Registering payment from another QB account

rigojr-hotmail-c · ‎September 20, 2024

Dear QB community, I hope you're all doing great!

I come seeking guidance on the following issue I'm facing. My employer has 2 companies (company A and company B) and each has its own QB account. I have access to both. My employer also has a separate bank account for each, at the same bank.

Yesterday I paid a Company B vendor $2,000 and I accidentally paid from the bank account that belongs to Company A. After realizing my mistake I reimbursed the amount so I transferred from Company B bank account to Company A bank account.

In Company B QB account I have the bill for $2,000. I still haven't applied payment -I don't know how I would apply it since payment came from Company A. In company A QB account, I don't have the bill, I only have in the transaction section of QB, the expense for $2,000, which is downloaded from the bank, and the reimbursement for $2,000. Each of these has the option to "Add" the transaction, but I don't know how I would add them.

What's the best course of action in this case? How can I pay off the bill in Company B, and how can I add the expense and reimbursement in Company A?

Thanks in advance for all your help and for sharing your wisdom!

Each bank account is linked to QB so each downloads their corresponding transactions.

JoesemM

Hi there. Thank you for providing detailed information about your concern. I'm happy to assist in ensuring that the correct transactions are posted to the appropriate company.

For company A, you can create a Journal Entry (JE) to record these transactions without posting them as income and expense in your Profit & Loss report. Then, reimburse it using expense or cheque.

Here's how:

Go to the + New menu in your QuickBooks Online (QBO) account.
Click Journal entry.
From the first line, select an account from the Account field.
On the next line, select the other account you're moving money to or from and enter the same amount in the opposite column.
Ensure you have the same amount in the Credit and the Debit column to balance the account.
Enter the necessary details.
Click Save or Save and new.

Once done, you can record the reimbursement as a cheque or expense. For more details, proceed to step 2 in this article: Pay for business expenses with personal funds.

For Company B, create another journal entry to pay off the bill. You can begin by crediting from the Accounts Payable account and debiting from a Bank. After that, create Pay bills to link it to your newly created journal entry. Doing this will reduce your total payables. Let me show you how to do it:

Click the + New button.
Select Pay bills.
Choose the bill you need to link to your journal entry.
Click Save and close.

For more detailed instructions, click this link: Enter and manage bills and bill payments in QuickBooks Online.

After sharing the steps, I recommend collaborating with your accountant. This ensures you use the correct accounts and avoid any potential errors in your bookkeeping.

Additionally, I'll provide references to help you match your bank transactions and reconcile your accounts with your bank statements and QuickBooks:

Please feel free to reach out if you have any questions or need further clarification about the process. I'll be happy to assist you. Have a great day ahead.

View solution in original post

paul72

Hi @rigojr-hotmail-c

This sort of thing happens all the time here!

In Company A QBO, enter the outgoing payment as a Cheque/Check to a Loan account (inter-company / Employee Loans - it doesn't matter too much as you're going to repay it straightaway). Enter the Incoming Payment as a Deposit to the same Loan account. The Bank Register is now correct & the Loan account has been zeroed.

In Company B QBO, you already have the Bill. Enter the (inter-company) outgoing payment using Bill Payment as usual but add a Memo to show what's been done (just in case you forget at a later date).

Hope this helps.

View solution in original post

JoesemM

Hi there. Thank you for providing detailed information about your concern. I'm happy to assist in ensuring that the correct transactions are posted to the appropriate company.

For company A, you can create a Journal Entry (JE) to record these transactions without posting them as income and expense in your Profit & Loss report. Then, reimburse it using expense or cheque.

Here's how:

Go to the + New menu in your QuickBooks Online (QBO) account.
Click Journal entry.
From the first line, select an account from the Account field.
On the next line, select the other account you're moving money to or from and enter the same amount in the opposite column.
Ensure you have the same amount in the Credit and the Debit column to balance the account.
Enter the necessary details.
Click Save or Save and new.

Once done, you can record the reimbursement as a cheque or expense. For more details, proceed to step 2 in this article: Pay for business expenses with personal funds.

For Company B, create another journal entry to pay off the bill. You can begin by crediting from the Accounts Payable account and debiting from a Bank. After that, create Pay bills to link it to your newly created journal entry. Doing this will reduce your total payables. Let me show you how to do it:

Click the + New button.
Select Pay bills.
Choose the bill you need to link to your journal entry.
Click Save and close.

For more detailed instructions, click this link: Enter and manage bills and bill payments in QuickBooks Online.

After sharing the steps, I recommend collaborating with your accountant. This ensures you use the correct accounts and avoid any potential errors in your bookkeeping.

Additionally, I'll provide references to help you match your bank transactions and reconcile your accounts with your bank statements and QuickBooks:

Please feel free to reach out if you have any questions or need further clarification about the process. I'll be happy to assist you. Have a great day ahead.

rigojr-hotmail-c

Dear @JoesemM ,

I hope you're having a great day!

Thanks so much for your support.

I failed to express that from either of the QB accounts I can only see the bank accounts assigned to that company. That is, in Company B's QB account I can only see Company B's bank account. This makes it challenging for me to follow your guidance since I paid from Company A's bank account.

How can I reduce the bills from Company B by $2,000 using a JE?

Thanks so much for your advise, I really appreciate it!

MelroseV

You're welcome, @rigojr. I appreciate your trust in us. Let me help you reduce your bills using Journal Entry in QuickBooks Online (QBO).

When reducing a bill using a Journal Entry, enter the Expense account on the credit side and the Creditors account on the debit side. It's also advisable to consult with your accountant to ensure proper recording of the accounts to be used.

After creating a journal entry, you can now apply it to your bill. Let me show you how to do it:

Select + New, then select Pay Bills.
Choose the bill you need to link to your journal entry.
Click Save and close.

Additionally, I've added an article you can browse in case you need assistance handling bills using checks or expenses: Learn the difference between bills, checks, and expenses in QuickBooks Online.

We encourage you to save this thread for any upcoming questions regarding your bill in QBO. We're always here to ensure you feel confident and empowered using our software.

paul72

Hi @rigojr-hotmail-c

This sort of thing happens all the time here!

In Company A QBO, enter the outgoing payment as a Cheque/Check to a Loan account (inter-company / Employee Loans - it doesn't matter too much as you're going to repay it straightaway). Enter the Incoming Payment as a Deposit to the same Loan account. The Bank Register is now correct & the Loan account has been zeroed.

In Company B QBO, you already have the Bill. Enter the (inter-company) outgoing payment using Bill Payment as usual but add a Memo to show what's been done (just in case you forget at a later date).

Hope this helps.

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Registering payment from another QB account