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Hi
We have used a loan company to pay some of our suppliers. They have paid each supplier directly, so there is no record of payments going out of a bank account. How do I record the invoice and then the actual payment made to the supplier from the third party.
Any help gratefully recieved.
Thank you.
Solved! Go to Solution.
I've got your back on recording supplier payments from a third-party company, @julie39.
Firstly, you'll need to create a bill for the supplier transaction. Here's how:
Then, you'll need to set up a clearing account to record the payment. This will be used to move money from one bank to another since the payment was processed from a loan company. Here's how:
Once done, add the third-party company as a vendor and write a check to record the transaction they made. Please follow the steps below:
Lastly, you can now pay the supplier bill using the clearing account. Let me guide you how.
I'm adding this article to learn why you need to use clearing accounts: Why use clearing accounts in your accounting system for PayPal, credit cards, and other payment chan...
You might also want to review all your vendor transactions in the future. You can go to the Expenses menu and select Vendors. Then, go to the Transactions List tab.
It’s nice to work with you, @julie39. Don't hesitate to click the Reply button below if you need further assistance recording supplier payments. I'm always around if you need any help.
I've got your back on recording supplier payments from a third-party company, @julie39.
Firstly, you'll need to create a bill for the supplier transaction. Here's how:
Then, you'll need to set up a clearing account to record the payment. This will be used to move money from one bank to another since the payment was processed from a loan company. Here's how:
Once done, add the third-party company as a vendor and write a check to record the transaction they made. Please follow the steps below:
Lastly, you can now pay the supplier bill using the clearing account. Let me guide you how.
I'm adding this article to learn why you need to use clearing accounts: Why use clearing accounts in your accounting system for PayPal, credit cards, and other payment chan...
You might also want to review all your vendor transactions in the future. You can go to the Expenses menu and select Vendors. Then, go to the Transactions List tab.
It’s nice to work with you, @julie39. Don't hesitate to click the Reply button below if you need further assistance recording supplier payments. I'm always around if you need any help.
Thank you so much. That is such a great help.
Greatly appreciated. :)
Hello. I am following your step by step directions for setting up payments by third party.
I have the Clearing Account made and the Vendor is my list.
However, I am unsure when it comes to writing the cheque. What "bank account" do I use to write the cheque to the third party and do I have to offset the amount with an expense account?
You can use the clearing account in the Bank account field when recording the cheque, kingpin1959. I'd be glad to add more details and clarify the steps for recording third-party payments in QuickBooks Online.
Using the dummy or clearing bank account will make sure that your actual bank is not affected since no actual payment was made. You normally use it as suspense accounts to temporarily hold transactions that don't have a clear assignment or categorization. It's also used as a temporary holding place when transferring funds between different bank accounts in QBO.
You can read more details about this here: Set Up A Clearing Account.
However, I'd recommend reaching out to your accountant to check if you need to offset the amount with an expense account.
Allow me to provide you with these helpful references in case you need them when working with your suppliers in QuickBooks Online:
Please feel free to reach out to us if you require any additional assistance when recording transactions and paying suppliers in QuickBooks Online. We are available at all times to provide the support you need.
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