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N
NativeLLC
August 22, 2022
Question

Under the Bank Transactions tab, under what category do I assign a purchase I’ve made that a client will reimburse me me for?

  • August 22, 2022
  • 1 reply
  • 0 views

Hello QB Community!

 

I am an interior designer and I occasionally make purchases for home goods that my clients will eventually reimburse me for. There’s no mark up involved, it’s just a regular purchase I make with my debit card using funds from my business account. Eventually my client will write me a check to pay me back for the purchase. I then deposit that check back into my business account. 

 

Under the Live Bookkeeping —> Transactions —> Bank Transactions page, what do I choose from the “Assign To” options to categorize my initial debit purchase? Subsequently, what do I categorize my client’s eventual repayment to me when their deposit posts?

 

This may be a question for my accountant, but I thought I’d start here. Many thanks for any insight!

1 reply

M
Maybelle_S
August 22, 2022

I am delighted to have you here, @NativeLLC.

 

In QuickBooks Online (QBO), you'll have to add the vendor payment (credit card payment) as a billable expense. It will create a billable expense charge transaction for your customer that you can turn into an invoice.

 

Then, the invoice will be a matching entry to the downloaded payment in your checking account. Pay the invoice first, deposit the payment into your checking account, and match it with the downloaded payment.

 

I also advise seeking assistance from your accountant. This way, they can help you choose the correct category.

 

I've added this link about categorizing and matching transactions in QBO. It can help your books be accurate: Categorize and match online bank transactions.

 

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