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Level 3

Cash Payment from customer and paying subcontractor

Hi,

I received a cash payment from a customer and immediately paid my subcontractor with part of that cash.

How do I record all of this in Quickbooks? I have the customer set up in quickbooks and issued him an invoice. I am using QB Desktop Premier 2019. Thank you.

Solved
Best answer May 22, 2020

Best Answers
Highlighted
Moderator

Cash Payment from customer and paying subcontractor

Hi there, the_tile_setters.

 

I'm glad that you're able to reach out to the Community forum. Let me help you with your concern.

 

I see that you've issued an invoice to your customer already. The first thing we'll need to do is to manually record the cash payment you've received from your customer. Let me guide you on how to do it. Here's how:

 

  1. Open the invoice.
  2. Click the Receive Payments on the menu.
  3. Make sure to highlight the Cash option for the payment method.
  4. Tick the correct invoice next to the Dates column.
  5. Then, Save and Close.

1.PNG 11.PNG

 

Once done, we can record the payment you've made to your subcontractor by following these steps:

 

  1. Under Vendors, select Enter Bill.
  2. Choose the name of the subcontractor and enter the amount you've paid them.
  3. Select the affected expense account.
  4.  Associate this bill to a specific customer who made cash payment. In the Customer column, select the name of the customer.
  5.  Then, put a check-mark on Billable
  6. Then, Save and Close.

111.PNG

 

If you require additional details about this, you can tag me anytime. It'd my pleasure to assist you more. Take care!

View solution in original post

3 Comments 3
Highlighted
Moderator

Cash Payment from customer and paying subcontractor

Hi there, the_tile_setters.

 

I'm glad that you're able to reach out to the Community forum. Let me help you with your concern.

 

I see that you've issued an invoice to your customer already. The first thing we'll need to do is to manually record the cash payment you've received from your customer. Let me guide you on how to do it. Here's how:

 

  1. Open the invoice.
  2. Click the Receive Payments on the menu.
  3. Make sure to highlight the Cash option for the payment method.
  4. Tick the correct invoice next to the Dates column.
  5. Then, Save and Close.

1.PNG 11.PNG

 

Once done, we can record the payment you've made to your subcontractor by following these steps:

 

  1. Under Vendors, select Enter Bill.
  2. Choose the name of the subcontractor and enter the amount you've paid them.
  3. Select the affected expense account.
  4.  Associate this bill to a specific customer who made cash payment. In the Customer column, select the name of the customer.
  5.  Then, put a check-mark on Billable
  6. Then, Save and Close.

111.PNG

 

If you require additional details about this, you can tag me anytime. It'd my pleasure to assist you more. Take care!

View solution in original post

Highlighted
Level 3

Cash Payment from customer and paying subcontractor

Thank you so much. I left out a detail I hope doesn't make your solution void. 

I had already received pmt from customer, marking it as cash, and had it go to "Undeposited funds" account

Where it still sits and the cash sits here in my wallet, lol. Do I still follow your steps and just go to the bank and deposit the cash?

Highlighted
QuickBooks Team

Cash Payment from customer and paying subcontractor

Hello, @the_tile_setters.

 

I'm glad to hear @SarahannC got this issue resolved for you. 

 

As for the small detail you left out, you can still follow the steps above, but when you deposit the money in your bank account, you'll want to change the account from Undeposited Funds to the bank account the money was deposited into. This is so you can keep track of where the money is once it leaves your wallet. 

 

As always, Community is full of experts who are knowledgeable in all facets of QuickBooks, so please reach out to us if there's anything you need. We're always happy to help you along your road to victory. Wishing you and your business continued success!

 

 

 

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