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Recording payment to 3 party question(Please help)

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  • Recording payment to 3 party question(Please help)

    Hi all,

    I am working on a car dealer company. Please help me how can I record the below transaction?
    Company A: Car dealer (the company that I am doing book keeping for)
    Company B: Auction house
    Company C: Towing company

    1. Company A bought a car for $1000 from Company B.
    2. Company B issued an invoice to Company A for $1000.
    3. Company C picked up($120) the car(inventory) and help company A to pay for the car ($1000). = $1200 total ($1000 for the car, $200 for the tow)
    4. Company A Pay $1200 to Company C

    - Question: How can I clear the AP from Company B?

  • #2
    Bring up the bill for company B and delete it

    create bill for for company C, use the car inventory item on the invoice, qty one, price 1200