Hey there, QuickBooks Community! Ever feel like accounting is a never-ending maze? No worries, we're here to help you navigate, especially when you're using QuickBooks Online. This month, we're putting a spotlight on Accounting - the bread and butter of your finances.

We've rounded up the most burning questions about accounting - those head-scratching moments you've shared with us, and guess what? We’re all set to answer them.

So, buckle up, folks! Let's make accounting a walk in the park!

1. How do I view past journal entries to check them? 

Great question! I’m happy to share the steps you can take to check Journal Entries in QuickBooks Online.

1. Go to the Reports menu and locate Journal.
2. In the report window, click the Customize button to filter specific Journal Entries.
3. Select the Date under the Report period.
4. From the Filter dropdown, mark check the Transaction Type and select Journal Entry from the option.
5. Then, click Run Report.

I’ve included these references in case you’d like to save the report setting and print it for future use:

• Memorize reports in QuickBooks Online
• Print a journal entry report

2. How do I make a journal entry for uncleared checks?

I’m glad you asked! Let me guide you on how to write off a check to a vendor in QuickBooks Online. 

The most efficient way to clear any payables is to pay it off.  Aside from making journal entries, this includes creating a clearing account. 

Once you're ready, you can follow the steps below to create a journal entry for an Accounts Payable (A/P) balance:

1. Select the Plus icon (+) on the Toolbar.
2. Under Other, select Journal Entry.
3. Enter the Journal Date.
   The Journal Date is the date of the end of the time period.
4. On the first line, select the expense or liability account affected by the bill from the drop-down list in the Account column.
5. Enter the amount in the Credits column.
6. Enter the reason for this journal entry in the Memo field.
7. On the second line, select Accounts Payable from the Accounts drop-down list. The amount should be automatically entered in the Debit column.
8. Select the Vendor from the drop-down list in the Name column.
9. Select Save and close.

Once the Accounts Payable journal entry is created, you must set it to reverse:

1. Select the Search icon on the Toolbar.
2. Locate the journal entry you created and select it to open it.
3. Select Reverse.
4. Change the Journal Date to one day after the original journal entry's Journal Date.
5. Select Save and Close.

For additional reference, you can check this article on how to resolve A/R or A/P balances on a cash basis Balance Sheet. 

3. How do I apply a vendor credit to the amount owed to vendor?

Let’s take a look at how!

In QuickBooks Online, we can create a credit memo and apply it as payment to an invoice. You can check out this article for the detailed steps: Apply a Credit Memo, Credit or Refund to a Customer.

We can enter it as Vendor Credit:

1. Click the Create menu (+) and select Vendor Credit.
2. Enter the vendor name and the credit details for the vendor. Make sure the amounts are positive.
3. Click Save and close.

Or you can use the Vendor Credit as payment for an open bill. Here's how you can apply it to the open bill:

1. Open the bill you want to pay.
2. Click the Make payment button.
3. In the Bill Payment window, the bill is mark in the Outstanding Transactions section.
4. Go to the Credits section and mark the vendor credit.
5. Click Save and close.

Feel free to browse this article for more information about vendor credits: Manage Vendor Credits.

4. How do I clear up an undeposited funds account?

 I’ll show you how!

For the funds not to increase to your checking account, please ensure to fill in the correct information on the Deposit page. First, please check your register and see what is the category of the deposits, either sales or income account. Once done, use that account when creating the deposit under the Account column on the Add funds to this deposit section. However, it would be best to consult your accountant for the category or account to use.

You can see the attached screenshot for additional reference.

To learn more about deposits, you may check this article: How to Record Bank Deposits in QuickBooks Online.

5. How do I categorize my transportation expenses like gas and insurance even though I have already ...

Let me help you out! 

Once you've set up your vehicle information, you'd want to make sure to record the related expenses such as toll, fuel, and parking fees under Schedule C: Car and Truck.

expenses. These are the transactions that are tagged under Car and Truck:

• Vehicle insurance
• Vehicle loan interest
• Vehicle loan
• Vehicle repairs
• Gas and fuel
• Parking and tolls
• Vehicle registration
• Vehicle lease
• Wash and road services

Also, QuickBooks uses two general deduction methods in calculating your allowable vehicle-related transactions. This allows you to decide which deduction method you want to use when you file your taxes. You can refer to these articles to help you manage your transactions:

• Schedule C and expense categories in QuickBooks Self-Employed
• Updates to expense categories in QuickBooks Self-Employed
• Create rules to speed up reviews in QuickBooks Self-Employed.

Lastly, you can consult with an accountant so you'd be guided in choosing the right category for your self-employed related expense transactions. 

That’s all I have for you today! I hope you found these top 5 questions on the topic of Accounting helpful and informative. If you have any other queries or issues, please do not hesitate to contact us. 

We’ll be back with more next month!