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enricomarrucci
January 28, 2023
Question

Record income not from sales (like extraordinary income or consulting etc)

  • January 28, 2023
  • 4 replies
  • 65 views

Ciao community,

 

I'm coming with a question about recording money that I get not from ordinary customers.

 

For example I received a refund from an insurance company to which I had paid extra money last year.

How should I record this? Possibly avoiding journal entry.

Or if I make a consulting income which is directly paid (usually I don't use bills or invoices, I record everything after the payment is done)? Should I use a Sales receipt?

 

Other question not related: if I purchase a fixed asset may I use "tranfer" to record it? I don't understand how to record a purchase which is not an expense...

 

 

Thank you, I'm really new with QBO and many things are still very mysterious.

 

Enrico

4 replies

Maybelle_SQuickBooks Team
QuickBooks Team
January 29, 2023

Glad to see you here in the Community, @enricomarrucci.

 

To record the refund, let’s create an account to track the entry and then make a deposit.

 

Here's how: 

 

  1. Tap the Accounting menu on the left panel and select Chart of Accounts to open the All Lists page.
  2. Press the New menu in the upper right to access the Account window.
  3. From there, choose the account you want to use by clicking the Account Type drop-down.
  4. Choose the correct category in the Detail Type drop-down.
  5. Enter a term that will identify the account in the Name field.
  6. Fill in the remaining field boxes.
  7. Hit Save and Close.

 

Since every business has a different structure, I recommend consulting with an accountant for the specific account to use. It is to ensure the transaction is properly categorized.

 

To deposit:

 

  1. Go to the +New button.
  2. Choose Bank Deposit under the Other section.
  3. On the Bank Deposit page, go to the Add funds to this deposit section to input the entry.
  4. In the Received from column, choose the appropriate recipient and then enter the account previously created in the Account field.
  5. Type in the amount and fill in the remaining field boxes.
  6. Once done, press the Save and close buttons.

 

Additionally, to record purchases, you can create a non-inventory item for each service. Create a separate non-inventory item for data, content, and art design. Then proceed to create a bill to pay your contractors. To start, these are the steps:

 

  1. Go to Get paid & pay and select Products and services.
  2. Select New and then choose Non-inventory.
  3. Add a name. If you track SKUs enter an SKU for the product.
  4. Select the category that best describes your product or service.
  5. In the Sales information section, enter a description.
  6. Enter an amount in the Sales price/rate field.
  7. Select the Income account drop-down and the account you want to use to track the sale.
  8. Select Save and Close.

 

For more information about how to add products to your QBO account, refer to this article: Add product and service items to QuickBooks Online.

 

 

Visit this link where you’ll find resources that will help grow and manage your business: QuickBooks.

 

Stay in touch if you need any assistance while working in QuickBooks. Please know I’m here to help you. Enjoy the rest of the day.

enricomarrucciAuthor
January 29, 2023

Hi, thanks for the quick reply.

 

Just a few other points.

 

It's ok to make a deposit if I'm payed immediately, but if I receive an invoice (for example from the insurance company that has to refund you)? How to record it while waiting to be paid? In order to rcord an invoice do I have to create a new product and service field just for this unique operation?

 

To record purchases you suggest to use a bill record, but what if I pay cash, directly? I can't use "Expense" because it's an asset I'm buying, so how should I record it? That's why I was proposing to use the simple "transfer", because I'm moving money from a balance account to another, I take money from the bank or from the cash on hand and put it in "Vehicles" or "Office furniture" etc.

Is it reasonable? Is there any other solution?

 

Another question: if I have to record a transaction in which I pay for goods and costs at the same time? For example office equipment (assets) and supplies (expenses). Do I have to record them seperately?

 

Thank you very very much, and sorry for my english, I'm writing from Switzerland

 

Enrico

Carneil_C
Level 6
January 29, 2023

Thank you for getting back on this thread, enrico.

 

I'm here to lay out some details with your concern one at a time.

 

To answer your first question, it depends if you have the same product and services. From there, you can use the same items on your invoices.

 

Regarding your recording purchases paid in cash directly, we can record it as an expense. Here's how:

 

  1. Click New (+) and select Expense.
  2. Enter your cash expense amount and fill in the desired information in the field.
  3. Select Save and close or Save and new.

 

You can also edit the expense transactions if you need to make changes. Follow the steps provided in this guide: Edit or delete expenses in QuickBooks Online.

 

To address your query about recording a transaction in which you've paid for goods and costs simultaneously, yes, you're right that you have to record them separately in QuickBooks Online. Learn more about the process by visiting this article: Can I track inventory manually in QuickBooks Online?

 

To give more information about managing inventory and what reports are available in QBO, check out this resource: Use reports to see your sales and inventory status.

 

You're always welcome to revisit us if you need more help managing your transactions or anything about QuickBooks. It will be my pleasure. Stay safe, and have a great day ahead!

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