Showing results for 
Search instead for 
Did you mean: 
Level 1

Contractor Paid for Customer's Invoice

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?

Kendra H
QuickBooks Team

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!

Community Champion

Contractor Paid for Customer's Invoice

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



Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up

Need to get in touch?

Contact us