How to have "pass thru" money not be income or expense in P&L

VicciC
VicciC Quicken Windows Subscription Member
in Registers & Transactions (Windows)

Hi, my quilt guild takes in money from members to pay for their retreat. We then turn around and write a check to the retreat. The money is NOT income and the payout is NOT expense - to the guild and should NOT be in our P&L, nor in our 990 tax form.

How do you note money in and out to keep it out of P&L. These are not transfers from one account to another as there are deposits of checks and the writing of a check.

HELP! Thank you,

Vicci

Best Answer

  • Tom Young
    Tom Young Quicken Windows Subscription SuperUser ✭✭✭✭✭
    Answer ✓

    Don't use a Category when making the entries, use a balance sheet Account that you set up for this purpose. Maybe call it Quilt Retreat or something. I'd probably make it a non-connected, manual Liability Account.

    Deposits into the checking Account for the retreat have as their "Category" that Account: [Quilt Retreat], increasing the liability Account. The check written in the checking Account to pay for the retreat goes into that same liability Account, zeroing it out.

    This activity won't show up as an income or expense.

Answers

  • Tom Young
    Tom Young Quicken Windows Subscription SuperUser ✭✭✭✭✭
    Answer ✓

    Don't use a Category when making the entries, use a balance sheet Account that you set up for this purpose. Maybe call it Quilt Retreat or something. I'd probably make it a non-connected, manual Liability Account.

    Deposits into the checking Account for the retreat have as their "Category" that Account: [Quilt Retreat], increasing the liability Account. The check written in the checking Account to pay for the retreat goes into that same liability Account, zeroing it out.

    This activity won't show up as an income or expense.

  • q_lurker
    q_lurker Quicken Windows Subscription SuperUser ✭✭✭✭✭

    @Tom Young Would it be similarly possible to just record the inflow and outflow to the same category such that they netted to $0; a category set up as not tax related?

  • Pedro504
    Pedro504 Quicken Windows Subscription Member ✭✭✭

    I use the same expense category for the deposit and the withdrawal. It's a category in one of my checking accounts.

    Record the deposits into the expense category. Afterwards record the withdrawal out from the same category.

    Hope this helps.

    You Don't Have to Have a Point, To Have A Point

  • Tom Young
    Tom Young Quicken Windows Subscription SuperUser ✭✭✭✭✭
    https://community.quicken.com/discussion/comment/20521717#Comment_20521717

    Of course. Using a balance sheet Account makes the detail of who's paid more readily accessible but swinging the deposits and payments through a Category would work as well.

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