Question

Vendor Invoice

Forum|Forum|4 years ago
April 4, 2022
1 reply
1 view

How do I record a vendor invoice that was paid by a sub-contractor? Sub Contractor will NOT be reimbursed by us. So we want to record the vendor invoice in our QB and show as paid but was not paid by us. Please help. Thanks

QuickBooks Online

K

Kurt_M

QuickBooks Team

Thanks for taking the time to post here in the Community, @elevationdev. I'll help you record your vendor's invoice here in QuickBooks Online (QBO).

To record your vendor's invoice, you'll have to set up an Other asset account on your chart of accounts. To begin, these are the steps:

On the left navigational bar, select Accounting.
Choose Chart of accounts.
Click the New button.
Use Other Current Assets or Other asset accounts as your account type, and then enter the necessary details.
Once done, click Save and close.

Once you're all set, proceed to record your vendor's invoice as an Expense. You'll also make sure to use the account you've created earlier as the source of funds.

Please feel free to visit these articles that I've got you for future reference:

Please know that I'm always available if you have other QuickBooks-related concerns. You can notify me by leaving a comment down below, this way I'll be able to get back to you and provide additional help. Keep safe and stay hydrated!

E

elevationdevAuthor

Our sub-contractor made the payment for these vendor invoices for us and is not requiring us to pay them back. So we will never send them payment, however we want to record these vendor invoices in QB for our records. We want to show these invoices as paid but we did not pay them. So are you saying we create a dummy bank account under other current assets for the sub contractor payments?

Thanks for your help.

Michelle

DivinaMercy_N

Moderator

Yes, @elevationdev.

To record your sub-contractor’s payment on a vendor invoice, you can use the Other Current Asset account as a source of funds.

To create one, please follow the steps provided by my colleague, KurtKyle_M. You can also use this article as guide in setting it up: Add an account to your chart of accounts in QuickBooks Online.

When finished, create an Expense transaction for the vendor bill and use the asset account as the Payment account. Refer to the screenshot below for your reference:

Also, in case you want to view the income and expenses for each customer, you can simply pull up the Income by Customer Summary report in QBO.

I'm always ready to lend a hand if you have any other questions about recording the subcontractor's payment. Don't hesitate to post again here. Have a good one.

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