My partner made a deposit at the bank. He thought he had made the payment to our business account. In fact, he made the deposit into his account. The deposit was of a check submitted for an invoice by a client.
The company owes my partner a substantial amount of money, so I want to credit that deposit against what we owe. What are the steps I would take to credit the payment against an invoice and credit the money against outstanding partner debt?
I can help you apply the deposit to a partner loan, @joeybags.
In QuickBooks Desktop for Mac, you can write a check to record the payment against the invoice and credit the money against outstanding partner debt.
You can map the invoice payment to the Account Receivable account, so it’ll link to the customer. Then add the partner loan account to credit the amount. Here's how:
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Thank you Madelyn.
When I follow the steps you outline, it doubles the amount of the check. So, the payment was $1600. When I follow the steps outlined it makes the amount of the check $3200. Am I missing something?
thanks for getting back to us, @joeybags. I appreciate you for following the steps shared by my colleague. I'm here to help rectify the issue.
First off, let's delete or void the transaction that's causing the duplicates, then receive the payment to link the deposit and the invoice by following the steps below:
Just in case there's an open bill for the partner, create a bill payment. Follow the steps outlined in this help article: Pay bills in QuickBooks Desktop.
Feel free to message again if you have additional questions. We're always around here to help.
So I put the customer payment in Undeposited Funds. Undeposited Funds is designated as an Other Current Asset. Is that a correct designation?
1. If I go to Write Checks, I'm unable to select Undeposited Funds as a source for the payment. The sources of payment are only those accounts listed as Bank (Petty Cash, Checking & Savings).
2. Now that I've received the payment into Undeposited Funds, can I make a General Ledger transaction moving the money from Undeposited Funds to Loans Outstanding? Or would I still need to write a check?
Hi there, @joeybags.
Welcome to the Community. I can provide clarification about the accounts in QuickBooks for Mac.
Yes, it's correct. The default account type for Undeposited Funds is Other Current Assets.
When you create a company file, there are accounts QuickBooks sets up for you. Undeposited Funds is one of the standard accounts the system automatically creates.
For the Write Checks option, the ability to select the account as the source of payment is unavailable. You use this type of account to hold invoice payments and sales receipts you want to combine. It’s like the lockbox you can use to keep payments in before depositing them to the bank.
You can use a journal entry to move the funds between accounts. However, I recommend seeking expert advice from an accountant about which accounts to debit and credit. This way, we can ensure your books will be accurate and error-free.
For more information about how Undeposited Funds work, as well as how to manage accounts in QuickBooks, I recommend the following articles:
Drop me a comment below if you have any other questions related to the deposit. I'll be happy to help you some more.