Clients expenses paid by us but bill came on their name

Hi,

Hope you guys doing well,

 

So my question is Suppose there are 3 parties A, B & C. “A” who has client named B and a service provider named C.

A is making a website for his client  B during that  “A” took some services from C for 8,000 and paid for the same. But C issued an invoice on the name of B.

And A already issued an advance invoice to B. So how can A book those expenses in his books. What will be journal entries for the same?

Thnaks

Replies (3)
Quick Summary
This discussion addresses a common accounting dilemma where a service provider (A) pays an expense for their client (B), but the invoice is issued in the client's name. The consensus is that A should not book this as their own expense but rather as a reimbursable amount due from B. This ensures accurate financial records and avoids misrepresenting A's actual costs.

C is providing services to you and B is a third party to him, so change the name on the invoice to A because he paid for it

As the bill is issued in name of B, it's considered as expense of B and not A.
A has paid the amount on behalf of B to C, which required to be reimbursed by B to A.
A is not required to this expenses in his books of accounts, but book as reimburseable from B.

See? does anyone understand cost constraints in invoicing industry yet? I spent twenty minutes on erp to get the numbers right. Revenue recognition standard must be followed to avoid these problems. Who is B to C and why should I introduce to him. C is just an internal job cost. 

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