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info46
December 11, 2018
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How do I properly put in expense receipts from the store when there are multiple expense categories on one receipt?

  • December 11, 2018
  • 2 replies
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I have a store receipt that has multiple expense categories on it. Do I have to separate them out into let's say office supplies and shop supplies. It does not matter to me if they are done this way but does it matter for taxes? And can I simply put receipts in bulk as a journal entry? ie: Home Depot, OfficeMax, etc are all supplies Auto Zone, 7/11 are auto expenses, with one lump total? Thank you.

Best answer by john-pero
It does matter that expenses are correctly identified, even though any allowable expenses are in fact allowed - but this is also proper record keeping so that you know your expenses (and income) by category. You would not deduct supplies as property tax or labor for an example.  Office supplies and shop supplies are and should be classed different. One (shop)might be tied to your COGS and the other to simple overhead.

You can easily add multiple lines and multiple expense accounts to a single expense receipt for one vendor at a time.  Use the "+" to create Vendor Expense or Vendor Check (both work the same) and add lines as needed.

Do not use journal entries to enter expenses, use the expense screen.

2 replies

john-pero
john-peroAnswer
December 11, 2018
It does matter that expenses are correctly identified, even though any allowable expenses are in fact allowed - but this is also proper record keeping so that you know your expenses (and income) by category. You would not deduct supplies as property tax or labor for an example.  Office supplies and shop supplies are and should be classed different. One (shop)might be tied to your COGS and the other to simple overhead.

You can easily add multiple lines and multiple expense accounts to a single expense receipt for one vendor at a time.  Use the "+" to create Vendor Expense or Vendor Check (both work the same) and add lines as needed.

Do not use journal entries to enter expenses, use the expense screen.
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tbcsolutionsmn
January 26, 2019

when splitting the receipt into different categories, how do you include sales tax from the receipt?  Does taht also need to be figured out per item from the receipt?

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    TashaMac
    June 30, 2019
    I was wondering the same thing. Does anyone have a definitive answer to this?
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    Anonymous
    June 30, 2019

    Thank for joining the conversation, @TashaMac,

     

    I can walk you through the steps on how to enter expense transactions with multiple categories. First, you'll need to set up the account or category you want to use for your items. Perform these steps in QuickBooks Desktop:

    1. Go to the List menu then choose Chart of Accounts.
    2. Right-click anywhere and click New.
    3. Choose Expense and click Continue.
    4. Enter the account name.
    5. Select Save & Close.

    Next, assign these accounts to your Vendor's profile. Here's how:

     

    1. Go to the Vendors menu then select Vendor Center.
    2. Double-click the suppliers name.
    3. On the Account Settings section, enter the expense accounts you want to use for that Vendor.
    4. Hit OK once done.

    That's it. Please let me know if you have any questions with the steps or if you need further assistance. I'll be more than glad to help.

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      TashaMac
      June 30, 2019
      Thank you for the response! I did not clarify. I use QuickBooks Online. When entering a small expense receipt from let's say "Walmart". With multiple accounts....where should we record the sales tax that we paid? Do we divide it appropriately between the item/categories? I understand that if it all can be expensed and grouped into one category, i shouldn't worry about it. But, if we have purchased things that would go into a special account like COGS...it gets a little confusing.
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      Anonymous
      June 30, 2019

      Hey there, @TashaMac,

       

      Thanks for adding additional information about the issue. Allow me to help you record the taxes on your purchases.

       

      At the moment, QuickBooks is not designed to track sales tax automatically on non-sales transactions. To record this, create a new expense account for the tax then add them to expenses, bills, checks and purchase orders.

       

      Here's how:

       

      1. From the Accounting menu then click Chart of Accounts.
      2. In the Chart of Accounts window, click New.
      3. Select the Account Type, select Expenses.
      4. Enter the Detail Type and Name.
      5. Click Save and Close.

      Once done, assign it to your vendor transactions.

       

      1. Go to the Plus (+)  icon.
      2. Choose Bill or Expense.
      3. Enter the Vendor.
      4. In the Category details or Item details section, add the account or item you paid.
      5. Still under Category details, add the tax item.
      6. Click Save and close.

      That should complete your work. Update me if you have additional questions or if you need further assistance with the process. I'll be available for you anytime. Have a nice day!

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