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A
Arzini
September 18, 2019
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How to record cash received from customer that creates a liability?

  • September 18, 2019
  • 1 reply
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How do I record cash received that creates an Accounts Payable? We usually receive cash from customer that is not payment for service or item received, but for an advancement made by our Administration. We cannot resort to always use General Journal because we issued an official receipt for a cash received. The entry would be debit cash and credit A/P - Person (who made the advance). Our Admins usually makes advances due to the distance of the business operation and our office.

Best answer by JaneD

And by official receipts, it's us who received the cash. Using write check means there's a disbursement, not receipt.


Let me first welcome you here in the Community, Arzini.

 

Thanks for choosing QuickBooks as your accounting partner.

 

Based on the information you've provided, you can create a bank deposit transaction to record the customer's advance payment. 

 

Here are the steps:

  1. Open QuickBooks.
  2. From the Banking menu, select Make Deposits.
  3. In the Make Deposits window, choose a bank account in the Deposit To drop down and set the date.
  4. Select a payee in the Receive From column and choose an account.
  5. Enter the amount you received from the customer.
  6. Once done, click on Save & Close.

If you wish to apply the amount in the future invoices, you'll have to choose Accounts Receivables (A/R) when creating the deposit transaction.

 

For additional reference, check out this article: Record and make Bank Deposits in QuickBooks Desktop.

 

If you need help with the standard process for creating invoices and receiving payments, refer to Accounts Receivable overview.

 

Please let me know if you have any questions. I'm always glad to help. Have a great day.

1 reply

S
ShiellaGraceA
September 18, 2019

Hello Arzini,

 

You can write a vendor check and record it to your Accounts Payable (A/P) account. Then, apply it to a bill when you're ready. Let me guide you through the steps.

  1. Go to Banking. Then, Write Checks.
  2. Enter the vendor name, date, and the payment amount.
  3. Click the Expense tab. Under the Account column enter Accounts Payable.
  4. Choose the vendor's name under Customer:Job.
  5. Click Save and Close.

Once done, create a bill and then apply the check to the bill. Here's how.

  1. Click Vendors, then click Enter Bills. Then, enter bill information.
  2. Click Save and Close.
  3. Click Vendors, then click Pay Bills.
  4. Highlight the bill you want to associate with the check.
  5. Click Set Credits.
  6. The Set Credits screen will display. Make sure to check the check amount, then select Done.
  7. Click Pay Selected Bills.

I've attached screenshots for you.

 

You might also want to check our page for tips and articles of your future tasks: Manage Suppliers and Expenses.

 

Please don't hesitate to drop a comment anytime if you have other concerns.

 

 

A
ArziniAuthor
September 19, 2019

Is that okay? It's part of the official receipts we issue and the way we record it thru our old software, there's a GL account option inside the Receipts section, which means you can directly put the Cash received to any applicable account. There may be an option like this in QB. Is there? We just purchased QB Accountant Desktop 2019 and it's my first time using it.

A
ArziniAuthor
September 19, 2019

And by official receipts, it's us who received the cash. Using write check means there's a disbursement, not receipt.

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