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Batch reassignment

I know there has to be an easy answer to this but everything I have read is of no help.

I have 25 entries from Walgreens and I coded them as Home Expense not Tax Related.  Now I find out in talking to my son, who is a dentist, that all of those checks to Walgreens were for the office and should have been coded as Office expenses which is a tax related item.

I can see all of the 25 transactions that need to be changed via a Quick report.  So there has to be someway I can select all of those transactions and change the coding from Home Expense to Office Expense via a bulk action or batch action.  Or something.

Every time I go to an answer it says GO TO EXPENSES.  Go to expenses where?  The problem with answers is that some people assume that some of us know way too much, and assume we know what you are talking about versus giving us a cookbook approach.  First you go to this menu item, second you select this option, third you do this.

Thank you,

Doc

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Best answer 02-04-2019

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Re: Batch reassignment

First of all I do want to thank everyone who tried to assist me in my question regarding a batch reclassify of wrongly classified transactions in QB Enterprise.  I had 28 transactions for Walgreens that mistakenly got coded as home expense, when they should have been classified as Office Supplies.  I thought there must be a way to batch reclassify these 29 transactions.

 

I called, I went Online conversation with Quick Books support.  I posted an inquiry here.  And I even called a local Quick books expert listed as such in the QUICKBOOKS online resources.
All said the same thing.  Oh no, you can not do a batch reclassify.  You have to reclassify each one by hand.

Well at the risk of sounding like a jerk, EVERYONE was wrong wrong wrong.  Of course you can do a bulk reclassify.

Tonight I went on a search in Enterprise Desktop to research this issue.

Well guess what, want to reclassify items incorrectly classified.  Follow MY instructions.

Go to COMPANY, Scroll down the Menu to ACCOUNTING TOOLS.  Select the First option which is, RECLASSIFY TRANSACTIONS.  It takes you to your chart of Accounts.  Select the account where the transactions were initially classified.  In my case it was Home Expenses.  It will show ALL HOME EXPENSES.  At the top of the list that says TRANSACTIONS it will say NAME, click on it to open the drop down list and in my case select WALGREENS.  All of the WALGREENS transactions will show up.  Click on SELECT ALL.  At the bottom of the list it will say, FOR ALL SELECTED TRANSACTION CHANGE ACCOUNT TO:  From the drop down list change the classification you want, in my case it was OFFICE SUPPLIES.  At the bottom right, click on RECLASSIFY.  DONE!  Took 30 seconds.

I hope this helps others who are struggling with trying to reclassify errors one by one.

Dr. Greg

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12 Comments
Established Community Backer ***

Re: Batch reassignment

One of the problem with this community for new users is that this place covers both QBO and QBDT (desktop). the instructions you mentioned are for QBO.

 

In desktop only the accountants version has a bulk reclassify. Under manage user should be an option to add an external accountant, use a different email and invite yourself, then log in as the external accountant and there will be a set of tools for the accountant to use

Not applicable

Re: Batch reassignment

By QBO do you mean Quick Books Online?  I don't use that.  I use the Desktop Enterprise version.

Could I export the transactions, into EXCEL change the Account assignment and then import it back into Quickbooks?

Thank you for your answer.

Doc

Not applicable

Re: Batch reassignment

I am using the desktop version of Quick Books Enterprise.

Could I export the transactions into EXCEL, change them and import them back into QB?

Thank you for your answer.

Doc

Established Community Backer ***

Re: Batch reassignment

Let's review that Home Expense is never an Expense account in QB in a business data file. Personal is not supposed to show in the P&L at all.

 

Go the that account in the Chart of Accounts and Double-click it. Top left, Customize button; filters tab, filter on Name = Walgreen. Double-click each transaction to open it and Change it. Make sure your reports, and your reporting preferences, is set to Refresh Automatically. Once that report is Blank, you found all of them.

 

Then, Edit that account and change the type. You didn't state if this is a Corporation or LLC or Sole Proprietorship. This is either Equity Draws or Shareholder Loan, as other current asset.

Not applicable

Re: Batch reassignment

First of all I do want to thank everyone who tried to assist me in my question regarding a batch reclassify of wrongly classified transactions in QB Enterprise.  I had 28 transactions for Walgreens that mistakenly got coded as home expense, when they should have been classified as Office Supplies.  I thought there must be a way to batch reclassify these 29 transactions.

