Frank, Leslie, Victoria,
Thank you so much for answering to my question. With your help, I think we have a solution that will work for our accounting team.
I learned a lot by trying each of the suggestions you made and here’s what I found:
• Using Bank Transaction Entry as Frank suggested is simple and it doesn’t affect the AR trial balance, however the check entered this way doesn’t show up in the Bank Deposits Entry window. I need this because all the checks (whether from customers or rebates) will be part of the same deposit taken to the bank on that day. This method will work well should we receive funds by some other method than check.
• Using the Payables Transaction Entry works very nicely and allows the check to be included with the other checks that are going to the bank on the given day.
• The method described by Victoria to facilitate intercompany transfers is exactly what we were looking for. Additionally, a slight variation on step 1 of this method provides a great solution to my first question.
o With the Receivables Transaction Entry window open and Debit Notes selected, a dollar amount can be entered into the Check field.
o When this is done, the debit is routed to Cash instead of AR
o Using the Distribution, select the appropriate expense account for the credit
• I like this because it’s conceptually similar to the procedure we were using with our previous accounting software.
I’m hoping one more thing can be clarified. I still show credit balances on the Miscellaneous AR account (from previous entries), and the GL shows that the appropriate expense account or suspense account was credited. What’s happening here since the credit can’t be to two accounts simultaneously? How can this be cleaned up?