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Entering bills paid on behalf of another company

I have a $5,000 invoice that my company is paying $1,000 per month on behalf of another, seperate company that will owe us the $5,000 in the future. Can someone offer help as to how to book this?

 

My goal is to try and make this appear equally on the P&L so the $1,000 we're paying each month doesn't make our P&L look "worse'. So I guess my question: is there a way to have the $1,000 expense on the P&L offset by something else?

 

Thanks!

Best answer 03-16-2018 05:09 AM

Accepted Solutions
Established Community Backer ***

Re: Entering bills paid on behalf of another company

This transaction is not a business expense so it does not hit the P&L

 

create an asset account called due from [name]

create a service item for the service you are paying and select that due from account on the item screen

 

enter the bill and use that item in item detials, or use that account in the account details, and enter the amount, pay the bill.  The due from account total will increase with each payment

 

invoice the customer and use that item on the invoice, when the payment is made the due from account balance will lower.

1 Comment
Established Community Backer ***

Re: Entering bills paid on behalf of another company

This transaction is not a business expense so it does not hit the P&L

 

create an asset account called due from [name]

create a service item for the service you are paying and select that due from account on the item screen

 

enter the bill and use that item in item detials, or use that account in the account details, and enter the amount, pay the bill.  The due from account total will increase with each payment

 

invoice the customer and use that item on the invoice, when the payment is made the due from account balance will lower.