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GreenLad
October 12, 2024
Question

How do I record due to/from as well as expenses?

  • October 12, 2024
  • 1 reply
  • 0 views

So I have an expense made on company A on behalf of company B. So the transaction is a due from, for let's say $174.22. How do I record this both as the expense and how much money is owed between companies?

Currently when I put $174.22 on both Supplies and Due From as a split transaction, it won't accept it. The split amount and difference need to be at 0.

 

I need to record both as Due From and Supplies so I know how much the companies owe each other and so the expense will appear on my P&L.

1 reply

G
GenmarieM
October 12, 2024

I appreciate your efforts and time in bringing this concern to us, GreenLad. Navigating financial software can sometimes be perplexing, especially when it comes to accurately recording expenses. However, I want to assure you that I'm here to assist you every step of the way in recording your expenses in QuickBooks Online (QBO).

 

For company A, create a liability account called due. This account will help you track any outstanding obligations or amounts owed. Let me guide you on how to create one, here's how:

 

  1. Go to Bank transactions, then choose Chart of Accounts.
  2. Select the Account drop-down at the bottom, then choose New to create a new account.
  3. Select an account type, then Continue.
  4. Enter the account details.
  5. Once done, click Save & Close.

 

Next, let’s move on to Company B and record a payment made to Company A for the amount of the expense incurred. This step is essential for maintaining accurate financial records and ensuring that all transactions are properly documented.

 

Finally, I highly recommend reaching out to your accountant to ensure the accuracy of your financial records. Having a professional review your documentation can provide invaluable insights If you don't have an accountant yet, consider utilizing our ProAdvisor service, which can connect you with a local expert tailored to your specific needs.

 

We understand how crucial it is to have accurate financial records, and we assure you that QuickBooks is designed to help ensure your financials are precise. If you have any further questions or concerns, you can leave a message below. We're committed to providing you with the best support and guidance possible.

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