cancel
Showing results for 
Search instead for 
Did you mean: 
Level 3

How do I categorize a client payment received into my personal account?

Hi,

I received a client payment into my personal account  for convenience to my client.  When the transfer cleared, I then transferred the funds to my business account.  When the transfer posted to my business account, QBO automatically categorized it as a "Transferred from Shareholder's Distribution".  Is this correct?

If not, what categorization should I use, so that I may associate the funds to the proper invoices?

 

Thanks in advance.

Solved
Best answer 12-04-2019

Accepted Solutions
Highlighted
Level 15

Re: How do I categorize a client payment received into my personal account?

If you have shareholder distributions, that means you are a c- or s-corp for taxes, so no that would not be correct.

 

The best thing is to receive payment against the invoice in QB and deposit your check in the business account for that amount.

 

Letting banking downloads do your accounting for you, can lead to all kinds of different issues

View solution in original post

ProAdvisor

Re: How do I categorize a client payment received into my personal account?

@oscortega 

 

"QBO automatically categorized it as a "Transferred from Shareholder's Distribution".  Is this correct?

If not, what categorization should I use, so that I may associate the funds to the proper invoices?"

 

No, it's not correct. You should receive the customer payment on invoices and then match them in the Banking tab.

You will need to follow the following steps:

1) Since you've already automatically added the deposit to the wrong account category, you will need UNDO transaction from the register. Go to the "Reviewed" tab in the Banking and locate the deposit in question and select UNDO under the Action column. That will bring the transaction back to the "For Review" tab.

2) You mentioned payment on invoices. Go to Receive Payment screen (Create "+" New sign > Customers > Receive Payment) and select Customer and check outstanding invoices. The total amount received should match the bank deposit amount. Make sure to select the correct Bank account.

3) Go back to Banking > For Review section. You should see the MATCH sign for that transfer deposit. Once you click the match, it's done.

 

Hope this helps!

 

View solution in original post

3 Comments
Highlighted
Level 15

Re: How do I categorize a client payment received into my personal account?

If you have shareholder distributions, that means you are a c- or s-corp for taxes, so no that would not be correct.

 

The best thing is to receive payment against the invoice in QB and deposit your check in the business account for that amount.

 

Letting banking downloads do your accounting for you, can lead to all kinds of different issues

View solution in original post

ProAdvisor

Re: How do I categorize a client payment received into my personal account?

@oscortega 

 

"QBO automatically categorized it as a "Transferred from Shareholder's Distribution".  Is this correct?

If not, what categorization should I use, so that I may associate the funds to the proper invoices?"

 

No, it's not correct. You should receive the customer payment on invoices and then match them in the Banking tab.

You will need to follow the following steps:

1) Since you've already automatically added the deposit to the wrong account category, you will need UNDO transaction from the register. Go to the "Reviewed" tab in the Banking and locate the deposit in question and select UNDO under the Action column. That will bring the transaction back to the "For Review" tab.

2) You mentioned payment on invoices. Go to Receive Payment screen (Create "+" New sign > Customers > Receive Payment) and select Customer and check outstanding invoices. The total amount received should match the bank deposit amount. Make sure to select the correct Bank account.

3) Go back to Banking > For Review section. You should see the MATCH sign for that transfer deposit. Once you click the match, it's done.

 

Hope this helps!

 

View solution in original post

Level 3

Re: How do I categorize a client payment received into my personal account?

Thank you guys

Need to get in touch?

Contact us