QB Issue Resolution:

2) You give someone your money, and this is still Your money = your asset. Bank is an asset. Loans you make to others are an asset.

Since you want to manage the details of their purchases, I recommend making a Bank account and name it Cash On Hand or Petty Cash or even Cash to Volunteers. You give them funds from Checking, but the “expense” detail here is this Petty Cash On Hand Bank. In other words, this is a transfer, from Checking to “on hand and not yet spent.” The same is true if you draw from the ATM = Not Yet Spent. Taking it out of Checking does not = the spending event.

3) You would then enter their receipts from their spending, using the same Cash on Hand account. It doesn’t “match” to the Cashed Check.

That first check just clears for what you wrote it for, that Amount, which was converted from being in Checking, to being “cash on hand” with that other person = in their possession. You need to separate those two concepts. You issued the check which got them Funds. Done.

Then, you are going to track and manage their use of the funds. This has Nothing to do with checking, now.

You enter the Receipt details, using the Petty Cash Bank as the source of the Expenses, to show how the Cash On Hand was spent. If they give you Change, that needs to be kept on hand and managed. Or, if you intend to Deposit it back to Checking, the deposit details = from Petty Cash bank.

If they didn’t spend everything you gave them, or cannot Account for it with receipts, they owe you the difference. And for the amount you did not get back, I recommend making a Check Expense from the Cash on Hand bank, and posting this to an Other Current Asset = the money you do not have in your possession = loaned to them. Then, when they finally pay the difference, that is a Deposit clearing the Other Current Asset account.

For managing petty cash, you count the funds on hand and you Reconcile to that amount. Example:

You have 0 on hand. You get two $100 checks for two volunteers. Now your Petty Cash Bank shows $200. One person brings back all the receipts, which you enter individually, and their Change of $20. The other person still has their $100.

You Reconcile Petty Cash to $30; that is in your possession. You checkmark as cleared the receipt details and the Initial $100 “deposited” here from the transfer from Checking. The $100 in and the “receipts details” of $80 = the $20 in your hand. Do not clear the other $100, yet. They haven’t done anything with those funds. If they never bring you receipts, then your enter a Check Expense, as if they Spent it, but you post that $100 to Other Current Asset = they have your money, and apparently are not acting responsibly for your request for their management of your funds. Then, you get it back from them.

Resolution for Issue 'For my non-profit, how to I categorize volunteers who have expenses as a result of their work for me and how to I log those expenses if they need a cash advance' available: Yes (Solved).
Source: Intuit Community forum.

For my non-profit, how to I categorize volunteers who have expenses as a result of their work for me and how to I log those expenses if they need a cash advance: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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