Hey everyone I have a question. How do I properly record in Qbooks this scenario.
> Borrower pays for roof(I am in the roofing business) via financing.
> The finance group then takes out their charge. How do I record this?
> Do I create a credit memo for the borrower? Do I record the payment
> minus the transaction charge?
>
> Borrower pays $20,000.00
> GE Financial 920.00
> Net Deposit 19,080.00
>
> A little help please?!! Thanks.
Raise a Invoice for $20,000.00 in favor of the borrower. On receiving payment, go to Receive Payment window, put $19080.00 in the 'Amount' field, click on Set Discount button, in the 'Amount of Discount' field put $920.00 and in the 'Discount Account' field put "Financing Charges" or any other account under 'Type' Expense in which you want the charges to appear.
Mike Block - QuickBooks Tax Cut C.P.A. Intuit paid me to make QuickBooks better!
IMHO, you create an invoice for 20k and apply a payment of 19080 and your customer still owes you $920 unless your company has decided to eat the fee. In that case, do as the others have told you.
Have something to add? Share your thoughts — no account required.
Ask the community — no account required