QB Online billing with Payee and classes to bill and invoicing.

Welcome back to the QuickBooks Community, LindaH69. 

I'll be sharing steps to ensure you're able to record transactions in QuickBooks Online (QBO) smoothly.

Classes use to track your transactions by departments, product lines, or any other meaningful segments in your business. That said, you can only assign a class to your income and expense transaction but not on the vendor's profile.

I recommend recording billable expenses in QuickBooks Online. This expense you incur on your customer’s behalf when you perform work for them. However, you can still use this so you're able to assign a particular customer to see what payment or bill needs to pay for each driver.

To start with, you'll have to enter the driver's details as a vendor in QBO. This is to ensure you can allocate a specific payee when creating a bill so you can pay the entry accurately.

Here's how to create a profile:

1. Go to Get paid & pay or Expenses, then select Vendors.
2. Click the New vendor button.
3. Enter the driver's details and fill in the needed fields in the Vendor Information window.
4. Click Save.
   
   

Once done, you'll have to make sure that you turn on the class tracking feature from Account and settings. Then, create a class so you can utilize it or assign it to a specific transaction.

After that, you can now enter a bill with a particular payee and assign a specific customer or class. Then, checkmark as billable. Please follow the steps below.

1. Click the New button.
2. Choose Bill. Then, select a payee.
3. In the Category column, choose the expense account for the transaction.
4. Enter the description and amount of the expense. Then, select the Billable checkbox.
5. In the Customer column, select the customer you want to bill for this expense.
6. From the Class column, assign a specific class.
7. Click Save and close.
   
   

Lastly, you may refer to this article to see the steps on how you can run the Transaction List by Date report to reflect all payments made to vendors: Run a report with vendor totals.

Feel free to get back to me if you need any clarification on the process. I'm always here to help, LindaH69. Have a good one!