A question...


S

Sport Time

Our motorcycle dealership uses Quickbooks Pro. One problem I haven't
solved is the following:

Warranty work (parts and labor) needs to be invoiced for our records.
When we request payment from the manufacturer, the amount is not paid
separately. It is deducted from the amount we owe on our monthly parts
bill.

How can we show the warranty invoice as paid, pay the reduced parts
bill, and still keep all the account numbers correct?
 
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J

Joyce C.

To do this you need to set up a clearing account to use. Make it a
bank type account called Clearing or whatever. You won't have to worry
about reconciling it as there will always be a zero balance when you
are done with the transaction. You invoice the Mfg. as you would any
customer. And you enter bills to them for parts as you would any bill.
Now when the MFG deducts what they owe you from what you owe them, you
have to record both their "payment" to you and your payment to them.
To do this first you enter their payment to you. Go to receive
payments and select their (customer) name. Select the invoices they
are "paying" and record the payment on them in full. But, at the
bottom of that screen where is says "Deposit to" make sure you select
that clearing bank account and not your regular bank account. This
will clear out what they owe you in your AR account. Now, to pay what
you owe them you should first make a credit memo for their AP account
for the amount they deducted that they owed to you and use that
clearing account as the expense account on the credit memo. This will
charge the credit to that clearing account and will offset the
"payment" they made to you. This will leave that clearing account at
zero. Record the credit memo. Then go to Pay Bills and select the
bills you want to pay and then click the Set Credits button and select
that credit memo and record. The check to them will be for the correct
amount (the amount you owe them less the amount they credited you for
their charges to you). This will clear out their AP account and also
will clear out their AR account for the invoices you charged to them.
And the clearing account should be back to zero. Just be sure to enter
something into the Memo fields on all these transactions so you know
what went on if you ever have to look back.
 
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G

Guest

Warranty work (parts and labor) needs to be invoiced for our records.
When we request payment from the manufacturer, the amount is not paid
separately. It is deducted from the amount we owe on our monthly parts
bill.

How can we show the warranty invoice as paid, pay the reduced parts
bill, and still keep all the account numbers correct?
Rough outline:

Let's say you owe the manufacturer $1,000 for their monthly bill to
you.

You have invoiced them for $200, $100 for your parts and $100 for your
labor for warranty work you performed.

The manufacturer's bill then totals $800 (am I even in the ballpark of
what you're asking? Do they do this deduction on their bill before
they send it to you?)

Create a Vendor bill from the manufacturer for $800 (or a check to
that manufacturer to pay their bill if you don't enter bills before
you pay them).

In the item area assign amounts as follows:
Parts Bought From Manufacturer account (expense account) $1,000
Parts used for repair work (income account) -$100 (minus 100)
Labor used for repair work (income account) -$100 (minus 100)

You will have to replace the above accounts with the ones you use in
your company.

Total bill: $800 and you have assigned the cost for the parts you
bought from the manufacturer for $1,000 (their true cost), you have
increased your income by $100 for your parts you sell out to customers
(the negative sign is an increase in this case) and you have increased
your income for your labor (same with the negative sign).

There is a distinct possibility that I have completely missed your
question, or, if you use inventory, the above outline may or may not
work or may need additional tweaking.

Now, how much for a '05 Yamaha V-Star Custom? :)

==
 

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