How do I properly put in expense receipts from the store when there are multiple expense categories on one receipt?

info46 · ‎December 10, 2018

I have a store receipt that has multiple expense categories on it. Do I have to separate them out into let's say office supplies and shop supplies. It does not matter to me if they are done this way but does it matter for taxes? And can I simply put receipts in bulk as a journal entry? ie: Home Depot, OfficeMax, etc are all supplies Auto Zone, 7/11 are auto expenses, with one lump total? Thank you.

john-pero · ‎December 10, 2018

It does matter that expenses are correctly identified, even though any allowable expenses are in fact allowed - but this is also proper record keeping so that you know your expenses (and income) by category. You would not deduct supplies as property tax or labor for an example. Office supplies and shop supplies are and should be classed different. One (shop)might be tied to your COGS and the other to simple overhead.

You can easily add multiple lines and multiple expense accounts to a single expense receipt for one vendor at a time. Use the "+" to create Vendor Expense or Vendor Check (both work the same) and add lines as needed.

Do not use journal entries to enter expenses, use the expense screen.

View solution in original post

john-pero · ‎December 10, 2018

It does matter that expenses are correctly identified, even though any allowable expenses are in fact allowed - but this is also proper record keeping so that you know your expenses (and income) by category. You would not deduct supplies as property tax or labor for an example. Office supplies and shop supplies are and should be classed different. One (shop)might be tied to your COGS and the other to simple overhead.

You can easily add multiple lines and multiple expense accounts to a single expense receipt for one vendor at a time. Use the "+" to create Vendor Expense or Vendor Check (both work the same) and add lines as needed.

Do not use journal entries to enter expenses, use the expense screen.

tbcsolutionsmn · ‎January 26, 2019

when splitting the receipt into different categories, how do you include sales tax from the receipt? Does taht also need to be figured out per item from the receipt?

qbteachmt · ‎January 26, 2019

You overlooked a Function in your program, for this: "can I simply put receipts in bulk as a journal entry? ie: Home Depot, OfficeMax, etc are all supplies Auto Zone, 7/11 are auto expenses, with one lump total?"

Edit the Vendor Name = OfficeMax; go to the Account Settings and enter up to 3 Default Accounts. Now when you enter a Check (check or paperless such as debit card) or the Enter Credit Card Charge, you put that payee name and Tab Out and QB shows these Default Accounts. Now you allocate and enter the details that do matter for tax reporting.

For instance, in my client's file that I manage, my name has 3 Default accounts:

Mileage

Professional Services

Postage

MBS2 · ‎March 04, 2019

thanks

TashaMac · ‎June 30, 2019

I was wondering the same thing. Does anyone have a definitive answer to this?

Anonymous · ‎June 30, 2019

Thank for joining the conversation, @TashaMac,

I can walk you through the steps on how to enter expense transactions with multiple categories. First, you'll need to set up the account or category you want to use for your items. Perform these steps in QuickBooks Desktop:

Go to the List menu then choose Chart of Accounts.
Right-click anywhere and click New.
Choose Expense and click Continue.
Enter the account name.
Select Save & Close.

Next, assign these accounts to your Vendor's profile. Here's how:

Go to the Vendors menu then select Vendor Center.
Double-click the suppliers name.
On the Account Settings section, enter the expense accounts you want to use for that Vendor.
Hit OK once done.

That's it. Please let me know if you have any questions with the steps or if you need further assistance. I'll be more than glad to help.

TashaMac · ‎June 30, 2019

Thank you for the response! I did not clarify. I use QuickBooks Online. When entering a small expense receipt from let's say "Walmart". With multiple accounts....where should we record the sales tax that we paid? Do we divide it appropriately between the item/categories? I understand that if it all can be expensed and grouped into one category, i shouldn't worry about it. But, if we have purchased things that would go into a special account like COGS...it gets a little confusing.

Anonymous · ‎June 30, 2019

Hey there, @TashaMac,

Thanks for adding additional information about the issue. Allow me to help you record the taxes on your purchases.

At the moment, QuickBooks is not designed to track sales tax automatically on non-sales transactions. To record this, create a new expense account for the tax then add them to expenses, bills, checks and purchase orders.

Here's how:

From the Accounting menu then click Chart of Accounts.
In the Chart of Accounts window, click New.
Select the Account Type, select Expenses.
Enter the Detail Type and Name.
Click Save and Close.

Once done, assign it to your vendor transactions.

Go to the Plus (+) icon.
Choose Bill or Expense.
Enter the Vendor.
In the Category details or Item details section, add the account or item you paid.
Still under Category details, add the tax item.
Click Save and close.

That should complete your work. Update me if you have additional questions or if you need further assistance with the process. I'll be available for you anytime. Have a nice day!

cwbrown20 · ‎January 22, 2020

Hi, I have two related questions related to the one asked by the original poster.

