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Payments against Customer Jobs

We created a "Job" called "Hurricane Michael".  All expenses directly related to Hurricane Michael are assigned to the proper GL expense category and to the Hurricane Michael Job.

 

We have received payments, which we've deposited from our Insurance Carrier. These payments are revenue against the Hurricane Michael direct "Job" expenses. 

 

Assigning the Job to the Expenses..not a problem.

 

Receiving a check from the Insurance Carrier, depositing those funds....and, trying to post that Receipt against the same Job....BIG problem. In the Deposit window...we have not found a way to record the Deposit against the HM Job. 

 

We are NOT creating "Invoices" against this "Job".  We're only using the JOB function to report on Hurricane Michael Expenses and reimbursements as part of our normal operating expenses on the Income Statement. 

 

Have we missed something??  Is there a way to post Receipts against a JOB without creating Invoices, Bills, etc. (we don't use that function...we do everything where possible from the Check Register)

 

Thank you. 

Solved
Best answer 02-25-2019

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Established Community Backer *

Re: Payments against Customer Jobs

Not the best use of Enterprise Suite.  Instead of using the make deposit screen, you might try making a journal entry. 

 

Line 1)  Credit revenue.  Enter the amount.  Use the drop down list and find the job. 

Line 2) Debit undeposited funds if included in a deposit with other funds or if a sole deposit, debit your cash account.

If lumped with other deposits, use the bank menu and make a deposit.

View solution in original post

Established Community Backer *

Re: Payments against Customer Jobs

I am sorry that the process was tedious identifying the correct job.  However, I am glad that it worked for you.  Many QB Advisors are sold on the "QBs way" and while correct, doesn't always provide the quickest solutions or easiest solution.  Dealing with hundreds of set of books each year, I am a big fan of journal entries when appropriate.  QB considers journal entries to be cash transactions and this appears correct in your situation. It is also the only way to correct any accountant changes for timing entries that need to be cleared off the books.

View solution in original post

12 Comments
Established Community Backer *

Re: Payments against Customer Jobs

Not the best use of Enterprise Suite.  Instead of using the make deposit screen, you might try making a journal entry. 

 

Line 1)  Credit revenue.  Enter the amount.  Use the drop down list and find the job. 

Line 2) Debit undeposited funds if included in a deposit with other funds or if a sole deposit, debit your cash account.

If lumped with other deposits, use the bank menu and make a deposit.

View solution in original post

Frequent Explorer *

Re: Payments against Customer Jobs

Dear QB G,

 

Thank you.  Yes...using the General Journal to record a simple deposit did allow us to use our HM "JOB".  The delay in this response is because we (then) had to research the "Names" field in the General Journal, run some dummy entries and reports...to see if the "Names" of our "JOB" would produce the same result. 

 

All very tedious when in the check register we would be able to post payment (receipt against the job) to the proper Income GL account, proper Class and assign the Revenue against a job. 

 

Nevertheless, Thank You!  Using the GEN JRNL at least allowed us to assign a payment to that job...albeit tediously.  

 

If QB is moderating this particular thread...please give users the ability to add fields when depositing funds through the Check Register. I'm not the first user in this Forum to voice that request.

Established Community Backer ***

Re: Payments against Customer Jobs

For Jobs, you track the funds coming in against either an Invoice (which shows you anticipated the payment) or a Sales Receipt. You use that Job Name on the sales transaction.

 

You mention Cost tracking; you would set up the items as two sided, if you wanted to track that specific costs are part of what you "charged" to the customer or job name. That's how it works for selecting for the Sales Receipt or the invoice.

 

Or, you simply want to Job Track all direct costs; they are marked Not Billable. Then, you put an income item on the sales receipt, for that customer name.

 

Using DEP means you bypassed everything about the customer name-related functions. That means your Sales reporting will not work.

 

Not using Items means the Job Reporting won't work for you. You see one generic value at the bottom under No Item.

 

Using JE means you doubly bypassed everything as name-related and item-related functions. That means your Job reporting will not work at all.

 

Never make a JE directly to/from UF. That's a great way to corrupt that file and that account. The UF functions rely on transactions flowing in and out; not JE or generic Values. That JE for UF is one of the worst things to do in QB for desktop. This account is Self-managing and self-reconciling and that only works if you use the functions properly to flow the ata there from Sales Receipts or payments, and to select them from the UF pop up as part of a DEP entry. Please see my attachment.

Established Community Backer ***

Re: Payments against Customer Jobs

This request means you don't even need to use the Names, because you bypassed everything about them: "If QB is moderating this particular thread...please give users the ability to add fields when depositing funds through the Check Register."

 

You bypassed Sales functions entirely. The Check Register is a view of the transactions that affect that account; that isn't where you do this work. You use Write Check, for instance, because from the register view, you've never even seen nor used the Items tab at all. Yet, the Job reporting relies on the use of items.

