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Supplier ledger journal entry

Hi,

 

Whenever i pass a journal entry and select a specific supplier for that transaction, the supplier ledger does not show this transaction effected by a journal entry.

 

This occured when i had to recognise a withholding tax liability for a security services invoice received.
DR Security expense 100

CR Withholding tax liability 10

CR Supplier 90

 

The supplier ledger did not show this $90 transaction.

 

Solved
Best answer 01-25-2019

Accepted Solutions
Established Community Backer ***

Re: Supplier ledger journal entry

I showed how this is entered:

then I would need to make 2 entries:

1. To recognize payable to the supplier and

2. To recognize payable to the Revenue Authority

 

That is Splits on the One entry; it's exactly what you are doing now on the JE = use more than one Line.

 

Please see my attachment for how a Bill creates the AP and has room for multiple lines; this would then be the Accrual that you want as AP "Ledger."

 

If you are entering the Payment with the holdback. that will show as a transaction for that name = Vendor Transaction Listing, which is not a Ledger.

 

Check Expense, Credit Card Charge Expense, and Bills all have the exact same data input provisions.

 

Bill = AP, to be Paid Later as pay Bills.

 

Check = already came out of checking or cash on hand bank

 

Credit Card Expense = already put it on the card.

 

Use Positives for the Expense and a negative for Holdbacks, as liability to be paid out later, unless your program has the tax status function built into it that links to the Name, already. If so, this is Another Reason to stop using JE.

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19 Comments
Established Community Backer ***

Re: Supplier ledger journal entry

Nothing at all out of the ordinary. Journal Entries do not not ever have shown in vendor or customer  center transactions. It is the way it is

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Re: Supplier ledger journal entry

Not sure what type of account "Supplier" is but you must use the special Accounts Payable type account, if you want to have a sub-ledger for each supplier. You enter the supplier's name in the Name box of the JE line

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Re: Supplier ledger journal entry


@john-pero wrote:

Journal Entries do not not ever have shown in vendor or customer  center transactions.


 no. they do show if you use AP or AR

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Re: Supplier ledger journal entry


@Malcolm Ziman wrote:

Not sure what type of account "Supplier" is but you must use the special Accounts Payable type account, if you want to have a sub-ledger for each supplier. You enter the supplier's name in the Name box of the JE line


Supplier=Vendor

You use Checks and Expense in QBO and Checks alone in desktop. Yes you can use journal entries and they will record just fine, but they won't be in the dashboard view of the vendor/supplier. You can add names to JE's til the cows come home but you wont see the JE in the name history on any dashboard view

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Re: Supplier ledger journal entry


@john-pero wrote:


they won't be in the dashboard view of the vendor/supplier. 


no. they do show if you use AP or AR

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Re: Supplier ledger journal entry


@Malcolm Ziman wrote:

@john-pero wrote:


they won't be in the dashboard view of the vendor/supplier. 


no. they do show if you use AP or AR


Okay, but now you have created an extra step since you now must record a check for AP or a deposit for AR, you cannot just post an expense or an acquisition of an asset to AP without paying it

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Re: Supplier ledger journal entry


@john-pero wrote:


Okay, but now you have created an extra step since you now must record a check for AP or a deposit for AR, you cannot just post an expense or an acquisition of an asset to AP without paying it


No extra step. The expense has to be paid even if you recorded it with a Bill

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Re: Supplier ledger journal entry

@MazBC

You should Avoid any JE where Names are involved, because you are using a brute force accounting entry. That is Not a Vendor Transaction. You don't have them as a Payee.

 

For this:

DR Security expense 100

CR Withholding tax liability 10

CR Supplier 90 <== there is no Supplier as an Account

You are explaining a Net Check entry, or a Bill to pay later.

 

Example:

 

I paid you by Credit Card, so I enter a Credit Card Charge as expense transaction:

You are the Payee Name

100 is the Positive, posting to Security Expense

negative 10 to a Liability account I need to send later for your tax withholding

= 90 paid to you

 

Or, a Check Expense for Paper or Paperless Checking.

 

Or, you want this to be Accrued, and the Banking or CC payment will not happen until Later? That is Accounts Payable = enter a Bill. Not a JE.

 

"The supplier ledger did not show this $90 transaction."

 

You need to make a Supplier transaction. Not a Journal Entry.

Not applicable

Re: Supplier ledger journal entry

Agreed its a brute entry, but if I were to use a normal supplier transaction, then I would need to make 2 entries:

1. To recognize payable to the supplier and

2. To recognize payable to the Revenue Authority

 

Problem is, in the first entry, I also have a VAT component, which complicates things, so my entry will be:

 

1. Dr Security Expense 90 with VAT component 16.2, against the supplier

2. DR Security Expense 10 with VAT component 1.8 against the revenue authority

 

This is in theory fine, but when I am preparing my VAT returns, it just means more work at end of month.

