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sautele-maiava
Level 1

What is a vendor vs a customer?

 
Solved
Best answer October 15, 2018

Best Answers
Countrymusicmom
Level 2

What is a vendor vs a customer?

A vendor is who you purchase from.

A customer is who you sell to.

View solution in original post

20 Comments 20
Countrymusicmom
Level 2

What is a vendor vs a customer?

A vendor is who you purchase from.

A customer is who you sell to.
t1t2tx
Level 1

What is a vendor vs a customer?

So, would an insurance company still be a vendor when you receive proceeds from them?  What about your bank or brokerage firm, your employer and the IRS?  What names would go in the "Other Names" list?
Cherilyn
Level 3

What is a vendor vs a customer?

Yes, your insurance company is a vendor even though you may get a refund from them.

I find it is best to rarely use 'other names'. About the only instance would be a shareholder or officer.

SooSacks
Level 1

What is a vendor vs a customer?

how do you account for a Vendor who also purchases your products? IF you sell to screen printers who also sell your retail goods how would you bill them for the goods they buy, AND pay them for the work they do? QB will not let you enter a new vendor  who is already a customer. 

SarahannC
Moderator

What is a vendor vs a customer?

Hi there, SooSacks.

 

To do this, you can either use a Bill or an Expense transaction. A bill is used when you pay the supplier on a later time. Use expense when you pay your supplier right away.

 

Also, there's a way to enter a new vendor who is already your customer. You can add other characters to their name to make it slightly different.

 

For example, if the customer's name is Abbie Marge, you can enter the supplier's name as Abbie V Marge. This way, QBO will let you have a vendor and customer with the same person.

 

I've added a sample screenshots for you:

Customer:

AB.PNGVendor:

ABB.PNG

 

I've added an article about: How to record a barter transaction.

 

Just tap on me whenever you need help with the vendors account.

Sbeara11
Level 1

What is a vendor vs a customer?

Should I always use the Vendor field when reconciling transactions?  And if so, I'm curious as to why?

MaryLandT
Moderator

What is a vendor vs a customer?

Yes, you can use the Vendor field to reconcile transactions, Sbeara11.

 

A vendor in QuickBooks Online is a person or business who sells products or provides services. On the other hand, a customer is a person who pays for your products and services.

 

To keep track of your payables, you need to use the Vendor field. And, here's the link to help record your expenses: Learn the difference between bills, checks, and expenses in QuickBooks Online. It provides additional details and how to use them.

 

For additional information about your vendors, here's an article with a video tutorial: Add a vendor in QuickBooks Online.

 

Stay in touch with me if there's anything else I can help you with reconciling your vendor's transactions. I'm always right here whenever you have follow-up questions about this.

OneSourceEstate
Level 1

What is a vendor vs a customer?

I run an auction company and take consignment.  Would my consignors (whom I pay once goods are sold at auction) be considered vendors or customers?  

CharleneMaeF
QuickBooks Team

What is a vendor vs a customer?

I can certainly help set up your consignor in QuickBooks Online, OneSourceEstate.

 

The consignor keeps ownership of the product until it's sold. With this, you can set them up as a vendor. Here's how:

 

  1. Go to the Expenses menu and then select Vendors.
  2. Select New Vendor.
  3. Use the fields in the Vendor information dialog to enter the consignor's information.
  4. Once done, click on Save and close.

 

For more details about managing consignment sales, I'd suggest checking out this article: How to Record Consignment Sales.

 

Additionally, monitoring your business expenses and accounts payable is a breeze in QuickBooks Online. The program has ready-made vendor reports you can open at any time and customize depending on your business needs. 

 

I'm only a post away if you need more help setting up your consignor in QuickBooks Online, OneSourceEstate. It's always my pleasure to help you out again.

wineguyatl
Level 1

What is a vendor vs a customer?

What if a customer is also a vendor? I sell products to restaurants but I also dine there. How should I categorize?

ChristineJoieR
QuickBooks Team

What is a vendor vs a customer?

Hello there, @wineguyatl. I’ll make sure everything will be sorted out for you.


Let's create a customer and vendor profile before categorizing transactions in QuickBooks. Make sure to register different names to avoid getting an error.


Here’s how to set up a Vendor:

  1. Go to Vendors under Vendor tab.
  2. Select New Vendor.
  3. Complete the fields in the Vendor Information window.
  4. Select Save.