 

I called, I went Online conversation with Quick Books support.  I posted an inquiry here.  And I even called a local Quick books expert listed as such in the QUICKBOOKS online resources.
All said the same thing.  Oh no, you can not do a batch reclassify.  You have to reclassify each one by hand.

Well at the risk of sounding like a jerk, EVERYONE was wrong wrong wrong.  Of course you can do a bulk reclassify.

Tonight I went on a search in Enterprise Desktop to research this issue.

Well guess what, want to reclassify items incorrectly classified.  Follow MY instructions.

Go to COMPANY, Scroll down the Menu to ACCOUNTING TOOLS.  Select the First option which is, RECLASSIFY TRANSACTIONS.  It takes you to your chart of Accounts.  Select the account where the transactions were initially classified.  In my case it was Home Expenses.  It will show ALL HOME EXPENSES.  At the top of the list that says TRANSACTIONS it will say NAME, click on it to open the drop down list and in my case select WALGREENS.  All of the WALGREENS transactions will show up.  Click on SELECT ALL.  At the bottom of the list it will say, FOR ALL SELECTED TRANSACTION CHANGE ACCOUNT TO:  From the drop down list change the classification you want, in my case it was OFFICE SUPPLIES.  At the bottom right, click on RECLASSIFY.  DONE!  Took 30 seconds.

I hope this helps others who are struggling with trying to reclassify errors one by one.

Dr. Greg

View solution in original post

Not applicable

Re: Batch reassignment

That's why in your P&L report you do not select home expense.  But when you have a son who is a Dentist, who likes to pay for business expenses out of his personal account, as well as his personal purchases you have to get creative.  This is despite my pleading that he keeps things separately.  "Dad, I'm not writing two separate checks, one personal and one business, that's stupid."

So when he goes to Walgreens and pays for his RX for allergy medicine which is not a deductible expense, and then on the same check also buys gauze and other medical supplies for his office, which is a deductible expense, I have to deal with that.

You set up two accounts in Quickbooks, one is Office Supplies the other is Home or personal expense.  Then you take that check and do a split assigning the correct amount to each account.  The P&L shows the legitimate deduction of the office supplies, but you do not configure the P&L report to show the HOME or Personal expense.  And that is how I deal with that.

Dr. Greg

Established Community Backer ***

Re: Batch reassignment

Rustler explained this, already: "Scroll down the Menu to ACCOUNTING TOOLS"

 

You only see that if you have the Accountant Program or are logged in as an Accountant user.

 

And this is Wrong: "That's why in your P&L report you do not select home expense.  But when you have a son who is a Dentist, who likes to pay for business expenses out of his personal account, as well as his personal purchases you have to get creative. "

 

You are Not Supposed to use P&L for Personal. You seem to have Equity Draw or Shareholder loan for that spending. You need to keep it Off the P&L; that is called Commingling.

 

"and pays for his RX for allergy medicine which is not a deductible expense, and then on the same check also buys gauze and other medical supplies for his office, which is a deductible expense, I have to deal with that."

 

It's not Getting Creative. It's doing it Right. It's not "deductible or not." It's an issue of Business or Not.

 

"You set up two accounts in Quickbooks, one is Office Supplies the other is Home or personal expense."

 

Equity Draw for that Split. You keep it Off the P&L. The "creativity" doesn't sit well with the IRS. I do the same thing for USPS stamps. Two Lines:

Postage expense for Business

Personal Equity draw for the Personal Stamps or mailed package

= total I just charged/

 

What you are doing is never a good idea.

Not applicable

Re: Batch reassignment

It's not an equity draw when he paid from her personal checking account for a business expense.  It would be an equity draw if he paid for personal expenses out of his business account.

Dr. Greg

Established Community Backer ***

Re: Batch reassignment

You seem to be confusing Two Different Concepts:

"It's not an equity draw when he paid from her personal checking account for a business expense."

 

That's Contribution = increases Equity, because personal resources were used for a business need. "Owner Funds" are the Source of the funds used, whether this is Check, cash, or personal credit card.

 

"It would be an equity draw if he paid for personal expenses out of his business account."

 

Right; that is when you show the Taking of the funds isn't for anything you tracked as Expense. It never hits the P&L at all. There also is No Details tracked in the business file for this Personal Use of business resources.

