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I purchased a 50K Certificate of Deposit from my business checking account. How do i enter that transaction in QB online?

Forum|Forum|3 years ago
June 23, 2023
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QuickBooks Online

Best answer by Rainflurry

Thanks for your response. This is what I was looking for.

I am not versed in creating Journal entries.

If I write a check/record an expense and assign the CD bank account to the check, do I create a "Bank CD" account and start the balance at zero and the date prior to the date the 50K was moved out of my business checking account. Or, do I set it up as some other sort of asset?

See attached.

Regards,

Alan

@alan79

Yes, set it up as a bank account as you're showing in your screenshot. Leave the opening balance and date fields blank. Disregard my previous post regarding the journal entry and check/expense. The easiest way to transfer the cash from your checking account to the CD is to use the Transfer function (New > Transfer). Specify which account to transfer funds from and the CD to transfer funds to, enter the amount and the date of the deposit and you're all set.

M

MirriamM

Hi there, @alan79.

You can create a check or expense transaction in QuickBooks Online to record the certificate of deposit you've purchased.

Let me guide you on how:

In the left menu, click the + New button.
Select Check or Expense.
From the Payee ▼ dropdown, select the vendor you got the certificate of deposit from.
From the Bank account (check) or Payment account (expense) ▼ dropdown, select the account used to purchase the certificate.
In the Category details section, select the Category ▼ dropdown to select the certificate of deposit account for this vendor. If you don’t have an account for the vendor yet, see this article how to add one: Add an account to your chart of accounts in QuickBooks Online.
Enter the amount of the certificate.
Select Save and close.

In case you need tips and related articles when managing your account, feel free to visit our Community website for more insights.

Please let me know if you have any additional concerns. I'll be happy to help. Have a wonderful day!

A

alan79Author

Hi Mirriam

Thanks for the response.

Would this be considered an expense in that it will show in my P/L as an expense? I would be showing a 50K expense in the end. Is that correct?

Alan

R

Rea_M

Thanks for getting back to us, Alan.

Yes, you're correct. Since you'll be creating a check or an expense transaction for the certificate of deposit, it's considered and will show as an expense in your Profit and Loss report. Please see the screenshot below for your reference.

Also, QuickBooks has a special way to filter your Profit and Loss report by bank account. If you wish to learn more about this, please see this article: Run a Profit and Loss report by bank account in QuickBooks Online.

Keep me posted in the comments if you have other concerns about managing expenses in QBO. I'll gladly help. Take care always, Alan.

D

DrJosh

I used the process described in this thread to account for the CD our business took out. It has now matured and the bank has transferred the principal + interest back into our checking account.

What are the steps I need to do in order to (1) close out the CD account and (2) account for the returned principal and interest?

Thanks all!

D

DrJosh

@Rainflurry any help on this part?

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