Created with Sketch.Learn about PPP and Loan Forgiveness, stay informed with the latest changes.
Created with Sketch.Need help with 1099's or other Year End topics? Visit our Year End Resources page.
Created with Sketch.New to QuickBooks or using a new product? Visit our Get Started resource page to help you get going.
Created with Sketch.Need to make changes to your account? Visit the Account Manager Portal.
cancel
Showing results for 
Search instead for 
Did you mean: 
Level 1

Adjustment for Subcontractor Payment by Client

I have a client in the HVAC business, they have lots of clients with multiple locations and often use subcontractors.  they typically account for them in a very standard way for billing and payments.

 

They do have one long standing client relationship that I'm stumped with how best to adjust for, here's the scenario:

1) the client is invoiced for the full amount of the work completed and all expenses and detailed supply costs

2) The larger subcontractors are being paid directly by the customer with a check that requires 2 signatures by both the my client and the end customer

3) This is causing the invoice vs. expenses to not be accurately portrayed in the reporting

4) I'm not sure how best to adjust for this in QBs

 

Any suggestions would be greatly appreciated.

 

thanks, 

Michael

2 Comments
Level 15

Adjustment for Subcontractor Payment by Client

you have a contractor bill

invoice the client for the amount of the dual endorsement check, receive payment and deposit to a cash type bank account (I create one called clearing for this)

Pay the vendor bill from the clearing bank account'

in real life endorse the check, and hand it off to whoever it goes to

Level 1

Adjustment for Subcontractor Payment by Client

Thanks for the reply, we are going to try out your suggestion. I think that will work.

-Michael

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