Hello, I work with a contractor who paid for a customer invoice by HR deducting the amount from his pay. I need to show that the customer's invoice was paid in full. How do I record that payment was received in QBs desktop?
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