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debralee-taylor
June 2, 2021
Question

So I have a deposit and this deposit consists of a balance outstanding in payables and an amount that goes in a grants & subsidy account...how do I apply deposit?

  • June 2, 2021
  • 2 replies
  • 0 views
deposit 1501.50 payables 6898.50 grants & subsidies 8400.00

2 replies

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Nick K
June 2, 2021

Hi debralee-taylor,

 

Making sure your deposit hits all the correct accounts is crucial when making sure your accounts stay accurate and up to date. I'd be happy to help point you in the right direction for this.

 

When making a deposit in QuickBooks Online it allows you to assign what account the deposit is going to. If you need to have that deposit hit multiple accounts I recommend reaching out to your accountant as they are trained on how to make these kinds of entries. If you don't have an accountant no worries, we got your back. You can go to My Accountant>Find a pro to help to find an accountant in your area.

 

Should you wish to have the ability to split one deposit between multiple accounts you can send feedback to our development team by following these steps.

 

  1. Select the Gear icon at the top, then Feedback.
  2. Enter your comments or product suggestions. Then select Next to submit feedback.

 

Once our development team receives the feedback they'll look for ways to include it in future updates.

 

If you have any questions please feel free to reach back out and we'll be happy to help.

 

R
Rochelley
June 3, 2021

Hello @debralee-taylor ,

 

Can you clarify that the deposit you're talking about is being paid to you?  If so, wouldn't that mean that you have a balance outstanding in receivables, not payables?  I can help you but just want to understand completely what you are wanting to do.

D
debralee-taylorAuthor
June 3, 2021

I received a deposit of $1501.50 from Supplier X who offered us a grant of $8400.00 however they did some consultation for us and billed us $6898.50 prior to issuing the grant so we have a balance in our payables of $6898.50.  So when they preapred the payment they paid themselves before sending us the payment.  However the subsidy has to show at $8400 on our books

R
Rochelley
June 3, 2021

Hi @debralee-taylor ,

 

Okay, now I understand.

 

I would do the transaction as follows:

 

1.  Create an Other Income account called something like Grants & Subsidies.

2.  Create an Expense account called something like Consultation Fees.

3.  Create a Bill/Invoice from your supplier for the amount of $6,570.00 + $328.50 GST, using the Consultation Fees expense account.

4.  Go to Accounting tab, open a deposit screen in your banking account.

5.  On line 1, enter the $8,400.00 to the Grants & Subsidies other income account.  Save the deposit.

6.  Go back into that Deposit and choose EDIT.

7.  On line 2, enter a negative $6,898.50 to the vendor, using the Accounts Payable (A/P) account.

8.  Net amount of your deposit is $1,501.50, as it should be.

 

 

9.  Go to the Expenses tab and choose the supplier.  Make payment to that supplier.  When the bill payment screen comes up, put a check-mark beside the invoice you created in Step 3 in the amount of $6,898.50.  The Deposit line you created in Step 7 will be showing under the Credits section of the Bill Payment screen.  Ensure there is a check-mark beside the credit of $6,898.50.  Note that $6,898.50 will be shown as the Amount to Apply.  Save.  The Bill payment will be $0.00, but that is OK as you applied the existing credit.

 

Net effect is:

Income is posted to correct other income account.

Expense is posted to correct expense account.

Net difference is deposited to the bank.

 

An all is well with the universe.  :)

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