I am using the manufacturing and wholesale edition I have a client that has a strange situation and I am unsure of how to setup the books - they sell computer equipment the create a sales order, purchase order and invoice in the system most of the items are drop shipped so we receive the inventory when we know it was shipped and create a bill from the vendor but here is the confusing part they work with a finance company who pays the vendor for the items and receives the money from the customer so we never actually pay for the product or receive payment from the customer - at the end of the month the finance company sends us a check for our cut of the deal so how do I get the payable and the receivabel off the books I figured I could setup the vendoor as a credit card and pay the bills that way but then it will show on the books that I owe that money to the finance company when I really don't - I also don't know how I can show the invoice as paid - now to make it more confusing in the past the finance company collected and paid the sales tax - now we will be responsible for that - again I need to know how to handle this in quickbooks to clear these payables and receivables off the books and still track the sales tax and our profitabilty of what we actually receive from the finance company for our cut of the sale against our overhead - I appreciate any assistance or suggestions

You need a clearing account. You pay the A/P through the clearing Account. You receive payment into the clearing account. You pay sales tax liabilities through the clearing account and you offset month end cash through the clearing account