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  #1  
Old 07-08-2005, 05:14 PM
drylightn drylightn is offline
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Partial Payments and matching lump deposits?

Hello Quickbook gurus. Newbie bookkeeper here for a animation company (I'm a animator and i'm doing the books, scary i know). I have two questions that continue to vex me in regard to quickbooks.

1.) Lets say you have recieved half of a payment from a client for services, and the lowlife client disappears or goes under, how do you mark the remainder of the amount owed to you in quickbooks as "never going to get it" or something of the sort. I don't want to void the invoice or delete it, becasue we did recieve some of the payment, but not all. But were probably not going to get the 2nd half.

2.) say you have gotten a bunch of checks in and you deposit them at the bank. These show up as one transaction on the online banking items i download from my bank. The problem is in the check ledger they show up as multiple checks, making them impossible to do the matching function with (cause I can only match one to one, not one to many). Is ther any way to match one online bank transation/deposit to many deposits in the check ledger?

thanks for you help
-chad
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  #2  
Old 07-09-2005, 07:34 AM
Joey Joey is offline
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Hi Chad,
1. First, we need to know what you did with the down payment when you deposited that. Did you put that into a Customer Deposits, Current Liability account or did you do an Invoice for the Job/Sale and apply it? Where is it right now? (I know that it's in the bank)

2. Your individual payments should be going into Undeposited Funds first and then they are matched and grouped with the deposits that contain each one. Is that what you are doing?
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  #3  
Old 07-14-2005, 01:53 PM
drylightn drylightn is offline
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joey- thanks for responding, heres what i did:

1.)the downpayment was applied in the recive payments screen to the gig, so yes, the money is in the bank.

2.)I'm still a bit confused here. How do I "group" a match? As far as I can tell i can only match individual transactions on the banking statement screen (the lower half of the match transactions screen).
let me try to clarify and break it down in steps so maybe you can see which step i'm doing wrong:
a.) i go to the bank and deposit two checks for 2,500 (two sep clients/gigs)
b.) go back and open up quickbooks
c.) go to banking menu
d.) go to online banking
e.) view the items recived from my financial insitution
f.) now i'm at the split screen match transations.
g.) on the bottom, where it shows the bank transactions, that screen shows the total lump i deposited (5 grand)
h.) on the top checking screen, when i've applied the payments in recive payments, they show up as two sepereate entries in teh check ledger (client a deposit 2,500, client b deposit 2500)

I can't seem to select both of these and select the 5000 deposit in the bottom screen and match. it only lets me select one entry per screen (unlesss i'm selecting them wrong)

that help any?
-chad
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  #4  
Old 07-15-2005, 05:17 AM
RobJoy RobJoy is offline
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When you receive cheques, select 'Group with other undeposited funds' in the bottom left corner of the Payment window, rather than 'Deposit to . . ' . The use 'Make Deposits' from the banking menu to collect all such cheques together and transfer them to the bank account, and you'll get a single bank transaction for your depot slip.

With regard to your bad debt: you need to move the debt to an expense account called 'Bad Debts'. So you need a journal entry:
Credit A/R with the total to write off, putting the customer's name in the Name field, debit 'Bad debts'. Now you can receive a payment against the customer - select the invoice then assign the journal as a credit to wipe out the outstanding balance.
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  #5  
Old 07-15-2005, 05:21 AM
RobJoy RobJoy is offline
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P.S. there would be implications for VAT in the UK - I have the foggiest idea whether there's a Sales Tax issue, or indeed any other accounting or tax regulations you need to know.
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  #6  
Old 07-15-2005, 11:38 AM
Joey Joey is offline
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Joyce's idea is good about writing off the balance to Bad Debt expense and that will work if you file taxes on the Accrual Basis. The Accrual Basis means that you recognize income as soon as you issue the invoice, whether it's paid or not.
If you use the Cash Basis, that means that you recognize income for taxes when you actually receive the payment from the customer. So, you're not allowed to write off Bad Debts if you file on the Cash Basis because you were never taxed on the sale to begin with.
If you're CASH BASIS, just create a Credit Memo for the entire balance that you won't be getting using an Other Charge Invoice Item that's linked to your regular Sales Income account. Put a notation in the Description area.
Then go to Receive Payments for the customer and DON'T enter any amount. Click on the button to Apply Existing Credits and Set Credits and apply the credit to the invoice to clear them out.
You'll wind up with sales income of the net amount that you actually received. You're technically writing it off but you're not flagging it out in a separate Bad Debt expense that you're not allowed to have.
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