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toddmiaNM
Level 1

How to account for deductions pre bank depositing income?

Hello! I have my own business that is housed under a larger entity and some of my expenses are deducted before they issue me the money I made from business that pay period. I'm struggling to figure out how to track those deductions.

 

Additionally, I would love to be able to split the bank deposit transaction into several categories but because of these deductions, the number won't equal the total amount deposited. 

 

Does this make any sense? Does anyone have experience with this sort of situation and could advise? Thank you!

3 Comments 3
Rustler
Level 15

How to account for deductions pre bank depositing income?

When you get the payment you also should get an account explanation which shows now much the total was and each expense deduction.

 

You enter it the same way for the parent company as a customer, create the items as needed to point to the expense accounts.  Use a sales receipt

line one: your revenue item and the full amount earned

line two: an expense item, qty is negative one, and the amount

line three through .... more expense items entered the same way

 

The sales receipt will net to the amount actually received

 

In make deposits you can add other accounts and amounts and just overwrite the amount of the main item - assuming when you say category you mean account

toddmiaNM
Level 1

How to account for deductions pre bank depositing income?

Hi @Rustler !

Thank you so much. I got the receipt itemization part but I'm still stuck on getting the deductions into an account. I've added the account names in the chart of accounts but how do assign the deduction amounts to that account?

 

Thanks again!

Rustler
Level 15

How to account for deductions pre bank depositing income?

After you create those expense accounts, then you create a service item per account that is linked to the expense account.  Use those items

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