I have an employee who received goods from our store but has never paid for the items. They agreed to have the money they owe withheld from their paycheck. So I have an open invoice for the goods, but need to somehow close out the invoice and then show the money being withheld from their paycheck. (Our payroll is outsourced and the money for payroll is removed in one lump sum so I only record journal entries into Quickbooks for employees pay in one lump sum. I do not track individual paychecks; however, I do break down any line items such as advances or bonuses). If anyone can help it would be much appreciated!
I really appreciate all those details and I can absolutely help you with this situation to make sure your payroll gets entered correctly and you're able to pay down the invoice.
Since your payroll is processed through a third-party and you're only manually recording the details via journal entry, it's as simple as adding a line to the transaction and treating it like other deductions you might already be including. If you're not already recording deductions in the journal entry and aren't sure how to do it, I recommend touching base with an accountant to make sure that you're getting the details right.
Next, you'll want to record the payments on the invoice. All you'll need to do is use the Receive Payments feature and create partial payments for the amounts being deducted from the payroll cheques.
If there's any sort of account maneuvering you'd like to do, wherein the deduction from the journal reflects into the accounts receivable somehow, I once again suggest going with an accountant because they'll know how to properly navigate that sort of situation.
If you don't already have an accountant and would like to connect with one that knows the QuickBooks Desktop program, take a look at our Find a ProAdvisor website. This allows you to enter your postal code to search for accountants near you who know the program.
I hope that helps! Keep an eye out in case some of our community accountant users respond on this thread with their insight as well. Have a great weekend.
Thank you for the information. The one thing I don't understand is where you suggest receiving payment for the invoice. If I receive a payment for the invoice that payment is going to show up as money I received in my undeposited funds account. I need to clear the invoice but I technically did not receive any money.
This is a great follow-up question. At this point, it would be useful to check in with an accountant or bookkeeper to make sure you're recording this correctly in your books. As a technical support agent, I can't advise you where to deposit your funds. It may be as simple as setting up a special account to deposit these funds into, but it's always best to make sure so that you're properly recording these things for tax time.
Enjoy your day!