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How do I expense out my fuel that is deducted from settlements from the company who pays me instead of me buying it out of my account?

 
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QuickBooks Team

Re: How do I expense out my fuel that is deducted from settlements from the company who pays me i...

Hello there, @adamgrahamtransp,

 

You can set up a clearing account to expense out the fuel paid by another company. It is use for

  • writing off a receivable payable
  • move an amount from one A/P to another A/P account.
  • transfer an amount from one A/R to another A/R account.
  • manage accrual basis bad debt.

It's also called a Barter or Wash Account.

 

To create a clearing account:

  1. Sign in to your QuickBooks Online account.
  2. Select Accounting on the left-side panel, then choose Chart of Accounts.
  3. Click New.
  4. Choose Bank for the Account Type. You may choose any detail type you want for your clearing account.
  5. Type in the Name for the clearing account.
  6. Make sure not to enter any amount on the balance before clicking Save and Close.
    clearingaccount.PNG

To use it, please follow the steps outline below:

  1. Create a journal entry.
  2. Add the A/R or A/P from which you are moving money.
  3. Add the clearing account, then save theJ E.
  4. Create a second JE.
  5. Add the clearing account.
  6. Add the AR or AP account to which you moving money.
  7. On either Pay Bills or Receive Payments, link the Journal Entries together.

Upon sharing this, I still recommend consulting with your accountant. He or She might have specific instructions on what accounts to debit or credit.

 

Let me know if you need anything else and I'll get back to you with the information you need.