Why You Need Payee Names on Transactions in QuickBooks Online | QBCL

[@amiebrown6361]

Thank you so much! I've been searching for this information and you explained it so clearly.

[@Parkwayinc]

Your comment just validated the time I spent making this video. THANK YOU so much for that!!

[@warwagon]

More people need to watch this, i've recently talked with hand full of people who leave their payees blank. When they told me that I was like, wait what? I couldn't fathom it. Good to know i'm doing it the right way.

[@Parkwayinc]

@@warwagon thank you for your comment! Over the last week I have been cleaning up a set of books for a new client and a very time consuming part has been adding the payee names on every transaction. The crazy part is…. By doing this I found so many major transaction that were categorized completely wrong and would have made impacted their tax return and the amount they had to pay.

[@lisad.arnett9062]

Mr. Fulton, now, more than ever, I truly understand the importance of always using a payee name in transactions, thanks to the clear and effective guidance provided in the video.

[@Parkwayinc]

I would love to hear from you! What do you think? Is it important to have payee names on transactions in QuickBooks Online? Have you ran into the challenge before?

[@GavenDesrosiers]

Question If you are paying a loan down from the bank the payee would be the bank? If you are getting a loan advance is the payee still the bank or is it your company because technically they are paying you?

[@Parkwayinc]

I want to make sure that I answer this correctly for you. I believe you are asking if your company provides YOU an employee or an owner a loan (or advance on future pay), who should you record the repayment against? Based on my understanding above: When the company provides you money (the loan), you want to record the money going out of the bank account and categorizing as a current asset account. You would record the transaction under your name. *The REPAYMENT:* Depending on how you decide to repay the loan the best way to record it changes. For example, if you want to repay it slowly from each paycheck, I would go into payroll and add a new employee deduction that is names with the details of the loan. It should have the max amount to be repaid "per year" and the amount you want to take out of every check. Those payments will be deducted from the paycheck and will be mapped back to the loan repayment account you already setup. In QuickBooks Online you will need to check the mapping of the new payroll item under company settings. If you are going to cut a check directly to repay them (or deposit cash etc). Then you would record the deposit under your name and attribute it to the Current Asset account you created before. I hope this helped!

[@courtneycorda573]

What I don't understand is this: why does quickbooks call a customer a "payee"? A payee is someone TO WHOM you pay an amount. NOT someone FROM WHOM you take money. Right? Am I correct that QBO sometimes calls customers "payees" instead of "customers" or "payors"? For example, in the banking categorization processs. This is confusing when I am matching transactions...when it calls a customer a "payee". Help me understand. Is it just the QBO uses the same field for both customers and vendors and so they also decided to call that field the "payee" field because more often than not, the bank feed contains expenses from vendors rather than income from customers?

[@Parkwayinc]

@courtneycorda573 I cannot argue with your logic... then again, Intuit has notoriously been really bad at cross naming things and causing confusion! In an attempt to simplify the fields in the bank feed and the bank rules, I do believe that they use the term "Payee" interchangeably to save space. They do add logic behind the scenes that money in transaction default to customer names and money out transactions default to vendor names. They also make it impossible for you to have a customer and a vendor with the exact same display name to avoid selecting the wrong one by accident. When we need a customer to be named as a vendor as well we always add (V) at the end of the name so we can easily see we are selecting the correct one. I know my comments cannot solve your frustration on this topic, but I hope you found the video helpful and educational! Was it?

[@hectord4693]

Promo'SM 🤭

[@Parkwayinc]

Uh-Oh did I make a mistake in the video? Not sure I understand your comment, but thank you for watching!