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Not applicable

editing a deposit

How do I edit a deposit that was made a month ago? It was credited to the wrong account.

Content Leader

Re: editing a deposit

Hi @Daffodilmom,

 

It's nice to have you with us in the Community today. I'd be delighted to assist you with editing a deposit that was credited to the wrong account. 

 

You can edit the deposit by pulling it up and selecting the correct bank account. Additionally, you can edit the account associated with manually added funds, such as an income or equity account. Here's how:

 

  1. Select Accounting on the left navigation menu and Chart of Accounts.
  2. Click View register next to the account associated with the deposit.
  3. Locate the transaction and select it then press Edit.
  4. Select the correct bank account in the Account section at the top of the screen if you need to change it. If you have manually added funds to the deposit and need to alter it then select the drop down under Account, which is next to Received From.
  5. Review the deposit.
  6. Click Save.

 

I'm including a video as a brief visual guide for editing the bank account of a deposit:

 

 

The following article contains additional information about deposits in QuickBooks Online: Bank Deposits. Also, I'm including an article that can provide further insight on editing transactions: How to Add or Edit Transactions in a Register (or Account History).

 

Lastly, @Anonymous has a thread in the Community that I recommend looking at: How to Record Bank Deposits in QuickBooks Online.

 

Please know that the Community is here to assist anytime that you need it. Wishing you and your company continued success.
 

Not applicable

Re: Whats the difference between creating a bill vs creating an expense

For accrual basis accounting, you may need to enter a Bill.

 

An Expense records the expense on the date the vendor was paid.

A Bill records the expense on the date of the invoice.

 

For example, if a contractor bills you for work done in the month of October on 10/31/2018, but you don't pay that bill until early November, a Bill would show the expense in October financials, but an Expense would show the expense in November financials.

Established Community Backer ***

Re: Whats the difference between creating a bill vs creating an expense

The problem is that Intuit used the word "Expense" to mean check, in QB Online. So, Expense vs bill is the same as "check or bill" or "credit card charge vs bill" to the QB Online user, as Transaction Types. Not as accounting functions.

Frequent Explorer **

Re: As Mark Ellis points out, a Bill is an Expense. But QBO...

One important note regarding this issue is your reporting basis for accounting!  If you are on a cash basis of accounting, then it will not matter if you skip the step of entering the bill and go ahead and just use a check for the expense.  If you are on Accrual based accounting - then it DOES matter if you are not paying the bill immediately .  If you use accrual, then the bill (even if it is unpaid) will show up on reports as an expense, just as an invoice that you send to a customer will show up as income even when the customer has not paid.

Not applicable

Re: "Bill" type transaction increases expenses and increases...

and Bills also reduces AP, right?

 

thanks

Not applicable

Re: As Mark Ellis points out, a Bill is an Expense. But QBO...

o convert an expense to a bill payment just add a bill to the expense. 

Moderator

Re: "Bill" type transaction increases expenses and increases...

Hi y2kwebs,

 

Bill increases the Accounts Payable. Once the bill is paid that's the time the A/P's balance decreases. 

 

You're right about paying bills through creating expenses. 

 

If you have any questions, please let us know. We're happy to help. 

Community Contributor **

Re: Hi @lt2018, QuickBooks Online has different ways in mana...

What about paying your subcontractors? Each week, they turn in invoices to be paid as our subcontractors. We then pay them via direct deposit. Should I create a BILL from each contractor and then show a payment through our QBO direct deposit payroll? 

QuickBooks Team

Re: Hi @lt2018, QuickBooks Online has different ways in mana...

Hi CertaPro, 

 

It's nice to see new faces here in the Community. Thanks for joining this thread and letting us know about your concern. I've got some insights to share which you can find helpful. 

 

If you're referring to the newly launched Contractors Direct Deposit feature, you only need to set up those contractors/subcontractors for direct deposit payment. Here's how:

  1. Go to Workers from the left menu, then select Contractors.
  2. Choose the contractor's name.
  3. In the Payment details section, click Add Bank
  4. Enter the contractor's bank account information, then pick Save.

Once done, the Pay by direct deposit will be your default option. There isn't a need to create a bill, just click that option and process the payment. 

