Entering income as a payment to a vendor?

Anonymous · ‎November 19, 2019

How do I record income in the form of a payment to a vendor?

Example:

We owe IDI Distributors $10,000. Ace Construction owes us $10,000. Instead of Ace Construction paying us directly, they just paid off the amount we owed for supplies to the distributor.

How do I record that? We have an open invoice for Ace Construction. Do I click on receive payment, and do it that way? How?

Thank you!

Rustler · ‎November 19, 2019

Yes you also should have a bill from the vendor entered

receive payment on the invoice and deposit to a cash type bank account

then use pay bills to pay the vendor bill, and use the cash type bank account as the payment source

Polina - CloudBusiness LLC · ‎November 20, 2019

Hello @Anonymous ,

Another option just came to mind, you can make a billable expense. Basically create the bill to the vendor, and the invoice for the customer. Then mark the bill billable to a customer, and link the bill with the the invoice. In the description, you can make a note explaining the situation for future reference.

Hopefully, that would also help!

Rustler · ‎November 20, 2019

@Polina - CloudBusiness LLC wrote:

Hello @Anonymous ,

Another option just came to mind, you can make a billable expense. Basically create the bill to the vendor, and the invoice for the customer. Then mark the bill billable to a customer, and link the bill with the the invoice. In the description, you can make a note explaining the situation for future reference.

Hopefully, that would also help!

All the billable option does is to move the expenses to the invoice, it will not move payments

Polina - CloudBusiness LLC · ‎November 20, 2019

Hi,

I see, yes, for moving payment the option with deposit suits better!

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Entering income as a payment to a vendor?