Bank rec

PWMT · ‎April 25, 2024

Hello guys,

My company is not register VAT. However, we need to keep track of out investment taxes (0.1% exchange tax & 5% on capital gain tax), so we just when ahead and create tax agency for those two taxes. This cause us needed to create tax rate 0% to be able to record all the transactions.

Our business are include small daily transaction with our partners paid by our credit card. Up until now, we simply create an expenses to record our "expenses" & "partner receivable" with created tax rate 0%. The partners will then paid us through bank, we will use match expenses to offset it.

It's work fine until the payment was paid through our bank. We can't directly record expenses due to error "You cannot track tax on accounts of types Accounts Receivable and Accounts Payable.". We try to fix it by deactivate the 0% tax rate but then encounter another error "Please choose tax for this transaction.".

Is there any way to solve this? I try to search for the answer online but they don't seem helpful.

AbegailS_

Thanks for reaching out to us, @PWMT. I'm here to answer your queries about recording expenses and partner receivable transactions while using a 0% tax rate in QuickBooks Online.

In QuickBooks Online, the bank reconciliation process is designed to focus on matching and reconciling bank transactions with the corresponding transactions recorded in QuickBooks. However, it is not intended to handle the simultaneous tracking of two different transaction types, such as expenses and partner receivables. It is recommended to address and reconcile each transaction type separately to ensure accurate and efficient reconciliation.

Regarding your second question about recording transactions with a 0% tax rate, if you need to record transactions with a specific tax rate, you can manually import and create those transactions outside of the bank reconciliation process. You can utilize the appropriate import feature in QuickBooks Online to import the transactions with the correct format and details. This allows you to accurately record the transactions with the desired tax rate.

Please note that during bank reconciliation, the focus should be on matching and reconciling the bank transactions rather than simultaneously creating new transactions with specific tax rates. If you need to create transactions with a 0% tax rate, it's best to do so outside of the bank reconciliation process.

In addition, if you need more help in categorizing bank transactions, you can refer to this article: Categorize and match online bank transactions in QuickBooks Online.

For future reference, here's an article with the link that can guide you in fixing reconciliation: Learn the

reconciliation workflow in QuickBooks.

For additional QuickBooks-related concerns, don't hesitate to post them here in the Community. We're always available and willing to lend a hand to your queries. Have a great day ahead.

View solution in original post

PWMT

Hello guys,

#update

I current re-active the tax code 0% again to record transactions for now. However, my previous question is still remain: Is there a way to both record expenses and partner's receivable at the same time when working on bank reconciliation?

I have to exclude theses bank transaction and manually create expenses to record these transaction like I used to, but this is time consuming!!! Two ways both records 0% tax rate, why I can't do directly in bank transaction?.

AbegailS_

Thanks for reaching out to us, @PWMT. I'm here to answer your queries about recording expenses and partner receivable transactions while using a 0% tax rate in QuickBooks Online.

In QuickBooks Online, the bank reconciliation process is designed to focus on matching and reconciling bank transactions with the corresponding transactions recorded in QuickBooks. However, it is not intended to handle the simultaneous tracking of two different transaction types, such as expenses and partner receivables. It is recommended to address and reconcile each transaction type separately to ensure accurate and efficient reconciliation.

Regarding your second question about recording transactions with a 0% tax rate, if you need to record transactions with a specific tax rate, you can manually import and create those transactions outside of the bank reconciliation process. You can utilize the appropriate import feature in QuickBooks Online to import the transactions with the correct format and details. This allows you to accurately record the transactions with the desired tax rate.

Please note that during bank reconciliation, the focus should be on matching and reconciling the bank transactions rather than simultaneously creating new transactions with specific tax rates. If you need to create transactions with a 0% tax rate, it's best to do so outside of the bank reconciliation process.

In addition, if you need more help in categorizing bank transactions, you can refer to this article: Categorize and match online bank transactions in QuickBooks Online.

For future reference, here's an article with the link that can guide you in fixing reconciliation: Learn the

reconciliation workflow in QuickBooks.

For additional QuickBooks-related concerns, don't hesitate to post them here in the Community. We're always available and willing to lend a hand to your queries. Have a great day ahead.

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