Hello there, Lynda.
You can set up a clearing account to move money from one account to the other in cases that you cannot move the money directly. Here's how to create the account and use it:
- From the Lists menu, select Chart of Accounts.
- At the bottom click Account and select New.
- In the Add New Account window, select the Bank radio button.
- Select Continue.
- In the Account Name field, enter Clearing Account, Barter Account, or Wash Account.
- Leave the opening balance as blank and then select Save & Close.
To use a clearing account
- Click Company and select Make General Journal Entries.
- Add the AR or AP from which you are moving money.
- Add the Clearing account.
- Click Save & New to create a second Journal Entry.
- Add the Clearing Account.
- Add the AR or AP account to which you moving money.
- In either Pay Bills or Receive Payments, link the Journal Entries together.
- Click Save & Close.
I'd still suggest reaching out to an accountant to help you select the correct accounts and ensure that you're able to credit the Accounts Receivables account and debit the income account so we don't mess up the books.
You also have another option to record it as a billable expense. After you've marked it billable to the customer, you can manually enter a credit memo with the same amount paid to the customer. The remaining balance of the invoices is what you'll send to them.
Let me know if you have other questions about handling customer transactions. Take care!