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When receiving an invoice payment in which I need to make change from petty cash, what is the best way to record for both ease of deposit reconciling and ease of petty cash reconciling?

 
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QuickBooks Team

Re: When receiving an invoice payment in which I need to make change from petty cash, what is the...

Hello there, @Nicole007.

 

It's my priority to help guide you on how to change an invoice payment from petty cash into a different bank account in QuickBooks Online (QBO).

 

Once you've entered the customer invoice payment, you'll need to process a bank transfer the amount from petty cash to the correct bank account.

 

To do this, let me walk you through the steps:

  1. Select the Plus (+) Icon
  2. Choose Transfer.
  3. From the Transfer Funds From drop down list, select the bank account that the funds are coming out of.
  4. From the Transfer Funds To drop down list, select the bank account the funds are being deposited into.
  5. Enter the amount being transferred in the Transfer Amount field.
  6. Edit the date.
  7. Click Save and close

You can also check this article on how to transfer funds between accounts

 

For future reference, you can visit this article to learn more about reconciling bank account: How to Reconcile an Account in QuickBooks Online

 

This should get you on the right track. Don't forget to click the Reply button below if you have further questions about bank transfer. I'm always here to help. 

 

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Re: When receiving an invoice payment in which I need to make change from petty cash, what is the...

Thank you kindly. The issue, however, is when I am not depositing the total payment to the bank because it is in change (like 38 cents) or I am making change for an amount more than the invoice.

I think I may have figured out a way, please confirm:

 

When the payment includes change:

Receive 2 payments - one to the bank; one to petty cash.

 

When the payment needs change made from petty cash:

Receive 2 payments - one to the bank; and one to petty cash less the change given.

For example, $895.38 invoice. Paid $900 in various bills.

Deposited $895. to bank

Deposited $4.62 to petty cash ($5 minus 38 cents)

 

Is this good accounting?

 

QuickBooks Team

Re: When receiving an invoice payment in which I need to make change from petty cash, what is the...

Glad to see you again in the Community, @Nicole007.

 

The information that you provided above is correct. However, I still recommend consulting your accountant for another way on how to record.

 

For more reference, you can read this article: Record and make Bank Deposits in QuickBooks Online.

 

I've also added our website about our help articles for QuickBooks Online Reports and accounting for future reference.

 

Let me know if you have further questions or any other concerns. I’ll be right here to assist further. Have a great day ahead. 

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