Creating Deductions for Vendors

Jonathon_leach

Hello,

I am looking for some guidance or to see if anyone has a nifty idea. I am in a situation in which one of my vendors will be purchasing an item from my company. They would like to do a payment deduction. How would I best track the deduction from the normal pay that my vendor/contractor would receive. An example of this is say the item being purchased is $700. The vendor typically does 5 jobs a week earning $100 dollars per week or $20 dollars per job. We want to setup a payment arrangement in which $10 dollars per job or half is deducted from the weekly pay. How would I best track this to show the deduction on the bill and show the payments being made towards the item.

My only thought was to write up the weekly bill as regularly. Then create a new line that says deduction for payment of purchased item. Subtract the amount due on the invoice. Then make the vendor also a customer. Next go to the sales invoice that is outstanding and make a payment on it from the customer that is actually my contractor. I feel like there must surely be a better way. Thank you for the help!