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Downsview
Level 2
posted
‎July 04, 2021 06:50 AM
last updated ‎July 04, 2021 6:50 AM

End of Month distribution of Income & Expenses to partners

Hello, 

Firstly: I'm a QB Novice and I'm NOT an accountant.

 

We have a 2 person partnership, where expenses (debts) are distributed 50/50 and Income (payments) is distributed according to type of Customer- 50/50 in some cases, 40/60 in others etc. The type of customer gets noted in a custom field on the Invoice.

 

I was advised that the best way to accomplish this monthly distribution exercise is via Journal entries directly from the QB "Expenses accounts" and our QB "Income Account" into the QB Partner Distribution accounts. Is this advice correct? 

 

Also, is there a particular monthly report(s) that I can generate which can provide the information needed to easily perform/guide the journal entries? Also, as far as the customer type (noted as a custom field in the Invoice), which would direct the income distribution, is there any way to have this information noted on whatever report that Im using for this process. This would have to be shown on payment/income reports, since the distribution is of actual payments, not invoices per se.

 

Thanks for the help... Cheers!  

 

 

 

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1 Comment 1
MJoy_D
Moderator
Moderator
‎July 04, 2021 08:28 AM

End of Month distribution of Income & Expenses to partners

Welcome and thank you for choosing QuickBooks Online (QBO), @Downsview.

 

I can share some information about creating journal entries and generating the report that you need. 

 

To verify the accounts that you’ll use with your journal entry, I suggest consulting an accountant for guidance on the best category to use. See this reference for detailed guidance on how to create a journal entry: Create a journal entry in QuickBooks Online. 

 

About the monthly report, I suggest generating a Transaction Detail by Account report to show your Income and Expense accounts for a specific period. 

 

Here's how you can open and customise the report:

  1. Go to Reports on the left pane.
  2. Enter and search Transaction Detail by Account in the search box.
  3. Set the date range at the top.
  4. Then hit the small gear icon and check the boxes next to debit and credit.

 

I'd also recommend reaching out to your accountant for the best advice on what report should you use for guidance. 

 

From here, you can run and customise the report to get the specific accounts that you need. Then, memorise it to save its current customization settings. It serves as your record and helps you quickly access it for future use.

 

I'm always here if you needed more help in generating the report that you need and or anything else by leaving a reply below. Take care and have a great rest of the day!

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