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Cannot use more than one A/R account for a bill; only using one but need to divide between four customers

Forum|Forum|4 years ago
August 2, 2021
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I have a hotel bill I paid on my credit card. It is to be divided between myself and three customers equally (family members but in QB they are 'customers'). I have an A/R account for 'Due from family' and need to divide the bill to show each family member paying the amount they owe me.

I cannot enter the bill and use the 'Due from family' account since it will only allow me to use one Customer:Job, and I keep getting the error message "cannot usre more than one A/R or A/P account per transaction - even though it technically is only ONE A/R account. Nor can I enter their payments to me as a deposit for the same reason - only one A/R account per deposit.

How do I enter this bill and show what the other three owe and record their payments?

QuickBooks Desktop

Best answer by BigRedConsulting

Actually you can't use ANY A/R accounts on a Bill, because you can't use more than one total instance of an A/R or A/P account on a transaction, and a Bill already uses the A/P account.

In this case, enter the Bill using an appropriate account in the detail area for hotel expense. You can also split it between your hotel expense and an asset account, as you are owed for part of it from three different people.

Then, enter three A/R invoices - one for each customer. On the invoices, create and then use an item that uses the same account you used on the Bill, which will wash the total to 0.00 on your financial statements when you record the invoices.

When the customers pay you, record payments received as you normally do against invoices.

BigRedConsultingAnswer

Actually you can't use ANY A/R accounts on a Bill, because you can't use more than one total instance of an A/R or A/P account on a transaction, and a Bill already uses the A/P account.

In this case, enter the Bill using an appropriate account in the detail area for hotel expense. You can also split it between your hotel expense and an asset account, as you are owed for part of it from three different people.

Then, enter three A/R invoices - one for each customer. On the invoices, create and then use an item that uses the same account you used on the Bill, which will wash the total to 0.00 on your financial statements when you record the invoices.

When the customers pay you, record payments received as you normally do against invoices.

A

ArtistCAKAuthor

Thanks BigRedConsulting. The error message really got me flustered that I couldn't figure out what it was trying to tell me.

But I actually misspoke - it wasn't a bill I was entering but a credit card charge, but same principle I suppose. What I don't understand is why the CC chg will allow me to use the AR account and apply it to one of the customers, but it won't let me enter two lines, using the same AR account, just using a second Customer:Job. That I don't understand.

Kristine Mae

I've replicated your concern, ArtistCAK. Let me share how QuickBooks works.

You're unable to use more than one A/R account when creating a credit card charge. You'll want to record a separate transaction per customer instead.

I'll include this article to help you learn more about entering cc charges: Set up, use, and pay credit card accounts.

If you have more questions, don't hesitate to reach out to us again. We're around 24/7 to assist you. Take care!

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