I am a general contractor and I would like to set up a subcontract for one of my vendors. I will be paying some of their material bills directly to the supplier and making "draw" payments to my vendor. I can't find where this is an option in Quickbooks Pro???? Can someone tell me how they get around this and are able to keep a great record of payments against a subcontract?
You can record your payment as an expense so it'll set as a credit to your vendor. Then, apply it against your bill. However, it's still best to consult your accountant before doing these steps. Let me guide you through how.
Click Banking, then Write Checks.
Click the Expenses tab, choose "A/P accounts" under Account.
Enter the Amount and Memo.
Click Save & Close.
Once you're ready to pay the bill, you can apply the credit against it.