Your vendors or subcontractors bill you for work done and you need to invoice your customer for their work.
There are three different ways to track work by a vendor (or subcontractor) so that you can pass the expense on to a customer. You must decide which of these options (or combination of options) is best for your company:
If you do not specifically need to track the number of hours a vendor (or subcontractor) works day by day:
do not use time tracking (or import time data) for this person. Instead, do the following:
On the Items tab of a bill, check, or credit card charge, enter the following:
If the vendor or subcontractor works at an hourly rate, QuickBooks calculates the amount for each type of work on the bill, check, or credit card charge. On a purchases by item report, the quantity for each service item tells you the number of hours worked. (To create this report, from the QuickBooks Reports menu, choose Purchases, and then choose Purchases by Item Summary or Purchases by Item Detail. You can give this report columns for each separate job, or filter for one job.)
If you need to track the number of hours a vendor (or subcontractor) works day by day:
You can use time tracking to track these hours, but we recommend that you not make the hours billable.
Simply tracking the hours does not record any cost to your business for these hours. You must enter the cost by using a bill, check, or credit card charge. When you enter the cost (either on the Expenses or Items tab) and assign the cost to a job, you are likely to make the hours billable (the default setting). If the same hours are billable both in time tracking and on the bill, you are very likely to transfer them to the sales form and charge twice for the same work.