You invoice for the training and racing, and I would imagine any feed, etc that you use.
receive the payment on the invoice and deposit.
Receive the race winnings using a sales receipt and an item linked to an income account, and deposit
The horse owner has to be listed as a vendor and checked as being eligible for the 1099. Use an expense account that is linked to block 7 of the 1099 on the payment.
Assuming the training invoice is still open
enter a bill for the horse owner using the expense account and the amount due to them.
IF, if the training invoice is higher, receive a partial payment and deposit to the cash account. then use pay bills and pay that amount from the cash account on the bill to clear it and show it is paid, the horse owner still pays the balance due on the training invoice.
IF, if the training invoice is lower, receive the full amount and deposit to a cash account. Then use pay bills and pay the amount on the from the cash account to show it is partially paid. Cut a check the balance owed the horse owner and use the 1099 mapped expense account as the expense (reason) for the check.
