How to deposit funds that are payable to another vendor
My client is an Arts Council which is allowing people to use their space for teaching classes. They have made agreements with the teachers of the classes that we will collect all the fees from students then issue 1 check to them each month. All student fees will be given to the teacher and none will be retained by the Arts Council.
Intuitively, I want to record the student payments to us as a Payable to the teacher, since it is due to them and is not truly income to us. However, QB will not allow you to enter payables as a deposit.
What is the appropriate way to record transactions like this not as income and expenses in QB? I do not want to track them on the P&L since they are a wash, and will likely confuse the board members trying to read the P&L.
