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Pudgypans
Level 1

Income posting

Hi,

A client of mine has an office offshore that handle multiple projects. On monthly basis, he sends expense money to the office bank main account - lets call it USD1. The money gets deposited in USD. Office manager transfers all the money to another USD bank account - lets call it USD2. Knowing the budget, office manager exchange only let say 3/4 of the USD money in the local currency and deposits them in another bank account in local currency - lets call it LOC. All the office transactions are done from the LOC account. Sometime, when it is needed, office manager will withdraw more money from USD2 and deposit hem in LOC account. So USD2 usually has money left over that is used as needed.

The office manager considers revenue only the money that is withdrawn from USD2 and transferred to LOC. I tried to use different ways like:

  • depositing USD money from the customer to USD1 account, transfer the money to USD1, and creating customer invoice to be paid from either USD2 or LOC account. 
  • creating items that are mapped to one of the banks hopping that money will be withdrawn from the bank when I created the invoice receive the money

However, no matter what I tried, I always ended up with the deposit in USD1 from my client transfer and income in either USD2 or LOC (depending). Since customer invoice payment are income, I always ended up with deposits and no debit from either USD2 or LOC (I wished it was like that in real world).

So what do I do to show the money used for the month as revenue and being able to debit from the bank?

By the way, I am using  QB desktop premier plus 2021.

Thanks a lot for your help.

Pudgypans

3 Comments 3
MaryLandT
Moderator

Income posting

Thank you for providing complete details on how to track payments from a customer, Pudgypans.

 

In QuickBooks Desktop, you need to manually map the account of the customer every time you create an invoice. This way, you'll be able to post the money to the specified account.

 

You can also use the Undeposited Funds account to hold customer's payments. Then, record the deposit and combine payments in QuickBooks.

 

To put payments to the Undeposited Funds account, simply follow the workflow in QuickBooks. Check out this link for instructions and detailed steps: Receive an invoice payment.

 

Stay in touch with me if there's anything else I can help you with QuickBooks. I'll be around to provide the necessary steps in recording customer's transactions.

Pudgypans
Level 1

Income posting

Hi MaryLand,

Thanks for the quick answer. As soon as I sent the post, I thought of another way by using customer credits - creating invoices for the customer for the amount they exchange and the customer pays more amount than the invoice. This way, the amount of the money is in the bank and amount that is exchanged, is the income amount. Next month, the apply customer credits to the new invoice plus money that was wired that month.

This should work right?

Thanks

MariaSoledadG
QuickBooks Team

Income posting

QuickBooks Desktop lets you record credit at your convenience, Pudgypans.

 

You can definitely apply any existing credit to your new invoice depending on how you want it to show. You can also follow the steps below on how to it.

  1. Click Customers in the top menu bar and select Receive Payments.
  2. Click the Received From drop-down arrow and select the customer's name. Note: You will see the available credit amount at the bottom of the window.
  3. Select an invoice and click the Discount & Credits button
  4. Select the correct credit you need to apply from the window and adjust the amount, if needed, in the Amount to Use column.
  5. Click Done.
  6. Click Save & Close.

Please read this article for additional information: Give your customer a credit or refund in QuickBooks Desktop for Windows.

 

For your reference, you can check out how to add match bank transactions: Add and match Bank Feed transactions in QuickBooks Desktop.

 

Fill me in if you have any other concerns in recording credit. Remember, we're here to assist you further.

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