 

Please see my attachment.

Established Community Backer ***

Re: Payments against Customer Jobs

I have attached the Job Tracking handout I use when I teach: Accounts vs Items.

 

You can see this in the sample file that comes with your program. It is "Rock Castle Construction."

Frequent Explorer *

Re: Payments against Customer Jobs

Dear QB Teach,

 

You would be exactly correct if we were a Business that created Invoices, Produced Sales receipts, had inventory, labor, equipment costs, etc..."Sales"...as it were; but, we're none of those things. 

 

Creating "Bills" is a function we abandoned 2 years ago...greatly improving both our Reporting and our efficiency.

 

We're a large medical practice We simply: Pay our Expenses...and, Receive patient revenue. No "sales", no "Bills", no "Invoices.

 

Our question had to do with simply setting up a mechanism to track how much extra expense we had from Hurricane Michael against the payments the Insurance Carrier gave us for those HM related expenses.

 

"Class" doesn't work because many of these items (also) needed to "Classed" to their established Class and established GL. 

 

Using a Journal entry as a workaround to be able to post a receipt to a "JOB" works...as we stated earlier and QB G suggested.

 

Your solution works in a large facility with Accounts payable and A/R not having access to all areas of QB. But, it comes at a tedious cost. We were able to have two employees leave, without replacement, by abandoning that convention. 

Established Community Backer ***

Re: Payments against Customer Jobs

@ImagingRad 

 

You completely misunderstand these functions. No one stated you have to be Selling goods, or even services. That is the type of thing a Landlord would use, for example.

 

You stated you Incurred costs that you want to Job Track. That is done using Items

 

Bills are part of Purchase data. They are only used to enter costs you have not yet paid for. I hardly ever use bills. I job track the Items on the Checks and Credit Card Purchases. I already Paid, so there is no Bill to enter.

 

You described "Patient revenue" and that is Up to you, to track. If you want to see this by name, that is Sales Receipt. Or, you don't need a name here, at all. If you have Practice management software, then in QB, you can use one Summary Sales Receipt for the one date; we name that income item Office Services/Collections, and that is used for Payments made today.

 

Yes, you Have Sales. You get paid for services. That is Sales.

 

I don't understand the comments regarding Class. Yes, it works just fine. I can reiterate the Sale or Charge item, the "named thing that makes this income" such as Service Fees, and list it more than one to allocate By Class. Example: Two Doctors are partners and want to track everything by Dr 1, Dr 2 or Admin (general overhead).

 

For this: "Our question had to do with simply setting up a mechanism to track how much extra expense we had from Hurricane Michael against the payments the Insurance Carrier gave us for those HM related expenses."

 

You described that you Wanted to see the Customer Name, and that is why I replied that you would use Customer Transaction(s) for this. That means the Sales Receipt with the Service Item for Fee Income, with HM in the top left. That allows you to run reports, including Profitability reporting. Costs vs Revenue.

 

No, this is Not going to give you the reporting: "Using a Journal entry as a workaround to be able to post a receipt to a "JOB" works...as we stated earlier and QB G suggested."

 

Prove it; Run Reports menu > Jobs, Time & Mileage. Run Reports menu > Sales reports. Run Sales by Customer or Item, run Profitability reporting.

 

If you don't intend to use these reports, you never needed Names at all. If you intend to use Names, then they are used on Customer Related activities to give the data for reporting. So, run Yours, to see if it shows what you asked.

 

"Your solution works in a large facility"

 

No, the functions are the same, even if this is a landlord managing one rental property. You seem to think the tools ,which are Powerful, are not worth using for "little stuff" but you described Important stuff = we want to Track it.

 

And here's another consideration: A JE bypasses Cash vs Accrual Basis reporting.

 

Let's try this comment: You bought a program with an interface = sets of tools. To use it as green ledger paper and make banking JE is about 5% of what you bought and are paying for. You are doing Generic banking, not customer-related activities. You bypassed everything about what you first asked.

Established Community Backer *

Re: Payments against Customer Jobs

I am sorry that the process was tedious identifying the correct job.  However, I am glad that it worked for you.  Many QB Advisors are sold on the "QBs way" and while correct, doesn't always provide the quickest solutions or easiest solution.  Dealing with hundreds of set of books each year, I am a big fan of journal entries when appropriate.  QB considers journal entries to be cash transactions and this appears correct in your situation. It is also the only way to correct any accountant changes for timing entries that need to be cleared off the books.

View solution in original post

Frequent Explorer *

Re: Payments against Customer Jobs

QB's G, 

 

Yes, you're exactly right. QB has the built in ability to do LOTS of functions in as much detail as most businesses could want; but, many (most?) of those functions simply do not add either clarity or accuracy to the end result...an accurate Income Statement and Balance Sheet. 

