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Yes, set it up as a bank account as you're showing in your screenshot. Leave the opening balance and date fields blank. Disregard my previous post regarding the journal entry and check/expense. The easiest way to transfer the cash from your checking account to the CD is to use the Transfer function (New > Transfer). Specify which account to transfer funds from and the CD to transfer funds to, enter the amount and the date of the deposit and you're all set.
Hi there, @alan79.
You can create a check or expense transaction in QuickBooks Online to record the certificate of deposit you've purchased.
Let me guide you on how:
In case you need tips and related articles when managing your account, feel free to visit our Community website for more insights.
Please let me know if you have any additional concerns. I'll be happy to help. Have a wonderful day!
Hi Mirriam
Thanks for the response.
Would this be considered an expense in that it will show in my P/L as an expense? I would be showing a 50K expense in the end. Is that correct?
Alan
Thanks for getting back to us, Alan.
Yes, you're correct. Since you'll be creating a check or an expense transaction for the certificate of deposit, it's considered and will show as an expense in your Profit and Loss report. Please see the screenshot below for your reference.
Also, QuickBooks has a special way to filter your Profit and Loss report by bank account. If you wish to learn more about this, please see this article: Run a Profit and Loss report by bank account in QuickBooks Online.
Keep me posted in the comments if you have other concerns about managing expenses in QBO. I'll gladly help. Take care always, Alan.
Thanks again. Does it matter if the money in the business account is from a loan? I have a separate category for the loan amount.
If not, what is the expense category that I would use?
Alan
Recording the purchase of a CD is not an expense, it is a transfer of assets from your checking account to the CD. To record this, create a journal entry: debit the CD account for $50K, and credit your checking account for $50K. Or, write a check/record an expense and assign the CD bank account to the check. In either case, this will decrease your checking account by $50K and increase your CD by $50K, both of which are balance sheet accounts. This should have no impact on your P&L.
Hi @Rainflurry
Thanks for your response. This is what I was looking for.
I am not versed in creating Journal entries.
If I write a check/record an expense and assign the CD bank account to the check, do I create a "Bank CD" account and start the balance at zero and the date prior to the date the 50K was moved out of my business checking account. Or, do I set it up as some other sort of asset?
See attached.
Regards,
Alan
Yes, set it up as a bank account as you're showing in your screenshot. Leave the opening balance and date fields blank. Disregard my previous post regarding the journal entry and check/expense. The easiest way to transfer the cash from your checking account to the CD is to use the Transfer function (New > Transfer). Specify which account to transfer funds from and the CD to transfer funds to, enter the amount and the date of the deposit and you're all set.
HI @Rainflurry
I set up the Bank Account and did the transfer. The 50K does not show up in my P/L and the chart of accounts shows the new account with 50K.
Thanks for your help.
Alan
Hi Rainflurry,
Thanks for sharing! I use the transfer method to record CD as you advised. But received an error. See screenshot attached. Could you please advise why this error shows up and how to eliminate this error to pass through?
Thanks,
Betty
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