using cash donations to pay a vendor

bstanard · ‎December 09, 2023

When I make a bank deposit of cash (tour revenue or onsite donations), I can split the deposit between different categories. What if I use some of that cash that I take in to pay someone who performs a service (plays music for a party, for example); how do I enter both the cash taken in and the cash paid out into QBO since I haven't deposited the cash in the bank?

GenmarieM · ‎December 09, 2023

Hello there,

I'm here to share some steps to pay your vendor using donations in the undeposited funds.

When you haven't deposited your donations, the cash will stay in the undeposited funds, and you can pay your vendor using this cash. You'll need to record your cash or your donations first so it will show in the undeposited funds.

Here's how:

Go to +New and click Bank deposit.
Select an account, then tick the funds you want to deposit.
Click the Add fund to this deposit arrow.
Select a vendor on the Received from column and choose an expense account under the Account column.
You can also add a Description and Payment Method.
In the Amount section, enter the amount in negative to minus the amount.
Check the Amount section in the upper right corner of your screen if the expense subtracts the total amount of your bank deposit.
Click Save and close.

Moreover, I'm adding this helpful article as your reference in categorizing your transactions in QuickBooks Online: Categorize online bank transactions in QuickBooks Online.

Come back to this post if you have further concerns or follow-up questions about undeposited funds in QuickBooks Online. I'll be here to lend a helping hand. Have a good one!

View solution in original post

GenmarieM · ‎December 09, 2023

Hello there,

I'm here to share some steps to pay your vendor using donations in the undeposited funds.

When you haven't deposited your donations, the cash will stay in the undeposited funds, and you can pay your vendor using this cash. You'll need to record your cash or your donations first so it will show in the undeposited funds.

Here's how:

Go to +New and click Bank deposit.
Select an account, then tick the funds you want to deposit.
Click the Add fund to this deposit arrow.
Select a vendor on the Received from column and choose an expense account under the Account column.
You can also add a Description and Payment Method.
In the Amount section, enter the amount in negative to minus the amount.
Check the Amount section in the upper right corner of your screen if the expense subtracts the total amount of your bank deposit.
Click Save and close.

Moreover, I'm adding this helpful article as your reference in categorizing your transactions in QuickBooks Online: Categorize online bank transactions in QuickBooks Online.

Come back to this post if you have further concerns or follow-up questions about undeposited funds in QuickBooks Online. I'll be here to lend a helping hand. Have a good one!

bstanard · ‎December 13, 2023

Thanks so much, Genmarie. Worked like a charm!

Bill

Kurt_M · ‎December 13, 2023

Thanks for getting back here in the thread, @bstanard.

We're happy you're able to resolve your current situation with the help of our colleague. We look forward to having you here again if you need assistance performing specific tasks inside QuickBooks. Don't hesitate to visit the Community space so we can respond as soon as possible.

Keep safe, and have a good one.

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using cash donations to pay a vendor