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kbrodycpa
kbrodycpa, CPA
Category: Financial Software
Satisfied Customers: 25
Experience:  CPA in public practice with tax background
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I am currently using QuickBooks Premier Professional

Customer Question

I am currently using QuickBooks Premier Professional Services 2015. I have a purchase order for services for a vendor. I have two checks applied to this PO and when I try to move them to another name in my chart of accounts, it raises my income for that period. Why does it raise the income? Thanks. Pat
Submitted: 1 year ago.
Category: Financial Software
Expert:  Robert M. replied 1 year ago.

what are you trying to move from what type of account to what account ?

if you are pulling the check out of an expense and not attaching it to another invoice it might show up as income though more likely just a lower expense. But if you apply it to a customer rather than a vender it will be income. some companies have the same company as both a vender and a customer and they need to be set up as two companies one a vender and one a customer to avoid this type of error.

Customer: replied 1 year ago.
I am under the same vendor to the same PO. I am moving it from one expense account to another expense account. We have items set up in our QB and the item is a service for the PO. When I paid our vendor and applied the check to that purchase order using either the same service item number or corresponding account number, it increased our annual income by that check amount. I was trying to move it as it was supposed to be Temp Help vice the Vendor Services. We used the services of this vendor on a job.Thank you for any assistance.
Expert:  Robert M. replied 1 year ago.

I think that you may need one of the guys that handles the accounting end of quickbooks more than i do. I come from a computer background and while i can get the program running and set up when you get into problems with the ledger they know it better than i do.

My thoughts are that it didnt really get moved so much as it created a new entry and it has no po to balance the new entry or that the original was in one period and the move put it into a different period.

Customer: replied 1 year ago.
Thank you for referring.
Expert:  kbrodycpa replied 1 year ago.

Hi Pat,

I can take a stab at this if you would like me to. When paying a vendor, generally you write the check through the pay bill function and apply it to unpaid bills for the given vendor. The expense account you included on the invoice is the one the payment should be applied to. If you need to change the account, it would be changed on the invoice.

Alternatively, but less ideally, you can make vendor payments without invoices and select the account to apply the payment to from within the payment screen.

In either case, changing from one expense account to another should not affect your income. Check that both accounts you mentioned are set up as expense accounts. If one you changed to is set up as an asset, liability or equity account, your income will be higher using that account because it is not reducing your income.

Expert:  kbrodycpa replied 1 year ago.

If my suggestion above does not resolve your issue, it would be helpful to attach your chart of accounts and the account detail for the accounts you mentioned.

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