Categorize Income

Turn Key · ‎December 02, 2022

Hello,

I'm new to QuickBooks and need a little bit of help. When I receive income, part of the income is a franchise fee that I pay monthly. I need to show that part of the income doesn't belong to me. My process: I create an invoice under the customer for the amount, select payment to put funds into undeposited funds, then create a deposit to move from undeposited funds, then match in bank transactions once it's deposited. I write a check to the franchiser every month. At what point in my process do I deposit into a liability account? How do I move it from that liability account?

JessT · ‎December 02, 2022

Welcome to the QuickBooks Community, Turn Key!

It is best if you consult an accounting professional to know the correct entries to journal a liability from invoice income. Then, you can come back here if they have instructions that you find challenging to reflect in QuickBooks.

On the other hand, if your franchisor gives you a bill for the total fees each month, you may not need to track a liability. You can just record the bill and that will serve as a liability.

You can find a QuickBooks ProAdvisor near you if you don't know an expert in bookkeeping.

Feel free to go back to this thread if you have more questions in mind.

Turn Key · ‎December 02, 2022

Thanks for the reply. I thought I'd try here first as I am a small company. I had a consultation with a few QB specialist and they are way too expense for a small firm like me. I'll continue to figure it out myself or get rid of QB all together.

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