Announcement

Collapse
No announcement yet.

Linking Customer Invoices & Payments to Vendor Invoices

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Linking Customer Invoices & Payments to Vendor Invoices

    I work for a construction company and we have a mildly complicated system for invoicing and payments, due to the addition of subcontractors into the mix. Currently we order material for jobs and pay the vendors one of two ways: either we write a check directly OR a subcontractor sends us a joint-check, which we forward to the vendor. The joint check amounts are invoiced as part of the total cost of the contract for the project. I'm fairly new and trying to fix a lot of bad bookkeeping by my predecessor (even though I'm a coordinator, not a bookkeeper so I'm a little lost). Some of the past payments from customers have been applied directly to vendor invoices, some have been applied to customer invoices, and I need to link it all so that everything balances. I don't know if I'm even clearly stating what I need here. This is my first stop in finding solutions, if I can't community source the info I'm going to have to pay an accountant.

    When I put vendor invoices in I link them to the customer/project. I am not sure if I should being linking the vendor invoices to the customer invoices, or how to do that, it's all a real big mess.

  • #2
    Make sure that the link is not just to Customers, but to Customer:Job.
    Lorin Browning, Ph. D.
    Fellow -- National Tax Practice Institute
    lorin@lorinbrowning.com

    Comment


    • #3
      The two party check is an interesting issue. Basically the contractor is paying for the materials, but you are going to charge the customer for the expense. An expense your company really does not have.

      create a bank account called clearing
      deposit the joint check to the clearing bank and use other income as the source account for the deposit
      then enter the bill, use pay bills, set the pay from account to the clearing bank and pay the bill

      the clearing account is now zero, and the income and expense wash on the P&L

      When you mark an expense as billable, that allows you to move that expense to the customer/job, and associates the expense with the customer/job too. If you leave it not billable, but still assign the customer/job, the cost still is associated with the customer/job. Basically the billable check mark allows you to move the expense to the customer invoice easily.

      Comment


      • #4
        I had to go back and merge/change the customers and add the jobs as... Jobs, we created a "pass through" account that we are using for the joint checks and this appears to be the solution. Thanks!

        Comment

        Working...
        X