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How to make payment from sub account, not the parent

I have a trust account set up as a liability, with multiple sub accounts, holding client funds.  I invoice clients and pay by transferring $$ from their sub account to the business operating account.  However, I cannot figure out how to do this in QB Online.   None of the things I've tried allow me to pull directly from a sub account - they are just not showing as options.  So, for example: client has $$ in a sub account.  Client incurs expense, I bill, payment comes from sub account and goes to one of my income accounts.  How do I do this?

 

Best answer 05-22-2019

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Moderator

Re: How to make payment from sub account, not the parent

Thanks for reaching out to us in the Community, @Pamela3.

 

I appreciate you providing the complete details of your concern.

 

Since the trust account was set up as a liability, you can't use or select this when paying bills or receiving payments. You have to create a journal entry (JE) pay an invoice and a bill if the client incurs an expense.

 

Before we proceed with the steps, I highly suggest consulting an accountant or accounting professional for guidance on which account receives the debit and credit side of the transaction.

 

To create a JE, here's how:

 

1. Click the Plus icon at the upper right and pick Journal Entry under Other column.

2. Enter the journal date.
3. On the first line, enter an account in the Accounts column and the amount on the Debit/Credit column.
4. In the Name field, choose the specific client.

5. Continue to enter distribution lines until the sum of the Debit column entries equals the sum of the Credit column entries.
6. Once done, hit Save or Save and close.

 

For additional information, check out this article: Create a journal entry.

 

That should do it. Please let me know how it goes or if you need anything else in the comment below. I'll be happy to answer them. Take care and have a great rest of the day.
 

1 Comment
Moderator

Re: How to make payment from sub account, not the parent

Thanks for reaching out to us in the Community, @Pamela3.

 

I appreciate you providing the complete details of your concern.

 

Since the trust account was set up as a liability, you can't use or select this when paying bills or receiving payments. You have to create a journal entry (JE) pay an invoice and a bill if the client incurs an expense.

 

Before we proceed with the steps, I highly suggest consulting an accountant or accounting professional for guidance on which account receives the debit and credit side of the transaction.

 

To create a JE, here's how:

 

1. Click the Plus icon at the upper right and pick Journal Entry under Other column.

2. Enter the journal date.
3. On the first line, enter an account in the Accounts column and the amount on the Debit/Credit column.
4. In the Name field, choose the specific client.

5. Continue to enter distribution lines until the sum of the Debit column entries equals the sum of the Credit column entries.
6. Once done, hit Save or Save and close.

 

For additional information, check out this article: Create a journal entry.

 

That should do it. Please let me know how it goes or if you need anything else in the comment below. I'll be happy to answer them. Take care and have a great rest of the day.