When creating an invoice I am asked if I want to select the outstanding costs to add to this invoice.
I say yes and add the invoices I am billing for this month. However, is there a way that when I receive a check for my invoice it will tell me which billed invoices I have received payment on so I can issue a check to my vendor for these items?
Nothing in QB tracks "pay when paid." You hired the vendors and are supposed to pay them Timely. You set Terms with customers, if your cash flow requirements are that you need to make sure more money is coming in, in a cycle, than going out owed to those vendor names and the Terms you set with them.