Adding transaction

melkhafif · ‎June 08, 2020

It's an exceptional case, I had to pay for a service on behalf of my client, in return of a management fees for that activity. the thing is that I didn't have the full amount ready, therefore, I took a fund (cash) from a friend in order to have the full amount that I will pay for the service. In return of part of the management fees to my friend.

Now I need to record the amount I took from my friend in the system, I just don't know to record it under what? is it sales receipt for example? although I don' think so because I didnt sell him something. is it owner's equity? if so, then under what account ? I don;t know , please advise.

MaryLandT · ‎June 08, 2020

Hello, melkhafif,

You can start by recording the money you receive from a friend using the Bank deposit feature in QuickBooks Online. Let me show you how:

Click + New, then choose Bank Deposit.
From the Account drop-down▼menu, choose the account you want to deposit the money into.
Select the box for each payment you want to combine. Make sure the deposit total and selected payments match your deposit slip.
Use your deposit slip as a reference. Remember, only select payments you need for each deposit.
Click Save and close.

If your bank and friends account are set up in QBO, you can use the Transfer function instead to record the transaction.

Also, I recommend consulting with your accountant for specific instructions on what accounts to use for this special entry.

Stay in touch if you need additional information by leaving a comment below. Just tag my name and I'll get back to you.

Thank you and stay safe!