When you use an ATM machine or debit card to get money for petty cash or to fund your cash drawer, you need to record the transaction as a transfer in QuickBooks.
Note: If you used your debit card to purchase something for your business,
and at the same time got some cash back for petty cash, enter only the
cash-back portion through the transfer. Enter the purchase expense as you usually
do in QuickBooks.
You can use the Write Checks window to record purchases made using debit cards
or other forms of electronic payment. In place of the check number, you can
enter a code that indicates the payment form (for example, DB for debit card).
Note: You might want to use the Enter Bills and
Pay Bills windows to record your purchases instead of Write Checks, especially
if you want to track all your bills and payments. If you've already entered a
bill for a purchase, don't use the Write Checks window to pay it. See
ways to pay bills to learn more.
What types of purchases can I record?
You can record purchases for expenses you track through expense accounts and
for the following types of items: fixed asset, non-inventory part, service, and
other charge. If you are using the inventory/purchase order feature, you can
record transactions for inventory part items too.
To do this task
Go to the Banking menu and click Write
Click the Bank Account drop-down arrow and choose
your bank account or click ‹Add New›
to create a new account.
In the No. field, replace the check number with
a code that indicates the payment form used for the purchase.
You can use the following suggested codes or create your own codes.
Electronic funds transfer
Click the Pay to the Order of field and choose
from the drop-down list or enter
a new name.
Enter the amount of the transaction in the $ field.
If you leave this field blank, the amounts you enter in the detail area
of the check will total automatically and display here.
Complete the Address and Memo fields as needed.
Address: If you have already entered the payee's
address in one of your lists of names, QuickBooks fills in the address for
Memo: Enter any note or message that you want to
print on the check.
If you set up a vendor, customer, other name, or employee to include an
account number, QuickBooks automatically displays the number here when you
write a check to the payee for whom you've specified an account number.
Click the Items tab to enter
items that you purchased.
In the detail area, enter the purchased item and associate it with the appropriate customer job.
To enter shipping charges, taxes, and other expenses not associated with
any one item, click the Expenses tab.
In the detail area, enter
each charge and associate it with its correct expense account.
Save the record of your purchase.
Go to the Banking menu and click Transfer Funds.
Click the Transfer Funds From drop-down arrow and then click the bank account that you withdrew the money from (or that you debited).
Click the Transfer Funds To drop-down list and then click your petty cash or cash drawer account.
In the Transfer Amount field, enter the amount of the withdrawal or debit.
In the Memo field, enter ATM withdrawal or debit card withdrawal.
Save the transfer.
Other ways to fund petty cash or a cash drawer account
Recording petty cash expenses or cash drawer pay-outs