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Megan88
Level 2
posted
‎October 12, 2020 08:50 AM
last updated ‎October 12, 2020 8:50 AM

Sub account to the Debtor account

I want to create sub accounts to the Debtor account as we charge annual fees.

 

Eg. '2020 Fee' / '2021 Fee' - I would like each of these to be a sub account to the Debtors account so that when I raise a Sales invoice, the Debit goes to sub account '2020 Fee' and when the customer pays into the bank account, the Credit also goes to the sub account '2020 Fee' and essentially creates a zero balance at the end of the year.

 

Is it possible? Obviously all the sales invoices default to debiting the 'Debtors' account so would I need to raise the invoice as normal and then journal the debit out of Debtors and into '2020 Fee'?

 

Please help!

 

Thank you in advance

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2 Comments 2
jamespaul
Moderator
Moderator
‎October 12, 2020 10:24 AM

Sub account to the Debtor account

Hello, Megan.

 

Creating a journal might mess up your books. I'll share what you can do to handle your debtor accounts. 

 

While QuickBooks Online allows you to create multiple Debtors account (and its subaccounts), the invoices will always default to the original one. At this time, we're unable to associate invoices to different debtors (or Accounts Receivable) accounts. 

 

However, I do have a couple of workarounds for you to handle this. You can do one of the following: 

 

Set up parent and sub-customers to group your debtor's open balances:

 

Generally, you'll want to create a customer parent account for your Debtor sub-accounts (the 2020 or 2021 Fee). Then, set your customers as sub-customers. 

 

Creating a parent account: 

 

  1. Go to Sales, then click the Customers tab.
  2. Hit the New customer button. 
  3. Set the name as "2020 Fee" or "2021 Fee" under Company.
  4. Add other important information. 
  5. Once done, click Save. 

 

deb1.PNG

deb2.PNG

 

Creating or setting your customers as sub-customers:

 

  1. Click the New customers button again.
  2. Enter the customer's name.
  3. Check the Is sub-customer, then choose the parent account for the fees. 
  4. Select Bill this customer in the drop-down menu (to prevent mixing balances from other customers). 
  5. Add other important customer information.
  6. Once done, click Save. 

 

deb3.PNG

 

Do this until you've set up all of your customers. After setting those accounts up, you can start invoicing them. Ensure you've selected the sub-account profile on the Invoice creation screen. 

 

deb4.PNG

 

Use location tracking (Only available for QuickBooks Online Plus):

 

This method uses the location tracking to group your debtor accounts. Simply turn it on, then create the locations as "2020 Fee" or "2021 Fee" as the names. This article tells you more about turning on the feature: Set up and use location tracking.

 

When invoicing, select the location under the Location drop-down menu. 

 

deb5.PNG

 

To track and determine the balances for your annual fees, you can run the Customer Balance Detail:

 

  1. Go to Reports.
  2. Look for Customer Balance Detail in the search box. 
  3. Click Customise.
  4. Open the Filter section, then check Location
  5. Choose one of the locations from the Location drop-down list.
  6. Hit  Run report.

We periodically update QuickBooks Online. Our developers might include the feature to change the debtor's (or Accounts Receivable) account when invoicing. Stay tuned for updates from our Newsletter emails. 

 

If you need help managing your customers' sales, Chart of Accounts, or bank transactions, you can read our articles. They have specific guides for particular topics in QuickBooks Online. Click here to go to our General Topics page. 

 

Please let me know if you have other concerns regarding QuickBooks Online. Willing to lend my ears and help you out. 

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pravea
Level 1
‎March 11, 2021 05:37 AM

Sub account to the Debtor account

Thanks for the thread. I am also very keen to be able to associate invoices to different debtors accounts.

 

This is a priority for organisations that have separate lines of business, and I would hope to see an upgrade to take care soon of the issue. It is my understanding that the desktop version provides that feature

 

Regards

Alberto

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