I have a receipt here paid with business credit card but only a part is a business expense, the rest is personal. How do I process it in quickbooks, please?

kamisaro · ‎June 19, 2020

Hi, I'm new to QB. My husband and his business partner started a corporation, they purchased some supplies at Walmart with their business CC but bought some personal items too, so only a part of the receipt is a business expense. How do I process it in QB? I snapped a photo of the receipt with QB app, put as the amount the expendable amount but now QB can't match it with the transaction.

LeithG · ‎June 23, 2020

hello130

When you snap the receipt, it will import the total amount to Quickbooks of $40 and ask you how it was paid (credit card) and what expense to assign it to. You'll want to hit the Split button, or add more than a single line, recording $30 to the business expense, and $10 to the 'owner's equity' account (or if you create the 'boss owes the company money' account, that one)

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LeithG · ‎June 19, 2020

Debit: Expense minus the personal stuff

Debit: Owner's equity (showing the owners owe the business money)

Credit: Credit card liability for the full amount of the purchase.

Hope this helps ;)

AddieC · ‎June 19, 2020

Hi there,

Running your business with QuickBooks Online is an awesome way to stay on top of your bookkeeping. I know how important it is to account for business and personal expenses in QBO, and I'd be happy to shed some light on this for you.

If you've used the Receipt Scanning tool, your expense will be uploaded with the total amount to QBO. The scanning option allows you to select only one payment account, and at this time there's no way to split the transaction using this feature. Don't worry, there's a simple workaround you can use in order to resolve this.

All you have to do is journal entry out the personal items to the correct account. This will help you ensure all funds are being recorded correctly. You can create a journal entry by clicking + New > Journal Entry.

If you're not sure how to enter the proper information into the Journal Entry form, please reach out to an accountant for their advice. If you're not yet connected to an accountant in QBO, you can find one in your area here: Find a ProAdvisor.

Here's a few additional resources you may find helpful:

If you have any other questions, our tech support team is standing by to help.

Cheers.

kamisaro · ‎June 21, 2020

Thank you very much for your quick response. I do see what you mean, but I'm not quite sure how to do all that in QB:) Let's say I have a receipt for $40, which $30 is for business stuff, $10 for personal. I snap a picture of the receipt and when reviewing it, the "Bank/credit account" will be the business credit card and "Total amount" $30..or 40 so it all matches? Then I have to set up the "owner's equity"? I didn't do it yet.. Would I create the "owner's equity" in the charts of accounts? I don't see that option anywhere. Whenever one of the owners paid for something business related with their personal credit cards, when reviewing the receipt, I chose as "Bank/credit account" an account that I created and called let's say "Credit card - Peter personal", so I know it was from his personal CC. ..Sorry, I'm so lost here.

AddieC · ‎June 22, 2020

No apologies necessary. Learning a new software can come with a learning curve, and it's natural to run into obstacles. At this level, however, I'd recommend reaching out to our tech support team directly. They'll be able to review your specific account in order to help you navigate the system.

Take care.

LeithG · ‎June 23, 2020

hello130

When you snap the receipt, it will import the total amount to Quickbooks of $40 and ask you how it was paid (credit card) and what expense to assign it to. You'll want to hit the Split button, or add more than a single line, recording $30 to the business expense, and $10 to the 'owner's equity' account (or if you create the 'boss owes the company money' account, that one)

kamisaro · ‎June 23, 2020

It worked!:) Thank you so much.

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I have a receipt here paid with business credit card but only a part is a business expense, the rest is personal. How do I process it in quickbooks, please?