We run a B2B platform, where our independent contractors do work for insurance companies. Our platform will invoice the Insurance Company for services rendered. The Insurance Company will pay us through ACH. We then pay the Independent Contractor their share. My question is, is there an easy way to know which Independent Contractor is associated to which invoice to quickly make payments?
IC Tom does work for ABC Insurance for $100.00
Tom tells us to invoice ABC Insurance for $100.00
We create Invoice #100 for $100.00 and send it to ABC Insurance
ABC Insurance pays us $100.00 for Invoice #100
We now need to pay Tom $80.00.
How do we know Tom is associated to Invoice #100?
Should we create a Bill for $80.00 using Tom as a Vendor?
Can we associate that Bill to Invoice #100?
I need a scalable solution where eventually we can use automation tools such as Zapier (ex: Gravity Forms --> Create Invoice --> Send Invoice --> Create Bill; Receive Invoice Payment --> Create Bill Payment) and manage1,000's of invoices every month without having to manually match every single payment to a vendor.
You can add a custom field to your invoice, and enter Tom’s name every time you invoice ABC Insurance. Or, you can add Tom as a class. At the end of the month, you can run a report of all sales associated with him. Then, calculate how much you need to pay for him.
To add a custom field:
To enable the Class tracking feature (only available in the Essentials and Plus versions):
After your setup, the fields will show up on the Invoice page where you can enter Tom's name.
At the end of the month, you can run the Sales by Class Detail report if you use class. Then, set the date range and click Run Report.
If you will use the custom field, you can run the Sales by Customer Detail report. Then, add the custom field name as a column as shown in the screenshot. Then, click on Sort and choose the field name.
In regards to automating the process with the use of third-party apps, please check with them to see if there’s a way to link the information to a custom or class field in the QBO invoice.
We're just around if you have other questions.