 

I've been using automated financial software solutions since the 80's. Early adopter of Andrew Tobias' Managing Your Money. (still was a better program than Quicken is today!)

 

Most businesses just need to record a payment, assign it to the correct Vendor and Expense category; and, when needed...use "Classes" to identify that expense to a particular function, person or event. 

 

Doing that through the Check Register speeds time with actually more accuracy...as the user can immediately see what...and where..the data is being entered. 

You are also correct...that convention is not enough 100% of the time...as evidenced by our need to figure out our expenses and reimbursements related to Hurricane Michael..to our Insurance Carrier.  The Journal Entry solved that problem, perfectly on the "deposit" side!  Thank you!!

Frequent Explorer *

Re: Payments against Customer Jobs

Dear QB Teach,

 

Thank you for taking the time to read our question and to craft this well thought out, correct...reply!

 

It does not apply to us for a variety of reasons. We don't create invoices. We don't produce sales receipts. We don't have UF. And, we don't have "Jobs" or "Items" as a normal course of business. 

 

We simply pay our operating expenses, our payroll, our withholding taxes...and, receive payments (via electronic debit) directly into our operating account. We don't track those deposits individually...either.  We simply total the deposits for the month and balance that number to the patient revenue posted to our Practice Management system. 

 

Works perfectly and efficiently. 

 

But, as stated here...we needed a way to isolate receipts for hurricane michael from our carrier against expenses related to hurricane michael. "Class" would do that perfectly...except some of our HM Expenses are already Classed and we did not want to lose that visibility.

 

Hence the dilemma.  We can now run a report by JOB...but, it's imperfect because we can't run an Income statement that uses "JOB" as the column heading. The numbers, when run that way...do not total to our actual Income/Expenses for the month.

 

This is the only time we're likely to ever need this additional detail.  It's way too much work to set up Items for every single GL expense we have encountered....plus, going back to OCT 10th and adjusting reconciled items. 

 

Thanks again for your input.  We're reviewing the complete use of Jobs and Items with your excellent overview to see if they are functions we might benefit from going forward. 

Anonymous
Not applicable

Re: Payments against Customer Jobs

This is a glitch I ran into also and was forced to make up an expense account to apply the job payment to.  I might also suggest that QB has a way to record ACH payments and other electronic payments since checks are rearely used and often do not comeover with the downloads from the bank.  One other problem I am having now is when I made invoices to match already received payments, then "received" the payments against the invoice, I now have duplicate invoices which are printing up on a "contractor direct payment" report.  Why in the world would an invoice come over into a report that is income?  weird and don't know how to resolve it.

QuickBooks Team

Re: Payments against Customer Jobs

Thanks for joining this thread, @Anonymous. 

 

Allow me to cover all of your concerns about applying job payments, recording ACH and electronic transfers, duplicate invoices, and invoices showing as income on the report. 

 

For your first concern, QuickBooks has a default expense account when paying your job-related activities. It will track your expenses for a job and compare those expenses to your revenue. This way, it'll have an accurate record of your job costs. Here's a great article you can check out for more information: Track Job Costs

 

Just to confirm, do you have an existing QuickBooks Payments account? If not, the Check is the manual indication of your payment method. If yes, let's connect it to QuickBooks Desktop (QBDT). By doing so, you'll have the option to record your ACH and electronic payments in the software. To learn more about the fees of the e-payments, you can visit these two articles: 

 

 

For your third concern, it depends on the order when creating invoices and recording customer payments. If you first created invoices then receive payments, there will have no duplicate invoices. If you've made invoices after receiving payments, there's a possibility the invoices will be duplicated.

 

To help fix this, let's delete the duplicate invoices. I'd suggest first creating a backup of your company file since the deletion steps are irreversible. Here's how: 

 

  1. Go to the Invoice page. 
  2. Select Delete at the top of the screen. 

 

After that, you'll need to run the report again to check if the duplicate invoices are gone. Then, you can deposit the customer payments to the correct bank account. To see the complete list of workflows and other customer-related transactions, please refer to this article: Accounts Receivable Workflows

 

Can I verify what report you're seeing for the invoices showing as income? QuickBoooks uses concept called Source and Targets to apply accounting principles and processes, like recording transactions and displaying reports. For more information about how the program generates reports, you can go through this article: Understand Reports

 

Yes, the invoices will credit your income and debit your Accounts Receivable (A/R) on the report. To see the transaction journal, you can click CTRL + Y on the Invoice screen (see the screenshot below). You can also run a Profit & Loss Detail report to see these balances. For more details, you can read through this article: Understand QuickBooks Chart of Accounts

 

 

The steps and resources above will help you get back on track, @Anonymous. 

 

Please drop me a comment below if you have any other concerns. I'll be happy to help. Wishing you and your business continued success!

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