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Level 1

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 October 31, 2017

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Level 15

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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Level 5

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. 

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Level 15

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.

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Level 15

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

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Level 2

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.

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Level 15

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.

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Level 1

sales of product income

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

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QuickBooks Team

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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Level 2

sales of product income

I have the same problem and the customer support tried to convince me uninstall Square!!

Unfortunately I do not have any option to change bank feeds

 

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QuickBooks Team

sales of product income

Hello, @Maliziosa.

 

I believe that you're trying to import your income sales to your QuickBooks Desktop.

 

To avoid duplicate transactions, I advise you to manually add the transaction to QuickBooks, in that case, you can identify if a specific transaction is already added in QuickBooks. 

 

If the transactions are already in your QuickBooks, you can match it to an existing transaction. You can follow the steps above given by my colleague MariasoledadG.

 

I would appreciate getting more details about this matter. Have a nice day!

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Level 2

sales of product income

If what MariaSoledadG suggested, had worked in my case, would I have wasted my time posting my question? I do not have any feed option in my version of Quickbooks! So what Maria Soledad suggested is useless in my case...

 

 

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Level 2

sales of product income

I have a shop!! I cannot do it manually! If that cannot be solved what the point of Using Quickbooks? I go back to grandma books

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Level 1

sales of product income

We have merchant deposits from debit and credit card sales.  Under banking in Quickbooks they are sales of product income.  In order to add these, I first have to choose the tax code.  What should it be?  These are regular deposits into our bank account so how do I create a rule for these transactions?

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QuickBooks Team

sales of product income

Thanks for joining the thread, @HAL1974.

 

I hope you're having a great day so far. You can set up bank feed rules for your transactions. The steps below will show you how:

 

  1. Go to the Banking tab, hover over Bank Feeds, and select Bank Feeds Center.
  2. In the top left-hand corner, press Rules.
  3. Click the Manage Rules drop-down list and choose New.
  4. Fill out the rule details page and pick Save.

 

Now your transactions will follow the rule you created when they upload from your bank. As for the tax codes, you can check out this article for a further explanation: Set up sales tax in QuickBooks Desktop.

 

Feel free to reply below if you have any other questions. Enjoy the rest of your day!

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Level 1

sales of product income

thank you so much for the quick reply!  I checked out your link on sales tax, however it's a little complex.  I'm just asking a simple question here.  In the banking transactions that have been pulled from my bank account, all the merchant credit and debit sales are deposited in our account nightly.  I want to add them, however quickbooks is asking me to choose a tax code first before I can add them.  What tax code would I choose for these particular transactions?  zero rated, exempt, out of scope, or HST 13%?

 

thanks

 

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QuickBooks Team

sales of product income

Hello HAL1974,

 

Thanks for reaching out about this. Your question was originally posted on a thread in the QuickBooks US Community, but don't worry, my colleagues have pulled me in to help. I'm with the Canadian team and would be happy to go over this with you.

 

I know how important it is to choose the proper tax code for your transactions and I want to make sure you get this right. As a technical support agent, I can't advise you as to what the proper tax codes for your transactions would be. For that, I recommend speaking with an accountant or bookkeeping professional. They have the training to back their advice and make sure you have the answers you need to make sure your data is not only entered correct, but also that your books balance.

 

The My Accountant tab in your account can connect you with an accountant in two ways: by allowing you to invite an accountant you're already working with as a user on your account and by helping you find an accountant when you don't have one. Use the provided field if you're hoping to invite your accountant. To find an accountant near you that's also trained in QuickBooks, use the Find a pro to help button.

 

For your reference, here's an article about the tax codes in QuickBooks Online as well as an article about bank feed tasks, since that's where you're working in regards to this question.

So you have it as well, here's a link to the Canadian portion of the QuickBooks Community: QuickBooks Community Canada. In addition to using that direct link, you can also review and change the flag at the top of the page when browsing community. Posting in the correct regional section of community ensures that you'll get the answers you're looking for in a timely manner.

 

I hope that helps. Have a great week!

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