How to transfer a vendor credit from one company to another in QB Desktop?

phi95 · ‎October 21, 2022

I do bookkeeping (using QB Desktop) on 2 separate farming businesses with one single owner. The owner uses one credit card for mutual expenses of both farms. For example, the majority of transactions are for truck repairs/maintenance, gas, office supplies, etc. that are shared between the two farms. Typically, the owner will pay off the cc balance for 2-3 months from one farm's bank account, then switch and use the other farm's account. In the past I would post transactions by going to 'Banking' and then to 'Enter Credit Card Charges,' (which, I believe, is correct.) Now, per the owner's request, I have the cc company listed as a vendor, and post the cc statement in 'Enter Bills.' I post each transaction amount separately to the appropriate account (ie: truck expense, gas & oil, office expense, etc.) Then in the 'Memo' line, I state the name of the actual vendor and transaction details.

NOW, my issue: On one of the monthly credit card statements, we had an automatic charge for a computer anti-virus protection subscription renewal of $150. The business was called, the subscription cancelled, and we were told the amount on the credit card would be refunded. However since the monthly payment was already due, I went ahead & entered the bill, posting the $150 to 'office expense,' along with some other transactions, and paid the total balance ($400), using 'Farm A's' bank account. The next statement did show a credit of the $150 charge plus some 'truck expenses' with a balance due of $60. I went to 'Enter Bills' and clicked the 'credit' circle. I posted the $150 credit back to the CC Company in the account 'office expense,' and entered the other charges in bills. (Still in the 'Farm A' company,) I went to 'Pay Bills' and used $60 of the $150 credit to pay the balance. The next month's statement was for $40, so I used $40 credit to post that one as paid, still leaving a credit balance of $50. The NEXT cc statement purchases totaled $700 applying the $50 remaining credit for a balance due of $650. But, THIS TIME, the owner paid the $650 remaining balance by check using 'Farm B's' bank account!!

So now,..... is there any way to remove the $50 vendor credit from 'Farm A's' Quickbooks account; somehow add it to 'Farm B's' Quickbooks account to show it was used (along with the $650 check), to pay the cc balance??

At first I was going to edit the original vendor credit to show a credit amount for $100 in 'Farm A,' and a vendor credit amount of $50 in 'Farm B.' But the initial $150 entry in 'Farm A' for the subscription was posted in bills as 'office expense.' If I did that, it would screw up my 'office expense' account. H-E-L-P P-L-E-A-S-E!

Rainflurry · ‎October 22, 2022

@phi95

This is an easy fix. The best thing to do is to have Farm A reimburse Farm B $650. Since it's the same owner, it's a wash. Here is what I suggest:

In Farm A, Set up a bank account called 'Clearing Account'. Pay the $650 cc bill using the newly-created 'Clearing Account'. Then, reimburse Farm B by writing a check and assign the same 'Clearing Account' to the check.

In Farm B, Set up an Other Current Asset account called 'Due from Farm A'. Write a check for the $650 that paid the cc bill for Farm A and assign the newly-created 'Due from Farm A' account to the check. Then, deposit the check from Farm A and assign the same 'Due from Farm A' account to the deposit.

This will keep all the expenses and applied credit in Farm A and just deals with the improper payment made by Farm B. It's a clean way to do it IMO.

phi95 · ‎October 24, 2022

Please let me know if i am understanding this correctly:

Are you saying to initially ‘Enter Bill’ from the credit card vendor statement to Farm A (posting the individual transaction amounts to their proper expense account; office expenses, gas & oil, etc.) Then ‘Pay Bill’ using the remaining $50 vendor credit along with a check from Farm A’s ‘Clearing Account?”

Then in Farm B, do I write a check payable to the CC company for the $650 posted to ‘Due from Farm A’ account, IN ADDITION to the ACTUAL check written from ‘Farm B’s’ the real bank account??

phi95 · ‎October 24, 2022

Please let me know if i am understanding this correctly:

Are you saying to initially ‘Enter Bill’ from the credit card vendor statement to Farm A (posting the individual transaction amounts to their proper expense account; office expenses, gas & oil, etc.) Then ‘Pay Bill’ using the remaining $50 vendor credit along with a check from Farm A’s ‘Clearing Account?”

Then in Farm B, do I write a check payable to the CC company for the $650 posted to ‘Due from Farm A’ account, IN ADDITION to the ACTUAL check written from ‘Farm B’s’ the real bank account??

phi95 · ‎November 17, 2022

Please let me know if i am understanding this correctly:

Are you saying to initially ‘Enter Bill’ from the credit card vendor statement to Farm A (posting the individual transaction amounts to their proper expense account; office expenses, gas & oil, etc.) Then ‘Pay Bill’ using the remaining $50 vendor credit along with a check from Farm A’s ‘Clearing Account?” Then when I write a check to Farm B on the Bank Clearing Account, what "expense" account do I assign the $650 check to?

Then in Farm B, do I write a check payable to the CC company for the $650 posted to ‘Due from Farm A’ account, IN ADDITION to the ACTUAL check written from ‘Farm B’s’ the real bank account??

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How to transfer a vendor credit from one company to another in QB Desktop?