Entering bills paid on behalf of another company

Fellucca · ‎March 15, 2018

I have a $5,000 invoice that my company is paying $1,000 per month on behalf of another, seperate company that will owe us the $5,000 in the future. Can someone offer help as to how to book this?

My goal is to try and make this appear equally on the P&L so the $1,000 we're paying each month doesn't make our P&L look "worse'. So I guess my question: is there a way to have the $1,000 expense on the P&L offset by something else?

Thanks!

Rustler · ‎March 16, 2018

This transaction is not a business expense so it does not hit the P&L

create an asset account called due from [name]

create a service item for the service you are paying and select that due from account on the item screen

enter the bill and use that item in item detials, or use that account in the account details, and enter the amount, pay the bill. The due from account total will increase with each payment

invoice the customer and use that item on the invoice, when the payment is made the due from account balance will lower.

View solution in original post

Rustler · ‎March 16, 2018

This transaction is not a business expense so it does not hit the P&L

create an asset account called due from [name]

create a service item for the service you are paying and select that due from account on the item screen

enter the bill and use that item in item detials, or use that account in the account details, and enter the amount, pay the bill. The due from account total will increase with each payment

invoice the customer and use that item on the invoice, when the payment is made the due from account balance will lower.

BKBookKeeper · ‎June 27, 2024

How would this be handled if the company does not expect to be reimbursed?

LouiseG · ‎June 27, 2024

Hi there, BKBookKeeper

If your company does not expect to be reimbursed. You can record it as a bill in QuickBooks Desktop (QBDT). Follow the steps below.

Go to the Vendors menu, then select Enter Bills.
Choose a vendor from the dropdown, then fill out the required fields
Select the type of bill you want to record.
Click Save to record the bill.

You can also use these links for reference when managing your bills:

Don't hesitate to get back to us if you have any further concerns about handling bills or need assistance with any other QuickBooks-related concerns. We are always here to assist you every step of the way.

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Entering bills paid on behalf of another company