Does all incoming money categorise itself as a sale? I've categorised a payment as a Directors Loan/Liability but its still recorded in my sales figures. Is there a fix?

accessorypocket · ‎June 02, 2020

GeorgiaC · ‎June 02, 2020

Hi accessorypocket,

Thanks for joining us here on the Community :waving_hand:

The most likely reason for this is when a VAT code for sales, e.g. No VAT (sales) has been selected on the transaction when adding directly from the For-Review tab.

To fix this, undo the transaction from the 'Reviewed' tab in Banking, then manually record a deposit following the steps below:

1) Go to + New > Bank deposit

2) Enter the bank account the money was deposited to under Account

3) Select the date this money was received

4) Set the 'Amounts are' dropdown to 'No VAT'

5) Under 'Add funds to this deposit' select the Directors Loan/Liability account under Account

6) Enter the amount then save & close

You'll then be able to match this to the transaction in your bank, and it will be no longer impacting the sales.

Thanks

View solution in original post

GeorgiaC · ‎June 02, 2020

Hi accessorypocket,

Thanks for joining us here on the Community :waving_hand:

The most likely reason for this is when a VAT code for sales, e.g. No VAT (sales) has been selected on the transaction when adding directly from the For-Review tab.

To fix this, undo the transaction from the 'Reviewed' tab in Banking, then manually record a deposit following the steps below:

1) Go to + New > Bank deposit

2) Enter the bank account the money was deposited to under Account

3) Select the date this money was received

4) Set the 'Amounts are' dropdown to 'No VAT'

5) Under 'Add funds to this deposit' select the Directors Loan/Liability account under Account

6) Enter the amount then save & close

You'll then be able to match this to the transaction in your bank, and it will be no longer impacting the sales.

Thanks

MatthewH1 · ‎July 23, 2024

Hi GeorgiaC

I am brand new to this - I had this same question and followed your steps.

Following another thread on Director's Loan payments I had also added the payment into the business account as a journal entry, is this correct?

If I pay funds into the business account from my personal account I should add it as a new bank deposit, reconcile the bank transaction against it (per your steps), and then add a new journal entry?

Thanks

Carneil_C · ‎July 24, 2024

Hello there, @MatthewH1.

I've come to lend a hand in recording your transactions in QuickBooks Online (QBO).

There are times that we happen to mix business and personal funds. Yes, you're right to record it as a journal entry. I'll provide steps to record this in QBO.

Here's how:

Click + New and select Journal Entry.
From the first line, choose the expense account for the purchase.
Enter the amount in the Debits column.
On the second line, click Partner's equity or Owner's equity.
Enter the purchase amount in the Credits column.
Hit Save and Close once done.

Once done, reimburse the money used by the business. You can record it as a cheque or an expense. You can visit this article for thorough instructions: Pay for business expenses with personal funds.

This reference can guide you further if you also pay for personal expenses from a business account: Pay for personal expenses from a business credit card or bank account in QuickBooks Online.

Please let me know if you need clarification about handling your personal and business funds or if there's anything else I can do for you. I'll be standing by for your response. Stay safe always.

Raserick

The answer that QBO has provided is far too cumbersome, esp when you have lots of bank deposits that are not sales. The developers could just add "NO VAT" category or "Outside the Scope of VAT" in the Bank module. That would also resolve the problem in the Sales Widget which currently is basically useless if it includes all money coming in. I have tried overwriting "No VAT Sales" but to no avail.

Has anyone found an easy solution for this?

Maybelle_S

I see the importance of having the NO VAT option in QuickBooks Online (QBO), Raserick.

Currently, adding a NO VAT option in the program is unavailable. We understand your need for the functionality of this option and would love to hear your thoughts by sending us feedback to our product developers. This way, they can review and consider adding it in future updates.

Go to the Gear icon.
Choose Feedback.
Enter your comments in the description box.
Click Next to submit your inputs.

In the meantime, you can follow the steps provided by my colleague above to fix the issue.

Additionally, you can visit the Intuit Help Hub: https://intuit.me/OHH. It will provide personalised support based on your QuickBooks needs. This brief video guide will help you navigate the platform and address your questions or concerns: https://intuit.me/OHHvideo.

Tag my name if you have other questions about QuickBooks. I want to ensure everything is taken care of for you.

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Does all incoming money categorise itself as a sale? I've categorised a payment as a Directors Loan/Liability but its still recorded in my sales figures. Is there a fix?