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Archive for January, 2012

QuickBooks Payroll Liabilities Payment Got Lost

Monday, January 30th, 2012

How to Handle a Lost Payment for QuickBooks Payroll Liabilities

A reader wrote, "I made a 941 payment through EFTPS (using an electronic payment). The transaction didn't clear and then we received a notice that the payment was never received. I went to EFTPS and made the payment again. How do I void the original payment, which was made more than a month ago, and enter the new payment? Everything I try messes up my payroll liability totals in QuickBooks."

You don't have to do anything in QuickBooks; the new payment will clear the bank (hopefully). If this had been a check that got lost in the mail and you had to re-issue a check, the easiest way to handle that would be to stop payment on the first check, and then change the check number of the first check to the check number you used for the replacement check. Trying to void and re-enter payroll liabilities is a maze that's difficult to exit.

If your late payment included penalties and/or interest, enter a check in QuickBooks (with no number) to cover those amounts, and post them to an expense account that tracks them (such as Other Expenses). When you reconcile your bank account, the second payment (the one that cleared) will be larger than the check entered in your register; to clear the payment select both the payment check and the penalties/interest check – the total will equal the new check.

Vendor Refunds Vs. Vendor Credits in QuickBooks

Friday, January 27th, 2012

How to Handle Vendor Refunds in QuickBooks

This tip is in response to many e-mail messages with the same query. The questions all resembled this one: "I received a refund from a vendor because the vendor had made a mistake in its bill. I created a vendor credit in QuickBooks and then deposited the money in the bank using A/P as the account and using the vendor name. The deposit showed up on my bank statement, but the credit still shows up on the vendor's record. How do I clear that credit?" (Two of the e-mail queries said the writers had made purchases with debit cards, and returned the items. Each vendor issued a credit against the debit card account. Both readers also created a credit before depositing the refund check and wanted to know how to clear the credit from the vendor record.)
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Apply a QuickBooks Customer’s Cash Payment That Wasn’t Deposited

Wednesday, January 25th, 2012

How to Apply an Undeposited Customer Cash Payment in QuickBooks

A reader wrote to ask how to handle a cash customer payment that her boss kept. She tried to enter a transaction applied to Owner Draw, but the customer's QuickBooks record didn't reflect the payment.

Receive the payment in QuickBooks and make sure the payment is sent to Undeposited Funds. Then, in the Make Deposits window enter a line below the payment, using the Draw account. Enter a minus amount equal to the amount of the customer's payment. Your bank deposit net is zero, the customer is credited with the payment, and the draw is recorded.

Tracking Paid Job Costs in QuickBooks

Monday, January 23rd, 2012

How to Track QuickBooks Job Costs That Have Been Paid

A reader asked how to create a QuickBooks report that will indicate the job costs that have been paid instead of the total costs linked to the job.
Run the Profit & Loss By Job report and change the report basis to Cash instead of Accrual.

Tracking Rep Commissions that Differ By Customer in QuickBooks

Saturday, January 21st, 2012

How to Track Sales Rep Commissions by Customer in QuickBooks

A reader wrote to ask how to manage monthly rep commissions that differ by customer. The best way to do this is to create a custom field in QuickBooks for each customer for the commission rate, and also use the Rep field in every customer transaction. Any QuickBooks report that lists the customer total sales, the custom field, and the rep name can be exported to Excel in order to calculate the commissions.