customize statement of cash flow

PortMike · ‎January 01, 2019

My business purchased property. We purchased more property than required for the business and are in the process of selling the excess. We have received deposit money directly from the buyers. I set up an Other Current Assets account called Deposits Received to record the deposits received. When I run my Cash Flow Statement for the year, the Deposits Received activity appears under the Operating Activities section of the Cash Flow Statement. I think the Investing Activities would be a more appropriate place for this to appear. How do I get it from Operating Activites section to the Investing Activities section of the Cash Flow Statement? I am using Enterprise Solutions 18.0

qbteachmt · ‎January 02, 2019

You first describe that you put the Deposit into Asset; but someone paying you is Liability to you.

You will not be Changing the amount you invested. You will be disposing of a Partial Asset, and the basis is split per the portion kept and portion disposed of, as if that is two assets. That won't change your basis in what you keep, because you kept the part you kept.

The Deposit has nothing to do with your basis or asset, either. It has to do with Potential Sale and the Banking part of it.

You can go to Edit menu > Preferences, to Reports & Graphs, the Company Preferences tab, to use the Classify Cash button. But first, it helps to clarify what you thought this is, isn't what you will be doing. Liability is part of the Financing operations because you have Funds that are not yours to keep, or will be used against the Gross Sale. Not changing your own asset.

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HoneyLynn_G · ‎January 01, 2019

Welcome to the Community, @PortMike.

I'm glad to see your post today. I can help you transfer the amounts from Operating Activities section to the Investing Activities section of the Cash Flow Statement.

Here are the steps in creating a journal entry:

Click Accounting.
Choose Make General Journal Entries.
Enter the necessary information.
Click Save & Close.

I also advise reaching out to your accountant for guidance on transferring your amounts in the best way for your business.

Let me know if you have other concerns in QuickBooks. I'm here to help you more. Have a wonderful day.

PortMike · ‎January 02, 2019

HoneyLynn_G, Thank you for your answer. Unfortunately, I don't think you understand the issue. The issue is that QB classifies changes in current liabilities as Operating Activities in the Statement of Cash Flows.

From an accounting standpoint, I believe that the deposits received are current liabilities since we hope to close the sale of our excess property in a year or less. Furthermore, the changes in this particular current liability account should show up in the Investing Activities section of the Statement of Cash Flows since we will be in effect, changing the amount we have invested in a major asset (land).

What I would like to do is make this change in a current liability appear in the Investing Activities section of the Statement of Cash Flows as opposed to the Operating Activities section.

qbteachmt · ‎January 02, 2019

You first describe that you put the Deposit into Asset; but someone paying you is Liability to you.

You will not be Changing the amount you invested. You will be disposing of a Partial Asset, and the basis is split per the portion kept and portion disposed of, as if that is two assets. That won't change your basis in what you keep, because you kept the part you kept.

The Deposit has nothing to do with your basis or asset, either. It has to do with Potential Sale and the Banking part of it.

You can go to Edit menu > Preferences, to Reports & Graphs, the Company Preferences tab, to use the Classify Cash button. But first, it helps to clarify what you thought this is, isn't what you will be doing. Liability is part of the Financing operations because you have Funds that are not yours to keep, or will be used against the Gross Sale. Not changing your own asset.

PortMike · ‎January 02, 2019

Thank you very much for your response.

I do have the deposits set up as current liabilities. I agree that we will not be changing our basis in the portion of the asset that is kept and I see your point that perhaps this should be in Financing Activities.

In any case, you answered how to fix my problem and I very much appreciate your advice.

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