Set up a (clearing) Account.
1. Go to Lists>Chart of Accounts and right click on any account
2. Choose New and choose Bank for the type
3. You can name it whatever makes sense to you such as Clearing Bank Account
4. Use this account to post to for both transactions, Income and Expense and they will zero out the account and no Income or Expense will be realized.
Enter the full amount of the Customer Payment in Receive payments if tracking Customer payments.
When you make the deposit use the Clearing account to "deposit" to.
If paying a Vendor or using an account such as Paypal that you need to track you can enter a "check" or pay a bill as you normally would EXCEPT you will pay with the Clearing Account.
The Customer Invoice will show as paid, the bill will be paid and the clearing account balance will be zero.
or
When you go to deposit the Customer payment, enter a 2nd line using the Vendor name and Accounts payable in the from account and enter a negative amount.
Then go to Vendor>Pay bills>choose the bill and click the set credits button.
Thanks for your help.
ReplyDeleteThe home owner is also going to pay me directly my profit so what is the best way to enter that. I assume for that I use the business bank account.
And when everything is entered that way i'll be able to look at the reports and track every expense just like all my jobs?
Hi Gary,
ReplyDeleteIf you are going to deposit into your business account then that is where it will be posted. You track your jobs by using Items for your Invoices and Bills or checks and entering the Customer:Job name. The bank account that the money is posted to has no affect on job cost.
Thank you for your post.
Lori