One of the challenges business owners face when starting a new entity (or changing banks) is getting all income from customers to be directed to the new bank. This instruction provides guidance on how to record a customer payment that went to a non-business account.
Receive the payment. Personally, I prefer using the Quick Create link (Plus sign -> Customers -> Receive payment). Make sure the payment is Deposited to "Undeposited Funds". Also, I generally suggest using the actual payment date from when the payment went to your other account. If this is not an existing account in your Chart of Accounts, set this up:
- Account Type: Other Current Assets
- Detail Type: Undeposited Funds
- Name: Undeposited Funds
Start a deposit for the payment. Again, use the Quick Create link to open a bank deposit (Plus sign -> Other -> Bank Deposit)
Select the Customer Payment
In the "Cash goes back to" box, select Shareholder Distribution
In the "Cash back amount", input the amount of the customer payment
The deposit total should now be $0.00
Save & Close the deposit
You're all set! The deposit is now recorded as having gone to an account outside the business. The only thing to keep in mind that when you reconcile your primary checking account, you will see a $0.00 transaction. Select this to mark it as reconciled.