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5
5491_2
November 2, 2022
Question

Receiving payment from a Customer

  • November 2, 2022
  • 1 reply
  • 0 views

I have a trucking company and I pay insurance and rent from the expense accounts. I also have 2 customers that pay me for their portion of the rent and insurance each month.  I have been invoicing them for the amounts they owe but I'm not sure how I apply their payments.  Do I apply them back to the original expense account that I originally paid from?  I wasn't invoicing them previously and when they paid me I showed I received them from the customer and put from the accounts rent expense account and insurance expense account.  I don't know if I need to receive under these accounts or just deposit it under the accounts receivable account. 

Cheryl

1 reply

J
JonpriL
November 2, 2022

Hi there, @Cheryl11_2.

 

I'm here to help share insights about how can you receive a payment from customers in QuickBooks Desktop who are also associated with expense accounts.

 

You can create a clearing account and use it as the payment account to mark your invoices and expenses as paid, at the same time. Let me show you how you can create and use your new account.

 

  1. Go to Lists.
  2. Select Chart of Accounts.
  3. Under Account, select New.
  4. Choose Bank.
  5. Enter an account name. Say Clearing, Wash, or Barter Account.
  6. Click Save & Close.

 

From here, you can create a journal entry to move the said amount of payments. Learn more about your clearing account with this article: Set up a Clearing Account in QuickBooks Desktop.

 

However, I still recommend contacting your accountant for guidance in choosing the account category of your journal entry. They can also share the best accounting practice to follow considering the needs of your business and accounting books.

 

Use this link if you haven't found someone you can work with: QuickBooks Certified ProAdvisor.

 

I've also got this article helpful in providing a different report you can use to determine the status of your accounts, financially: How does QuickBooks Generate Reports?.

 

Keep in touch if you need any more assistance with this, or if there's something else I can do for you aside from working with the payment and expense accounts in QuickBooks. I've got your back. 

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