 

To do this:

  1. Go to Workers from the left menu, then select Contractors.
  2. Choose the write a check drop-down on the contractor you would like to pay, then pick Pay by Direct deposit.
  3. Enter the payment amount and select a Category for that payment. 
  4. Include a description, then add another line item if needed.
  5. Choose a corresponding account from the Chart of Accounts where the transaction will post to.
  6. The total amount will display at the bottom next to Pay. Pick Pay.
  7. In the Confirmation message, click Yes, let's proceed.
  8. Select Close in the Contractor payment details window.

For more information, check out this article:

 

Contractor direct deposit for QuickBooks Online Payroll and QuickBooks Full Service Payroll

 

By following these steps, you should be able to pay your subcontractors via direct deposit in no time. 

 

Reach back to me if you have questions with the process, or if you meant something else. I'll be here to help, anytime! 

Frequent Contributor *

Re: "So if I pay for something (ie: a recurring monthly charg...

I have the exact same questions and QB seems to make bills vs expenses WAY TOO confusing and complicated. Please give me an example of a true expense and a true bill.  

 

I own a billboard company and receive multiple electricity bills every month from power companies. I charge most of them to my company credit card. Should I enter these as “bills” once I receive the paper bill or not???

Anonymous
Not applicable

Re: "So if I pay for something (ie: a recurring monthly charg...

Hello, Jarm.

 

The main difference between bill and expense transaction relates to when you pay the vendor. If you want to record an expense but you haven’t yet paid the vendor, then you can use a bill. On the other hand, you’ll need to use expense if you need to record an expense and payment at the same time.

 

In your case, since your transactions have already been paid using your CC account, you can use expense to record them in QuickBooks.

 

Stay in touch if you have other concerns or if you need help while working with QuickBooks.  

Established Community Backer ***

Re: "So if I pay for something (ie: a recurring monthly charg...

@Jarm

 

"Please give me an example of a true expense and a true bill."

 

The type of payment, and the Date of payment, and your required accounting, control which functions to use.

 

"I own a billboard company and receive multiple electricity bills every month from power companies. I charge most of them to my company credit card."

 

You Enter Credit Card expense directly as against Credit Card, if you are a Cash Basis entity, because the date you paid it is what is used for the financial reporting. That already is a Liability to be paid later; Not AP. Later, you get the credit card statement and reconcile the CC account and enter the Check Expense that pays down your CC balance. There is no need to use AP, as well.

 

You use Bill because you want to Document the date of the bill for things you owe, but will not pay until later. Later, such as the Next Month, you Pay Bills and show you did this using the CC. This is fine for a Cash Basis entity, because the Unpaid Bill will not show in the financial reporting until it is paid, and you wanted to Track that you owe something to be paid later and that is enter Bill.

 

Or, you are an Accrual entity, and they bill you in Jan, but you put it on the card in Feb = Bill is Necessary, to document that the Date of the charges is in Jan. The Payment date is moot for an Accrual Basis entity. The bills show as expense, even if Never Paid, for an accrual basis entity, and for the date On the bill entry.

 

"Should I enter these as “bills” once I receive the paper bill or not???"

 

You do what applies to your own Accounting requirements.

 

Here's what you Don't need to do:

 

I went to Staples today and bought office supplies, putting it on the Credit Card or using the Debit Card. That means there is No Purchase Order for tracking that I placed an order, and there is No bill to pay later. I already Paid.

Not applicable

Re: "So if I pay for something (ie: a recurring monthly charg...

I think this thread covers an issue I am also seeing using QBO.

I have a client meeting and buy coffees using cash.  I get a receipt.  I want to enter that payment and receipt in the system.  I have been entering this as an "expense" (which I now think is wrong after reading this thread).

Then when I do payroll, I include reimbursing myself for all the business related expenses, which includes the coffees I paid for.

What seems to be happening is the original expense reduces the QB account balance.  Then when I pay myself, it reduces the balance again, so it looks like my expenses are being taken out twice.

Can someone confirm this is the incorrect way of doing this?

