No, do not open the books as intuit @MaryLurleenM says, and do not back date the payment
just pay the expense with the actual date of this years payment.
if you filed as a cash basis tax payer, then the "expense" will count for this years P&L
If you filed as an accrual basis tax payer, then the "expense" will count for last years P&L
March 29, 2021 02:54 PMHow can the expense count for last years P&L if it is dated this year? Wouldn't you need to make a AJE to move it into last year? That is what I am trying to figure out.
QuickBooks Team March 29, 2021 05:09 PMHello there, kmbarnes55.
I'd want to make sure that you can record the expense.
You just need to edit the date to last year and consult with your accountant if you need to make AJE.
Don't hesitate to comment if you still have questions. Have a nice day!
April 06, 2021 12:41 AMThere are some invoices which were to be paid in the previous year but were not paid . How to book in the same for the previous year ?
QuickBooks Team April 06, 2021 02:48 AMGlad to have you here in the Community, @Reddragon.
I’m here to help and share information about invoice status in QuickBooks Online. As per our all-star's suggestion @Rustler, record your invoice payment with the actual date of this years payment.
Before making changes to your books, I recommend consulting with your accountant. They would give the best advice on how to keep your books.
I have here some links that you can refer about receiving invoice payment in QBO:
Please give us a call if you're getting the same result so we can create a ticket for you and investigate further.
I'll be on the lookout if you still have follow-up questions or concerns about your account. Just drop in the comment section below and I'll be happy to answer them for you. Take care and have a lovely day ahead.
April 19, 2021 05:17 AMI'm just a little confused. Change the expense paid date to last year, but don't backdate the payment?
We paid several cell phone stipends to people THIS year, which was actually for LAST year. I just need to move it somehow.
QuickBooks Team April 19, 2021 06:00 AMIdeally, you should use the date when you processed the payment. Since you paid it this year, then you should use the 2021 date.
You might want to check this link to understand the difference between cash and accrual accounting methods: Cash vs. accrual accounting: What’s best for your small business?
Also, it's best to seek some help from your accountant for the proper way to enter such transactions in QuickBooks Online.
Having issues with your reconciliation? Please check this link on how to fix it: Learn the reconcile workflow in QuickBooks.
Keep on posting here if you need anything else. I'll be here!
February 04, 2022 11:48 AMI'm looking to do exactly this and operate on an accrual method. How do I tell the system that a specific transaction should be accrued to the year prior?
For instance, I pay a vendor statement on Jan 2022 for 5 transactions. 4 of the transactions are for 2022 but 1 is for Dec 2021. How do I split out that 1 specific transaction and indicate the "accrual date" for that line should be Dec 2021?
February 05, 2022 08:40 AM@mikeyonaboat wrote:@Rustler
I'm looking to do exactly this and operate on an accrual method. How do I tell the system that a specific transaction should be accrued to the year prior?
For instance, I pay a vendor statement on Jan 2022 for 5 transactions. 4 of the transactions are for 2022 but 1 is for Dec 2021. How do I split out that 1 specific transaction and indicate the "accrual date" for that line should be Dec 2021?
Thanks!
It would be nice if QB allowed for that, but it does not.
The best you can do is enter a partial payment for the bill back dated to 12/31, then pay the rest in 2022
February 06, 2022 11:29 AMI received a check for a sponsorship in July 2021. The payment was for an event that occurred in May 2021.
The payment was received after our fiscal year ended. How do I record the payment to the correct Event?
QuickBooks Team February 06, 2022 12:43 PMHi there, @JEM20. I'd be happy to assist you with recording the payment in QuickBooks Online (QBO).
You can record the payment using the actual date to keep the correct data entry. You can create a Sales receipt transaction and note the event in the Memo section for documentation purposes only.
This is what it looks like:
Moreover, if you are trying to record a payment as a Non-profit organization, I'd recommend consulting with your accounting professional for the best advice on how to handle this transaction. Your accountant will know more information to provide based on your business needs. If you don't have an accountant, you can find one here in our Resource Center.
Moreover, I've got a reference about recording a pledge: Track funds you receive from donors in QuickBooks Online. This also contains steps on how to record in-kind donations and how to track them effectively.
Please don't hesitate to let me know if you have any other questions or concerns. I'm always here to lend a hand. Take care!
February 14, 2022 03:04 PMThanks, this seems to be the way to do it!
March 16, 2022 09:06 AMQuickbooks DOES allow for this entry. The way to handle it is very similar to accruing Pre-Paid Expenses to the following fiscal year. (Note: I am not giving advice on whether to use cash basis or accrual basis. These instructions assume you have determined that you are reporting (filing taxes) on accrual basis.)
1) Record the Bill as of the actual Bill Date.
You need to record the current year and previous year as separate line items.
2) The current year's portion of the expense, post to the correct "expense" account.
3) The previous year's portion of the expense you need to post to a special "liability" account. I named mine Accrued Expenses, a "current liability" account. *(Add this new account to your chart of accounts if you don't already have one.)
4) Then you need a General Journal Entry dated on the last day of the previous fiscal year. For me, it's 12/31/XXXX.
Debit: The correct "expense" account for the previous years amount. (This puts the expense in that year.)
Credit: The "current liability" account (Accrued Expenses) for the previous year's amount. (This records that you haven't paid it or received the bill yet, but you know the expense liability exists.)
That method keeps an accurate "Bill Date" and splits the expense to the time periods covered.
Alternatively, you CAN post the bill as of the last day of the previous fiscal year, but then you need to accrue the Pre-Paid Expense with a similar journal entry. Remember that with this "quick cheat", I call it, will have the wrong "bill date" recorded in QB but is a perfectly acceptable way to correctly record the expense if you are filing taxes as an accrual based entity. If you do it this way, here's how to make the entries.
1) Enter bill with a bill date of 12/31/XX, or the last day of your fiscal year.
You need to record the current year and previous year as separate line items.
2) The current year's portion of the expense (based on bill date), post to the correct "expense" account.
3) The future year's portion of the expense you need to post to a special "asset" account. I named mine Per-Paid Expenses, a "current asset" account. *(Add this new account to your chart of accounts if you don't already have one.)
4) Then you need a General Journal Entry dated on the last day of the current fiscal year (again based on the bill date entered). For me, it's 12/31/XXXX.
Debit: The "current asset" account (Pre-Paid Expenses) for the future year's amount. (This records that you already paid it or received the bill, but you know the bill covers a time period in the next fiscal year.)
Credit: The correct "expense" account for the future years amount. (This removes the expense for the current year.)
BOTH methods require a General Journal Entry and the Bill entry.