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juicy
Level 1

other current assets account

Currently we have a project working on for a client/customer and my company was hired as a subcontractor. For the main contractor, we would be paying certain expenses on their behalf and we would be refunded later on. How do I keep track of the main contractors expenses in qbo online? I was thinking the easiest way is to create a "other current asset" account. So there is is a dr and Cr when the bills are entered and when they pay us back.

My main question is how do I enter those bills to the current asset account???

1 Comment 1
john-pero
Community Champion

other current assets account

I is so much easier to use Billable Expenses. If your plan offers it, turn on the feature in your company settings. If your plan does not include this feature you might consider upgrading for the duration of the project after which you could downgrade back to your current level.

 

With two-sieded service or goods items (posts as either expense or income ) you pay an expense by check or bill and mark it billable to your customer. Then when you create an invoice for this customer you will be prompted to add time/costs which were marked as billable. This is the income side. No need to worry about current assets, which essentially is Accounts Receivable once you create the invoice.  You can even set up a sub-customer or Job or several Jobs for same customer.

 

The expense and income (unless you mark up the cost ) is a wash but you properly record it as both an expense and matching income.  Hope this helps

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