It looks like I should be entering that original "expense" as a "bill".  Then when I pay myself I can connect that bill item to the payment item (there will be a long list of small bills for all the cash payments I make).

Is that correct?

Many thanks!

 

Established Community Backer ***

Re: "So if I pay for something (ie: a recurring monthly charg...

"I have a client meeting and buy coffees using cash."

 

Whose cash? Personal or the Business?

 

"I get a receipt.  I want to enter that payment and receipt in the system.  I have been entering this as an "expense" (which I now think is wrong after reading this thread)."

 

It's Fine; you already paid.

 

"Then when I do payroll, I include reimbursing myself for all the business related expenses, which includes the coffees I paid for."

 

You mean that you are an Employee of a Corporation? And the corporation didn't provide the petty cash? See how details help?

 

"What seems to be happening is the original expense reduces the QB account balance."

 

You don't have anywhere to Enter something that was paid personally, until you enter the actual reimbursement. You seem to be telling us Personal Funds were used, so the Receipt is entered as the reimbursement to the employee: I stopped at Staples and bought Printer Paper, paying personally. I give you the receipt and the paper, and you repay me and you charge that as Office Supplies expense, as if you just Bought the Paper from me.

 

"Then when I pay myself, it reduces the balance again, so it looks like my expenses are being taken out twice."

 

Because you entered it the first time as if the Business Paid, but you seem to have paid with Personal Cash.

 

"Can someone confirm this is the incorrect way of doing this?"

 

Yes, it is Incorrect; you see it twice, so that makes it Incorrect.

 

"It looks like I should be entering that original "expense" as a "bill"."

 

No; there is no Vendor to be paid later.

 

"Then when I pay myself I can connect that bill item to the payment item (there will be a long list of small bills for all the cash payments I make)."

 

No, that isn't what you should be doing. There is no Supplier of goods and services that is waiting to be paid, later. You are not your own Vendor. You are not in business to your own business.

 

"Is that correct?"

 

No.

 

There are these 2 things:

1. Business resources were used to Buy something. It is was already paid, or will be paid alter, because the supplier is willing to let you Pay Later = Accounts Payable.

2. Personal resources were used to Buy something. That means it is Already Paid For. That means we either need to enter the Owner Paid using personal resources. Or, we need to reimburse an employee.

 

You start with How paid: now or later, and By Whom. And the business entity type matters.

 

To reimburse an employee for "lots of things" you can simply issue a Check. Or, to add it to the direct deposit paycheck, you do it like this:

Make a Bank account and name it Payroll Clearing. Enter here the Spending for each employee. The Employee is the Payee name. Do this for that date of payroll, not the Purchased dates. Enter your actual details, accounts, products, services, job tracking, billable, etc, in the expense transactions.

 

Now you have a Bank account running negative for this Paydate.

 

Make a Payroll net pay addition that is linked to this bank account and set for no tax tracking, as long as what you reimburse for is do under An Accountable Plan. Following those rules make this Not really part of payroll and not taxable; just a banking addition. Add this same amount to that employee's check.

 

That acts as a Deposit to the Payroll Clearing Bank. That bank should now show 0 balance for the pay date, if you did this right. And now you also captured the spending details.

 

Avoid using AP and Vendors, for employee reimbursement. They are Already Employees, not also running a separate business as your vendor, and you need to show this reimbursement process meets the requirements of An Accountable Plan, or Doesn't meet that requirement and is taxable through payroll.

Not applicable

Re: "So if I pay for something (ie: a recurring monthly charg...

After reading this chain, I am still confused by an expense.  I know it's been stated that a bill is something that you will pay and an expense is something you have paid.  The example of an expense has been something that I have a receipt for.

 

However, I don't pay anything with cash.  All my receipts are from paying with my credit card.  Therefore, I haven't paid anything until I send the money from my checking account to the credit card.

 

For example...I buy a pack of gum with cash...that's an expense.  If I buy a pack of gum with my credit card, doesn't that create a "sub bill" on my credit card bill.  I may have received the gum now.  I may have a receipt in my hand, but until I pay my credit card bill, I haven't paid anything.

