Customers Invoice Products & Services Purchase Order QuickBooks Online QBO Vendor Vendors

How to create an Invoice to your Customer for Products Services Items provided by the Vendor

Make products service items provided by vendor billable to customer
Customers Expense Expenses Invoice QuickBooks Online QBO Vendor Vendors

How to add Billable Expenses to an existing already created Invoice

Open an existing invoice. Look for an arrow pointing left at the top right corner (right to BALANCE DUE). Click that arrow You will find the Billable Expense sitting there and click Add. You will notice line item from the existing invoice and added a billable expense line item. Delete line item from an existing invoice. Now, you have linked billable expenses to an invoice and the total invoice amount remain the same.

Link Billable expenses to an existing invoice
Expense Expenses Purchase Order Vendor Vendors

What is ‘Copy to Bill’ at the right side under the Expenses tab

If you have created a Vendor Purchase Order, you will see “Copy to bill” on the right side. You can convert the PO to a Vendor Bill. If you’ve already created Bill (Check or Expense) for that PO, you can choose “Add to” from the right panel, then it will close the PO.

Bank Register Credit Card Vendor Vendors

How to manually add few missing credit card transactions that were not in bank feed

How to manually add few missing credit card transactions that were not in bank feed

For missing bank feed credit card transactions, you should be able to manually enter bank transactions directly to the Credit Card Register in QuickBooks.

Here is how to manually enter my credit card transactions without downloading from the Bank.

From the Left Dashboard | Accounting |Chart of Accounts

Select the Credit Card account in question.

Click “View Register” under Action column.

(You’re now on Bank Register).

Select “Add CC Expense” from the drop-down arrow (right below Date column).

Enter transaction information and save.

It will automatically update the running balance.

1099 Vendor Vendors

How do you set up multiple accounts for 1099 MISC Box 7 in Quickbooks Online

You can select “Multiple accounts” to report in Box 7 on the 1099Misc. You should see that option with the Prepare 1099s under Accounts #2 tab (see screenshot).
(From the left dashboard > Expenses > Vendors > Click Prepare 1099s at the top right right corner > Continue your 1099s > Go to #2 Accounts > Under Box 7, select Multiple accounts from the Chart of Accounts).

You can also refer to this article for more information:


Vendor Vendors

How to enter prepayment to the vendor supplier. How do I match vendor bill received later?

You have two ways of recording the transactions depending on the type of supplier pre-payment. Is it quick turn around or will it take a longer time to complete the job or service?

1) When you make vendor pre-payment, use Accounts Payable (A/P) under Account tab. When supplier bills you, create a Vendor Bill in QBO and use an appropriate account. That will clear the vendor pre-payment balance. This is the easy way to enter the transactions especially say if you can record both entries within less than a month. You will then need to match pre-payment and entered Bill to clear the account by clicking Pay Bills tab (Create + sign > Vendors > Pay Bills).




2) You may use this method if pre-payment to the supplier will take longer than 30 days to clear. In order words, for example, you make pre-payment job in January and the job will not be complete until June.

To set up pre-payment to the supplier, create a new account. You would set up “Pre-Payment to Supplier” as other current assets in QBO

When you receive a Bill, enter expense account to be charged. On next line, select Pre-Payment to Supplier account and enter it as a negative amount. If the received bill is exactly the same as pre-payment then, it will net out as zero entry. But if the actual bill says higher than pre-payment amount then, you just make the payment for the difference. That will clear the account.


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Retainage Retention Vendor

How to handle vendor subcontractor retainage retention in QuickBooks Online

Let’s get started. Follow the step-by-step instructions.

Example: A vendor/subcontractor perform work on our behalf, we deduct 20% of the bill amount as Retention when we pay them. This is to protect us from any potential liability out of their faulty work. How do I record it in Quickbooks?

