Skip to main content
S
Stjoscap
July 31, 2023
Question

Diocese cuts checks for our building contract vendors. How do I create the bill and attach a check that I didn't cut to that vendor and reconcile correctly?

  • July 31, 2023
  • 1 reply
  • 0 views

We are a Church under a Diocese.  We have been doing some refurbishing of our Priest Quarters.  In order to pay the contractor, we have to submit a check request to the Diocese.  We have had some donations come in specifically to cover the cost.  When we received these donations I created a Deferred Account (Other Current Liabilities) where I can track the cost of the project and donations that have come in, in one place. My thought process on this was that when a progress payment was due to the contractor and paid by the diocese, it would come through on my bank reconciliation as a (Diocese Gen Debit).   

To clear that I would create a journal entry debiting my deferred and crediting my checking account.  

This would decrease both accounts. 

By doing this I can never record the bill to the vendor though.  Also, this only affects my balance sheet not my P & L, so how would I be able to recognize this on my P & L Statement and track through my vendors?

1 reply

J
JamesAndrewM
July 31, 2023

Hello there,

 

You can create a Journal entry with AP under the vendor's name and bank under Diocese. I'll also attach a screenshot as a reference. Here's how:

 

  1. Go to + New.
  2. Select Journal entry.
  3. On the first line, select an account from the Account field. If you need to debit or credit the account, enter the amount in the correct column.
  4. On the following line, select the other account you're moving money to or from. Depending on if you entered a debit or credit on the first line, enter the same amount in the opposite column.
  5. Check the amounts - you should have the same amount in the Credit column on one line and the Debit column on the other. It means the accounts are in balance.
  6. Enter information in the memo section to know why you made the journal entry.
  7. Click Save and new or Save and close.



 

After that, you can proceed to reconcile it. Follow these steps:

 

  1. Go to Settings ⚙ and then Reconcile. If you're reconciling for the very first time, select Get Started.
  2. From the Account ▼ dropdown, select the account you want to reconcile. Make sure it's the same one on your statement.
  3. Review the Beginning balance. Make sure the beginning balance in QuickBooks matches the one on your statement. Here's what to do if they don't match.
  4. Enter the Ending balance and Ending date on your statement. Some banks call the ending balance a "new balance" or a "closing balance."
  5. If you see it, review the Last statement ending date. It is the end date of your last reconciliation. Your current bank statement should start the day after.
  6. When you're ready to start, select Start reconciling.

 

 

You can visit this article to learn ways to customize your reports: Common custom reports in QuickBooks Online.

 

Feel free to post here again if you have further QuickBooks-related concerns. We are available 24/7 to lend a hand with each of your queries. Stay safe!

Terms & ConditionsAccessibility statement