 

Therefore, I'm thinking an Expense is only something you have paid for with cash.  All credit card and "bills" (like say the electric bill) are Bills because I am paying them by a due date our of my checking account.

 

Therefore, I create a bill under "Expense Transactions".  I put the date I incurred the bill (when I made the charge, when I receive the "bill" from the vendor) as the Bill Date.  I assume the Due Date is when the CC bill or Vendor Bill is due.  

 

Does the fictional pack of gum go on the Category area or the Product/Service area.  I would assume the Product/Service area, but all my chart of accounts are in the Category area.  The only things in the Product/Service area are items/services I see to my customers.

 

How am I supposed to record this?

QuickBooks Team

Re: "So if I pay for something (ie: a recurring monthly charg...

It’s great to see you in the Community, John P - PHD-DDI.


Thanks for the detailed information about your concern. I’m happy to clarify the difference between a bill and an expense.


You’re correct, an expense is used to record transactions that you pay right away via cash. Meanwhile, you’ll use a bill to input a transaction that is paid on specific time.

 

For example, a water bill that’s due at the end of each month. When creating a bill you can either go to the Expense panel or click on the Plus icon and selecting Bill. The Bill date is the time/period the transaction was created, or received.
 

While, the Due date is the specific date payment must be made to the vendor. In regard to the pack of gum, you’ll have to go to enter it in the Product/Service section.


For more insights, check out these articles:

 

If you haven’t created the item yet, refer to the How to create and use a products and services list for detailed instructions.


That should get you going in the right direction.


Please reach out to me again if you need more help with this. I'll be right here to assist you further. Wishing you the best.

 

Not applicable

Re: As Mark Ellis points out, a Bill is an Expense. But QBO...

Just to reiterate @brian5 's point:

"To QB staff:  It should be possible to convert an Expense to a Bill.  I understand this complicates the way records are constructed in QB, but it is a royal PITA to re-enter expenses as Bills once one understands the difference in QB Online"

 

PLEASE!! 

 

Thanks

 

Not applicable

creating bills?

I create bills and pay bills for all our purchase orders.  Sometimes, invoices from vendors come in the mail that don't have purchase orders.  I usually pay these invoices right away with a check.  For accounting purposes, or our CPA, should I always be creating a bill first before I create the check? and if yes, do I need to go back and create bills for those invoices that I did not do that for?

QuickBooks Team

Re: creating bills?

Hello there, @lucille74.

 

Let me help provide some details about recording bill transaction in QuickBooks Desktop. 

 

To answer your questions, yes. You'll need to enter a bill first in QuickBooks to properly record the transactions that you will pay at a future date, including expenses incurred, materials purchased, or services provided by a vendor.

 

Once you already recorded what you owe in QuickBooks, you can use the Pay Bills and select Check as payment method to settle your payables for your vendor and to mark the bill as paid. 

 

Here's how to apply the bill payment: 

  1. Open the bill transaction.
  2. Click Pay Bill.
  3. Select the appropriate one from the A/P Account drop-down.
  4. Select the bills you want to pay from the table. 
  5. On the Account drop-down arrow, select Checking account. 
  6. Click Pay Selected BillsCapture.PNG
  7. Click Done.

For additional reference, you can check this article to learn more about the pay bills in QuickBooks Desktop

 

This will get you on the right track. Fill me in if you have additional questions about the bill transaction. I'd be happy to answer them for you. Wishing you and your business continued success. 

Senior Explorer ***

Re: Both are expenses. The difference is a bill represents s...

Just a slight nuance on Bill vs Expense..

 

Of course bills show up in the "Pay Bills" function -- Expenses do not, as has been said.  Bills reference transactions that are to be paid (at some future point), again, as has been said.

 

And while Expenses could easily be used for transactions that already occurred, on the contrary, IMHO, Expenses work very well, and in some cases better with repetitive (recurring transactions in QBO-speak) "Auto-debit" type transactions, such as utilities, insurance, and loan payments, especially when future dated.  As recurring Expenses, they can provide as either an approximate or actual affect on future cash flow, and can be easily updated, especially as a "payment" step is not required.

