Vendor Owes Us

Get a big sign that says "Do a journal entry".

There are ways to move credits/debits from vendor accounts to customer accounts. Each vendor who is also a customer is set up with TWO entries -- one for vendor/subcontractor and an additional account for the customer (a suggestion is to differentiate the name with a designations such as {c}.

When you wish to 'zero out' the negative A/P credits for a particular model, you will need TWO entries. One entry, to 'use up' the vendor credit in A/P. The other entry, to 'invoice' the corresponding amount to the customer (A/R account). TWO entries are necessary because you cannot create a j/e that references both A/R and A/P. I would suggest that once you have done the necessary entries for a SINGLE subcontractor/model, that you memorize the necessary transactions and keep them as a template for use again. You may even want to consider memorizing the transactions as a group, so that you will not 'forget' to make a corresponding entry when you 'invoice'.

There are many ways to make the entries. One thing I would strongly suggest is that you create a 'passthrough' or 'barter' account to use. The balance in that account should ALWAYS be zero. If the balance is anything other than zero, you will know that you have forgotten an entry.

If, additionally, you create an item in the item list that refers to the pass-through account (non-taxable other charge) you will be in a position to use Customer credit memos as well as journal entries in order to move things around.

I am away from my QuickBooks program at the moment, but I believe there are instructions for how to re-allocate in the help file -- not sure of the topic (barter? Vendors as customers?)

Post back if your stumped. I will take a look at my file when I get back in the office on Monday.