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kf6
Level 1

How do record an expense that is for the previous fiscal year that is recorded in the current fiscal year?

 
8 Comments
MaryLurleenM
Moderator

How do record an expense that is for the previous fiscal year that is recorded in the current fiscal year?

Hello there, kf6,

 

If your books are already closed in QuickBooks, you will be prompted to enter the password before you can add transactions. Once that is done, you can enter this expense transaction. Make sure to use the date of its correct fiscal year.

  1. Click + New on the left pane.
  2. Select Expense.
  3. In the Payee field, specify a vendor.
  4. Select the Payment account to which to credit this expense.
  5. Enter the date of purchase in the Payment date field and specify the Payment method for the expense.
  6. (Optional) Enter a description of the expense.
  7. Enter the amount of the purchase and any Tax paid.
  8. Select Save and close or Save and new.

Check this article to learn more: Close your books to lock past transactions.

 

 

You'll want to check with your accountant if there are changes made after adding the expense transaction.

 

Stay in touch with me if you have additional questions.

Rustler
Level 15

How do record an expense that is for the previous fiscal year that is recorded in the current fiscal year?

No, do not open the books as intuit @MaryLurleenM says, and do not back date the payment

 

just pay the expense with the actual date of this years payment.

 

if you filed as a cash basis tax payer, then the "expense" will count for this years P&L

If you filed as an accrual basis tax payer, then the "expense" will count for last years P&L

kmbarnes55
Level 1

How do record an expense that is for the previous fiscal year that is recorded in the current fiscal year?

How can the expense count for last years P&L if it is dated this year? Wouldn't you need to make a AJE to move it into last year? That is what I am trying to figure out...

AbegailS_
QuickBooks Team

How do record an expense that is for the previous fiscal year that is recorded in the current fiscal year?

Hello there, kmbarnes55.

 

I'd want to make sure that you can record the expense. 

 

You just need to edit the date to last year and consult with your accountant if you need to make AJE. 

 

You can check this article on how to enter and manage expenses in QuickBooks Online.

 

Don't hesitate to comment if you still have questions. Have a nice day!

 

 

 

 

 

Reddragon
Level 1

How do record an expense that is for the previous fiscal year that is recorded in the current fiscal year?

There are some invoices which were to be paid in the previous year but were not paid . How to book in the same for the previous year ?

LollyNino_C
QuickBooks Team

How do record an expense that is for the previous fiscal year that is recorded in the current fiscal year?

Glad to have you here in the Community, @Reddragon

 

I’m here to help and share information about invoice status in QuickBooks Online. As per our all-star's suggestion @Rustler, record your invoice payment with the actual date of this years payment. 

 

Before making changes to your books, I recommend consulting with your accountant. They would give the best advice on how to keep your books.

 

You can check this article on how to enter and manage expenses in QuickBooks Online.

 

Check this article to learn more: Close your books to lock past transactions.

 

I have here some links that you can refer about receiving invoice payment in QBO:

 

Please give us a call if you're getting the same result so we can create a ticket for you and investigate further. 

 

I'll be on the lookout if you still have follow-up questions or concerns about your account. Just drop in the comment section below and I'll be happy to answer them for you. Take care and have a lovely day ahead.

lpranger
Level 1

How do record an expense that is for the previous fiscal year that is recorded in the current fiscal year?

I'm just a little confused.  Change the expense paid date to last year, but don't backdate the payment?

 

We paid several cell phone stipends to people THIS year, which was actually for LAST year.  I just need to move it somehow.

AlexV
QuickBooks Team

How do record an expense that is for the previous fiscal year that is recorded in the current fiscal year?

Hello lpranger!

 

Ideally, you should use the date when you processed the payment. Since you paid it this year, then you should use the 2021 date.

 

You might want to check this link to understand the difference between cash and accrual accounting methods: Cash vs. accrual accounting: What’s best for your small business?

 

Also, it's best to seek some help from your accountant for the proper way to enter such transactions in QuickBooks Online.

 

Having issues with your reconciliation? Please check this link on how to fix it: Learn the reconcile workflow in QuickBooks.

 

Keep on posting here if you need anything else. I'll be here!

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