Setting up subcontractor in QuickBooks for invoicing.

Hello there, @zamatta.

I'm here to share some information on how the items recorded in the system impact the invoice and bill you created in QuickBooks Desktop.

To start with, yes, you can create a service item. Just make sure to put a check mark on This service is used in assemblies or is performed by a subcontractor or partner. The cost price or purchase information that will be entered is the amount used in QB when recording Bill.  While, the Sales Price will be the one when creating invoices for your customer.

Here's how:

1. Go to List.
2. Choose Item List.
3. On the Item drop-down, choose New.
4. Choose Service as the type of item.
5. Complete the item information.  
6. Click Ok.

Once created, use the item in creating the invoice the you will send to your customer. 

On the other hand, here's how to enter your Vendors bill:

1. Click Vendor.
2. Choose Enter Bills.
3. Choose the name of the Vendor.
4. Enter the Bill amount.
5. Choose the affected expense account.
6. Click Save and Close.

You can also associate this bill to a specific customer. Just put select the name of the customer or job under the Customer column.. Then, put a check mark on Billable.  

 On the other hand, here's how to pay bill:

1. Open the bill you have created.
2. Click the Pay Bill button.
3. In the Select Bills to be Paid screen, put a check mark on the bill you want to pay,
4. Click Pay Bills.
5. Hit Done.   

That should do it! If you need further help with the steps above, I'd suggest contacting our Customer Care Team. An agent will be able to further assist you via secured remote access session.

Here’s how you can reach them:

1. Click this link https://help.quickbooks.intuit.com/en_US/contact.
2. Choose the QuickBooks Product.
3. Select your QuickBooks Desktop version.
4. On the Contact Us page, select a topic.
5. Click on Get Phone Number button to see the support number.

If there are any app features you’d like to get more familiar with, feel free to visit our Community page. I’m always here to help you with managing your income and expense transactions. 

@IamjuViel

Please Learn from this input. You got it Half Right, but Half Wrong.

@zamatta

The entry for the Purchase (the bill or check or credit card) is where you Also list that Item. That's the point of setting up the Two Sided item = set it up for use on Purchases and for use on Sales.

Enter the purchase info and Job Track it for that customer as Billable. That makes it available when you make the invoice or sales receipt, then use the Add Time & Costs icon in the top in the ribbon. Here are those Billable Entries from Items, for this sale to this customer.

And now you have Data for Item Profit, as well.

In Edit Item, you can leave the Cost as $0, if you buy that from different providers. That is only Notational and the Actual Cost will come from the Purchase transaction. Putting the Rate in Edit Item sets the Sales Price to the customer, no matter what you paid for that service.

And you would Job Track the purchase as Not billable, if you already Charged the customer for it manually, or are charging a different item. Example:

Contract Fee for your Wedding = $5,000

Then, I job track the Items for purchases of Flowers and Rent the venue and the Band, etc as Directly Related to your name, as Not billable. Now I can run Job Profitability Detail, to see your Wedding, my Costs in one column and your Revenue in another, even if the item(s) I incurred are not the exact thing I "sold" to you.

Please see my attachment.

Here's another attached example for showing how the use of the items in Both Types of transactions allows them to relate in the reporting.

I need help with my subcontractors setup & payments. I just started with my company and I'm cleaning up the books and I want to make sure that the setup is right. The owner runs 2 companies out of 1 office and he uses the same subcontractors to do work for both companies but only pays them out of company A and then has company B transfer money to company A to cover the expense for paying them. This is how the old bookkeeper was paying out the subcontractors but it doesn't seem right at all. Can someone tell me the best way I should do this. 

Thank you!

@GG1019 

Consider having a construction management app with the subcontractor feature to integrate with your QB (Online or Desktop).