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Level 1

Two businesses splitting an expense

My business (business A) and another's split our dumpster fee.  Business B pays me $50 for his share.  What's the best way to label these monies coming in and what's the best transaction to offset our costs?  I'm assuming they aren't taxable income. (quickbooks online)

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Best answer 03-05-2019

Best Answers
Level 15

Re: Two businesses splitting an expense

Set B up as a customer

create a service item called dumpster fee and select an income account, other income wouuld be my suggestion

 

pay the expense for the dumptster

invoice company B and receive payment

 

on the P&L income is reduced by expense, so in this case if there were no other transactions the P&L would look something like

 

income, 50

expense, 100

net income, -50

 

-50 is your expense for the dumpster

View solution in original post

1 Comment
Level 15

Re: Two businesses splitting an expense

Set B up as a customer

create a service item called dumpster fee and select an income account, other income wouuld be my suggestion

 

pay the expense for the dumptster

invoice company B and receive payment

 

on the P&L income is reduced by expense, so in this case if there were no other transactions the P&L would look something like

 

income, 50

expense, 100

net income, -50

 

-50 is your expense for the dumpster

View solution in original post

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