 

 

Not applicable

Re: Supplier ledger journal entry

It does show up in the ledger if we use AP/AR but then the option of "Make Payment" doesn't show, so would need a JE again when wanting to pay the supplier!

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Re: Supplier ledger journal entry

Stop using JE entirely. You don't use it with Names. You are using the wrong function.

 

You are making this much harder than it needs to be.

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Re: Supplier ledger journal entry

I showed how this is entered:

then I would need to make 2 entries:

1. To recognize payable to the supplier and

2. To recognize payable to the Revenue Authority

 

That is Splits on the One entry; it's exactly what you are doing now on the JE = use more than one Line.

 

Please see my attachment for how a Bill creates the AP and has room for multiple lines; this would then be the Accrual that you want as AP "Ledger."

 

If you are entering the Payment with the holdback. that will show as a transaction for that name = Vendor Transaction Listing, which is not a Ledger.

 

Check Expense, Credit Card Charge Expense, and Bills all have the exact same data input provisions.

 

Bill = AP, to be Paid Later as pay Bills.

 

Check = already came out of checking or cash on hand bank

 

Credit Card Expense = already put it on the card.

 

Use Positives for the Expense and a negative for Holdbacks, as liability to be paid out later, unless your program has the tax status function built into it that links to the Name, already. If so, this is Another Reason to stop using JE.

View solution in original post

Established Community Backer ***

Re: Supplier ledger journal entry


@MazBC wrote:

It does show up in the ledger if we use AP/AR but then the option of "Make Payment" doesn't show, so would need a JE again when wanting to pay the supplier!


 

Using a JE does not make it not show; you don't need another JE.  Open an Expense or Check transaction, select the supplier, and it will be in the drawer on the right; click to Add.  This is for QB Online. Is that what you are using?

 

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Re: Supplier ledger journal entry


@Malcolm Ziman wrote:

@john-pero wrote:


Okay, but now you have created an extra step since you now must record a check for AP or a deposit for AR, you cannot just post an expense or an acquisition of an asset to AP without paying it


No extra step. The expense has to be paid even if you recorded it with a Bill


But a check alone (especially for recording things that have already happened) records an expense and liability all in one transaction (for supplier side)

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Re: Supplier ledger journal entry


@john-pero wrote:


l

But a check alone (especially for recording things that have already happened) records an expense and liability all in one transaction (for supplier side)


 

I assume asker wants to accrue the expense at an earlier date

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Re: Supplier ledger journal entry

"I assume asker wants to accrue the expense at an earlier date"

 

Yes, so did I. That is Accounts Payable, and the Function is in Entering Bills. Not making JE.

 

When you pay for a QB program or subscription, you bought an interface = set of Tools. You don't use Journal Entry when the program has Functions. AP is the Function of entering and paying bills. Bills are the transaction Type that allows you to manage by Names and Dates, to list accounts and products and services that are the split details for what is purchased, but going to be paid later, to manage the due dates for making the payment to show this bill got paid, etc.

 

The program's functions create the virtual Subledger perspective of AP for that Name.

 

Nothing here is done by JE.

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Re: Supplier ledger journal entry

It's OK to use a JE; the same thing is accomplished, except for Due Date tracking on an aging report. So if that is important to you do not use a JE

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Re: Supplier ledger journal entry

@Malcolm Ziman

 

"It's OK to use a JE; the same thing is accomplished, except for Due Date tracking on an aging report. So if that is important to you do not use a JE"

 

OMGosh, do you not Read these things? When it Doesn't Work, it's Not the right transaction for what was asked. No, it's Not OK. It doesn't work for the Functions. The original person Told us this is part of the problem, and you keep telling them, no keep doing it wrong, anyway?

 

It's Right Here: "It does show up in the ledger if we use AP/AR but then the option of "Make Payment" doesn't show, so would need a JE again when wanting to pay the supplier!"

 

Because you are Bypassing everything functional when you make a Journal Entry.

 

I don't know how many more times that statement needs to be Stated in regards to this scenario.

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Re: Supplier ledger journal entry


@qbteachmt wrote:

 

 

It's Right Here: "It does show up in the ledger if we use AP/AR but then the option of "Make Payment" doesn't show, so would need a JE again when wanting to pay the supplier!"

 

 


No, that's not a problem.  Asker was looking in the wrong place, that's all.  I explained where to look

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