Welcome to our Top 5 Questions series dedicated to Reports & Accounting. Whether you're a seasoned accountant or a small business owner starting to navigate financial statements, today we’ll be addressing your burning questions. 

 

We'll guide you through viewing and understanding past journal entries, efficiently categorizing credit card payments,  implementing processing fees for credit card transactions, and more.

 

So let's dive right in! 

 

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

First, we can pull up a Journal Report to see all transactions made through journal entries. From there, we can tap the amount or the transaction to see specific information. Before that, let's filter the dates to include the past entries. 

 

Here’s how:

1. Go to the Reports menu and search for 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, 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

 

That should get you to check your journal entry transactions in the application. 

 

2. How do I categorize a credit card payment?

Great question! I can guide you on how to record breakdowns for credit card payments in QuickBooks Online. 

 

You can categorize the payments directly on your Bill or Check. Here's how:

1. Go to your Bill or Check.
2. In the Payee field, select the (Suppliers name) for the credit card payment.
3. In the Bank Account field, select the bank account or credit card from which the payment will be made.
4. Enter a Mailing address and select a Payment date.
5. In the Cheque no. field, enter the cheque number, or If paid electronically, type the EFT.
6. From the Category drop-down menu, make a selection.
7. Enter a description and an amount.
8. Enter notes under Memo.
9. Select Save and Close.

 

Otherwise, you can use the Memo feature to note the breakdown of payments. Follow the steps below to be guided:

1. Go + New.
2. Under Money Out (if you’re in Business view), or Other (if you’re in Accountant view), select Pay down credit card. Select the credit card you made the payment to.
3. Enter the payment amount. Enter the date of the payment.
4. Select the bank account you paid the credit card with.
5. If you made a payment with a cheque, select I made a payment with a cheque. In the Cheque no. field, enter the cheque number, or if you paid electronically, enter the EFT number.
6. If you want to add notes or file attachments, select Memo and attachments and follow the instructions on the screen.
7. Select Save and Close.

 

Let me share these articles with you for additional reference:

• Categorize and Match Online Bank Transactions in QuickBooks Online
• Record Your Payments to Credit Cards

3. Is there a way to automatically add a processing fee if a customer pays with a credit card?

Thanks for asking. I'll help you add a credit card processing fee to your invoices in QuickBooks Online.

While we can not do this automatically, you can follow the steps below to add a credit card processing fee to your invoice. You can create a service item and manually add it to the invoice. Alternatively, you can consider integrating a third-party app with your QuickBooks.

 

Here's how:

1. On the left navigational bar, go to Get paid and & pay tab.
2. Choose Product & Service. 
3. Click on New, then select Service. 
4. Enter the name of your service item. (Example CC Fee)
5. Select the account you'd use to track the processing fees.
6. Once done, click Save and Close.

 

Once done, add the credit card fee as an additional item on your invoice when charging your customers with the processing fee. 

 

Here's how:

1. On the create invoice page, click Add line.
2. From the Product or Service drop-down column, choose the charge convenience fee you created.
3. Click Save and Close. 

 

Here is an article you can refer to for the detailed steps: Manually add service fees to invoices in QuickBooks Online. 

 

4. How can I print a year to date report of payments to 1099 vendors in QBO?

I’ll show you how!

 

If these vendor payments were from last year, you can follow these steps on generating the year-to-date report:

1. Click Expenses on the left navigation panel.
2. Select Vendors tab and click Prepare 1099s.
3. Click the Continue your 1099s button.
4. Follow the on screen instructions until you reach the Review 1099 vendors and payments window.
5. Click the Print Information Sheet button.

 

If this is for the current year’s vendor payment, there isn’t a way to generate a report to show the payments made to your 1099 vendors. However, you can customize the Transaction List by Vendor report.

 

Here’s how:

1. Click Reports on the left navigation panel.
2. In the search field, type in Transaction List by Vendor.
3. Click the Customize button.
4. Select your preferred date on the Report period drop down arrow.
5. Select Filter and click the Transaction Type drop down arrow.
6. Put a checkmark in the Payment box.
7. Put a checkmark in the Vendor box and click the drop down arrow to select your 1099 vendors.
8. Click Run report.

 

That’s it!

 

5. How can I record an Inventory Purchases and COGS in QuickBooks Online?

Let me help you out!

 

Depending on your subscription if you're on QuickBooks Online Plus or Advanced, you can add everything you buy and sell in your inventory into QuickBooks. Then, you can let QuickBooks update the quantity on hand as you work so you don't have to do them. Once it's set up, it's easy to track inventory in QuickBooks and products to sales forms. To  begin, you'll want to turn on the inventory tracking feature. 

 

Here's how:

1. Go to the Gear icon and select Account and Settings.
2. Select the Sales tab.
3. Select Edit ✎ in the Products and services section.
4. Turn on Show Product/Service column on sales forms.
5. You can also turn on price rules if you want to set up flexible pricing for the things you sell.
6. Turn on both Track quantity and price/rate and Track inventory quantity on hand.
7. Select Save and then Done.

 

Refer to this article for more information about how to set up and track inventory in QBO: Set up and track your inventory in QuickBooks Online.

 

To track what you receive from your vendor, you can create a bill from the purchase order if you'll pay your vendor later. However, if you paid your vendor on the spot you can create a check or an expense from the purchase order.

 

In addition, when categorizing your purchases in your transaction history, you can categorize them as inventory. Record as transfer is when you move money  or transaction from one account to another.

 

Once done,  you can create either an invoice or sales receipt so your COGS ( Cost of Goods Sold) will be affected whenever an item gets sold. Before sending a sales transaction, you'll have to create an account to track your inventory value. 

 

Let me guide you, here's how:

1. From the Accounting tab select Chart of accounts.
2. Select New.
3. Choose Current assets from the Account Type drop-down.
4. Select Other current assets from the Detail Type drop-down.
5. Click Save and Close.

 

Then, create an account to track your cost of goods sold:

1. On the Chart of accounts page, click New.
2. Choose Cost of Goods Sold from the Account Type drop-down.
3. Select the closest type of Cost of Goods Sold that matches your situation from the Detail Type drop-down. If you're not sure, use Other Costs of Service - COS.
4. Click Save and Close.

 

When your done, you can proceed to create a sales transaction.

 

Refer to this article to learn more about how QuickBooks Online calculates COGS: Cost of goods sold: How to calculate and record COGS.

 

If your subscription is QBO Simple Start or QBO Essentials, you can track your inventory manually. Feel free to refer to this article for the steps: Track inventory manually in QuickBooks Online.

 

You can also reach out to your accountant. This way, they can give an advice on what's the best way to handle it.

 

 

Thank you for joining us in our Top 5 Questions series on Reports & Accounting. We hope this article has helped address some of your questions. Understanding past journal entries, proper categorization, and precise recording are crucial for informed financial decisions.

 

If you have further questions or need additional clarification, feel free to reach out to us here in the QuickBooks Community!