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
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:
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!
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.
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.
If your sub-contractor pays your invoice and does not want to be repaid, you need to report that amount as income. You can do a journal entry for the vendor bill: debit the appropriate expense account(s) and credit income. Or, you can create a vendor bill and then pay it with a clearing account (set up a bank account called clearing account). Then, create a journal entry - debit the bank clearing account and credit income.