I am not an accountant by any means, but I do the books for our very small non-profit using QuickBooks 2010 Non-Profit. My question is this…We have both a 501(c)4 and a 501(c)3 organization. Our salary is paid out of the C3. We are writing a check from the C4 to the C3 to reimburse the C3 for money it paid to employees for C4 work done in 2010. How do I enter this properly into QB? I don't want to make it look like we have all of a sudden come into an "extra" $1,800 in income when the Board looks at the books, but I need to show that it was received and that it was simply a reimbursement of sorts. Any suggestions?
Personally, I like having reimbursements reduce the associated expense instead of increasing revenue. This way you can clearly see on the profit & loss what your true payroll expense was, after reimbursement. If you’re using an invoice or sales receipt, create a service or other charge item that’s mapped to the expense account. You will get an warning when you use it on an invoice or sales receipt, but that’s ok. If you're entering it directly on a deposit, just use the expense account.
Payroll is a little different, though, because you usually need payroll expense info to reconcile worker’s comp, etc. However, there are better payroll reports to use for this, under Employees & Payroll. Just make sure to use those instead of your profit & loss report for any sort of payroll reconciliation work because your externally reported payroll is now going to be higher than your payroll expense balance.
Written by +Ruth Perryman, CMA, CFE, CFM, MBA
Ruth is the president of The QB Specialists, Inc. and has provided QuickBooks help to thousands of businesses around the world since 1996. She is an Intuit Solutions Provider, an Advanced Certified QuickBooks ProAdvisor, and a member of the Intuit Trainer/Writer Network. She is also certified in QuickBooks Point of Sale and QuickBooks Enterprise Solutions.
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Published 12/25/2010 | 
