Deposit with multiple distributions

Deadwood Al · ‎April 18, 2025

Occasionally we receive a payment that does not result from us invoicing someone, and the payment is net of some specific charges deducted from the gross, and I haven't found a way to treat it as a "deposit" ... so I need to create a JE to make the entry. I would prefer to make a deposit so it would be included when I print a deposit report at the end of the month.

Specifics: Suppose we partner with someone to hold an event for which tickets are sold and food & alcoholic beverages are made available. We agree to do the advertising and provide volunteers to man the event, as well as pay for some extra expenses (security services, entertainment, etc.) The partner arranges for ticket sales net of fees and net of food & beverage costs. They will then send us a check less the identified fees. To enter the gross revenue of the event, I would need to debit cash for the net payment, but I should be recording the gross revenue and the expenses to get to the net ... but I can't figure out how to do this in Bank Deposits.

---Example

Gross Revenue GL 100,000

Less Ticket Fees -1,000

Less Foo & Beverage -5,000

- Net Payment Rcvd 94,000

You might say "Just go ahead and create an invoice to the partner for the revenue with deduction lines for the items to reduce the payment", but we don't know what the total is until we receive the breakdown from the partner along with the check. Yes, we could, at that point, create an invoice, but that just seems so "QuickBook-ish" to require the need to do something extra that shouldn't be necessary in order to make the deposit entry for the check received. So I have been making a JE to impact the GL accounts appropriately but I feel like I should be able to make a Bank Deposit that would allow the distributions to be made and for the net amount received to appear on the Bank Deposit report at the end of the month. What am I missing? Is it possible to generate all the GL impacts from the Bank Deposit entry, or is this something that QB assumed would never happen?

Deadwood Al

Just to add a comment .... in the "Filter", I have tried adding "Journal" to the Transaction Types to include, and it makes zero difference: Journal Entries are not included in the report, so that filter does no good at making the report show me what it should. So please don't offer that as a suggestion .....

KiazzymaeC

Thank you for sharing detailed information on the issue you're facing, Deadwood AI. We genuinely understand how this situation can be both complex and frustrating, especially when it feels like the tools you're using aren't quite matching your needs. Rest assured that I'm here to help you fix this issue.

You can record these payments into a bank deposit without creating an invoice. To do this, record the Sales Income as a positive amount and the Sales Expense as a negative amount. It’s important to note that this method will directly affect the accounts involved.

Here's how:

Navigate to the Banking menu and select Make Deposits.
In the Deposit To field, choose the account you want to transfer funds to.
Fill in the Dates and add a Memo for clarity.
In the Received From section, type in the partner's name or add a new entry for them.
In the From Account field, select a revenue account (for example: Sales).
Enter the Gross Revenue in the Amount column as a positive amount. (Example: $100,000.00)
Repeat the steps to record Sales Expenses (like Ticket & Fees and Food & Beverages) using negative amounts.
Once all entries are completed, click Save and Close.

Please refer to this photo below for your visual guidance:

After recording, you can generate a Profit and Loss Detail report to review the transactions:

Go to the Reports menu.
Select the Company and Financial, then choose the Profit and Loss Detail report.
Filter the Dates to view the specific transactions.

Regarding the accounts affected you've used when recording a bank deposit, I highly suggest you consult an accountant to ensure your records are accurate. If you don't have one, you can use our Find-an-Accountant tool to look for an expert near you.

Additionally, you can customize your reports in QuickBooks Desktop so that they reflect both the gross revenue and the net amounts more clearly, helping you to better analyze your financial data and make informed decisions.

If you need further assistance regarding on how to record your transactions in QuickBooks Desktop, please don't hesitate to reply to this post. We’re here to support you every step of the way!

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Deposit with multiple distributions

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