You would set the account up as a “other asset” account unless you expect to redeem them in less than a year, which is unlikely. But if this is the case, you’d choose “current asset” instead.
When you purchase the bond, just write a check using your new Savings Bonds account as the account. This is effectively a transfer from one kind of asset (cash) to another (savings bonds). It’s not an expense.
When you write a check to a customer and use A/R as the account, QuickBooks thinks you just made a loan that should be repaid and this increases A/R. If you had posted the original deposit to A/R, there would’ve been a negative balance equal to the amount of the refund so the refund would’ve brought the account back up to $0.
Assume the deposit was $1000 but you only did $800 in work. Your transactions probably looked like this:
Increased cash $1000
Increased revenue $1000
Increased revenue $800
Increased A/R $800
$200 Refund Check:
Increased A/R $200
Decreased cash $200
In the above scenario, both revenue and A/R are overstated by $1000. Not only that, but this isn’t really the proper way to handle customer deposits because you’re booking $1000 in revenue before you’ve actually earned it and as you learned you sometimes have to refund some (or all) of the customer deposit. This is how they should be booked:
- Go to Lists > Chart of Accounts, click on the Account button, select New, and add a current liability account called "Customer Deposits".
- Go to Lists > Item List, click on the Item button, select New, and add an other charge item called "Customer Deposits" mapped to the Customer Deposit account you setup above.
- Create an invoice or sales receipt using the Customer Deposit item you created above, and receive payment as usual.
- On the final invoice, invoice for the full amount of the contract and add a line using the Customer Deposit item using a negative amount for the deposit already received. The total on the invoice should show the remaining amount due.
- Periodically go to Banking > Reconcile and reconcile the Customer Deposit account so that the customer deposits that have been applied to invoices are marked as cleared.
- Then you can filter a report to only show uncleared transactions to get a report of only customer deposits that haven't been applied yet.
In this case, if you owe your customer a refund you’d use the customer deposit account which should still have a balance equal to the amount that should be refunded because it hasn’t been invoiced yet.
The transactions would look like this:
Increase cash $1000
Increase customer deposits $1000
Increase revenue $800
Decrease customer deposits $800 (leaving a balance of $200)
$200 Refund Check:
Decrease customer deposits $200 (bringing the balance to $0)
Decrease cash $200
Nobody loves QuickBooks as much as we do, but sometimes the instructions found in QuickBooks Help aren't really the best way to handle a tricky transaction. A good example is that the instructions for how to Handle a bounced check from customer (NSF check) results in duplicate sales on the Sales by Customer reports. Even worse if you happen to have a sales rep assigned to the customer and didn't remove it when you re-invoiced, the bounced check it results in duplicate sales on the Sales by Rep reports.
Here are the instructions for how to handle a bounced check in QuickBooks without affecting your sales reports:
- Go to Lists > Chart of Accounts and create a new bank account called "Clearing account".
- Go to Lists > Item List and create a new Other Charge item called Bounced Check mapped to the clearing account you created above. Create another Other Charge item called Bounced Check Fees mapped to your bank service fee account.
- Go to Customers > Credit Memo/Refund. If you have sales reps, modify the credit memo to include the sales rep box by clicking on the Customize button and checking the Screen box next to Sales Rep. Use the bounced check item you created above and enter the amount of the returned check. The sales rep box doesn’t automatically populate so if you have sales reps make sure to enter the rep, otherwise your Sales by Rep report will be overstated.
- After you save the credit memo, you’ll be given a list of options. Select Give a Refund. Unclick the box next to To be printed, enter the date the check was returned, enter EFT for the check #, and enter something like “check returned NSF” for the Memo.
- Go to Customers > Create Invoice and re-invoice the customer. Use the bounced check item you created above and enter the amount of the returned check. The sales rep box should automatically populate. If it doesn’t, enter the rep. Use the bounced check fee item you created above to pass on any returned check fees your bank charged you.
1. Check the bill(s) you paid.
2. If you paid the bill with your checking account was used, choose “Check”, select “Assign check number”, select the correct checking account (if you have more than one), and click Pay Selected Bills. In the Assign Check Number screen enter EFT as the check #.
3. If you paid the bill with your credit card, choose "Credit Card", and select the correct credit card account (if you have more than one), and click Pay Selected Bills.
4. If you haven’t entered the bill yet, you can go to Banking > Write Checks (if your checking account was used) or Banking > Enter Credit Card Charges (if your credit card was used).
If you’ve already setup the two new accounts, you can easily make them sub-accounts. Begin by making sure they are directly underneath your regular checking account. If they aren’t, right-click on the diamond next to the account and drag them to the right spot. Then right-click on the diamond again and drag it to the right. Be careful not to make one of the new accounts a sub-account of the other sub-account. If done correctly, they’ll both be indented one space over underneath the checking account. If not, one will be indented underneath the other sub-account. If this happens, just right-click on the incorrect account and drag it to the left.
