Independent Contractor - Materials/Supplies costs is deducted from my check.

rloe2004

I am an Independent Contractor - One of the stores I work out of deducts the cost of any Materials/Supplies from my check before I receive it.  How do I show this in Quicken?

rloe2004

Never mind.  I think I got it! Thanks.

Tom Young

Could you explain the actual "flow" of transactions here?

As an independent contractor I'd expect you'd be receiving checks from your clients and issuing checks to your suppliers.  But you're saying you are receiving some sort of "net" check from suppliers?  That seems to suggest that your clients are paying for materials and supplies directly to the supplier at "retail" and then the supplier sends you a rebate of some sort that reflects the fact that you buy at "wholesale", or something?

A fuller understanding of what's going on in the real world and maybe some explanation of how you're attempting to track this activity in Quicken would be helpful.

rloe2004

I need to show this deduction in my expenses.  I am using the workaround for "undeposited funds"

[- Create a cash (or manual checking [*]) account, named something like "Checks to Deposit" with an Opening Balance of $0.00

- When filling out the New Customer Payment form, deposit the check to "Checks to Deposit" instead of your regular bank checking account.

- At the end of the day, tally up all checks on your deposit slip. In Quicken, in the "Checks to Deposit" account make a transfer transaction "Daily Deposits" in the amount of your deposit slip. Put the amount into the Payment column. As category choose your checking account, surrounded by [square brackets], e.g. [ABC Bank Checking]. Verify that this reduces the balance in the "Checks to Deposit"]

I am a flooring installer and submit bills to the carpet store for the installations I do.  The store is being paid by the customer for both the product and the installation.  The store will cut me a check for my labor.  Throughout the pay period, the supplies I need for the jobs (glue, sealer, etc.) are tracked, then deducted from my check.  These are my expenses.  

I need to show that I have the expenses, but I also need the correct amount going in my "checks to deposit" account and ultimately my checking account.

Would be so much easier if I could pay directly for the materials, not have it taken out of my check.  

Let me know if this helps you understand better what I'm trying to accomplish.  

mshiggins

From C. D. Bales:

Instead of initially creating the payment in the Quicken invoice account, create it in the Undeposited Funds account. Create a split transaction, with split line 1 equal to the amount you billed the carpet store (the amount of your invoice) as a transfer to the Quicken invoice account, with the expenses then subtracted from split line 1 using however many additional splits lines you need, so the split transaction net amount equals the amount deposited in Undeposited Funds.

Then in the Quicken invoice account you should be able to key the invoice number into the Invoice# field of the PMT transaction created by the above step, and Quicken should apply the payment to the invoice (clearing both transactions).

mshiggins

From C. D. Bales:

"Create a split transaction, with split line 1 equal to the amount you billed the carpet store (the amount of your invoice) as a transfer to the Quicken invoice account ....".

Correction: that sentence should read, "Create a split transaction, with split line 1 equal to the amount you billed the carpet store (the amount of your invoice) as a transfer FROM the Quicken invoice account ....".

Sorry about that.

rloe2004

I'm sorry, but this means I'll have to back track and re-create all payments, apply to all invoices for the last year?  That also means I couldn't use the "Receive payments" right?  Sorry...I'm a quicken newbie!

rloe2004

And if I do it this way, how should I categorize the invoiced amount line in the Undeposited Funds account?

rloe2004

Never mind.  I think I got it! Thanks.