Tuesday, May 29, 2012

QuickBooks: Petty Cash Payment

I wrote a check to petty cash to pay a vendor in cash.  I want to show this payment on his 1099.  How will I do that?

If your Petty Cash account is set up as a bank account then the check that you wrote to petty cash would show as a withdrawal from your operating bank account and a deposit to your petty cash.  When you give the cash to the vendor, you should write a “check” out of your Petty Cash account to the vendor.  The cash that you give the vendor will then show as a payment to the vendor.  Since your 1099s would use the expense categories as long as this payment was properly expensed it will show up on the report.

1 comment:

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