 

Sure, Bills can be used for these future occurrences, but in my experience, bills play havoc with automatic debit type transactions because: 1) the "payment" must be generated in advance so the bank feed will have a payment match - this can sometimes be off by a day or two, 2) the automated aspect of the transaction is hindered (i.e. no longer really automated), 3) the bill still appears in the "Pay Bills" function, it can be accidentally "paid" in a check run (been there done that); and, 4) the effect of recurring bill is not readily visible at the bank at such future time (until paid).  Recurring expenses take care of this handily, and (IMHO) the biggest advantage is the visibility in the checking/payment account.

 

This does not mean either is better than the other, just different tools for different tasks. 

 

For Example, our utility requires us to use their Auto-debit .  We know from experience the utility cost will be $xxxx (+/- x%) and that the account draft occurs on the xx day of the month, +/-  a day. And, yes we'll receive an email notice a10-12 days prior to the draft date. This could all be handled easily by 1) creating the bill 2) paying the bill, as of the expected draft date -- hmm, two steps. Of course, the bill could also be set to recurring, and when the notice received, edit and pay the bill -- hmm, still two steps. 

 

Using an Expense to record the the approximate monthly amount and post on the regular draft date, say 25 days in advance, is single (almost set & forget) step -- there is not having to "pay" the expense.   In addition, recording (even the approximate amount of) the  Expense in advance provides an immediate insight as to the cash requirements at that future point in time. When the email notice is received, the payment specifics and reference are updated providing the EXACT cash requirements, and as a nice bonus, you're asked if this is a [ONE TIME] or [RECURRING] change -- so you can use your established estimate, or set the next auto entry to be more in line with the current trend.

 

In another example, some lenders also require auto-debit for our payment on account.  The date and amounts are always the same, but may have variations for principal/interest, etc...  As an automated expense the future cash requirements are immediately and accurately visible,  since the gross payment doesn't change only the underlying categories (which are updated with the current/next statement).

 

Hope that helps...

Not applicable

Good Day Ma'am/Sir! What if our POV is a Contractor, how do we bill a customer (ex. a Gov't agency) from a project that we did in QBO? Or How do we enter the transaction when we receive payment from a customer (Gov't Agency) from the project that we did? What I've did was to make a billable expense.


@VivienJ wrote:

Hi @lt2018,


QuickBooks Online has different ways in managing your business transactions. Let me help you record your transactions in the program.


The manner of entering your expenses depends on the method used when processing the payments. If this is an on-the-spot payment and you release a check to pay it, then you can enter it in the program by using either the Check or Expense feature.


Meanwhile, if you used a credit card which is connected in your QBO account, there isn’t a need for you to create expenses manually. You’ll just need to categorize the downloaded transaction and add it to the affected account.


To do so:

  1. Go to Banking in the left panel, then Banking.
  2. Pick the Credit Card account.
  3. Locate the downloaded payment in the For Review section.
  4. Choose the appropriate expense account, then enter other relevant information.
  5. Click Add.

In case you need to write a Check:

  1. Go to Create button (Plus icon) at the top.
  2. Click Expense under the Vendors column.
  3. Enter necessary details, and click Save and Close.

For more insights, check out these articles for your reference:

That’s it! You’re now set to record your transaction in the program.


Drop me a response below if there are other things you need help with. I’m here anytime!



@VivienJ wrote:

Hi @lt2018,


QuickBooks Online has different ways in managing your business transactions. Let me help you record your transactions in the program.


The manner of entering your expenses depends on the method used when processing the payments. If this is an on-the-spot payment and you release a check to pay it, then you can enter it in the program by using either the Check or Expense feature.


Meanwhile, if you used a credit card which is connected in your QBO account, there isn’t a need for you to create expenses manually. You’ll just need to categorize the downloaded transaction and add it to the affected account.


To do so:

  1. Go to Banking in the left panel, then Banking.
  2. Pick the Credit Card account.
  3. Locate the downloaded payment in the For Review section.
  4. Choose the appropriate expense account, then enter other relevant information.
  5. Click Add.

In case you need to write a Check:

  1. Go to Create button (Plus icon) at the top.
  2. Click Expense under the Vendors column.
  3. Enter necessary details, and click Save and Close.

