customer paid vendor directly - how to ledger payment with showing as income
Hello,
Our customer paid a Audio & Visual vendor directly. How do i show that payment without it showing as income.
The customer wants us to keep track and show it in our budget for his project but we don't want it showing as income. What is the simplest way to ledger that payment.
customer paid vendor directly - how to ledger payment with showing as income
Hello there, @John F3. To accurately track a project budget when a customer pays a vendor directly, you must record the expense without impacting your actual cash balance or income. This is typically achieved by using a clearing account or a zero-dollar journal entry to reflect the cost within the project.
The way to handle this in QuickBooks Desktop (QBDT) is to use a Clearing Account that acts as a temporary holding spot that allows you to record the expense against the project while immediately offsetting it so your bank balance stays correct.
This can involve creating a Journal Entry as well to record the cost against the project's budget without triggering an income event.
Since this involves the use of correct accounts, I recommend consulting with your accountant.
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