Why doesn't the vendor "Name" in the journal entries I created get applied to the vendor's transactions?

Hello edavis8199,

If you want to create a journal entry and use it as a payment for the vendor's transaction (Bill), you'll need to debit the Accounts Payable account. Let me show you how:

1. Open the journal entry.
2. Debit the Accounts Payable account.
3. Credit the other affected account
4. Enter the correct vendor name in the NAME column.
5. Click Save and choose Yes to confirm the action.

Then, here's how you can apply it to a bill (as an example):

1. Open the bill and click the Make payment button.
2. In the Bill Payment window, enter the Bank/Credit account and the Payment date.
3. Under the Outstanding Transactions section, mark the bill you want to pay.
4. Under the Credits section, mark the journal entry.
5. Click Save and close.

If you need more help with this, any additional details would be much appreciated. Thanks in advance!

@JamesDuanT

Need to read the question, your reply is no help

Because journal entries are brute force accounting.

QB is not designed to be used with journal entries with some very rare exceptions.

the vendor transaction list shows bills entered for that vendor, no bill no transaction to list.

Journal entries should be the exception when using QB, they often do not work as you think they should, and  when you use inventory type items they never work for inventory. It is much better to use the forms on the home page the way QB is designed to be used.    Journal entries also bypass accrual/cash reporting, and will not show on many reports.

Maybe this deserves its on thread.  If so I will move it.

I have a situation where an employee used a personal card for some business expenses and many personal expense.  I am using a suspense account for the amounts the firm paid towards that credit card.  I was planning to Journal Entry  Credit Card Payments Suspense - Credit / Proper Expense Account for Expense - Debit.  The idea is that anything left over in the Credit Card Payments Suspense after JE all business expenses is compensation to that employee. (Another JE to zero out the Suspense account).

But using JEs this way in QBO is not showing as a payment to the vendor  under vendors lookup for the reason  youl explained.  So I wonder, is there a QBO way to accomplish what I am after?

Thanks for any tips you have.

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@Byter wrote:

Maybe this deserves its on thread.  If so I will move it.

 

I have a situation where an employee used a personal card for some business expenses and many personal expense.  I am using a suspense account for the amounts the firm paid towards that credit card.  I was planning to Journal Entry  Credit Card Payments Suspense - Credit / Proper Expense Account for Expense - Debit.  The idea is that anything left over in the Credit Card Payments Suspense after JE all business expenses is compensation to that employee. (Another JE to zero out the Suspense account).

 

But using JEs this way in QBO is not showing as a payment to the vendor  under vendors lookup for the reason  youl explained.  So I wonder, is there a QBO way to accomplish what I am after?

 

Thanks for any tips you have.

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The absolute simplest way to handle this, is to total up the amounts the employee spent on the business and write him a check, in the check detail list the business expenses and enter an explanation in the memo block about reimbursement.

This is not vendor activity: "I have a situation where an employee used a personal card for some business expenses and many personal expense.  I am using a suspense account for the amounts the firm paid towards that credit card."

The Firm never pays anyone's personal credit card, directly. You reimburse the employee under the terms of An Accountable Plan. They pay their own Bills and costs.

"I was planning to Journal Entry  Credit Card Payments Suspense - Credit / Proper Expense Account for Expense - Debit.  The idea is that anything left over in the Credit Card Payments Suspense after JE all business expenses is compensation to that employee. (Another JE to zero out the Suspense account)."

It's not Compensation to the employee under the terms of An Accountable Plan. And you would not be Overpaying, ever.

"But using JEs this way in QBO is not showing as a payment to the vendor  under vendors lookup for the reason  youl explained.  So I wonder, is there a QBO way to accomplish what I am after?"

You told us this is an Employee. That means Not your credit card to track or pay.

I just provided an answer to a similar topic:

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.

That was done in way.  But the whole credit card amount was paid to the employee instead of just business expenses.  Now I am trying to adjust and call some of those amounts compensation instead of business expense and track the payments to vendors for our records..

This is all good advice about what could have happened or should have happened, but it didn't happen that way and no I need to fix it per by earlier questions.

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@Byter wrote:

The idea is that anything left over in the Credit Card Payments Suspense after JE all business expenses is compensation to that employee.

 

 

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compensation to an employee is payroll - needs to have payroll taxes withheld, etc.

For what you did: "But the whole credit card amount was paid to the employee instead of just business expenses."

What they did not "account for" by giving proof of Business Expense, that is Taxable Bonus to them.

