Reporting joint venture income

Thanks for following up with the Community, @RCSLSVG. I appreciate you for your detailed information.

Let me provide information about setting up the payment arrangement in QuickBooks Online (QBO).

To begin with, you can treat the monthly payment as an income to your company. However, it's best to consult your accountant for confirmation and guidance about properly handling of the total monthly payments as income to your company.

On the other hand, you can set up the payment arrangement by creating an income account in the Chart of Accounts (COA). After receiving the payment, you can record it by creating a bank deposit, sales receipt, or invoice for that specific account. To issue the payment, you can create either a check or an expense for it.

Here's how to create an account:

1. Go to Settings and select Chart of Accounts.
2. Select New and enter an Account name.
3. Select Income as an Account type and choose the Detail type from the dropdowns.
4. Enter the description.
5. Then, select Save.

For reference, check this article: Add an account to your COA.

I'll also add this article for future reference so your bank and credit card statements always match: Reconcile an account.

If you have further concerns about handling the payment arrangement, please tag me in the comment section, @RCSLSVG. I'll assist you in any way possible.

@RCSLSVG 

Presumably the JV is not a separate entity but just a contractual one?  Are you billing the client using a service/product linked to an income account on an invoice?  If that's the case, then you want to reduce the income by the amount you owe the other company.  That can be accomplished several ways.  If you plan to issue payment at the same time you enter the transaction, I would suggest creating an Expense transaction (New > Expense) for the amount you owe the other company and under "Category' select the same income account that was used on the items on the invoice.  That will reduce your income and issue payment from the account selected under 'Payment account'.  Or, if you're going to issue payment at a different time than when you enter the transaction, create a Bill (New > Bill) instead.  Then, pay the bill. 

This could also be done with a journal entry but Expense and Bill transactions show up under the other company's profile (depending on whether they are in QBO as a customer or vendor) whereas a journal entry does not.