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ZNP1
December 30, 2022
Solved

Recording a cash payment from a customer when some of the deposit has been used for cash purchases

  • December 30, 2022
  • 1 reply
  • 0 views

Hi,

We sometimes get paid in cash from our customers and then our drivers may need to use some or all of this amount to purchase stock.

How do I match this with the bank transaction which shows the cash deposit and also with the invoices that we received for some of the cash that was used to purchase stock?

I have tried a couple of times but I am left with an amount that I cannot apply to the customers accounts where they have paid in full as some of the cash was used to buy stock.

Many thanks!

Best answer by GeorgiaC

I have created a cash account and this works well and transferred the funds to my bank account which connects the payment made into the bank.  However, I have noticed that my quickbooks bank balance is not reducing when I do this - is this correct? Thanks!


Hi ZNP1, yes that's correct - matching to an existing transaction in QuickBooks won't change the 'in QuickBooks' bank balance, only adding a transaction would impact this. You can double-check that the in QuickBooks balance is correct by periodically reconciling your bank account with our in-built tool. 🙂

1 reply

G
GeorgiaC
December 30, 2022

Hi ZNP1, thanks for your post - you can create a cash on hand account to track these payments. To do this, first navigate to the Cog > Chart of accounts > New and set the account type to 'cash at bank and in hand' and the detail type as 'cash on hand'. You can enter an opening balance here if there is an existing amount, or leave this field blank. You can the select this account when receiving payment on customer invoices, and when making payment on expenses/bills. Any remaining amount that is deposited to the bank can then be recorded using a transfer (+ new > transfer), selecting the cash on hand account under 'transfer funds from' and the bank account under 'transfer funds to'. This can then be matched to the deposit in your banking screen. 🙂

Z
ZNP1Author
December 30, 2022

Thanks Georgia

That makes sense, I will give it a go 🙂

Z
ZNP1Author
January 3, 2023

I have created a cash account and this works well and transferred the funds to my bank account which connects the payment made into the bank.  However, I have noticed that my quickbooks bank balance is not reducing when I do this - is this correct? Thanks!

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