USA Booking Invoice Paid by a 3rd party

Joined
Jun 12, 2018
Messages
1
Reaction score
0
Country
United States
Hello, how do you book an invoice under a vendor but then show it as having being paid by a 3rd party
 

Steve-LevelUp

VIP Member
Joined
Jul 18, 2016
Messages
315
Reaction score
43
Country
Canada
you could not reflect it as an expense. if you didn't pay it and had no obligation to pay it, then there is no need to record it. If it was your obligation to pay, then I would get something in writing (email) from the 3rd party stating that they will pay it and that you owe no obligation to them regarding those funds.

I hope that helps.
 
Joined
May 25, 2018
Messages
24
Reaction score
3
Country
United States
The 3rd party who is paying that vendor bill on your behalf, what is the agreement with him? did he owe you some money and you are offsetting his account against the vendor bill that he will be paying? in this case, you can record the bill and increase the liability for your vendor and then on the other hand, you can issue a Debit/Credit Note offsetting your AR and AP accounts where both the receivable and payable are offset.

I hope this helps.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Members online

Forum statistics

Threads
11,783
Messages
27,852
Members
21,797
Latest member
4GTFull1

Latest Threads

Top