Hello Community. I am new to QuickBooks but learning each and every day.
I am currently accounting for a limited partnership which frequently pays expenses on behalf of other limited partnerships. For example Limited Partnership A pays an $1,000 expense for consulting services. These services are for both Limited Partnership A (lets say 60% of the bill) but also Limited Partnership B (lets say the remaining 40% of the bill).
I have linked my banking account at Limited Partnership A to QuickBooks and starting to categorize my activity. My initial thought was to credit cash for 1,000 debit expense for 600 debit accounts receivable for 400. Once I collected the cash from Limited Partnership B I would debit cash for 400 and credit a/r for 400.
I don't want to taint the P&L in Limited Partnership A with a gross up of income or expense associated with activity responsible by Limited Partnership B.
Would this work? If so how would I do that via the categorization tool where the Bank account is linked?
Many Thanks in Advance.
