|
Posted by Dan on January 31, 2008, 8:44 am
Please log in for more thread options
Hi,
One of my electrical subcontractors (ABC Electric) needed their check in the
form of a cashier's check, which cost $10. So, on the QB check I made it
payable to ABC Electric, with an item for $1,000 Electrical, and then a
second and third item for -$10 (negative) and $10 for an item I created,
called "Finance Charges".
That way, the $1,000 still gets tracked to Electrical, and I have a
charge/credit for the $10 cashier check fee.
Methinks there might be a better way (i.e., correct way) to do it?
Also, I think I only want to report $990 on their 1099, but given the method
above, QB generates $1,000 for that vendor...any ideas?
Thanks!
|
|
Posted by Allan Martin on January 31, 2008, 9:23 am
Please log in for more thread options
> Hi,
>
> One of my electrical subcontractors (ABC Electric) needed their check in
> the form of a cashier's check, which cost $10. So, on the QB check I made
> it payable to ABC Electric, with an item for $1,000 Electrical, and then a
> second and third item for -$10 (negative) and $10 for an item I created,
> called "Finance Charges".
>
> That way, the $1,000 still gets tracked to Electrical, and I have a
> charge/credit for the $10 cashier check fee.
>
> Methinks there might be a better way (i.e., correct way) to do it?
>
> Also, I think I only want to report $990 on their 1099, but given the
> method above, QB generates $1,000 for that vendor...any ideas?
How much money did the subcontractor receive?
>
> Thanks!
>
|
|
Posted by Laura on January 31, 2008, 9:43 am
Please log in for more thread options > Hi,
>
> One of my electrical subcontractors (ABC Electric) needed their check in
> the form of a cashier's check, which cost $10. So, on the QB check I made
> it payable to ABC Electric, with an item for $1,000 Electrical, and then a
> second and third item for -$10 (negative) and $10 for an item I created,
> called "Finance Charges".
>
> That way, the $1,000 still gets tracked to Electrical, and I have a
> charge/credit for the $10 cashier check fee.
>
> Methinks there might be a better way (i.e., correct way) to do it?
>
> Also, I think I only want to report $990 on their 1099, but given the
> method above, QB generates $1,000 for that vendor...any ideas?
>
> Thanks!
You paid the subcontractor $1000. That's what goes on the 1099. You paid $10
to the bank to receive the cashier's check. That's just an ordinary business
expense. Post it separately using the bank as the vendor name. It should not
be recorded with the subcontractor's name on the transaction.
|
|
Posted by Allan Martin on January 31, 2008, 10:46 am
Please log in for more thread options
>> Hi,
>>
>> One of my electrical subcontractors (ABC Electric) needed their check in
>> the form of a cashier's check, which cost $10. So, on the QB check I made
>> it payable to ABC Electric, with an item for $1,000 Electrical, and then
>> a second and third item for -$10 (negative) and $10 for an item I
>> created, called "Finance Charges".
>>
>> That way, the $1,000 still gets tracked to Electrical, and I have a
>> charge/credit for the $10 cashier check fee.
>>
>> Methinks there might be a better way (i.e., correct way) to do it?
>>
>> Also, I think I only want to report $990 on their 1099, but given the
>> method above, QB generates $1,000 for that vendor...any ideas?
>>
>> Thanks!
>
> You paid the subcontractor $1000. That's what goes on the 1099. You paid
> $10 to the bank to receive the cashier's check. That's just an ordinary
> business expense. Post it separately using the bank as the vendor name. It
> should not be recorded with the subcontractor's name on the transaction.
If there is one thing I learned in practice is never assume. Telling the OP
"You paid the subcontractor $1000." does not make it so.
>
|
|
Posted by Laura on January 31, 2008, 10:55 am
Please log in for more thread options
>
>>> Hi,
>>>
>>> One of my electrical subcontractors (ABC Electric) needed their check in
>>> the form of a cashier's check, which cost $10. So, on the QB check I
>>> made it payable to ABC Electric, with an item for $1,000 Electrical, and
>>> then a second and third item for -$10 (negative) and $10 for an item I
>>> created, called "Finance Charges".
>>>
>>> That way, the $1,000 still gets tracked to Electrical, and I have a
>>> charge/credit for the $10 cashier check fee.
>>>
>>> Methinks there might be a better way (i.e., correct way) to do it?
>>>
>>> Also, I think I only want to report $990 on their 1099, but given the
>>> method above, QB generates $1,000 for that vendor...any ideas?
>>>
>>> Thanks!
>>
>> You paid the subcontractor $1000. That's what goes on the 1099. You paid
>> $10 to the bank to receive the cashier's check. That's just an ordinary
>> business expense. Post it separately using the bank as the vendor name.
>> It should not be recorded with the subcontractor's name on the
>> transaction.
>
> If there is one thing I learned in practice is never assume. Telling the
> OP "You paid the subcontractor $1000." does not make it so.
Valid point. I originally was going to write..."assuming you paid the
subcontractor" but left out the word "assuming".
My point is what ever was paid in total to the subcontractor is what goes on
the 1099. It is irrelevant that it cost $10 for the certified check. That
does NOT reduce the amount paid or shown on the 1099.
|
| Similar Threads | Posted | | Record Expenses with Sales tax. | August 2, 2006, 1:21 pm |
| How do I record a pass-thru transaction? | August 31, 2006, 4:32 pm |
| How to record bank Interest | March 31, 2007, 9:30 am |
| Double Customer Record | June 4, 2007, 10:41 am |
| QB 6 NUE Mac won't give "Record" button in accounts! Help! | July 19, 2006, 9:17 pm |
| Problem: Won't record bank payments | May 22, 2007, 8:31 am |
| Recording cost associated w/ deposits? | January 19, 2008, 2:23 pm |
| Quickbooks still need to be activated at a cost | January 20, 2008, 8:59 am |
| Assign cost to back invoices | August 11, 2006, 11:02 pm |
| Cost of Goods Sold question | April 13, 2008, 5:48 pm |
|
|
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap