We've got you covered on how to transfer the bill into your new company, H-S. We'll need to create an asset account, and expense transaction. Then, set up a clearing account to record the transaction since your collection company received the payment. Let me guide you on how: Set up an asset account to track the payment to the collection agent.Add the collection agency as a vendor.Create an expense to record the payment to the collection agency. Then, add a memo saying it was for Bill# of Vendor XXXX.Set up a wash or barter account to journal the amount from the asset account to A/P, affecting the original vendor. This creates a credit to the vendor. Once done, pay the vendor bills using the unapplied credit. Here's how: Go to the Plus icon and select Pay Bills.Choose the vendor from the list.Once selected, the vendor's existing credit populates the Credit Applied column.Hit Save and close. To learn more about this one, refer to this article: Enter and pay bills. Moreover, you can check out this article to learn how to run a report with vendor totals that reflect all the payments you made to your vendors: Run a report with vendor totals. If you have any further questions about managing bills or any QuickBooks-related concerns, add them to the thread. We'll be here to help you out. You have a good one.

Question

I had some debit that went to collections. the collection company was the one receiving the payments. How do I transfer the bill from the original company to the new one?

Forum|Forum|1 year ago
October 22, 2024
3 replies
55 views

No text available

QuickBooks Online

R

RCV

QuickBooks Team

We've got you covered on how to transfer the bill into your new company, H-S.

We'll need to create an asset account, and expense transaction. Then, set up a clearing account to record the transaction since your collection company received the payment. Let me guide you on how:

Set up an asset account to track the payment to the collection agent.
Add the collection agency as a vendor.
Create an expense to record the payment to the collection agency. Then, add a memo saying it was for Bill# of Vendor XXXX.
Set up a wash or barter account to journal the amount from the asset account to A/P, affecting the original vendor. This creates a credit to the vendor.

Once done, pay the vendor bills using the unapplied credit. Here's how:

Go to the Plus icon and select Pay Bills.
Choose the vendor from the list.
Once selected, the vendor's existing credit populates the Credit Applied column.
Hit Save and close.

To learn more about this one, refer to this article: Enter and pay bills.

Moreover, you can check out this article to learn how to run a report with vendor totals that reflect all the payments you made to your vendors: Run a report with vendor totals.

If you have any further questions about managing bills or any QuickBooks-related concerns, add them to the thread. We'll be here to help you out. You have a good one.

H

H-SAuthor

n the Account type ▼ dropdown, select Fixed Assets or Other Assets.
In the Detail type ▼ dropdown, select the option that closely describes the asset.

My assumption is to put it as "Other Assets".

The original product was for Merchandise I do not see that as an option under detail type.

This product is not depreciation items.

Also what account name do I use is this the original vendor or the Collection company?

JenoP

QuickBooks Team

Thanks for coming back here with your follow-up questions about transferring bills from the original company, H-S. I'd like to contribute to the discussion and provide you with the answers you're looking for.

Currently, "Merchandise" is not an option in the drop-down list for Detail type. For a complete list of available detail types when setting up an account, please refer to this article: Learn about account types and detail types in QuickBooks Online.

Given the specific nature of your situation, I recommend consulting your accountant for personalized guidance on choosing the most appropriate detail type. They can provide tailored advice based on your business structure and financial reporting requirements.

In terms of choosing the account name, you can use the collection company since you're already sending the payments to them. This will help maintain clarity in your financial records and make it easier to track these transactions.

If you require further assistance when creating new accounts or managing debits in QuickBooks Online, our QuickBooks Live Expert Assisted Team is always available to jump in and provide help.

Feel free to check out these articles for additional guidance when it comes to managing vendor-related transactions:

We encourage you to reach out to us anytime you have questions or challenges when paying debits, recording transactions, or performing any other tasks in QuickBooks Online. We are always here to help you navigate all aspects of QBO and ensure you have the support you need every step of the way.

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