How do I record a Job Retention Scheme payment from HMRC when we are not using Quickbooks payroll?

melaniegrenyer99 · ‎July 24, 2020

Ashleigh1 · ‎July 24, 2020

Hello Melaniegrenyer99,

Welcome to the Community page,

Is this a loan from them or do you have to pay this back?

melaniegrenyer99 · ‎July 25, 2020

Thanks for getting back to me.

No, it is not a loan, it is 80% of salary for the director, when he was furloughed, just for one month.

Thanks

FritzF · ‎July 25, 2020

Thanks for getting back to us, @melaniegrenyer99.

We can start by setting up an income or equity account to track the furlough scheme payment. Then, use this when entering a deposit. Before doing so, I'd suggest consulting your accountant in choosing the appropriate account and detail types for this.

Here's how:

In QuickBooks Online (QBO), go to the Accounting menu to get to the Chart of Accounts.
Click New at the top right, then pick the appropriate Account Type.
Choose the correct Detail Type.
Enter the account name, such as Furlough Scheme Payment from HMRC.
Hit Save and Close.

Once done, make a bank deposit to post the payment. Here's how:

Go to the + New button at the top left to get to the Bank deposit.
Pick the bank in the Account drop-down and enter the Date.
Select HMRC or the customer in the Received From column.
Choose the income or equity account in the Account column.
Set the Payment Method and enter the Amount.
Click No VAT in the Amounts are drop-down.
Hit Save and close.

For more information, consider checking out this article: COVID-19: Coronavirus Job Retention Scheme.

Please let me know if you have any other issues or concerns in the comment section. I'll be here to assist. Take care and have an amazing rest of the day!

View solution in original post

melaniegrenyer99 · ‎August 23, 2020

Very helpful, thank you. I will confirm with the accountant to confirm the appropriate account and details types.

kevinneal · ‎February 23, 2021

Sorry I know this is an old thread but where you say, "Choose the correct Detail Type"

What is the correct detail type?

Maybelle_S · ‎February 23, 2021

Hello there, @kevinneal.

When creating a new account, you can select a detail type that fits the transactions you want to track. The detail types give more information about what you can track with each account type.

To learn more about detail types, you can check this link: Learn about detail types in the chart of accounts.

I've also added these articles about the chart of accounts in QBO:

Fill me in if you have other questions about accounting terms. I'm always here to lend you a helping hand. Take care!

PriceA123 · ‎December 30, 2021

sorry not working for me as when I go to bank reconicliation i have apayment as well as a deposit are they meant to wipe each other out?

GebelAlainaM · ‎December 30, 2021

Hello there, @PriceA123.

Thank you for sharing your concern with us in the Community space. I can give you details that'll clarify things and help you resolve your concern.

When you reconcile in QuickBooks Online (QBO), payments and deposits offset each other if they're the same amount.

A reconciliation's purpose is to eliminate discrepancies between your QBO bank account and its actual bank account. You can use your bank's statement as a reference in this matter.

You can check out this article to learn more about the reconcile workflow in QuickBooks Online.

Let me know if you have any other concerns with regards to reconciliation and how to pull up a reconciliation report. I'll be delighted to assist you. Have a good day!

AlfonsoCalabia · ‎May 31, 2022

Hi PriceA123

Did you manage to fix it? because for me it is also creating the payment alongside the deposit...

Many thanks

Alfonso

MichelleBh · ‎May 31, 2022

I have steps to help resolve the Job Retention Scheme payment in QuickBooks, @AlfonsoCalabia.

I'll ensure that the HMRC Job Retention Scheme transaction is labeled as a deposit when reconciling the bank.

Ensure that you don't use same account when recording the Deposit. This way, the transactions will not offset. Refer to the screenshots below for your reference:

For more details about bank deposits, visit this link: Record and make bank deposits in QuickBooks Online.

Furthermore, check out these articles below on how to fix reconciliation error and manage Job Retention Scheme in QuickBooks:

Feel free to ask me if you have further questions about bank deposit and reconciliation in QuickBooks. I'm glad to help you. Keep safe.