Expenses already accrued

Jco1221 · ‎December 26, 2018

I need to find a way to enter expenses as cost of goods sold into quickbooks that were accrued in a different company file. The company was started in March of 2018 but there were expenses accrued in Jan and Feb in another set of books that need to be moved over to my existing set. I need to be able to enter an expense into COGS without it showing as an account payable or a check issued. Just a single entry into the P&L. Is this possible?

AldrinS · ‎December 26, 2018

Hi there, Jco1221.

Welcome to the Community. I'm here to provide some insight about entering expenses as Cost of Goods Sold (COGS) in QuickBooks.

Ideally, the appropriate way to record COGS in QuickBooks is to create either a Bill (Accounts Payable) or Check to receive items, then issue an invoice once you've sold them. However, since you don't want it to show as a bill or a check, then you may enter them via a Journal Entry.

Allow me to walk you through the steps on how to create an entry in QuickBooks:

Click the Company menu, then select Make General Journal Entries.
Enter the Date and the appropriate journal entry details.
- On the first and second line, select the appropriate account from the Account drop-down. Also, make sure to enter the correct amounts in the Debit and Credit columns. The total in each column should be equal.
Click Save & Close.

The following article provides further guidance on this: Record a journal entry

Just a heads up, this method can impact your books and you may wish to seek additional guidance from an accounting professional. Every business is unique and they can make suggestions on how to handle this. If you're not affiliated with one, then our Intuit Find-A-ProAdvisor site can help you to find certified professionals in your area.

That should do it! You'll be all set with your Cost of Goods Sold and Profit and Loss report after you follow these steps.

You're always in good hands here in the Community. If you need more help with your expenses please don't hesitate to reach out to me again. Wishing you a lovely day.

View solution in original post

AldrinS · ‎December 26, 2018

Hi there, Jco1221.

Welcome to the Community. I'm here to provide some insight about entering expenses as Cost of Goods Sold (COGS) in QuickBooks.

Ideally, the appropriate way to record COGS in QuickBooks is to create either a Bill (Accounts Payable) or Check to receive items, then issue an invoice once you've sold them. However, since you don't want it to show as a bill or a check, then you may enter them via a Journal Entry.

Allow me to walk you through the steps on how to create an entry in QuickBooks:

Click the Company menu, then select Make General Journal Entries.
Enter the Date and the appropriate journal entry details.
- On the first and second line, select the appropriate account from the Account drop-down. Also, make sure to enter the correct amounts in the Debit and Credit columns. The total in each column should be equal.
Click Save & Close.

The following article provides further guidance on this: Record a journal entry

Just a heads up, this method can impact your books and you may wish to seek additional guidance from an accounting professional. Every business is unique and they can make suggestions on how to handle this. If you're not affiliated with one, then our Intuit Find-A-ProAdvisor site can help you to find certified professionals in your area.

That should do it! You'll be all set with your Cost of Goods Sold and Profit and Loss report after you follow these steps.

You're always in good hands here in the Community. If you need more help with your expenses please don't hesitate to reach out to me again. Wishing you a lovely day.

CApaula · ‎July 08, 2020

I created a journal entry for an expense that wouldn't be paid until the next year. I debited the expense and credit accrued expenses. I reversed the journal entry in the new year. Now the actual payment via a bank transfer has come through. What do I do with the payment?

Thank you.

ReymondO · ‎July 08, 2020

Hi there, @CApaula.

If the journal entry was created last year and the payment was posted this year, then we can simply match these transactions. This way, we can make sure that your book is accurate.

If you're using Express Mode, here's how you can match your download transactions:

Go to the Banking menu.
Look for Bank Feeds and select Bank Feeds Center.
Click Transaction List, then look for the transaction.
Under the Action column drop-down list, click Match to Existing Transaction.
Select the transaction and click Confirm Match.

If you're using Classic Mode, you can follow the steps in this article: How to match bank feeds using Classic Mode.

However, if journal entry was created this year and the payment that was posted is intended to be recorded for next year, then we can simply leave it in the Transaction List page. Then, match the payment on the date that you wanted it to be posted in your book.

In addition, I'd recommend reaching out to your accountant for further advice to make sure your book is correct.

Also, you can run any expense report in QuickBooks Desktop to review your expense transactions. Just go to the Reports menu and select Report Center. Click the Purchases tab and then select any reports.

Please feel free to let me know if you require any further information about banking transactions. I'll be there to help.

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Expenses already accrued