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Deposits from Asset Account

Posted by SS 
SS
Deposits from Asset Account
July 14, 2015 06:38PM
My company recently acquired another company (we'll call it ABC Co.) & we took on the responsibility of their assets & liabilities. Some of the assets were several customer invoices-both current & past due. My question is, what is the best way to go about posting each of the invoices & then recording the deposits once we receive payments? They need to be documented separately from all current invoices we've created after the acquisition. I originally created an asset account called "ABC Co." & created invoices for each of ABC's Co's invoices & allocated the items to the asset account & used the acquisition date as the date of the invoice. When I recorded payments, I allocated them to the "ABC Co." asset account, however the deposits did not post to our checking account. I tried creating a journal entry to record the deposit, but this kept adding to the balance of the asset account. I know I am missing a step somewhere and/or inputted the invoices incorrectly to begin with. I need to ensure I have a correct log of all of ABC Co.'s paid invoices & remaining balances. Suggestions?
Re: Deposits from Asset Account
July 17, 2015 11:47PM
First I need to know if you already using classes. If you aren't, that is what you should do with the new aquisition. Make a class for them, and make a class for your existing company. You should now put classes on all transactions. You can then do the invoices the same but using the class ABC. When you run a P&L by class anything that hasn't been assigned a class will be in a separate column titled Unclassified. If you are doing this in the middle of the year you might want to just use the new ABC class and consider the unclassified your present company transacations.

If you are already using classes you will have to set up ABC Income and ABC Expense accounts.
Then you will have to set up an Accounts Receivable ABC and Accounts Payable ABC account as well as an ABC bank account if you are now receiving all payments to your present bank account you might not need the ABC. Delete the ABC asset account after you re-assign all transactions in it.

The correct way to handle invoice payments is to go to Customers, Receive payments, make sure the payments go to Undeposited Funds not your bank account. Choose the correct invoice being paid and save & close or Save and new if you continue entering other payments. THEN go to Banking, make deposits and choose the checks to be deposited so that your bank deposit in QuickBooks matches thoses on your bank statement. If you follow the path on the Home Page it shows you what to do first and next. It sounds like you might need to talk to your CPA about setting up this new aquisition, especially if you area already using classes for another aspect of your business. Classes would be the best way to handle this aquisition.
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