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ha84ai
Level 2

Receiving Sales via Shipping Company as Cash on Delivery (COD)

Hello everyone, 

 

we are dealing with 3rd party for ship & Delivery for all orders, and we created General Account ( Received payment by Shipping Company) under Cash and cash equivalents.

then, shipping company transfer funds collected by them to our bank account.

so, transaction will be: 

1- Dr. Account: Received payment by Shipping Company

         Cr. Account: Customer Account

and after they Transfer to our Bank Account:

2- Cr. Account: Received payment by Shipping Company

         Dr. Account: Bank Account

 

my Question is, how to track these Payment and mark each order while transferring the fund from Account: Received payment by Shipping Company to Account: Bank Account?

i need to track and mark each order Separate so we can arrange our accounts and make it easy in future auditing and reconciliation.  right now i am making manual fund transfer but its difficult in auditing and monthly Reconciliation to avoid any mess in our book.

3 Comments 3
IamjuViel
QuickBooks Team

Receiving Sales via Shipping Company as Cash on Delivery (COD)

I appreciate the complete details about your concern, @ha84ai.

 

You can record the customer payments temporarily under Undeposited Funds. Once you've received the actual payments, you can now deposit to your bank. 

 

Let's first create an invoice. Once you're shipping company receives the cash-on-delivery payments, make sure to record it under Undeposited Funds in the Deposit To field. Here's how:

  1. Create the invoice. 
  2. Receive the Payments from the Shipping company.
  3. Deposit all the payments that were actually posted in your bank account. 10.JPG

You can read through this article to learn more about the Undeposited Funds workflow: How to Use the Undeposited Funds Account to Receive Payments in QuickBooks Online.

 

On the other hand, you can enable the class tracking feature to track the sales generated per company.

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You can check this blog for more insights: Using Classes in QuickBooks Online.

 

Always feel free to leave your comments below if you have other concerns. I'm just a few clicks away.

ha84ai
Level 2

Receiving Sales via Shipping Company as Cash on Delivery (COD)

Dear juvieil, 

 

Thanks alot for your reply, 

 

that will help too much, but i am dealing with two shipping company and i can create only one *Undeposited Funds* also in future i am planing to deal with more. i think it's much better to create accounts separate so it will be much easier to track payments for each one. 

is there any way to do it?

MariaSoledadG
QuickBooks Team

Receiving Sales via Shipping Company as Cash on Delivery (COD)

Hi ha84ai, 

 

Thanks for getting back to us.

 

You can use classes to track your transactions by Shipping Company in QuickBooks Online (QBO). Let me guide you on how to turn on the feature so you can track payment for each company.

  1. Click the Gear icon, then select Account and Settings
  2. Select Advanced. Then click Edit in the Categories section.
  3. Select Track classes.
  4. Select Warn me when a transaction isn’t assigned a class. This is optional, but it's good to turn on so when you look at reports, you know everything got classified.
  5. Select the Assign classes drop-down, then select One to entire transaction or One to each row in transaction.
  6. Click Save, then Done.

Then, create an invoice with the correct Shipping Company. Please see the screenshot below:

 

 

 

Once done, you can run the Profit and Loss by Class report to check each sales of product income. I have attached a screenshot below for visual guide.

 

For future reference on how to manage your class, please check this article for more information: Create And Manage Your Class List.

 

If you have any other concerns about QBO, let me know and I'll always make sure to get back to you. 

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