How to record the invoice and payment made for auto services which belongs to other company?

guzanc · ‎July 30, 2019

For example, 3 different companies A, B, C. Company B paid for services to company C using company card but the services belongs to company A and company C issued an invoice to company B. Now, I have to recall the payment from company A. Can I issue an invoice to company A for the same amount charged company B by company C. How to record transactions? Thank you.

IamjuViel · ‎July 30, 2019

I appreciate you for the complete details about your concern, @guzanc.

If the three companies are considered as three separate business entities, record the transaction as a journal entry. We'd suggest confirming with an accountant the best way to record this and then we can advice how to do that in Quickbooks. They will likely suggest a journal entry which can then be used for the invoice and the payment made. We can't advice on what chart of accounts to use however. We have included a help article on contra payments here

Projects may be another way to do this, you can add each company as Customer and enable the Project feature. Let me guide you on how it works.

First, let's add each company as a customer.

Go to the Sales menu.
Choose Customers tab.
Click the New Customer button.
Enter customer information.
Click Save.

Once completed, let's create a project. Here's how:

Go to the Projects menu.
Click the New Project method.
Enter the Project name.
Associate it with the specific customer.
Click Save.

Lastly, let's enable your billable expense feature. Here's how:

Click the Gear Icon.
Choose Account and Settings.
Select the Expenses tab.
In the Bills and expenses section, mark the following:
- Track expenses and items by the customer.
- Make expenses and items billable.
- Track billable expenses and items as income
Click Save.
Hit Done.

Now, you can record your expenses and labor fees and assign them to a specific customer or project.

Here's a short video clip for visual reference:

Also, you can refer these articles to learn more about managing your income and expense transactions:

Always feel free to drop your comments below if you have other questions. I'm just a few clicks away.

View solution in original post

EmmaM · ‎July 30, 2019

Hello

We just need to confirm a few things.

What transactions have you already recorded?Do you have a open bill on Company B and an expense on Company C and an invoice in Company A?Are you using QuickBooks Online?It may be the case that some contra entries need to be used(as the bill on company B would be paid but not from the bank account on company B for example but would need to be closed as paid). Could you provide a screen shot of what you have so far?Let us know if we are misunderstanding the scenario.

Thanks

Emma

guzanc · ‎July 30, 2019

Hello,

I have got an invoice (company B) from Company C and a receipt attached to it as the company B paid for it using company B debit card, but the expenses belongs to company A. Therefore, now I have to ask for the payment made the company A. I have issued (company B) an invoice to company A mentioning the some expenses as it says on invoice from company C.

Yes, I am using Intuit QuickBooks Cloud online and I do not know how to record this issue. I am thinking to do the following:

As the expenses is not belongs to company B I cannot take as an expense, also the company A, B, C are VAT registered.

I am thinking to do the following:

Company B recording the payment made to company C (but shall I record the invoice received from company C, as the expenses is not for us?)

DT CREDITORS - COMPANY C

DT VAT - COMPANY C

CT BANK

After Company B issued an invoice to company A but I will record the payment only received from them

DT BANK

CT DEBITORS - COMPANY A

CT VAT - COMPANY A

The third thing I am thinking to contra entries:

DT DEBITORS - COMPANY A

CT CREDITORS - COMPANY C.

But also I am confusing what to do with the invoices received from company C and issued to company A? Shall I record them?

Thank you.

IamjuViel · ‎July 30, 2019