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Level 2

Help fix an expense account that appears in Current Assets on the Balance Sheet

I've struggled with my Charitable Contributions account for years.  I think I understand how to properly record them going forward, however, I cannot get this account fixed for 2018.  Ours is a Veterinary business and the income data all moves into Quickbooks monthly as an IFF file.  Somewhere along the way I mapped the donated services to my "Charitable Contributions" expense account, which seems to have made things worse.  I have tried to edit the account following every tip I could find in this community, I've tried to adjust it multiple ways with a Journal entries (now deleted).  However, on the Balance Sheet, it is the first account listed: ASSETS: Current Assets: Checking/Savings: 6140 Charitable Contributions, the next line is my checking account and everything else is fine.  I know that it is offsetting either an account called Non-tax income or Cornerstone work account from the IFF files.  We donate a lot of services so this is no small number.  Thanks in advance for any help getting this fixed for 2018.

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Best answer April 03, 2019

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Community Champion

Help fix an expense account that appears in Current Assets on the Balance Sheet

The account as you have described it is an asset account not an expense account and you cannot change account types but you can try. First you have to edit that account to make it no longer a sub account. Then you can try changing type but I doubt that will work. 

 

Rename it as something different and add an actual expense account named the same. 

 

To fix the numbers for 2018 all you need is Expense from this 6140 asset to any expense account for the donations that you now add as new

View solution in original post

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Level 15

Help fix an expense account that appears in Current Assets on the Balance Sheet

@Villagepet 

 

charitable contributions is income, not a bank or an expense

 

Once you get the contribution amount as income, then it is posted/deposited to the bank or cash account you use to hold the money/value

 

then you spend it, expense or asset purchase, or maybe a loan/tax payment

View solution in original post

5 Comments
Highlighted
Community Champion

Help fix an expense account that appears in Current Assets on the Balance Sheet

The account as you have described it is an asset account not an expense account and you cannot change account types but you can try. First you have to edit that account to make it no longer a sub account. Then you can try changing type but I doubt that will work. 

 

Rename it as something different and add an actual expense account named the same. 

 

To fix the numbers for 2018 all you need is Expense from this 6140 asset to any expense account for the donations that you now add as new

View solution in original post

Highlighted
Level 15

Help fix an expense account that appears in Current Assets on the Balance Sheet

@Villagepet 

 

charitable contributions is income, not a bank or an expense

 

Once you get the contribution amount as income, then it is posted/deposited to the bank or cash account you use to hold the money/value

 

then you spend it, expense or asset purchase, or maybe a loan/tax payment

View solution in original post

Highlighted
Community Champion

Help fix an expense account that appears in Current Assets on the Balance Sheet

@Rustler the way I read the text of the question this vet is donating their services to others like pro bono like answering questions here (lol) 

 

I could see if they were on the receiving end that it would be income and .maybe I read ot wrong. But the account in question is definitely listed as a bank type accou t to be a sub category of a different bank account.

 

Why what they recorded in other software ss a. Expensesyncs to quickbooks as income is one of the great mysteries of QBO but probably relates to an account originly being set up in error or worse. noot setting it up prior to first sync

Normally I have not even taken donation deductions in the business but booked under promtions/advertising.

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Level 2

Help fix an expense account that appears in Current Assets on the Balance Sheet

Thank you so much for your explanations.  It is that last sentence that I am struggling with, "To fix the numbers for 2018 all you need is Expense from this 6140 asset to any expense account for the donations that you now add as new".  I have tried to do this as an invoice, negative invoice, credit memo, Journal Entry, the amount won't budge and account wont move off the balance sheet.  I have edited the account, renamed it, added a new one, inactivated it.  I have unlinked the account from the practice management (softwarePMS) so it will be less of a problem next year. But I'm beginning to wonder if that is the only way to fix this is to make the opposite entry in the PMS... but that messes other things up. 

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Level 2

Help fix an expense account that appears in Current Assets on the Balance Sheet

Thank you both Rustler and Piro.  In the process of inactivating I found that I had tried this in 2016 and inactivated the "Bank" account with the same name, so it really did still exist as an asset. (main problem is I had two accounts with the same name). I'll follow the 5 step process for donations in the future explained elsewhere in the QB community.(surgeries and vaccines do have inventory costs).  Best Wishes!

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