QB Issue Resolution:

There is no “yes, but” about it. You Sold this to them.

“how do I apply the payment to the invoice as well as a cost of goods account.”

You don’t; you are thinking of this incorrectly.

The Payment is against the invoice. The Invoice is going to list the product. The Product is a two-sided product, so that it flows to COGS (from the purchase transaction) and it flows to incomeĀ  (from the Sale).

You do not want this to wash away your COGS. The Reimbursement = your Income. You are thinking of it like this:

Through the year, I spend $100,000 COGS and I “get reimbursed” so all of that should Go Away. That means, at year end, I show $0. That is not what you are doing.

You have $100,000 Gross Expense in this example, and $100,000 Gross Sales revenue as Income, in this example. Especially when this is subject to Sales Taxes, that should help you understand why trying to “wash away” COGS is not the proper data management.

Your P&L will show $100,000 income, $100,000 expense, and Net Income of $0. But now you Properly see the operational activity that proves you are in business.

Resolution for Issue 'Customer pays for an invoice and reimburses business for a item in Cost Of Good account in same check. How do I apply this payment to both areas?' available: Yes (Solved).
Source: Intuit Community forum.

Customer pays for an invoice and reimburses business for a item in Cost Of Good account in same check. How do I apply this payment to both areas?: 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.

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