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Multiple A/P Distributions Not Allowed in Deposit?

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

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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 ...

Reply to
Golden California Girls

Golden Girl,

Yeah, what you say about trying to do too much with one data entry is dead on. This comes out of my limited knowledge of bookkeeping and the fact that this nonprofit does business by word of mouth to a large extent. There are no invoices issued nor sales receipts produced (I'm trying to get them to generate sales slips for each sale of goods). This organization has never generated a bill during the three years its been in existence. Another organization provides billing services to a group of nonprofits that includes the one I assist. Remember, this accounting is done strictly on a cash basis and after the fact. I haven't used A/P until recently. The state sales tax has been minimal, but as the business volume grows this too will become a challenge. The whole reason for using QB is to provide the accountant will data convenient to him during tax reporting time. Also, the production of Form 1099-MISC is facilitated by this software. If it weren't for that, I could keep track of things in EXCEL. Getting the software to do what I think it should do has been frustrating. This is probably a case of a little knowledge hurting me.

Thanks for allowing me to 'vent'.

BTW I would greatly benefit from having a knowledgeable QB expert spend a day with me to refine our simple accounting practices. After that, the job should be just data entry which is what it thought I was signing for three years ago. Do you know if there are QB and bookkeeping subject matter experts generally available who do 'house calls"? I've got to do something to reduce my QB frustration level.

- Patrick

Reply to
Remove 2 spaces

Patrick, you can find certified Quickbooks advisors on the Quickbooks website. I'm sure there is someone in your area. They will make housecalls.

Reply to
Meyer1228

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