1. To set up sub-contractor retainage tracking, create a new Retainage account in the Chart of Accounts:

  • From the left Dashboard panel, click Accounting.
  • In the Chart of Accounts, click “New” green button at the far top right corner.
  • For Category Type, select Other Current Liabilities.
  • For Detail Type, select also Other Current Liabilities.
  • For the Name, enter Subcontractor Retainage Payable.
  • For the description, enter same as Name or something like 20% withheld from subcontractor payments.
  • Click Save and close.

See screenshot below for reference.


2. To enter expense bill and withheld retainage from a Subcontractor Bill:

In this example: Subcontractor bill is $10,000; pay them $8,000 and retain $2,000 for 4 months.

  • Click the + plus symbol, located at the top of the screen.
  • Select Expenses, Check or Bill under Vendors heading.
  • Select your subcontractor as a vendor.
  • Fill out the remaining fields of the vendor invoice.
  • Select COGS or expense account under Account tab. (line 1, amount = $10,000).
  • Line2, select Subcontractor Retainage Payable account, enter negative amount (example = -$2,000).
  • The total amount should show $8,000.
  • Click Save and close.

See screenshot below for reference.


3. To run a Subcontractor Retainage Payable account report for various subcontractors:

  • From the left Dashboard panel, click Accounting.
  • In the Chart of Accounts, locate “Subcontractor Retainage Payable” account line.
  • Go to “View register” under Action column at the far right corner.
  • From the drop-down arrow, select the “Run Report” button.
  • Row/Columns at the top left, change “Group by” to Vendor (especially if you have multiple vendors with retainage balances).
  • Click Run Report.
  • This report will give account details by vendor balances.
  • Since you will need to track these retainage activities, click “Save customization” green button, located in the top-left corner of the report window and name it “Subcontractor Retainage” report and Save.
    Now, you have saved this report for future use.
  • Next time, when you want to run this report (Dashboard > Reports > Custom Reports tab > locate Subcontractor Retainage report and run the report).

See screenshots below for reference.


4. To make 20% Retainage balance payment:

  • Same as to enter vendor expense bill as above (step #2).
  • For an account, use Subcontractor Retainage Payable account. Example, $2,000. That will clear the account but do the account analysis on a regular basis.

See screenshots below for reference.

5. Run Report after 20% withheld paymentL
Follow step#3 above on how to run report.
See screenshots below for reference.


For “How to handle customer retainage retention in QBO” click HERE.

If you have questions regarding this article or any other QuickBooks issues, please CLICK HERE to ask a question.


Purchase Order Vendor

Partial Purchase Orders in QBO

Partial Purchase Orders feature is available in QBO plus now.

You can create a purchase order for both accounts and items tabs. Item tab is more for inventory items. Account tab is an expense that adds directly to Profit and Loss. You can now receive partial shipments and the PO will remain open for back ordered items.

Create a Vendor Bill (or Check, or Expense) form. Select a Vendor, a drawer at the right panel will open. Select add to the bill. You can select to choose either partial or complete order. For back orders, it will show as back ordered quantity and open balance amount for inventory items on a PO. For accounts, it will show open balance amount. The Purchase Order will show the status as open. You can run Open Purchase Order Detail report and Open Purchase Order List report for detailed information.


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Why Does Vendor Register Not Show All Transactions Made For That Vendor

Why Does Vendor/Supplier Register Not Show All Transactions Made For That Vendor/Supplier

In Vendor Register, only transactions that affect Accounts Payable (Bill/Pay Bills) appear in the register. You will need to run Transaction List by Vendor to see all the payment transactions.

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Vendor Vendors

How to merge vendors suppliers with transactions

You can merge vendors, QuickBooks deletes one vendor and reassigns all its data to another vendor.


  • In the left navigation bar, click Vendors.
  • Select the vendor whose name you don’t want to use.
  • Click Edit.
  • Change the vendor’s Display Name so that it is the same as the vendor you’re merging with.
  • Click Save.
  • Click Yes to confirm that you want to merge the two vendors.