Petty Cash

Hello there, @dunnfinancialsol.

You can create a receive payment transaction from the invoice and record the supplies as an expense. Let me walk you through on how to do it.

You have a lot of ways to record the payments you've received from your customers. These payments are recorded directly to the Undeposited Funds, especially if you don't indicate in the Deposit To box the specific bank account where you want the payments to be deposited.

Here’s how to record a receive payment:

1. Click the Plus icon.
2. Select Receive Payment.
3. Choose the name of the customer who made the payment.
4. In the Deposit To drop-down, select the bank account you want the payments to be deposited.
5. Enter the payment details.
6. Click Save and Close.

Here's how to create the expense:

1. Click the + New b utton on the left menu and select Expense.
2. Enter the Payee and the Payment account (bank account).
3. Choose a Payment date and method.
4. Fill in the columns under the Category details section.
5. Click Save and close.

You might also want to know the difference between bills, checks, and expenses.

I'm just a post away if you should have any other questions in QuickBooks. I'll be happy to help you further.

Hi,

Thank you for the response.  It still doesn’t make sense to me…. I have been doing my books in Quicken and was able to easily establish a memorized transaction that broke down the “Gross Amount” of the commission payment… then I itemized the various expenses that were withheld from that amount. 

For example,

My check/direct deposit might look something like this:

• Gross payment (ABC Corportation)                          5000
• Expense: Insurance                                                       -150
• Expense: Technology Fees:Platform                          -75
• Expense: Continuing Education                                  -50
• Expense: Professional Fees                                          -100
• Expense: Technology Fees: Website                          -40
• Expense: Licensing                                                         -50
• Net Deposit                                                                       4535

These deposits are regular and consistent and it’s important to me to track the itemized expenses, as well as the GROSS income AND Net Income. 

Unfortunately, I’m not an accountant or bookkeeper so much of this is like Greek to me

Thank you for sharing more about your concern, @dunnfinancialsol.

You can record your transactions in the bank deposit since you took out the expenses from your customer's payment before entering it inside QuickBooks. I'll guide you how:

1.  Go to Bank Deposit.
2. Under the Add funds to this deposit section, choose the invoice that you created.
3. Below the invoice, create the expenses. (Put the name of the customer under RECEIVED FROM )

Once done, link the deposit to your invoice. You may follow the steps below:

1. Go to + New button.
2. Under Customers, select Receive Payment.
3. Select the Customer's name. 
4. Add the Payment date.
5. Under Outstanding Transactions, select the Invoice you need to mark as paid.
6. Under Credits, select the Deposit entry, then select Save and Close.

To track the transactions that you created, please follow these steps:

1. Go to Reports.
2. Type in Profit and Loss in the search bar.
3. Click Customize.
4. Choose the correct date under the Report period.
5. Click Filter, put a checkmark beside Customer then choose the specific name of the customer in the drop-down arrow.
6. Click Run report.

Also, it's a great idea to memorize this report in QuickBooks Online. This helps save the current customization settings.

Please drop a comment below if you have further questions. I'm here to help.

I must be really dumb about accounting and bookkeeping.  I don't have invoices... don't know how to create invoices... I just receive commission deposits from my firm.  Each deposit has a statement that shows Gross commissions... then itemizes the deductions from commissions below that.  

I don't submit invoices to the firm... all of my individual client receipts are aggregated by the firm and my commission total is then direct deposited bi-weekly net of deductions.  

Sorry for my lack of understanding.  This is just Greek to me.  It's frustrating because the process is actually fairly simple in Quicken, but my accountant has asked me to switch my business accounting to Quickbooks.

You have to feel that way,  @dunnfinancialsol.

Let's enter your commission deposits directly as a bank deposit with your expense accounts as the deduction line item. This way, only the net deposit amount will be recorded into your account register.

1. Go to the Plus icon.
2. Under OTHER, select Bank Deposit.
3. On the Account menu, select your bank account.
4. Below the RECEIVED FROM column, select ABC Corporation.
5. Select any of your income accounts.
6. Enter 5000 as the amount of your commission deposit.
7. Under ACCOUNT, select all your expense account.
8. Enter all the deduction with a negative amount.
9. Click Save and close.

Here's an article you can read to learn more: Record and make Bank Deposits in QuickBooks Online.

I'm also adding a reference here for ideas about how you can review your transaction in your account register.

Reach out to me if you need more help. Have a good one!