question

A customers, in lieu of paying me, paid directly one of my vendors from whom I purchase materials. How do I account for this payment since its not income?

  • April 13, 2022
  • 1 reply
  • 0 views
I have a charge account with this vendor. Each invoice I receive from them, I enter as a bill that is due in 30 days. This customer was really behind in paying me, thus my vendor was all over me for payment. I asked the customer just to pay the vendor directly what they owed me. QB doesn't seem to allow me to void the bills (perhaps with a note saying it was paid by the customer). And I don't want to simply delete them either, I'd like to keep some kind of "paper trail". Also I don't want to delete the bills because then my P

1 reply

MariaSoledadG
MariaSoledadG
April 13, 2022

Let me guide you on how to record the payment, nate34.

 

Entering it as a billable expense lets you record and track expenses so your customers can reimburse them when they receive their invoices. To start, you can turn on the feature. Follow the steps provided below: 

  1. Go to the Gear icon ⚙, then select Account and settings.
  2. Go to the Expenses tab.
  3. From the Bills and expenses section, select Edit ✎.
  4. Turn on the following:
    • Show Items table on expense and purchase forms
    • Track expenses and items by customer.
    • Make expenses and items billable.
  5. (Optional) Set up the following:
    • Markup rate
    • Billable expense tracking
    • Sales tax charge
  6. Bill payment terms.
  7. Click Save.

 

Then, enter a billable expense. I've outlined the steps below:

  1. Select + New.
  2. Select the transaction (Bill, Expense, or Check) you want to create.
  3. Select the payee.
  4. In the Category column, select the expense account for the transaction.
  5. Enter the description and amount of the expense, then select the Billable checkbox.
  6. In the Customer column, select the customer you want to bill for this expense.
  7. (Optional) Enter or make sure the markup % is correct, then select the Tax checkbox or choose a tax agency if you want to charge tax.
  8. Click Save and close.

 

Once done, add the billable expense to an invoice. Here's how: 

  1. Select + New.
  2. Select Invoice.
  3. In the Customer ▼ dropdown menu, select the customer you created a billable expense for. This opens the Add to invoice window.
  4. Select Add on the billable expense you want to charge to your customer.
  5. Click Save and close.

 

Furthermore, QuickBooks download automatically these payments or transactions. Then, tries to match them with those you've already entered into QuickBooks. Learn from this article for more information: Categorize and Match Online Bank Transactions in QuickBooks Online.

 

Keep in touch if you have any questions about entering your transactions. I'll be right here to help. 

N
nate34Author
April 13, 2022

Thanks for the help, I’ll give this a try in the am. I know i have this feature turned on because i always get the prompt to “add to invoice” when I’m creating a new invoice. I’m hoping that i can just edit the existing bills, clicking the box to make it a billable expense. I’ll let you know how it goes. Thanks!

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