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Posted by Golden California Girls on January 7, 2007, 2:17 am
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Remove 2 spaces wrote:
> All,
>
> I'm an technical guy providing pro bono bookkeeping services for the last
> two years to a non-profit using QuickBooks 2004 Pro. I took some
> undergraduate accounting courses about thirty years ago. The president of
> the non-profit pays the bills and makes checking account deposits among many
> other things. I get the financial data from her to enter in QB Pro
> sometimes much after the fact. I don't have the opportunity to dictate the
> “composition” of a deposit. The non-profit board of directors hasn't yet
> started using the QB Pro data for serious analysis. The main use of the
> data is to give to the accountant for the annual Form 990 tax return.
>
> One of our income raising activities involves selling art items on
> consignment. Such sales are subject to state sales taxes that our
> non-profit typically collects and remits to the state comptroller when due.
>
> The president makes checking account deposits depending on the size of the
> backlog. So a typical deposit will have 6 or more 'splits' that may include
> proceeds from one or more consignment sales.
>
> The way I'd like to account for a consignment sale would be to distribute
> the proceeds from a sale across three accounts that includes 1) an A/P
> account showing the state sales tax owed, 2) an A/P account showing the
> amounts owed to the vendor (artist) who made the item sold and 3) a deposit
> to our organization income account that tracks income for such sales. So,
> one consignment sale generates two A/P entries and one income account entry.
>
> The problem is QuickBooks won't let me distribute income in one deposit to
> more than one A/P entry. When I try I get a QB Pro WARNING message that
> reads, “Cannot use more than on A/R or A/P account in the same transaction”.
> It looks like QB Pro considers the whole deposit to be one transaction.
> Even if the whole deposit was for just one consignment sale, I'd still have
> two A/P entries to make as part of the single item deposit. The
> aforementioned WARNING halts the data entry and prevents completing the
> deposit accounting.
>
> Question: Is it true that QB Pro only allows one A/P distribution per
> deposit? If yes, what's my workaround? If false, what should I do to avoid
> the situation.
>
> Let me thank you in advance now and say that I really could use some advice.
>
> Regards, Patrick Martin
Jeze A/P on a deposit? (and not a check for a credit from a vendor)
I could see A/P on a check but on a deposit?
Your problem is you think you need to combine and invoice and a bill into one
transaction. If you let the invoice handle the sales tax and put it out into
the special sales tax payable account, you just might be able to toss out the
A/P entry due using some item code to the consignment owner. However that
doesn't handle the 1099 tracking that a bill will give you for the item owner.
I think you are trying to do too much in a single transaction. Do an invoice or
sales receipt for the sale of the item (which automatically does sales tax
tracking) and do a bill for the amount owed the owner. If the reason you wanted
to do it all in one is a cash back on the deposit, that isn't a concern. Just
do a cash back into a petty cash account and pay bill the owner out of the petty
cash account, which automatically does the 1099 tracking for you. (And this is
likely what really happened anyway.)
Of course someone might have written a consignment sales module so ...
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