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March 21, 2023
Question

How to add legal disbursements into QuickBooks so the account is not considered all income

  • March 21, 2023
  • 1 reply
  • 0 views

I am trying to figure out how to add legal disbursements into quickbooks. Here is the situation. When we provide a service to a client, our account includes legal fees and disbursements. So a legal account of $2000 is actually, for example, $1,500.00 legal fees and $500.00 disbursements.

When quickbooks pulls in the deposit from my bank of $2000, it is all recorded as income. I want to add the disbursements or do whatever needs to be done in quickbooks so that it brings the income down to $1500. At the same time, I don’t want the $500 disbursements to be added as an expense because the actual disbursements were already input into quickbooks when I paid for these disbursement through my link bank account/credit card.

 

How can I adjust for this so my books are accurate?

1 reply

January 3, 2024

Did you ever find a solution to this problem?  It is exactly what I am trying to figure out.

Adrian_A
January 4, 2024

Hi vannostrand,

 

I'm here to help record the legal disbursement and the legal fees.

 

You can create a journal entry to adjust your books based on the given information. Here's how:

 

  1. From the + New tab, select Journal entry.
  2. Select the affected accounts.
  3. Click Save and close.

 

Before doing so, I suggest reaching out to your accountant so they can guide you on the correct accounts to use.

 

Moreover, you can check this article on how to manage your books: Close your books.

 

Keep me posted whenever you have concerns about creating a journal entry.