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You may see two accounts for UNAPPLIED cash payments if you report Profit and Loss on a cash basis. It will automatically trigger to these two accounts simply because you have entered certain deposit and payment transactions differently than normal flow in QBO.
These two accounts are automatically added to the Chart of Accounts when the new company file is created. You can’t delete or change these two accounts.
Here is the main reason that will trigger these two account types in QBO:
Triggers “Unapplied Cash Payment Income” when the date of the customer deposit date is before the invoice date it’s applied to.
Triggers “Unapplied Cash Bill Payment Expense” when the date of the vendor payment date is before the bill date it’s applied to.
Example of “Unapplied” Customer Deposit and Vendor Payment transactions
Changing “Invoice” and “Bill” dates to be prior to payment dates should work for most transactions in this account. However, there may be other unknown circumstances where the issue may not be easily fixed. In that case, you will need to analyze each transaction and resolve the matter. Or get help from the expert.
This video will show how to fix “Unapplied Cash Payment Income” and “Unapplied Cash Bill Payment Expense” on a cash basis Profit and Loss report.
First, you need to get some guidance from the parent company if they go through inter-company elimination process to prepare consolidated balance sheet report.
In QBO create Intercompany Accounts Payable Account (not main Accounts Payable A/P) >
you can select “Credit Card” Type > it will show as Credit Card group on the Balance Sheet. When you Pay Bills (or enter expenses), you can select this account instead of bank account > easy one step process only > however, if parent company has a problem using Credit Card type account then, you may need to set it up as “Other Current Liabilities” type account.
In that case, it becomes two step process > pay bills (or enter expenses) using Credit Card type as I/C clearing account > transfer the balance from Intercompany Accounts Payable (other current liabilities type) to Intercompany Clearing account (credit card type > new name). To transfer in QBO, you can use Transfer (create + sign > other > transfer) or write a Journal Entry (and make it reversible JE if needed).
Again, it’s a good idea to consult with your parent company who handles Intercompany accounts. And, always reconcile accounts on a regular basis.
Click on the screenshots below to enlarge them
On the parent company’s books, they should record this as an intercompany accounts receivable.
In QBO for Intercompany Accounts Receivable > select “Other Current Assets” Type (not main Accounts Receivable A/R type. In QBO, you can have just one A/R).
I made a large purchase that had to be paid with multiple payment sources.
I can find lots of information for splitting a single payment into multiple expenses, but how does one go about recording the opposite case? For example, a $10,000 expense that was paid $6,000 from a checking account and $4,000 on a credit card account.
Start with entering a Bill for this purchase of $10,000
From the home page screen > Create + sign > vendors > bill
Fill out bill form. See attached photo 1 for reference.
Then use Pay Bills, and pay by using the bank checking account for that $6,000 part. Then, Pay bills, and do the credit card account for $4,000 part.
From the home page screen > Create + sign > vendors > pay bills
See attached photo 2 for manual check payment reference.
See attached photo 3 for credit card payment reference.