For more insights, check out these articles for your reference:

That’s it! You’re now set to record your transaction in the program.


Drop me a response below if there are other things you need help with. I’m here anytime!



@VivienJ wrote:

Hi @lt2018,


QuickBooks Online has different ways in managing your business transactions. Let me help you record your transactions in the program.


The manner of entering your expenses depends on the method used when processing the payments. If this is an on-the-spot payment and you release a check to pay it, then you can enter it in the program by using either the Check or Expense feature.


Meanwhile, if you used a credit card which is connected in your QBO account, there isn’t a need for you to create expenses manually. You’ll just need to categorize the downloaded transaction and add it to the affected account.


To do so:

  1. Go to Banking in the left panel, then Banking.
  2. Pick the Credit Card account.
  3. Locate the downloaded payment in the For Review section.
  4. Choose the appropriate expense account, then enter other relevant information.
  5. Click Add.

In case you need to write a Check:

  1. Go to Create button (Plus icon) at the top.
  2. Click Expense under the Vendors column.
  3. Enter necessary details, and click Save and Close.

For more insights, check out these articles for your reference:

That’s it! You’re now set to record your transaction in the program.


Drop me a response below if there are other things you need help with. I’m here anytime!



@VivienJ wrote:

Hi @lt2018,


QuickBooks Online has different ways in managing your business transactions. Let me help you record your transactions in the program.


The manner of entering your expenses depends on the method used when processing the payments. If this is an on-the-spot payment and you release a check to pay it, then you can enter it in the program by using either the Check or Expense feature.


Meanwhile, if you used a credit card which is connected in your QBO account, there isn’t a need for you to create expenses manually. You’ll just need to categorize the downloaded transaction and add it to the affected account.


To do so:

  1. Go to Banking in the left panel, then Banking.
  2. Pick the Credit Card account.
  3. Locate the downloaded payment in the For Review section.
  4. Choose the appropriate expense account, then enter other relevant information.
  5. Click Add.

In case you need to write a Check:

  1. Go to Create button (Plus icon) at the top.
  2. Click Expense under the Vendors column.
  3. Enter necessary details, and click Save and Close.

For more insights, check out these articles for your reference:

That’s it! You’re now set to record your transaction in the program.


Drop me a response below if there are other things you need help with. I’m here anytime!


 

 

Moderator

Re: Good Day Ma'am/Sir! What if our POV is a Contractor, how do we bill a customer (ex. a Gov't a...

You're correct. You'll have to make a billable expense, dgerolaga88.

 

When setting up your project, use your government agency as a customer.

  1. Click Project.
  2. Select New Project.
  3. Enter the Project name, Customer, and Details.
  4. Then Save.

Then, you'll have to bill them using an expense transaction.

  1. In the Add to project drop-down, select Expense.
  2. Choose your customer in the Payee field.
  3. Enter the Category and Amount. The BILLABLE and CUSTOMER/PROJECT fields will automatically checked once you've enter the category.
  4. Select Save and close.

Next, you'll have to create an invoice for that billable expense.

 

Lastly, to receive the payment, just open the invoice you've created then, select Receive payment.

 

You can check invoicing the customer for project expense to know more.

 

I'm always around if you still need my help. Have a great day!

ProAdvisor

Re: Whats the difference between creating a bill vs creating an expense

If you're using the Banking tab in QBO, it's always Expense type since you've already paid to the Vendor. (You can also manually record Expense in the Bank Register. This will reduce the Bank balance).

 

Bill is to show you have received the goods or services and you owe than money to the Vendor. So, you're recording the Expense and showing the Accounts Payable as Liability in your books.

 

Hope this helps!

Not applicable

Re: Hi @lt2018, QuickBooks Online has different ways in mana...

Hi , 

I don't find answers to the following problem:

I have an expense ( an invoice to pay), but I pay it in 2or 3 installments - shown as separate transactions in the banking. 

I suppose the expense should be created first, but then i can not match it with one transaction.

As far as I understand, the 'Split' function in the bank transaction is to split the bank transaction into different categories,  - but how can I "merge" bank transactions to be able to match their total value with one expense? 

Thank you! 

 

 

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