Skip to main content

Get 50% OFF QuickBooks for 3 months*

Buy now
Switch to QuickBooks and 70% off for 3 Months
Talk to Sales: 877-683-3280
Hours
Mon - Fri, 5am - 6pm PST
Sat - Sun, 7am - 4pm PST
Product support & help
Need help signing in?
S
SIAH
November 21, 2019
Question

Journal entries for flowthrough amounts

  • November 21, 2019
  • 1 reply
  • 0 views

Hi,

 

each month I invoice Company A on behalf on Company B, our subcontractor.   I pay Company B and then wait to be reimbursed by Company A.  These are not expenses - we're just invoicing on behalf of Company B.  The trouble is that when I invoice Company A, the amount gets booked as revenue in QBO without a correcting JE.  What are the journal entries to record when 1) Company A is invoiced, ii) Company B is paid, and iii) when payment is received from Company A?

 

Many thanks in advance for any insight.

1 reply

J
JamesM
Level 5
November 21, 2019

Hi there,

 

Congrats on your first post in the Community. Making sure you're using the right journal entries is a good exercise for preventing errors in your books. 

 

I recommend contacting an accounting professional. If you're not in contact with one, I encourage you to search for one on our website using this link here. Doing this will help prevent any future discrepancies. Let me know if you have other questions. I'm here to assist. :)

Need QuickBooks guidance?
Log in to access expert advice and community support instantly.
Terms & ConditionsAccessibility statement