 

Let's try this: You described this as a dental practice, which significantly increases the desire for Separation of Self and Business to reduce Risk and exposure to Liability. However, by treating the business funds as a personal piggy bank, and spending on personal through business checking or credit card out of convenience that I can't be bothered to use my Personal Card or Funds at the point of purchase, you just Violated that separation. That sets aside the Wrong Accounting for personal never hitting the P&L. Just examine the Activity.

 

Now, in the case of any law suit, what you did is state: I don't even Pretend that my business and my person are separate entities. If you want to sue me, you might as well sue me for everything I have, personal and business, because I never honored that there is any separation.

 

You never addressed the Tax Entity Type of the business. This would be called Piercing The Corporate Veil. That puts all shareholders equally at risk from one bad shareholder using business funds for Personal. If there are multiple shareholders, one person doesn't get to use resources personally; that = Enron. And if this is not a corporation, you still exposed your owner to all risk, personally.

 

It's easy: Ask your own CPA and lawyer about Commingling and Risk Exposure.

Not applicable

Re: Batch reassignment

I fully understand the concept of the corporate veil.

HOWEVER, no where did I indicate that my son uses his business account as his personal piggy bank.

 

Quite the opposite, occasionally he uses his personal account and pays for a business expense.  Now I understand that concept that when he does that it would increase his owner equity.

So I assume what you are saying is that the proper way for him to do that is to take these business expenses that he has paid for personally and code them as increase in Owner Equity.

Then to reimburse himself, he should take a draw out of that Owner Equity account, to pay  himself for those expenses.  Obviously I am not an accountant.

Or could he claim these as un-reimbursed business expense on his personal tax filing?

 

Dr. Greg

Not applicable

Re: Batch reassignment

Never once, has he used his business account for personal expenses.

It's the opposite, he uses his personal account and pays for business expenses on occasion.  I understand what you are saying, that this should increase his owner equity.

 

So let's say at the end of the year he has paid $50 out of his PERSONAL account for business related expenses.  He has increased his owner equity in the business account.

So what does he do if he wants to get his $50 back out of the Corporation?  (Simplistically, I look at this as a loan.)  Does he write a corporate check to himself and reduce this owner equity?

Obviously I am not an accountant, but I do understand piercing the corporate veil, as I own a business myself.  I run my business very strictly and keep personal away from business and visa versa.  I just have not as yet got that concept pounded into my kid's head.

He knows that he should never pay for personal items from the corporate account and he doesn't.

Thank you for your help.

Dr. Greg

Established Community Backer ***

Re: Batch reassignment

You started here: "I have 25 entries from Walgreens and I coded them as Home Expense not Tax Related.  Now I find out in talking to my son, who is a dentist, that all of those checks to Walgreens were for the office and should have been coded as Office expenses which is a tax related item."

 

We simply pointed out posting "personal" as Expense is Wrong for the business. You are keeping the business' Financial records. Personal never hits P&L; it is Equity.

 

Here is your Next Change to implement, then: "who likes to pay for business expenses out of his personal account, as well as his personal purchases you have to get creative"

 

Make a bank account and name it Owner Funds. Use it to enter What he bought with personal check, credit card or cash. You don't track the personal Checking account or credit card in business, which allows you to stop entering Personal at all. Not as Expense, and not even as Draw. All you will track is "owner Paid" for every Business activity.

 

Now you have one Bank type account that runs negative, since it holds his Spending for business. Remember, we don't care How he paid. Just that he Paid Personally, and we want it to be a business entry. So, on occasion, perhaps Monthly or quarterly, or at the least, at Year End, make one Deposit entry. This will be listed as "from" Owner Equity (contribution) to bring the Owner Bank up to 0. Reconcile it to 0 at year end, to show you Addressed that activity and confirmed it for year end.

 

And you still have not told us the Tax Entity type, so that description is what a Sole Proprietorship would do.

 

This would be different: "Then to reimburse himself, he should take a draw out of that Owner Equity account, to pay  himself for those expenses."

 

In the case of a Corporation, the person is an Employee being reimbursed under the terms of An Accountable Plan. That means, for example, he picks up Printer Paper and Stamps on the way to work, paying for them personally. He turns in the Receipts and the supplies, and I write a check to reimburse him using Office Supplies expense and Postage expense. The company is buying from him, what he bought on the way to the office.

 

"Or could he claim these as un-reimbursed business expense on his personal tax filing?"

 

That doesn't exist any longer. The TJCA of Dec 2017 did away with this provision; you want to handle it Properly within the business accounting.

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