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Level 2

If I received cash for a job and paid subcontractors with part of the cash (and therefore only made a partial deposit in the bank), how do I record these transactions?

 
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Best answer April 23, 2019

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Moderator

If I received cash for a job and paid subcontractors with part of the cash (and therefore only made a partial deposit in the bank), how do I record these transactions?

Hi there, @johnfloyd12.

 

I appreciate you get back to this thread and provide more details about your concern today. I'd be happy to help walk you through recording the customer's payment and the amount deposited to the bank.

 

First, you need to record the invoice payment ($3000) in order to reflect this amount in QuickBooks against the invoice. Let me guide you how: 

  1. At the top right, select the Plus icon (+).
  2. Select Receive Payment
  3. Choose the name of the customer from the drop-down menu.
  4. From the Outstanding Transactions section, select the invoice.
  5. Select your Payment method.
  6. Enter Reference no. and Memo if applicable.
  7. From the Deposit to drop-down, choose the Undeposited funds account.
  8. In the Amount received field, enter the payment amount ($3000). 
  9. Select Save and Close.

Then, create expenses to show the subcontractors and vendor payments. 

 

Here's how: 

  1. At the top right, select the Plus icon (+).
  2. Select Expense.
  3. In the Payee field, choose the vendor name. 
  4. In the Payment account field, select Undeposited Funds
  5. Enter the date of purchase in the Payment date field and specify the Payment method for the expense.
  6. (Optional) You can use Ref no. field to enter an identifying number from the purchase receipt.
  7. Specify the account or item to use for the transaction, and optionally enter a description of the expense.
  8. Enter the Amount paid. 
  9. Select Save and new.

Follow the same steps for each contractor. Finally, make a deposit to show that only $1,600.00 was deposited into the bank. 

 

Here's how:

  1. At the top right, select the Plus icon (+).
  2. Select Bank Deposit.
  3. In the Choose an account field, select the bank account to which to deposit funds.
  4. Select the checkboxes of the payment ($3000) and all expenses you created to deposit in the Select the payments included in this deposit
  5. Make sure the AMOUNT in the upper right corner is $1600.
  6. Select Save and close.

That should do it. I've attached some articles below for additional reference, as well as the QuickBooks Blog to check the updates about the product and latest features added in QBO.

That should take care of it. I believe that you'll have the invoice payment applied to the invoice and deposit the correct amount to the bank by following these steps.

 

Keep me posted how it goes by leaving a reply below. I'll be happy to help you out if you have any additional questions about the process. Wishing you and your business success. 

View solution in original post

8 Comments
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Level 15

If I received cash for a job and paid subcontractors with part of the cash (and therefore only made a partial deposit in the bank), how do I record these transactions?

use make deposits

line one, the income account and the full amount

line two, the contractor expense account and his amount as a negative number

Highlighted
Level 2

If I received cash for a job and paid subcontractors with part of the cash (and therefore only made a partial deposit in the bank), how do I record these transactions?

I have a twist to this situation: the cash I received was partial payment for a job that was part of an invoice. How do I record this cash so that the invoice is recorded as paid in full, and the two subcontractors are recorded as being paid. Thanks!

Highlighted
Level 2

If I received cash for a job and paid subcontractors with part of the cash (and therefore only made a partial deposit in the bank), how do I record these transactions?

Here is a twist to this scenario: the cash I received was partial payment of an invoice. But since part of the cash was given to the two subcontractors, only part of the cash was deposited in the bank. How do I reflect the invoice as paid in full?

Highlighted
Moderator

If I received cash for a job and paid subcontractors with part of the cash (and therefore only made a partial deposit in the bank), how do I record these transactions?

Thanks for the additional details of your concern, johnfloyd12.

 

Allow me to join this conversation to help record these transactions in QuickBooks Online.

 

Just a reminder, an invoice will only show as fully paid once you applied a full payment amount. It will show as partially paid if the payment is lesser than the invoice amount.

 

As for the deposit, you'll want to use Accounts Receivable and add the customer's name on line 1 to make sure it will show in the customer transaction list. Once done, use the Receive Payment feature and apply the deposit as a credit.

