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Handling complex accounting tasks in QuickBooks Online

We often encounter unique accounting scenarios that require specific workflows in QuickBooks Online. Whether you are dealing with inter-company transfers, adjusting sales tax, or managing assets from external systems, the following guide outlines the correct procedures to keep your books accurate.

Recording a sales tax refund for overpayment

If you have overpaid your state sales tax, you should record this as other income and adjust your sales tax liability accordingly.

1. Record the income: Use an Other Income account to record the refund amount.
2. Adjust the liability:
   • Go to Taxes (or Sales Tax in the left navigation) and select Pay Sales Tax.
   • Look for the option to Adjust sales tax (often labeled as “Adjust tax due” or similar depending on your region).
   • Create the adjustment here, adding a note explaining that this is for an overpayment refund.

Handling stolen or lost fixed assets

When a fixed asset is stolen or lost, you must remove it from your books and recognize the loss. First, ensure you have an Expense account specifically named “Gain/Loss on Theft” (or similar).

1. Calculate depreciation: Determine and post the depreciation expense for the partial year up to the date of the loss.
2. Record the disposal: Create a journal entry to zero out the asset and recognize the loss:
   • Debit Accumulated Depreciation (to remove the accumulated depreciation).
   • Credit Gain/Loss on Theft (to clear the difference).
   • Debit Gain/Loss on Theft (for the remaining book value).
   • Credit Fixed Asset (to remove the asset from the books).

Managing payments between companies with a shared bank account

While it is generally best practice for each company to have its own dedicated bank account to avoid commingling funds (which can cause issues during an audit), we understand you may need to transfer funds between entities sharing one account.

• In Company A: Write a check to Company B. You do not need to print this check; it serves as the record of the fund transfer.
• Tracking: Since the bank account number is the same, you will need to establish a manual method to track which funds in the physical account belong to which company for reconciliation purposes.

Splitting a single payment between multiple jobs

If you receive one lump sum (e.g., via PayPal) that needs to cover invoices for two different jobs, do not post directly to Accounts Receivable. Instead, use the standard Receive Payment workflow.

1. Receive Payment: Go to the + New button and select Receive Payment.
   • Ensure the payment is deposited to Undeposited Funds.
   • Select the specific invoices for the relevant jobs to apply the payment correctly.
2. Make Deposit: Go to the + New button and select Bank Deposit.
   • Select the payments from Undeposited Funds that represent the lump sum.
   • Ensure the “Deposit to” account (top left) is your PayPal account.

Entering sales from an external POS system

You should not post journal entries directly to the default QuickBooks Accounts Receivable (A/R) account, as this can cause reporting errors. Instead, create a custom tracking account.

1. Create a new account: Go to Settings (gear icon) > Chart of Accounts > New.
   • Select Other Current Asset as the Account Type.
   • Name it something distinct from the default A/R (e.g., “POS Receivables” or “External AR”).
2. Organize: Once created, move this account so it appears at the top of your Current Assets section on your financial statements.
3. Record entries: You can now use journal entries to post sales from your external system to this custom account.

Processing recurring transactions

If you have set up a recurring transaction template, you must process it correctly to generate the actual entry.

• Do not select Edit; this only changes the template.
• Locate the transaction in your recurring list, click the Action column arrow, and select Use. This creates the actual transaction based on your template.

Troubleshooting payment processing issues

If you notice a “double capture” bug where a credit card payment is processed twice by QuickBooks Payments (Intuit Merchant Services):

• This is not a known widespread issue.
• You must contact QuickBooks Payments customer support directly so they can investigate the specific transaction.
• To reach them: Log into the Merchant Service Center, click Help in the upper right, and select Contact Us to find the phone support option.