Accounts Receivable and Quickbooks Invoices

Irertem2023 · ‎March 03, 2023

We have 2 companies that sell on Etsy. What I need to do is to transfer the profit of one store to the other company. What I do is, I create a journal entry and credit the total income on that store, debit the expenses for a few major categories like advertising (that's how Etsy gives you the monthly statements) and then I debit Accounts Receivable for the remaining balance (profit). Then I issue an invoice for that amount. But this time it counts it twice, meaning my accounts receivable is double the actual amount. How can I resolve it?

Rainflurry · ‎March 04, 2023

@Irertem2023

There's no need to make a journal entry (JE) and issue an invoice, just do one or the other. From how you described it, the JE is booking the income with an offset to A/R which is exactly what the invoice is doing, thereby double-posting to A/R and income.

Irertem2023 · ‎March 04, 2023

Thanks for your reply. If I only issue the invoice, is there a way to show that store's total sales, ad spending shipping costs, etc., in my quickbooks?

Rainflurry · ‎March 04, 2023

@Irertem2023

You can create service products for sales (i.e. daily/weekly sales), advertising expenses, shipping costs, etc. When you set up the service products, select the appropriate income or expense account under the 'Income account' drop-down. Even though the drop-down is labeled 'Income account', you can select an expense account for marketing and shipping. Enter the sales as a positive amount and expenses as a negative. The remaining invoice total gets booked to A/R (debit) and you can then receive the payment on the invoice.

Irertem2023 · ‎March 05, 2023

Thank you so much!

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Accounts Receivable and Quickbooks Invoices