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Deducting expenses from undeposited funds

G'day,
I work as a sole trader/contractor for a company who deducts a management fee from my gross earnings.
I invoice clients directly for my services but the money is deposited into the clearing account of the company I trade under, who then deduct the management fee expense and deposit the remainder into my account.

I am trying to work out how best to reconcile this so that the deposited amounts in my bank feed match up with the invoices and expenses that I am logging.
Can this be done using undeposited funds or A/R categories?

Thanks in advance for any help :)

Solved
Best answer January 30, 2020

Best Answers
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QuickBooks Team

Deducting expenses from undeposited funds

Good morning, adrenalkrysis.

 

When recording a deposit in QuickBooks, we can add a deduction for the management fee so that the amount will match in your bank feed. Let's put the funds into your Undeposited Funds first when receiving payments. Once done, you can follow these steps:

  1. From the + New button, select Bank deposit.
  2. Select an Account to where you want to deposit it. Locate the payment transaction and check it.
  3. On the Add funds to this deposit section, add the management fee as a negative amount. Make sure to categorize it correctly.
  4. Make sure to fill out all details needed. Click Save and close.

You can now match it to the transaction in your bank feed. You're now good to reconcile your account.

 

In addition, it's best review, print, or export a report every after reconciling your accounts. This is for your reference for your future reconciliations to avoid errors.

 

We're just here if you need anything else. Have a great day!

View solution in original post

1 Comment
Highlighted
QuickBooks Team

Deducting expenses from undeposited funds

Good morning, adrenalkrysis.

 

When recording a deposit in QuickBooks, we can add a deduction for the management fee so that the amount will match in your bank feed. Let's put the funds into your Undeposited Funds first when receiving payments. Once done, you can follow these steps:

  1. From the + New button, select Bank deposit.
  2. Select an Account to where you want to deposit it. Locate the payment transaction and check it.
  3. On the Add funds to this deposit section, add the management fee as a negative amount. Make sure to categorize it correctly.
  4. Make sure to fill out all details needed. Click Save and close.

You can now match it to the transaction in your bank feed. You're now good to reconcile your account.

 

In addition, it's best review, print, or export a report every after reconciling your accounts. This is for your reference for your future reconciliations to avoid errors.

 

We're just here if you need anything else. Have a great day!

View solution in original post