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Hello Community! Welcome back to another exciting Top 5 article. Do you have questions about categorizing credit card payments, or wondering how to go about recording a customer prepayment? If so, then you’re in luck because today we will be going over some of the most talked about questions regarding Reports & Accounting here in our Community.
So let’s get to it!
1. How do I categorize a credit card payment?
Great question! Let’s take a look.
You can categorize credit card payments in QuickBooks Online manually using the Pay down credit card function.
This is how:
- Click the + New button.
- Choose Pay down credit card.
- Select the credit card you made the payment to.
- Enter the payment amount and date of the payment.
- Select the bank account you paid the credit card with.
- If you made a payment with a cheque, select I made a payment with a check and then enter the check number.
- If you paid electronically, enter the EFT number.
- Add a memo or attachment as needed.
- Select Save and Close.
That’s all there is to it! For more resources on managing the payments you make to your credit cards in QuickBooks Online, make sure to check out this article.
2. How do I run a report to view all journal entries from my online QuickBooks?
I got you covered!
The Journal report is great for this because it can be modified so that you can have a list of Journal entries based on the customizations you chose. Something neat is that this report also includes a column that lists the memos and descriptions you made to the journal entry.
Here’s how you can go about doing this:
- On the left pane, go to the Reports menu.
- Search for the Journal report in the search bar.
- Select Customize, then set the desired reporting date from the Report period.
- Under Filter, choose Journal Entry from the Transaction Type drop-down menu.
- Click Run report.
- Under the MEMO/DESCRIPTION column, you can view all the notes and annotations you added to the journal entry.
You should now be good to go. For more information on personalizing and filtering your report according to your needs, check out this article on customizing reports.
3. What is the best way to record a customer prepayment and deposit?
I’m glad you asked!
A prepayment should always be treated as a liability in order to show that it doesn’t belong to you until it’s used to pay for services. In situations like this, you’ll need to record a retainer or deposit, to ensure that the transaction will show correctly on your financial reports.
You’ll first want to start out by creating a liability account to track the amount of prepayments.
I’ll show you how:
- Go to Accounting on the left pane, then choose Chart of Accounts.
- Hit New and choose Other Current Liabilities from the Account Type drop-down list.
- Select Trust Accounts - Liabilities under the Detail Type drop-down.
- Enter a name for the account example, Trust Liabilities.
- Click Save and close.
Next, you’ll want to create a service item that you can use when recording invoices. Here are the steps:
- Click the Gear icon and choose Products and Services.
- Hit New.
- Select Service from the Product/Service Information.
- Add the service item.
- From the Income Account drop-down, choose Trust Liability Account.
- Lastly, click Save and close.
That should do it.
For complete details on handling prepayments, make sure to check out this article on How to record a retainer or deposit.
4. How do I fix a payroll that was posted in the wrong account?
Let me walk you through the steps.
First, you'll want to create a journal entry so you can transfer the payroll to the right account.
Important Note: Before doing so, I recommend getting in touch with your accountant for additional guidance in recording this. This way, we'll ensure the accuracy of your accounts after making these changes.
Here’s how to do so in your QuickBooks Online account:
- Go to the + New button.
- Select Journal entry.
- Fill in the needed details to create your journal entry.
- Click Save and close when done.
To learn more about the basics of creating a journal entry in QuickBooks Online, I encourage you to check out this article.
Once you’re done with the above steps, you’ll want to run a payroll report to make sure the amounts are accurate in your account.
For more resources, you can also check out our Employees and payroll taxes page for reference. There, you can find some great articles and even learn some tips on managing your payroll!
5. How do I correct undeposited funds?
This is a popular question, but we got you covered!
In QuickBooks Online, the Undeposited Funds account serves as a temporary account that QBO uses to hold payments received from an invoice before you deposit them into your real bank account. The awesome part is that you can create a Bank Deposit to clear the amounts.
Let me show you how:
- Click on the + New button.
- Select Bank Deposit.
- From the Account ▼ dropdown, choose the account you want to put the money into.
- Put a checkmark on the boxes for each transaction.
- Click on Save and close.
That’s all there is to it.
For more information on how the Undeposited Funds account works, check out this article in the Community here.
That’s all for today! I hope you found these top questions and answers helpful. As always, please feel free to reach out to us in the Community with any other questions or concerns you may have.