You may get an error message that you need to put your list in the original order before you can start moving the accounts around. This will change your list order. If you don’t want to do this, right-click on the account you want to make a sub-account, select Edit Account, check the box next to Sub-account of, and select your regular checking account.
Now, you can reconcile either of the sub-accounts or the parent account. When you’re ready to reconcile, select whichever account you want to reconcile. If you choose the parent account, all the transactions within the sub-accounts will be combined in the reconcile window.
Intuit is currently investigating fraudulent emails that were sent to some customers the past few days and claimed to be from The Intuit Online Team. The email requests users to update their account information by clicking a link that goes to a fraudulent web site or may download what the email indicates is a “security tool.” Messages of this type frequently include familiar brand logos and legitimate toll-free numbers and postal addresses.
Subject: NECESSARY TOOL
Body: Due to increased security measures our company developed a tool for secured access to the web-page. You should follow these instructions:
– download the tool click here
– install it on your personal computer
In case you don’t install this tool within two weeks from the moment of receiving this letter you will be denied access to services provided by our company.
We are here to support. We want to do everything we can to get you up and running. To contact us, or to view Frequently Asked Questions, please click here. Going forward, you can also click support at the bottom of any page or call us at 800-624-1465. (Don't respond to this email; it was sent from an address that can't accept incoming email.)
The Intuit Online team
Intuit did not send this email and will never use emails to request personal information or update security tools. A copy of the e-mail is shown below should you want to refer to it.
What should you do?
To protect yourself from fraudulent emails and websites, here's what you can do:
- Be suspicious of any email that asks for personal information, requires you to download anything or requests your authentication information to access your online account.
- Do not click any links in a suspicious email.
- Do not download any tools from an email.
- Delete any suspicious email from your inbox and your trash bin immediately
- You can get more security information and recommendations on securing your computer on these Security pages.
If you think you've provided personal information such as your login name and password through a fraudulent website, or if you have recently downloaded a “necessary” or “security tool” from a suspicious email, here's what you should do:
- If you have downloaded the tool, please delete it. You should scan your system using an anti-virus program from a respected Security vendor such as Trend Micro, McAfee, Symantec or Microsoft to remove any viruses that may now be on your computer. Several of these vendors also offer free online security tools.
- Change your password to prevent unauthorized users from logging into your account. You should make this change from a system that you know is not infected or only after you have removed the virus from your computer.
If you have any questions, please don't hesitate to contact us. We are taking immediate action to stop this from happening and to provide you with the best possible experience.
Ruth Perryman, Advanced Certified QuickBooks ProAdvisor, has been named to the Trainer/Writer Network for Intuit Inc., a leading provider of business and financial management solutions for small businesses, consumers and accounting professionals.
The Trainer/Writer Network is an exclusive group of Certified QuickBooks ProAdvisors who deliver training to accounting professionals across the country and work closely with Intuit product and marketing teams.
“I am very excited about being able to deliver the best QuickBooks training and education to fellow accountants and bookkeepers. Since taking my practice to the next level after moving back to the Sacramento area last year, it is wonderful to have achieved such success in such a short time.” comments Ruth Perryman, Certified Management Accountant and president of The QB Specialists.
“Intuit is fortunate to have Ruth Perryman on board as an approved trainer who can present on a variety of topics relevant to real-world accounting practices,” said Jasen Stine, Program Manager – Accountant Training & Relations for Intuit. “Our focus is on developing the very best training for accounting professionals and advisors, so Ruth Perryman is a valuable addition to our network.”
About Intuit Inc.
Intuit Inc. (NASDAQ: INTU) is a leading provider of business and financial management solutions for small and mid-sized businesses; financial institutions, including banks and credit unions; consumers and accounting professionals. Its flagship products and services, including QuickBooks®, Quicken® and TurboTax® software, simplify small business management and payroll processing, personal finance, and tax preparation and filing. ProSeries® and Lacerte® are Intuit’s leading tax preparation software suites for professional accountants. The company’s financial institutions division, anchored by Digital Insight, provides on-demand banking services to help banks and credit unions serve businesses and consumers with innovative solutions.
Founded in 1983, Intuit had annual revenue of $3.1 billion in its fiscal year 2008. The company has approximately 8,000 employees with major offices in the United States, Canada, the United Kingdom and other locations. More information can be found at www.intuit.com.
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If you use Outlook or Outlook Express, the following Billing Solutions features will not be available:
• Sending automatic payment reminders to customers with overdue invoices.
• E-mailed Forms Delivery Tracking (a Billing Solutions feature that lets you track if and when your customers view the invoices and estimates you send them by e-mail). However, Outlook/Outlook Express users can track their e-mails from their Sent box.
• Allowing online payment for statements.
• Adding a View Invoice button in e-mails that customers can click to go directly to the Customer Account Center to view and pay their invoices. With Outlook/Outlook Express, customers can still pay their invoices online by clicking the URL in the e-mail they receive to go to the Customer Account Center.
• The ability of customers to view estimates in the Customer Account Center.