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sales of product income

I own a small retail business and am running into problems on quickbooks. The problem that I am having is that for all of my credit sales (sales of product income) are being duplicated in my profit and loss statement, yet at the same time if I do not add them in, then it shows up as negative in my business checking account in my Balance sheet. I do not know how to reflect the correct amount in my business checking account without the credit sales being duplicated in my profit and loss statement. Please help, I am at a loss!

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Best answer 10-31-2017

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Established Community Backer ***

Re: sales of product income

"without the credit sales being duplicated in my profit and loss statement."

You made Invoices for "credit sales."

 

The Banking needs you to either use the "match to existing transaction" to Link them to invoices; or, you first need to use Receive Payment for these amounts, to show which invoices are now paid. Then, the Deposit you Make can be from these Payments, flowing through Undeposited Funds. Or, again, the Download can be Matched to Existing transactions, those sitting in UF. Or, to the Deposit you made from the Receive Payments.

 

In other words, You are the one creating income twice, if you are using two Different methods. Banking is not Income, if you already have Sales transactions or invoices waiting to be paid.

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7 Comments
Established Community Backer *

Re: sales of product income

I'd be lying if I said your question wasn't really confusing. If it is working right, the purchase of a product should flow like this. 

 

Income Statement - increase revenue

Balance sheet - Increase cash

 

There should be a separate transaction to clear the inventory sold. 

 

Income Statement - Increase Cost of Goods Sold

Balance Sheet - Decrease inventory. 

 

If this is not happening then something else is going on. 

Established Community Backer ***

Re: sales of product income

@ccolemanunm01

It sounds like you are entering the sale in QB, then using banking downloads and entering the sale all over again adding the entry instead of matching.

Are you using downloads from some source to enter transactions?

Also check the items set up, income should always have an income type account select and not a bank type account.

Established Community Backer ***

Re: sales of product income

"without the credit sales being duplicated in my profit and loss statement."

You made Invoices for "credit sales."

 

The Banking needs you to either use the "match to existing transaction" to Link them to invoices; or, you first need to use Receive Payment for these amounts, to show which invoices are now paid. Then, the Deposit you Make can be from these Payments, flowing through Undeposited Funds. Or, again, the Download can be Matched to Existing transactions, those sitting in UF. Or, to the Deposit you made from the Receive Payments.

 

In other words, You are the one creating income twice, if you are using two Different methods. Banking is not Income, if you already have Sales transactions or invoices waiting to be paid.

View solution in original post

Not applicable

Re: sales of product income

I have a question about this:

 

does this mean that I would receive payments to the invoice (I've always done this and like to because they I know in my mind who is paying etc.) and then mark all atm deposits to be bulk added to undeposited funds for the accountant to work with at tax time?

 

My issue was that I was doing both and thereby creating double the amount of income.

Established Community Backer ***

Re: sales of product income

Make the deposit in real life. Then, you will do One Of the Following steps:

 

1. When when the Banking download shows the Deposit, you use the tools the Match to the Unpaid Invoices; I do this monthly for three ACH deposits that match about 40 invoices. This results in the invoices having a paid status.

Or;

2. Use Receive payments and let them flow to Undeposited funds, and when the Banking download shows the Deposit, you use the tools to Match to the entries still sitting in UF, which shows these are part of a deposit and no longer Undeposited.

Or;

3. Use Receive payments, let them flow to UF, then select the Make Deposit function, to manually have created the deposit entry the same as you made it in reality. When the Banking download shows the Deposit, you use the tools to Match to the DEP you already made; but QB should have made an Auto-Match for you, in this case.

 

You never Add a Banking Download to UF. By seeing it from Banking, it is Deposited; the Undeposited Funds process is the step Before this, so it is moot, now.

 

In QB Desktop banking feeds tool, you need to use the far right option in the row, if you need to Add More Details, then Allocate to Open Invoices or to Undeposited Funds entries you already have made that are pending to be part of a DEP.

 

Why would you ever leave anything in UF for the Accountant to work with at tax time? If you are doing your own entries and banking, there is nothing more "to do" with the entries. You were supposed to process them all the way to the Banking stage, already.

Experienced Member

Re: sales of product income

I did exactly the same thing and reconciled it already. How do you fix it once it is reconciled?

QuickBooks Team

Re: sales of product income

Hi VictoriaBC,

 

Entering a sales transaction and as a bank transaction would double your income. You'll want to match it to avoid duplicate posting. Let me guide you how.

  1. Click Banking
  2. Select Bank Feeds.
  3. Choose Bank Feeds Center.
  4. Select the bank account.
  5. Click Transaction List.
  6. Select the transaction by ticking the box.
  7. Under the Action column, click the drop-down arrow and select Match to Existing Transaction.
  8. Click Confirm Match.

I also recommend reaching out to your accountant for other ways on how to record the transaction. At the same time, help you undo your reconciliation.

 

I got this article in case you have other questions about QuickBooks Desktop: Banking.

 

Fill me in if you need anything else. I'd be happy to help.

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