Quickbooks uses Items , or products and services, to identify individual transactions that may need tracking but can all be part of a whole. You do need to use at least one item, even if you just call it Donations and it posts to Donations in your COA. But with items you have the advantage of being able to split donations to any of several targets that are all part of general fund. IN addition you can direct, by item, any designated funds that must be held separately.
As an illustration you could have the following Items
General Fund Donation
And you could also set up any specific items for memorials or any other reason that the parishioners donate.
I presume you are using one sales receipt per donor so that you can give them quarterly and annual reports. The destination account for the "Sales Receipt" should be Undeposited Funds and then you create the Deposit by selecting all the included payments of cash and check
You did the work twice using two different methods. You don't enter the deposit in detail. You Select From the UF entry as part of a deposit or you set your Sales Receipt to post directly to the Checking account, already.
"When I enter the donations by Donation (Sales Receipt), what is the" item" for? and what is that? why not the chart of account?'
Items control the flow of the data to the accounts and allow for Better tracking and reporting.
Example: You collections include Hurricane Relief Donations. That Service Item links to your regular Restricted Income account, but you use that item for the Donation receipts and for the Giving, and now you can report on Hurricane Relief specifically, as Item-based reports. The Accounting is not micro-managed for various Missions and purposes, in other words.
"how to record the deposit in QB after we deposit the cash+checks to the bank"
You do this After the following:
"how to enter the donations received every Sunday at church?"
You track the giving, and then you address the Various destinations of funds. That means you can Summarize the day on one sales receipt, like this:
Or you want to track it Per Donor Name, for meeting your specific requirements for reporting.
Or, some of each.
If I am tracking individual donor's donations via sales receipt, how do I handle a returned check? Specifically, how do I get the donation off of the donor's giving record?
To enter a Reversal of a Sale (Sales Receive/Donation or Invoice/Pledge), you use your donation item on a Credit Memo.
Then, you either apply that to the unpaid open invoice; or, you use it to Refund the money from the Credit Memo, directly. That isn't a real refund, of course, to reflect a Bounced Check. It simply is a posting to banking to reflect the lost amount from the initial deposit that is too high or reflects the return of the funds when the bank pulled back the bounce. It's your Banking Bookkeeping entry, not a check to send the funds anywhere, in reality.
For this: "but how do I get it off of the donor's record?"
Everything will have their Name on it.
The original Donation has their name.
The Credit Memo also has their name; this is the Negative donation.
Donation + Negative donation = $0.
In QB, you see their list of Activities. The Financial reporting for that name = $0, because you Reversed it.
In regards to the question about recording Sunday tithes, I have a similar situation. We are a Baptist Association and our budget is completely funded by contributions from the churches in our association. When recording these contributions, do I need to create an item and name it Tithes/Offerings:Church Contributions as on the COA? I post each check separately so that we have a total giving per church. Once an item is created, do I then just post it as payment received? I am using QB Desktop Pro 2019. I appreciate any clarity you can provide.
Thank you for reaching out to the Community. I'm here to assist you with your question about recording Sunday tithes in QuickBooks Desktop.
If you set up the business type of your company as a Non-Profit and choose Church or Religious Organization as the Industry, the system will automatically create Tithes/Offerings in the Chart of Accounts. You can either use this account or create a new one and selecting Income as the account type.
- Click the List tab at the top menu.
- Select Chart of Accounts.
- Click the drop-down arrow next to Account.
- Select New.
- Choose Income as the Account Type.
- Enter a name (ex. Tithes & Offerings).
- Choose a tax-line mapping if necessary.
- Click Save & Close.
Once done, you can create a service item and use it when you record contributions through a sales receipt or an invoice. Here are the steps:
- Click the List tab at the top menu.
- Select Item List.
- Click the drop-down arrow next to Item.
- Below Type, select Service.
- Enter a name for the service.
- Choose the income account.
- Click OK.
Please keep in touch with me here should you need any further assistance with the church contributions. The Community always has your back.
Thank you for replying. I did as you instructed and I entered in all the checks I have for today. I was under the impression that once I did that I would need to go to Make a Deposit. However, nothing shows up there.
Hello there, tcba2016.
Allow me to guide you through the whole process of making deposits in QuickBooks Desktop.
When you create an invoice and receive the payment, you'll need to choose Undeposited Funds as your Deposit to account. This way, you'll be able to select the right payment that you want to deposit.
- Open the invoice.
- Click Receive Payments.
- Choose Undeposited Funds as your Deposit To account.
- Enter other information needed and click Save & Close.
Now you're ready to make deposit. I'd be delighted to guide you through the steps on how to do it.
- Go to Banking.
- Click Make Deposit.
- In the Payments to Deposit window, select the correct payment.
- Click Ok.
- From the Make Deposit window, fill in the necessary information.
- Click Save & Close.
You may also want to check out this article for your reference: Make Deposit.
That should do it. Please know that you're always welcome to post your concern or follow-up questions about making deposits. I'd be happy to help.
So if you have a check that is supposed to go half to building fund and half to sunday school fund, how would you record that deposit? When I make a sales receipt with it broke out, it will only let me deposit to one fund. It won't deposit to the two funds only one of the bank funds that you select. Appreciate any help I can get. The only way we see around it is make two seperate sales receipts for the one check and record the deposits separately.
Thanks for visiting the Community, elgin,
I'm here to provide information on how to make deposits for two accounts.
Upon creating sales receipt, the money will be deposited to your default account being set up.
To create deposit for two accounts, here's what you'll need to do:
- Click Banking menu at the top, then choose Make Deposits.
- In the Payments to Deposit window, put a check mark on the specific payment to deposit, then click OK.
- In the Make Deposits window, select the building fund account in the Deposit To field.
- Go to the Cash back goes to section at the bottom, then select the sunday school fund account.
- Enter Cash back memo (optional), then enter Cash back amount which is the half amount.
- Click Save & Close.
That's it! By following the steps above, I'm confident that you're now able to create two deposits.
If there's anything else I can do for you, please feel free to reach back out. I'm always here to help. Have a great day!
Thank you. that explains for two. But we have one donor that usually has the donation broke into at least three if not four separate funds. How would you handle that? Not trying to be a problem just wanting to figure out the easiest way.
Good day, Elgin.
You can create an invoice, make partial payments, and deposit it directly to different funds/bank accounts.
But first, you'll have to turn off the Use Undeposited Funds as a default deposit to account feature so you can manually choose what bank account the payment will go to. Here's how:
- Click Edit, then choose Preferences.
- Go to the Payments tab, then click Company Preferences.
- Uncheck the Use Undeposited Funds as a default deposit to account box, then click OK.
Once done, create an invoice. Here's how:
- Click Customers, then choose Create Invoices.
- Fill in the necessary fields, then click Save & Close.
Then, make partial payments. Here's how:
- Open the invoice, then click Receive Payments.
- Click the DEPOSIT TO drop-down arrow, then choose the bank account.
- Edit the payment amount, then click Save & Close.
Follow the steps in making partial payments until you've deposited all amounts to the correct bank accounts.
After depositing it, you can turn on the Use Undeposited Funds as a default deposit to account feature back. Just follow the same steps above on how to turn it off, and just put a check mark in the box.
Feel free to let us know if you need more help. We're just around.