I purchased a 50K Certificate of Deposit from my business checking account. How do i enter that transaction in QB online?

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:

1. In the left menu, click the + New button.
2. Select Check or Expense.
3. From the Payee ▼ dropdown, select the vendor you got the certificate of deposit from.
4. From the Bank account (check) or Payment account (expense) ▼ dropdown, select the account used to purchase the certificate.
5. In the Category details section, select the Category ▼ dropdown to select the certificate of deposit account for this vendor. If you don’t have an account for the vendor yet, see this article how to add one: Add an account to your chart of accounts in QuickBooks Online.
6. Enter the amount of the certificate.
7. Select Save and close.

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 

@alan79 

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 

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