Paying Suppliers on behalf of clients
As we have already learned, the QuickBooks file used to handle client funds does not need to use many chart of accounts categories. The priority of the file is to record the receipts and payments made on behalf of clients and ensure everything balances.
Supplier bills that are going to be paid from client funds can be entered just like any other supplier bill in any other company, but using the method in this book, the following will apply:
- The category used will always be Disbursements Control.
- The bill will always be made Billable.
- It will be assigned to CUSTOMER/PROJECT:
Figure 5.22 – Recording the supplier bill to be paid from Client Funds
Recording the supplier bill in this way will create a billable expense charge against the customer. From this, we can create an invoice that will adjust the customer balance further:
Figure 5.23 – Billable expense charge against...
