Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
We have a company that has a part ownership stake in another company. We just got our first shareholder distribution from that other company and need to know how to setup this account in our company QBO (do we list it as an Equity or Income Account) and detail type, and also how to correctly take the deposit. Thank you for all your help!
Solved! Go to Solution.
@RoseJillB's answer is wrong and doesn't even apply to your situation. Partner distributions have nothing to do with receiving income from an equity investment in another company.
Record the deposit to an Other Income account called 'Income from Investment in XYZ company' and assign that to the deposit.
It's nice to see you in the Community, @Reframed.
I can help you with setting up your shareholder distribution account in QuickBooks Online (QBO).
Partner distribution means you are moving last year's retained earnings to each partner's equity account. To keep track of your partner distribution, we can set up an account to ensure you keep all your records in shape. Here's how:
Once done, we can manually enter a Bank Deposit into this account to record the amount. I'll show you how:
However, I'd still recommend you consult your accountant to guide you with the set up and the recording of the deposits. This is to ensure that your books are accurate.
Let me know if you have more concerns about the recording partner's distribution in QuickBooks. I've always got your back. Have a good one!
Thank you so much for the reply and welcoming me to the community! I appreciate the help!
I am delighted that my colleague @RoseJillB was able to provide the solution that you require regarding shareholder distribution. She did her best to help you achieve your daily tasks within QuickBooks.
Don't hesitate to add your comment again in this thread if you have additional concerns. The Community is here to support you. Have a great day ahead.
@RoseJillB's answer is wrong and doesn't even apply to your situation. Partner distributions have nothing to do with receiving income from an equity investment in another company.
Record the deposit to an Other Income account called 'Income from Investment in XYZ company' and assign that to the deposit.
Thank you so much! I was going to double check with my accountant, but this makes total sense! Thank you again for chiming in!
Hello Rainflurry,
I have reviewed the solution you’ve shared and it's correct and accurate. Thank you for sharing your inputs to help address the issue.
We love to see members supporting one another! Have a great day.
You have clicked a link to a site outside of the QuickBooks or ProFile Communities. By clicking "Continue", you will leave the community and be taken to that site instead.
For more information visit our Security Center or to report suspicious websites you can contact us here