I am new to QBO. 1. How do I make deposits to petty cash? 2. How do I apply a credit memo to an unpaid invoice?

Hello, paul-eaglepointm. 

Let me welcome you first in QuickBooks. I'm here to share some details about petty cash transactions in QuickBooks Online (QBO). This way, you can keep your account updated and manage your sales accordingly. 

First, you'll need to set up the petty cash account. I suggest going to the Chart of Accounts page. From there, you'll have the option to create a new account which will be named Petty Cash by clicking the New button. 

Here's how:

1. Go to the Gear icon ⚙ and select Chart of Accounts.
2. Click the New button.
3. From the Account Type drop-down, choose Bank.
4. In the Detail Type drop-down arrow, choose Cash on hand.
5. Enter Petty Cash for the account name.
6. The opening balance will be created when you move money from the checking account by writing a check or transferring funds. If you already have money to use for petty cash, enter the amount in the Balance field and choose the as of date.
7. Fill in the other necessary field.
8. Hit Save and Close. 

For additional information, you can refer to this article: Set up and use petty cash. This also provides details on how to manage petty cash in QuickBooks Online.  

To answer your second question. To apply a credit memo to an unpaid invoice. First, have you created the credit memo in QuickBooks? If not, then you can create a credit memo first, and then apply it later on to the customer's invoice.  

Here's how you can create the credit memo: 

1. Click the (+ New) icon.
2. Select Credit Memo.
3. Choose the customer name.
4. Enter the Credit Memo Date.
5. Fill in the Service Date, Product/Service, and Amount fields. You may also fill in any other fields (Description, QTY, Rate) if necessary.
6. Click Save and close.

However, if you already created the credit memo, you may proceed in applying it to the invoice.

Here's how:

1. Click Sales in the left navigation bar.
2. Tap the Customers tab.
3. Locate and click the customer's name.
4. Look for the invoice you want to apply the credit to and click Receive payment.
5. In the Receive Payment window, enter the Payment date, Payment method, Reference no. (if necessary) and the Deposit to account.
6. In the Outstanding Transactions section, make sure that the correct invoice is selected.
7. In the Credits section, make sure the correct credit memo is selected.
8. Press Save and close.

You can also check this article for more information: Enter and apply a credit memo or delayed credit. 

Feel free to drop by anytime, I'm here if you have further questions. Stay safe!

Hello.  Question about the petty cash account.  I want to open a cash account with 300.00 from my small laundry mat and record that 300.00 as income.  When I enter the balance it shows  "opening balance equity" in the register and on the balance sheet.  How can I show this 300.00 as income from the laundry mat? I want the cash from the laundry mat to be in a cash box and used for small expenses.  How can I record expenses from this cash account? Thank you so much 

Hello there, @Jennifer529.

I'm here to help you record your $300 from the small laundry mat and show it as an income on your petty cash account.

Before we proceed, please know that when you enter an opening balance on your cash account, this will show opening balance equity on your balance sheet report. In your case, you'll want to leave the opening balance field blank so it won't show on the report.

To get started, you can enter a sales receipt to record your $300 from the small laundry mat as an income. Let me guide you through the process.

Firstly, you'll need to create a service item for your laundry mat income and select an income account. Here's how:

1. Sign in to your QuickBooks Online account.
2. Click the Gear icon, then select Products and Services.
3. Select New, then choose Service.
4. Enter the name of the service (Laundry mat).
5. In the Income account drop-down, select the appropriate income account.
6. Click Save and close.

Once done, you can record a sales receipt using the service item you created. Please follow the steps below:

1. Click the + New button, then select Sales receipt.
2. Leave the customer field blank.
3. Go to the Deposit to section, then select the Petty cash account from the drop-down.
4. Select the service item you created from the Product/Service drop-down and enter the amount of $300.
5. Click Save and close.

After the steps, you'll be able to record your $300 from the laundry mat and show it as an income on your petty cash account.

You can also check out this article to learn how to record expenses from your cash account: Set up and use petty cash in QuickBooks Online.

Let me know how it goes, I want to make sure this is taken care of. Thanks for dropping by, @Jennifer529.

Hello.

The register already shows "opening balance equity" because I did enter a dollar amount balance.  How can I remove this and start over with the steps you provided so that I may record this as income?  When I create the laundry mat service in "product and services" may I leave the sale price/rate amount blank?

Good morning, @Jennider529. 

Thanks for chiming in on this thread. 

You can easily edit the opening balance transactions in your chart of accounts portion of QuickBooks Online. Here's a guide that can provide detailed instructions: Enter and manage opening balanced in QuickBooks Online. However, do I suggest consulting with your accountant to be sure this route would be best for your business. 

As for your second question about leaving the sale price/rate amount blank on a service, you can do this. You don't need to do anything special, just leave it blank and the service will save when you're ready. 

Feel free to come back if you have any other questions or concerns. I'm only a post away if you need me. Have a great day!

I see.  In the petty cash register how can I show the beginning balance in a income account? 

Thanks for checking in with us, Jennifer529. 

 We can set up first the petty cash account as an Income under the Save account under field. When you move cash from your bank account into petty cash, you should see it in this account.

1. Go to the Gear icon on the top menu and select Chart of accounts.
2. Tap New. Depending on your account, you’ll see a window labeled either Account or New category. Select Income under the Save account under field. 
3. From the Account Type dropdown, choose Bank.
4. From the Detail Type dropdown, select Cash on hand.
5. Enter Petty Cash for the account name.
6. The opening balance will be created when you move money from the checking account by writing a check or transferring funds. If you already have money to use for petty cash, enter the amount in the Balance field and choose the as of date.
7. Press Save and close.

In QuickBooks, record taking cash from petty cash as an Expense with petty cash as the payment account.

At all times, the amounts on the slips of paper and the cash you have left should add up to the amount you deposited in the box. To learn more about this one, check out this article: Set up and use petty cash in QuickBooks Online.

To enter an opening balance after you already created an account to track transactions in QuickBooks, just follow this article: What to do if you didn't enter an opening balance in QuickBooks Online. Here are a few Commuvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvnity Articles that you may find helpful: 

• Edit an incorrect opening balance
• Understanding the Opening Balance Equity Account

I'll address any other concerns you might have regarding the supportability for QuickBooks Desktop versions. If you'd like to take care of your transactions and lists, lay down the details below and I'll help you out.

I already set the petty cash account a couple of days ago.  I attached a screenshot of the register.  I wanted to show this money coming from the laundry mat to the petty cash box as income.  The register says "opening balance equity"  can this be changed?

I attached another screenshot showing the "deposit"  The "received from" may I enter The Laundry Mat as a customer?  And can I change the "account" to an income account?

Thanks for joining this thread, res@finisroadrvp.

To properly identify if you should enter a specific customer as a customer and if you should use an income account for your deposit, I'd recommend working with an accounting professional. If you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

Here's how it works:

1. Go to our Find a ProAdvisor page.
2. Use the City or ZIP search field to specify a location.
3. Select Find a ProAdvisor.
4. Browse through your results and find one that works best for the business. You can click on each ProAdvisor's profile to learn more information about them.
   

Once you've found an accountant, they can be contacted through their Send a message form:

1. Use the available text box to introduce yourself. Be sure to include details about which services you're looking for.
   
2. Enter your appropriate info in the Your name, Your email, and Your phone number (optional) fields.
   
3. Hit Send message.
   

You'll also be able to find many detailed resources about using QuickBooks in our help article archives.

Please feel welcome to send a reply if there's any questions. Have an awesome Friday!