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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.




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.


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