QB Issue Resolution:

You are describing something like “Bank uses construction loan to pay my subs” or “I got third party checks to sign over to the subs.”

 

You treat them the Same. First, you use Receive Payment for the total, and Deposit to a Bank type of account you name Clearing or Barter.

 

Now pay the bills from the Barter Bank.

 

The remaining balance here should be your share. You use Banking menu > Transfer, to checking, for the actual Net you have, that you called your “profit.” It is the Net Banking, and not really profit, of course.

 

Now Barter Bank or Clearing Bank should be 0 for this date; that’s why it is called Clearing or Barter. It is “We avoided trading all of that banking in reality, and just traded all the Values.”

 

Have you discussed with your own CPA if these Subcontractor costs are your revenue and expense; they might be your Work In Process Other Current Asset, instead.

Resolution for Issue '3rd party Pays the sub-contractor' available: Yes (Solved).
Source: Intuit Community forum.

3rd party Pays the sub-contractor: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

Support for Banking Menu
Quickbooks Repair Pro will resolve it efficiently and affordably. Guaranteed resolution of your issue, or you pay nothing!

Error Recovery for Banking Menu [Canada]
E-Tech is the #1 Quickbooks data migration and Conversion service provider.

Get 50% off Quickbooks Online

Click Here for 50% off!

Additional Support Options: