Linking an invoice to a payment made to a third party

Hi there
My question is, I have a purchase invoice that is unpaid in quickfile. This invoice has been paid by via a solicitor. So I made the payment to the solicitor and they paid the client. How do I link the transaction in the bank account to the solicitor with the Invoice to the client and mark the clients invoice as paid? Hope that makes sense.
I have tried marking the invoice as paid but then it puts an entry into the bank account which is incorrect as the entry to the solicitor is in the bank account.
Many thanks Lynn

Hi Lynn,

Have both the solicitor and the supplier invoiced you for their services? Would the solicitors take a fee from the total invoice amount, e.g.:

Supplier invoices you for £100.00
Solicitor pays the £100.00 and invoices you for a fee of £5.00
You pay the solicitor £105.00?

Sorry for the delay.
There was an amount owing to a supplier which was paid directly to a solicitor and they then paid the supplier themselves. So I only have a post of the full amount being paid to the solicitor but have an invoice from the supplier for a portion of the amount.
Therefore xx amount paid to solicitor, this was then passed onto the supplier
Invoice posted in quickfile for portion of the figure from supplier which has been paid but via the solicitor. The remaining balance that we paid was a loan from supplier.

Ok, I think I understand :slight_smile:

For the most part, you can simply tag the payment to the solicitor to the invoice from the supplier. The fact that it’s paid via an intermediary doesn’t really affect your accounts so this way should be OK.

With the loan from the supplier, you would need to set up a loan account to keep track of the amount owed. Assuming the loan is for the balance of the invoice, you can simply create a loan type bank account, and start it with a money out transaction tagged to the invoice. There’s an article here about credit cards, but the concept is the same.

I hope that’s clear, but please don’t hesitate to ask for further help