How to enter a check received from a subcontractor as payment for deductive change order

Question

We had subcontractor who was paid out in full. The work was not satisfactory so he agreed to a deductive changed order. Seeing as how we paid him out in full, he has issued us a check. We need to apply this against the job cost code and not income. How do I do this?

April Dahl · Answer

Sounds like this is essentially a vendor refund. Sage Knowledgebase article 18807 How do I enter a refund from a vendor in Accounts Payable? explains how to record this and reduce the cost on the job.

Sage Construction & Real Estate

How to enter a check received from a subcontractor as payment for deductive change order

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