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Recording Expense Error - Flaw in QuickBooks system?

Forum|Forum|5 years ago
November 27, 2020
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Hi, I recently started utilizing the feature in QuickBooks online where you take a picture of a receipt and then review it later to record the expense for the books. The issue is that I am using my personal credit card and some of my personal cash for these expenses which means I have to put the expenses to Accounts Payable and use myself as a supplier. So when I put the accounts as accounts payable it comes up with an error stating I need to put the expense to another account.

This is quite ridiculous considering it lets me record it this way when I am manually entering the receipts. This feature seems pointless if it is only letting me put the receipt towards a bank account / credit card account, no?

Any way I can bypass this? I would really like to utilize this feature as it is very convenient to take pictures of my expenses (receipts).

QuickBooks Online

Best answer by Rebecca R

Hello powerappled,

I'm glad that you've been exploring the receipt snap feature to save time when recording expenses. QuickBooks Online automatically reads the receipts and extracts the information for you. I'll help you determine what to do with these receipts.

The reason that the program isn't allowing you to select a liability account (i.e., accounts payable) in this section is because the receipts are expenses that have already been incurred, and they therefore shouldn't be owed presently. I see how you technically have a payable from the business to yourself, but the system doesn't quite see it that way.

Creating an account specifically for your personal credit card is a great solution for this situation. That way you can process the receipts through the receipt snap feature as normal, and then you can reimburse yourself later if needed. Here's how to add an account:

Go to the Gear icon, then select Chart of Accounts.
Select New to create a new account.
In the Account Type dropdown menu choose an account type.
In the Detail Type dropdown, select the detail type that best fits types of transactions you want to track. Learn more about detail types.
Give your new account a name. You can use the info under the detail type to add a name that fits.
Add a description.
(Optional) If you’re adding a sub-account, select Is sub-account and then enter the parent account. If you need help, learn more about parent accounts and subaccounts.
(Optional) Choose when you want to start tracking your finances. In the Unpaid Balance field, enter the amount in the account, and determine the as of date. Enter today's date if you want to start tracking immediately.
Select Save and Close.

As for which account and detail type to use for the personal credit card account, some people use credit card while others use owners equity. I recommend speaking with an accountant to ensure that this account is set up correctly for your business purposes. If you aren't connected with your accountant in QuickBooks Online, you can go to the My Accountant tab and invite them to view your company file. If you don't have an accountant, you can click Find a pro to help to search for an accountant in the area who can assist you.

Please let me know if there's anything else I can assist with!

P

powerappledAuthor

On a second thought Would creating a personal credit card account bypass this?

Rebecca RAnswer

Hello powerappled,

I'm glad that you've been exploring the receipt snap feature to save time when recording expenses. QuickBooks Online automatically reads the receipts and extracts the information for you. I'll help you determine what to do with these receipts.

The reason that the program isn't allowing you to select a liability account (i.e., accounts payable) in this section is because the receipts are expenses that have already been incurred, and they therefore shouldn't be owed presently. I see how you technically have a payable from the business to yourself, but the system doesn't quite see it that way.

Creating an account specifically for your personal credit card is a great solution for this situation. That way you can process the receipts through the receipt snap feature as normal, and then you can reimburse yourself later if needed. Here's how to add an account:

Go to the Gear icon, then select Chart of Accounts.
Select New to create a new account.
In the Account Type dropdown menu choose an account type.
In the Detail Type dropdown, select the detail type that best fits types of transactions you want to track. Learn more about detail types.
Give your new account a name. You can use the info under the detail type to add a name that fits.
Add a description.
(Optional) If you’re adding a sub-account, select Is sub-account and then enter the parent account. If you need help, learn more about parent accounts and subaccounts.
(Optional) Choose when you want to start tracking your finances. In the Unpaid Balance field, enter the amount in the account, and determine the as of date. Enter today's date if you want to start tracking immediately.
Select Save and Close.

As for which account and detail type to use for the personal credit card account, some people use credit card while others use owners equity. I recommend speaking with an accountant to ensure that this account is set up correctly for your business purposes. If you aren't connected with your accountant in QuickBooks Online, you can go to the My Accountant tab and invite them to view your company file. If you don't have an accountant, you can click Find a pro to help to search for an accountant in the area who can assist you.

Please let me know if there's anything else I can assist with!

S

Spunk1982

I have been having the same trouble. Is there anyway for a business to record a receipt to A/P through this? It works great if it is an expense but it doesn't look like any bills can be entered through this. Please make so bills can be entered as well and I will be using it a lot.

Is there a way of maybe using an account only for this type of transaction and then making a journal entry to A/P later on? I doubt that would work. Any thoughts?

Rebecca R

Hello there Spunk1982 and thanks for joining in on this thread!

I love that you're taking advantage of the Receipts feature in QuickBooks Online to enter your expenses. Entering your Bills this way is also an option depending on the version of QuickBooks you're using. Let me explain.

If you're using QuickBooks Online SimpleStart, you won't have the option to select a Bill when using the Receipt Capture feature. If you're using QuickBooks Online Essentials or Plus, you'll be able to add a Bill instead of an Expense by accessing the dropdown menu for Document Type and selecting Bill. Once the Bill has been entered using the Receipts function, you'll be able to mark it as paid by using the + New button and hitting Pay Bills.

If you're using QuickBooks Online SimpleStart and think you're ready to upgrade in order to expand on the functionality of this feature, here's how to Upgrade your QuickBooks Online subscription.

When it comes to creating a special account just for these expense transactions that you're adding through the receipt function, that's a question better suited for your accountant. Since you're considering moving the money from the new account to your Accounts Payable via journal entry, your accountant will be able to advise you on the best account type to create, as well as how to accurately record the journal entry. Invite your accountant to work within QuickBooks with you by navigating to the My Accountant tab from the left.

If you don't have an accountant that you're working with, you can always use the Find a pro to help button from the My Accountant page. It'll take you to our database of QuickBooks-certified accountants that can help you out in this scenario. I'd also like to share a few articles below that I think you'll find helpful:

Let me know if there's more I can do to help, and have a great evening!

S

Spunk1982

Does it make a difference if I am in Canada? I noticed the term Simple Start was used. I am having trouble with this in Quickbooks Essentials.

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