1. What is you have a vendor like Costco. It's possible to purchase items that fall into more than 3 categories. Is it possible to add additional categories under Costco?

2. Is there any way to enter info from receipts into the desktop version other than doing so manually? Is there a third part receipt capture app (similar to the one provided with QuickBooks Online) that could be used?

BettyJaneB · ‎January 22, 2020

Thanks for joining us here in the Community, @cwbrown20.

If you're referring to recording a purchased item that affects different accounts in QuickBooks Desktop, this option is currently unavailable. This is because the system only allows you to select one category on each item.

However, if you wanted to enter expense transactions with multiple categories, the steps given by one of our Community members above will do the trick.

When it comes to your second concern, QuickBooks integrates with various third-party applications to help users running their business easier. I recommend visiting ourApp Store and look for the application that supports the functionality that you need.

To give you more insights about how items work in QuickBooks, please see this link: Add, edit, and delete items

I'll be around to help if you have any other questions. Just let me know by leaving a reply below. Wishing you and your business continued success!

gosschiro · ‎August 12, 2020

So for instance in our ledger I pay a cc for $2000.00 I need to break it down into separate expenses. $1000.00 for office supplies, $500 for travel etc. How would I go about doing this in QB Desktop Pro 2020

I used to could in our old QB but when I try it just adds to the $2000 instead of counting down.

MadelynC · ‎August 12, 2020

Thanks for joining the thread, @gosschiro.

Allow me to share some information to resolve your queries.

To separate the amount and set them to different categories, you’ll want to set up an expense account. This way, you can edit the transaction. And you can easily select the account you preferred for office supplies, travel and etc.

Here’s how:

Go to the List menu then choose Chart of Accounts.
Select the Account drop-down below and click New.
Choose Expense and click Continue.
Enter the account name and other details.
Select Save & Close.

After this process, go back to the transactions you want to modify. From there, edit the amount and select the account you set up for each category. Doing this ensures the $2000 amount will still intact.

This resource will give additional tips on how to manage accounts in QuickBooks. You can select each topic for more information: Reports and accounting.

We’re always here if you have any other concerns. Have a good one.

gosschiro · ‎August 12, 2020

I already have my expense accounts set up. So I go to where I match transactions...Then what?

ReymondO · ‎August 12, 2020

Thanks for getting back to this thread, @gosschiro.

Allow me to provide you the steps on how you can match your expense to your downloaded transaction. Just follow these steps:

Go to the Banking menu and select Bank Feeds.
Click Bank Feeds Center.
Select the credit card account and click Transaction List.
Look for the transaction, then click the ACTION drop-down list and select Add More Details.
In the Account column, select the expense account and enter the amount.
Add the rest of the expenses and their information, then click Add to QuickBooks.
Select OK.

You'll also want to open your Transactions List by Vendor report in QuickBooks. This will show you the list of transactions you've made with your vendor. Just go to Reports and select Vendors & Payables. Then, choose the Transactions List by Vendor report.

If you need further help in matching your transactions in QuickBooks, just click the reply button below. We'll be there to assist you.

Emilyc13 · ‎October 28, 2020

Is this how I would get to all the expense that are already in QuickBooks by having the account linked. I am using it online. Can’t figure out how to get to the expense that are already there and I can click on and start Organizing.

ZackE · ‎October 28, 2020

Thanks for joining the Community, Emilyc13.

The steps provided by my colleague, ReymondO, were for matching transactions in QuickBooks Desktop. I'd be more than happy to show you where to view your expenses in QuickBooks Online.

Here's how:
1. In the left navigation bar, go to Expenses, then choose Expenses.
2. Locate the expense(s) you're looking for.

You can use your Filter ▼ menu to narrow search results.

Additionally, the Batch actions ▼ drop-down can be used to start categorizing records.

If you're interested in connecting your bank account with our Online Banking feature, you can set up the connection anytime. Doing so automatically downloads your last 90 days of transactions. QuickBooks then matches existing entries and adds new records for incoming ones without a matching entry.

Please feel welcome in sending a reply if there's any other questions. I'll be here to help. Enjoy the rest of your day!

CFL7 · ‎March 21, 2022

I have a question related to this one. I see how I can split the expenses in the EXPENSE window, but when I am uploading receipts I cannot split the category. I have to choose one category. This does not affect my reports at all, or does it? And if not, why is the category window not optional when uploading receipts? Thanks in advance.

Adrian_A · ‎March 21, 2022

Hello there, CFL7.

I'm here to share some information about splitting transactions.

The option to categorize the split transactions on the uploaded receipts is unavailable.

What we can do is to match them to those existing transactions. Here's an article as your guide: Add and match transactions.

Keep me posted whenever you have other questions. Keep safe!

CFL7 · ‎March 21, 2022

Thank you for your feedback. :)

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How do I properly put in expense receipts from the store when there are multiple expense categories on one receipt?