Hello there, wre steven.
Glad to see you here in the Community space. Helping out with billing your contractor for part of an invoice is my priority.
When creating an invoice, QBO won’t allow you to use the vendor’s name. This is because sales transactions are linked to customers, while payables are for vendors.
In situations like this, you’ll need to create a sub-customer using the contractor’s information. I'll walk you through the step by step process.
After entering the sub-customer's data, you can start with creating an invoice. This time, select the customer's name to properly track the transaction.
I also added a link to give more insights on how to add a customer or sub-customer. The resolution steps will help you get moving today.
If you have any follow up questions, leave me a comment. I'm always ready to assist you further. Take care and have a great day.
Thank you. I now have a follow up question:
I billed the contractor as you had suggested by adding him with a period at the end of the name so as to circumvent the duplication error.
The contractor has not paid the bill and it is now time for me to pay him. How can I deduct the amount owed to us from the check that I am writing him and apply it to my open invoice?
Thanks for coming back to the Community, wre steven.
Let me help you deduct the amount owed by your contractor from their check and apply it to your open invoice.
You'll have to record a barter transaction for this. First, set up a barter bank account, then receive payment for the invoice. Then, pay the bill for the barter transaction.
To set up the barter bank account:
To receive payment for the invoice:
To pay the bill for the barter transaction:
Once the invoice is created and the bill is paid, you will have a record of the exchange but the barter bank account will be zeroed out.
The How to record a barter transaction article will show you the detailed steps.
If you require additional information, please let me know by adding a comment below. Have a good one.
Yes, this can be done in QuickBooks Desktop, @EBGEOI.
In QuickBooks Desktop, you'll need to add a job to create a sub-customer and set up a clearing account to deduct the amount owed by your contractor. Let me walk you through the steps.
Here's an article for more details: Create and Manage Jobs or Customers.
Then, you'll have to set up a clearing account so you can move from one account to another. For your reference, you can check out this article for the detailed steps and information: Set up a Clearing Account.
In case you need tips and related articles in the future, visit our QuickBooks Community help website for reference: QBDT Self-help.
Just hit the Reply button below if you have additional questions. We're always here to help.