As a general contractor, there are times that my customer pays the vendor directly. What do I enter in payment account when a customer pays a vendor directly?
It’s nice to see you here, cassey.
Thanks for dropping by the Community. You've come to the right place, guiding with selecting the correct payment account is my priority.
If you’re using the Online Bill Pay feature/direct deposit to pay your vendor, the option to post their payment to the customer is currently unavailable. You’ll need to use the Billable Expense feature to record and easily track your company's billable expenses.
When selecting the payment account, you’ll need to use the employer’s bank account to record the transaction. To give more insights about the Billable Expenses, check out these articles:
Let me help share a few things about the billable expense.
You are correct, this is basically an expense that you have incurred on behalf of your customer for performing services, work, etc. You can check out the articles provided by my colleague @Rasa-LilaM for more detailed information.
If a customer pays the vendor directly for a bill on your account, you can enter it in QuickBooks by creating a clearing bank account. You'll just need to receive the customer payment on invoice into the clearing account then pay vendor bill from the clearing account.
Please let me know if you have other questions. I'm here anytime you need help.