Need help really bad

QualGenSer · ‎November 29, 2024

QB Desktop Pro 2019.

I've run into a situation that I am totally lost on. And please, I'm Polish so keep this as simple as possible.

I run a generator repair business. I am a factory authorized service center for Company G. When I need to buy parts, Company G is my vendor, so let's call them GV. However, when I do warranty work, Company G is my customer, so let's call them GC.

On Aug 8, I did several jobs. 2 of them were warranty work for GC. One was for $567.80, and the other was for $179.72.

When I do warranty work and use parts I have in stock, I am reimbursed dealer cost + 15% commission.

On the job for $567.80, I used Part A.

I submitted my claims for these 2 jobs, and was sent a check for $747.52.

However, when I went to order another part A, I realized that I was reimbursed for less than the cost of the part. In digging, I realized I had accidentally written the part number for Part B instead of Part A. The difference in cost, including the 15% commission, was $56.06.

When I realized my mistake, I immediately called GC to explain. The lady said she would take care of it.

Somehow or other, she got the information backwards and (activated?) an account for me and charged the $56.06 to my account, instead of crediting the account. I have never used this account, as I always prepay for my purchases. However, this "account" is on the GV side, not the GC side.

On Sep 15 I did another warranty job that used Part B. The total claim was $567.80.

On Oct 10, I still had not received payment for the second job, so I logged in to my dealer account to check on it. It said the claim had been processed a month before, but I had never received a check.

So I sent an email to GC to check on the status of this claim/check. I was then informed that the claim had been applied to my account to cover the negative balance. Subtracting the $56.06, my "account" now has a balance of $511.74.

I contacted them again to inform them that the $56.06 should have been credited, not charged.

They then sent me a check for $112.12. That was the $56.06 mistake they made, plus the actual $56.06 difference.

I am totally lost as to how to input all of this into QB to make everything right, and to match my bank statements.

The only thing I can see would be to create another bank account and use this to "deposit" the GV balance into for the next time I order parts.

Can anyone help me out with this? I sure would appreciate it.

GlinetteC

Hello, QualGenSer.

I completely understand how these complex transactions can feel overwhelming, especially when reconciling accounts in QuickBooks. Don't worry, I'm here to help you get everything in order. Here's how you can record these transactions:

First, ensure you have GV (your vendor for parts) and GC (your customer for warranty jobs) set up in QuickBooks. Then, create two invoices for GC for $567.80 and $179.72 respectively. When you receive a check for $747.52 from GC, link this payment to the two invoices you created.

To fix the Part Mistake:

Create a deposit (or record income) in QuickBooks when you receive the check of $112.12 from GC. Then, make another invoice for GC for $567.80 for the new warranty job.

I would also recommend reaching out to your accountant for a professional review. They can provide additional guidance and ensure that everything is properly documented and compliant according to accounting standards.

Once again, thank you for reaching out for help with QuickBooks, QualGenSer. If there’s anything more you need or any further issues you encounter, feel free to connect. We're here to help.

QualGenSer

I got some of that, but not all.

I had already made the invoices, received the check for $747.52 and deposited it. I had also already deposited the check for $112.12.

What do you mean by "make a journal entry to balance this. Move $567.80 from GC (receivable) to GV (payable)."

Also, in doing this, it will not change my inventory. When I entered the invoice, I used the wrong part number.

When I create a bill for GV for $56.06, what do I record it as? An other expense?

Sorry to seem so ignorant, but I'm a generator technician, not an accountant.

RoseJillB

I appreciate your getting back to me with clarifications regarding the creation of journal entries, as mentioned by my colleague above, @QualGenSer. I've got another way you can use to make it easier for you to record these entries.

When we say, “Make a journal entry to balance this,” we mean adjusting your accounting records to ensure your accounts are aligned. However, I have another way to simplify the process, we can proceed as follows.

Instead of creating a Journal Entry (JE), we can make a deposit amounting to $112.12. The accounts affected should be Income and Accounts Receivable (A/R). We use the A/R account to create a credit to the customer's end. Since you already received a check amounting to $112.12, the remaining balance we can collect from them will be $511.74.

After that, match this deposit to the second invoice for the warranty job dated September 15 to adjust the balance from $567.80 to $511.74. Here's what your deposit will look like:

After making the deposit and matching it to the open invoice, your remaining balance for the warranty job on September 15 will be $511.74, since you have already sent the $112.12 to cover the difference from the first job.

You're also correct that there are no changes to your inventory, as we used the same product item for all transactions.

If you find bookkeeping overwhelming, consider reaching out to an accountant who can help clarify these entries and ensure everything is recorded correctly. They can also provide a different approach to recording these entries.

Please let me know if there's anything else I can assist you with or if you have further questions about recording the following invoices and deposits, @QualGenSer. I'm always available to help. Take care!

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