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Automate The Purchase and Selling of Services

In our last post we reviewed some of the capabilities of QuickBooks Online (QBO) in regards to tracking time. With the Plus subscription, you can add as many time-tracking only users as you would like.

With their own login, employees and subcontractors can enter their own time into your QBO subscription. That time then does not need to be re-entered for invoicing.

Above is the screen Mendoza Mechanical, one of the subcontractors Rock Castle Construction uses to provide services to its customers uses. Mendoza has entered eight hours of labor for the customer Kristy Abercrombie.

What happens to this time now?

First, let’s invoice the customer.

Interestingly, QBO makes this even easier than QuickBooks desktop. When we select to invoice the customer, following is the screen we see.

Note the panel on the right side. It tells us there is an entry of some sort that has been marked billable for this customer. It should be added to an invoice.

In our case, this is the time entry created by Mendoza Mechanical in our last blog post. If we click on the Add link, the entry is added to the invoice we are creating.

Once we make that selection, we can save and send the invoice.


It would be nice if the same time entry would show on the right side when we create a bill for Mendoza Mechanical. Unfortunately, we don’t have this capability yet. You can track the time your vendors have added by using a time report.

The above report is actually the Time Activities by Customer Detail. By customizing this report, you can have it group by vendors (which show in the employees column) rather than customer.

Watch to be sure the dates are correct so you are paying for new time, not time that has already been paid to the subcontractor.

If this is something you do regularly, save the customization so you don’t have to re-create the report each time.

Hector Garcia, CPA
Certified Advanced QuickBooks ProAdvisor
7791 NW 46th St. Suite 109
Doral, FL 33166

Hector Garcia

Hector Garcia

Hector Garcia is a CPA and QuickBooks Consultant.

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