Discussion:Quickbooks general journal entry

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Discussion Forum Index --> Accounting Questions --> Quickbooks general journal entry

Lawadeea (talk|edits) said:

30 April 2013
Quickbooks problem here. I have the owner of a company who used his personal credit card to pay some invoices. I have used a general journal entry crediting the the owners credit card account and debiting the accounts payable account with the vendors name beside the entry. This does not let me create a credit to be applied against the vendors bills. Any suggestions?

EatonCPA (talk|edits) said:

30 April 2013
Delete the general journal entry entirely. Just go to "Pay Bills" then select the payment method "Credit Card" and account "Owners Credit Card" and pay the bills that way.

Lawadeea (talk|edits) said:

30 April 2013
Quickbooks won't let me do this. As the credit card is already set up as an account on the balance sheet.

EatonCPA (talk|edits) said:

30 April 2013
Change the account type through the chart of accounts.

Lawadeea (talk|edits) said:

30 April 2013
Thanks Eaton - you gave me some ideas. I had to make a general journal entry with the accounts payable account showing first. I also had to put the vendor on both sides of the entry. I always thought QB's would not let you do that. All the joy of QB's.

Mr cheese (talk|edits) said:

4 May 2013
Don't use general journal entries to increase or reduce control accounts! C.P.A.'s always like doing this since they like to go nuts when it comes to recording adjusting entries in the general journal, but there is no need. Here's the solution:

1. post a "credit memo" in the vendor ledger, choosing the vendor name whose accounts payable balance you want to debit.

2. The credit memo will automatically debit accounts payable, but you must choose the account that you want to credit.

3. In the "credit field", choose the Shareholder Loan Payable (or Due to S/H) account and make sure to include some kind of description in the memo. QB will allow you to choose any account you like in the "credit" field when posting credit memos. Therefore, you will have no obstacles in your way nor will you encounter any QuickBooks type "quirks" when doing this.

4. After you post the credit memo, go to "Vendors" ---> "Paybills", then apply the credit to the vendor invoice by pressing the "set credits" button.

5 After that, hit pay bills, but make sure to set the amount of the bill to pay to zero so that no actual check is disbursed and no actual amount is paid either.

6. The credit will then be applied to the appropriate vendor and the balance in the vendor ledger will be reduced by the amount of the shareholder's personal credit card payment.

7. The beauty of doing it this way is that the control account will be reduced correctly and your balance sheet won't be out of balance. The credit, instead of effecting a bank or credit card account, will increase the Shareholder Loan Payable (Due to S/H) account as it should.

PVCC-CCIFP (talk|edits) said:

Don't really understand the. "problem" here....have used journal entries to create credits to a/p for years. Just use procedures similiar to Mr. Cheese except I prefer to use the QB creditmemo for actual credits generated by the vendor and journal entire to record nonstandard means of paying bills...guess IRS just my construction background and keeping straight all those returned materials.

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