Here’s how to set up Customer:

  1. Go to Customers under Sales tab.
  2. Select New Customer.
  3. Enter your customer’s info.
  4. Select Save.

 

You may generate a billable expense to link the expense to the customer's income. This article will serve as your guide. You can also choose an expenditure account from in the Category Section. 

 

Additionally, I added this article for your future references:

 
Keep us posted for any additional queries managing customers and vendors in (QBO). I’m  just a post away.

Jessica585
Level 1

What is a vendor vs a customer?

If I am billing a company for work that my client did for them, am I classifying those companies as customers or vendors?

Rasa-LilaM
QuickBooks Team

What is a vendor vs a customer?

Thanks for joining this thread, Jessica585.


I can see how important it is for your business to properly set up vendors and customers. This allows you to easily track their transactions and ensures accurate records.


Based on the details shared, you’ll have to classify the companies as customers. This is because you’re the one billing them for the work that your client performed.


When adding them in QuickBooks Online (QBO), you’ll have to go to the Customer Center to accomplish the task. To set up each company, I recommend following the steps shared by my peer above.


For more insights about setting up a vendor or customer in QBO, feel free to click on the links below. These resources outline the complete steps on how to add one or set it to inactive.

 

 

Keep in touch if you have additional questions about setting up a vendor or customer. I’m always ready to answer them for you. Have a great day.

MM608
Level 1

What is a vendor vs a customer?

I run an automotive shop. I buy parts to fix cars through various companies like O'Rileys, Autozone etc. Would they be considered "vendors"? 

Rose-A
Moderator

What is a vendor vs a customer?

Yes, you can consider them as vendorsMM608.

 

A vendor is a general term used to describe any supplier of goods or services. They sell products or services to another company or individual.

 

In case you need some related article in managing your vendors and transactions, you can always visit our Income and Expenses article for reference.

 

Don’t hesitate to post a comment if you have any other QuickBooks concerns. I’ll be right here to answer them for you. Have a great day ahead.

Hope and healing
Level 1

What is a vendor vs a customer?

Would this also apply to insurance payments rovided to our business . We receive payments on behalf of services we provided their members .We are a medical business if that helps clarif.

LieraMarie_A
QuickBooks Team

What is a vendor vs a customer?

Hi there, @Hope and healing.


Being able to track the insurance company that paid for the services provided to patients would be beneficial. In medical billing, you need to know who paid what, when, and for who. However, QuickBooks Online only operates on the customer level.

 

I recommend seeking professional advice from your accountant about this. They may have other options to record and properly handle this scenario. If you don't have one, you may visit our ProAdvisor website to run a search.

 

Here's how:

 

  1. Visit the ProAdvisor site.
  2. Enter your city or ZIP code in the Location field. It will display a list of accountants or bookkeepers near you.
  3. You can also filter the service provided, industry served, and product supported to narrow down the results.

 

Additionally, I'm adding these articles about the Class Tracking feature, which may be helpful for monitoring income, expenses, and profitability for each part of your business:

 

 

You can count on us if you have any other questions about QuickBooks. It's our pleasure to help!

Lovehorer
Level 1

What is a vendor vs a customer?

Do you have to make a refund label, under category with the vendors name? I'm having a hard time figuring this out 

PeaceinPAwilds
Level 1

What is a vendor vs a customer?

We have a board of directors, and the members get mileage, etc., reimbursed for meetings; are thy customers or vendors?

Nicole_N
QuickBooks Team

What is a vendor vs a customer?

Hi there, @PeaceinPAwilds

 

You can consider them as vendors. If you haven't already, you can set up a vendor profile for your employee and a special expense account to track the reimbursements. I'll guide you on how:

 

  1. Go to the Expenses menu, then select Vendors.
  2. Select New vendor.
  3. Enter your employee's info.
  4. Give your employee's vendor account a unique name in the Display name field. Tip: Add "(Mileage)" to the end so you know which vendor profile to pick to track mileage.
  5. Select Save.

 

To learn more about the process, kindly visit this link: Reimburse employees' mileage and vehicle expenses in QuickBooks Online. This will guide you to the next steps you need to take.

 

If you have clarifications while doing the process or have additional QuickBooks questions, feel free to leave a reply. We'd be glad to answer them for you. Keep safe.

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