 

That should get you on the right track. If you have other questions, I would be happy to answer them. Just post it here as a comment and I'll take a look at it. Enjoy your week.

Highlighted
Level 2

If I received cash for a job and paid subcontractors with part of the cash (and therefore only made a partial deposit in the bank), how do I record these transactions?

Since I am new at this (Quickbooks and Accounting!), let me lay out the actual situation. I would greatly benefit from step by step instructions please:

 

1. Customer invoice total: $6,597.65

2. Deposit received: ($1,153.29)

3. Partial payment received: ($2,444.36)

4. Balance due: $3.000.00

-----------------------------------------------------------

5. Customer paid balance in cash: ($3,000.00)

6. Out of the cash, three subcontractors and one vendor were paid for a total of $1,400.00:

    6a. Sub1: $400.00

    6b. Sub2: $300.00

    6c. Sub3: 125.00

    6d. Vend1: 550.00

    6e. Owner kept $25.00 cash for misc. expenses

7. Therefore, only $1,600.00 of the $3,000.00 was deposited into the bank

 

How do I account for all of this and reflect the $3,000 paid on the customer's invoice as well as the payments to the sub's & misc. expense?

Thanks!!!

 

Highlighted
Moderator

If I received cash for a job and paid subcontractors with part of the cash (and therefore only made a partial deposit in the bank), how do I record these transactions?

Hi there, @johnfloyd12.

 

I appreciate you get back to this thread and provide more details about your concern today. I'd be happy to help walk you through recording the customer's payment and the amount deposited to the bank.

 

First, you need to record the invoice payment ($3000) in order to reflect this amount in QuickBooks against the invoice. Let me guide you how: 

  1. At the top right, select the Plus icon (+).
  2. Select Receive Payment
  3. Choose the name of the customer from the drop-down menu.
  4. From the Outstanding Transactions section, select the invoice.
  5. Select your Payment method.
  6. Enter Reference no. and Memo if applicable.
  7. From the Deposit to drop-down, choose the Undeposited funds account.
  8. In the Amount received field, enter the payment amount ($3000). 
  9. Select Save and Close.

Then, create expenses to show the subcontractors and vendor payments. 

 

Here's how: 

  1. At the top right, select the Plus icon (+).
  2. Select Expense.
  3. In the Payee field, choose the vendor name. 
  4. In the Payment account field, select Undeposited Funds
  5. Enter the date of purchase in the Payment date field and specify the Payment method for the expense.
  6. (Optional) You can use Ref no. field to enter an identifying number from the purchase receipt.
  7. Specify the account or item to use for the transaction, and optionally enter a description of the expense.
  8. Enter the Amount paid. 
  9. Select Save and new.

Follow the same steps for each contractor. Finally, make a deposit to show that only $1,600.00 was deposited into the bank. 

 

Here's how:

  1. At the top right, select the Plus icon (+).
  2. Select Bank Deposit.
  3. In the Choose an account field, select the bank account to which to deposit funds.
  4. Select the checkboxes of the payment ($3000) and all expenses you created to deposit in the Select the payments included in this deposit
  5. Make sure the AMOUNT in the upper right corner is $1600.
  6. Select Save and close.

That should do it. I've attached some articles below for additional reference, as well as the QuickBooks Blog to check the updates about the product and latest features added in QBO.

That should take care of it. I believe that you'll have the invoice payment applied to the invoice and deposit the correct amount to the bank by following these steps.

 

Keep me posted how it goes by leaving a reply below. I'll be happy to help you out if you have any additional questions about the process. Wishing you and your business success. 

View solution in original post

Highlighted
Level 2

If I received cash for a job and paid subcontractors with part of the cash (and therefore only made a partial deposit in the bank), how do I record these transactions?

Thank you MaryGrace S for your detailed, simple to follow instructions. They worked perfectly! I really appreciate you taking the time to help with such detail!

Highlighted
Moderator

If I received cash for a job and paid subcontractors with part of the cash (and therefore only made a partial deposit in the bank), how do I record these transactions?

Hi there, hnepomuceno001.

 

You're most welcome for the response! I'm glad to hear that you found it helpful.

 

Please know that the Community has your back if you need assistance. Have a great rest of your week. 

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