Contractor Paid for Customer's Invoice

Hi there, @Daisyrose.

I hope your day is going well. I'd be happy to help with recording an invoice payment. 

Below are the steps to record an invoice payment in QuickBooks Desktop:

1. From the Customers menu, choose Receive Payment. 
2. In the Received From drop-down, select the customer's name. 
3. Enter the Amount received. 
4. Ensure the date is correct, then click on the Payment method. 
5. Go to the invoice or invoices you'd like to pay. 
6. To add a discount pr credit, pick Discounts and Credits. 
7. Select Save & Close. 

Also, by default, payments are deposited into an account named Undeposited Funds. You can check out this article as it has additional information: Undeposited Funds. 

Feel free to comment below if you have any more questions. I'm always here to help. Have a good rest of your day!

Create a Cash Clearing bank type account. 

Receive payment from customer and "deposit" to the false account. 

Record check to contractor with 2 line items. 1 = full pay, 2 = negative customer invoiced amount paid posting to the clearing account.  This will then result in the clearing account balance being zero.

If you have a bill from the contractor you can create a credit memo for the contractor which posts to the clearing account