"Now I am trying to adjust and call some of those amounts compensation instead of business expense and track the payments to vendors for our records."

You didn't Pay the Vendors. You don't track it. If I bought printer paper from Staples on my credit card, you didn't pay Staples. You "buy" the office supplies from Me.

Clearing is never on the P&L. It is a Balance Sheet activity, so that there is no treatment of the difference as income or expense while there is any delay in the processing of this data.

Let's start Over; I write you a check to reimburse you for office supplies and other things you paid for, plus you want to borrow $1,000 so this Split entry is posted as Other Current Asset. Now you need to repay me that borrowed amount. Or, we will treat it as taxable Bonus to you, which means there will be a Taxable Fringe Benefit added to the next paycheck, linked to expense. This is Added to your paycheck and Taxes compute and are withheld. Then, I have an Employee Loan Repayment Deduction item, that is Not tracked for taxes, as a Net Pay Deduction, the same as a Wage Garnishment. That means I Deduct the original Loan amount from your takehome, because you Already got the funds, outside of this paycheck.

Here's what happens:

The Taxable addition makes taxes required, deducted from the Gross Wages on this check.

The Deduction item removes it from being part of Takehome. And that clears the Loaned amount, which was now treated as Bonus paid out, then taxes afterwards.

It helps to follow the rules for payroll and for accountable plan. And a business never makes a personal payment for anyone; you don't pay personal Credit card payments for employees. You pay Them for what you owe Them. They manage their personal lives.

Thanks a lot for this.  The "borrowed" path is the one I will take. 

Noted on how badly this was done to begin with and it was avoidable if the proper procedures were in place before this happened.  But they were not in place and so now I am cleaning it up. 

I was hoping to keep track of how much we spent at Staples, to use your example, both our direct payments and payments we reimbursed the employee, but there seems to be no way around losing that detail on the vendor side.  We will still have it captured in Office Supplies of course and will just have to note the shortcomings of the vendor reports. 

I agree...  would like to see the Journal Entry with the Vendor name in the Vendor List.  I run a vendor report and it is there why not on the list?

That part in QBO is working as designed, mpclaud0910.

Journal Entries are not expense transactions. That said, it will not be displayed on the vendors' list. What you see on each vendor's profile are the expense transactions you've created for them like Bills, Checks, Purchase Orders, and so on.

So to get all of the entries you assigned to a particular vendor, it would be best to generate a report. This will be more detailed and will give you everything you need.

Just leave a reply if you have more questions. I'll be here to help you further.

He is right. If you want the transaction to link to the supplier (or customer), you have to post to accounts payable/creditors or accounts receivable/debtors and then specify the relevant name. This then updates the ledger. Otherwise, the other way still shows the transactions linked to the supplier/customer with the account code you have chosen, but will not update your supplier ledger. (Or customer ledger)

@SophiaAnnL What do you suggest is the best way to enter Shareholder Contributions of business purchases made with personal funds?  Example: One partner made several Amazon purchases with personal credit card.  No money was given to the partner to reimburse her, but we want to track these purchases as business expenses, and want to credit her contributions to the business.  My original thought was to create a journal entry (debit expense category, credit partner contributions).  Is this the best way to go about it?

I am going to have to go back and correct all of the journals for payments to vendors/contractors.  The issue is that I am integrated with Gusto where I pay the contractors and then Gusto creates a journal entry for the payment automatically in QuickBooks.  I am just noticing that the vendor ledgers are not correct because it's not picking up the name from the journal.  From this point on I will just enter the payments the normal way and have it be a match instead when it comes through the bank.  And then delete the auto journal that Gusto creates.

I know this thread is 5 years old, but I would love to know which report to run to see all of the transactions associated with a vendor, including JEs where they have been tagged.

Thanks!

Hello there, tstruminger. No worries, I'm here to help you run a report that shows all the transactions associated with a vendor, including the tagged journal entries.

You can run the Transaction List by Vendor report where you can able to see the desired details. Here's how:

1. Go to the Reports tab.
2. From the search icon, look for Transaction List by Vendor Report.
3. Click on Switch to classic view.
4. Filter Report period dropdown to All Dates.
5. Then, select Vendor from the Rows/columns.
6. Click Run report.
    

Furthermore, you can check out this article to learn how to manage money moving in and out of your business and bank account in the future: Use reports to track cash flow in QuickBooks Online.

If you have further questions regarding reports or QuickBooks-related concerns, please feel free to click reply so we can assist you. Stay safe.