Enter EDIL & PPL Money QB

Enter EDIL & PPL Money QB
How to enter EDIL & PPL money in QuickBooks

Enter EDIL $$'s & PPL Loan $$'s Into QuickBooks

Give to Bookkeeper

This is how to enter your EDIL emergency money and Payroll Protection Loan money into Quickbooks

This is what my CPA suggested to me this morning and I trust his judgement and he's helped me with jewelers in the past

So hand this off to whomever handles your Quickbooks stuff.

As a reminder the emergency EDIL money was originally to be $10,000 but they changed it to $1000 for every employee in the company with a cap max of $10,000. (I have received mine yesterday). This is free money, don't have to pay it back, but can't be used for payroll, use it to pay other bills.

The PPL money that you apply for through your bank (many have not received this as of yet-could be another month) is a loan of 2.5 times an average monthly payroll. The government wants you to continue to employee your employees and pay them for 8 more weeks with this money and the extra money is to pay for rent and utilities

Two months later if you've paid the employees, even if they stayed home, the loan will be forgiven and all you'll owe the bank is 1% interest on it. It will not be taxable income to your company at all!.

By the way, this article has nothing to do with your stimulus money, if you get it, that will come to you personally, not to your store.

This is rather long because I have made pictures for the bookkeeper and at the end is a link to a PDF file with it as well if you'd rather send or print that.

It's very simple.

We need to make two new accounts in QuickBooks,

When we deposit our EDIL money into our checking account we have to choose an account telling us why we have this money (like enter a refiners check into Scrap Sale)

So we will make an "other current liability account" and an "other income" account. We will be doing this procedure twice.

Our accounts are numbers so let's take a look/see and figure out our numbering first.

Open our chart of accounts. In QuickBooks go to the top "Company" and below choose "Chart of Accounts.

A short cut is anyplace in Quickbooks click "Control+A".

Let's see what numbers we need to make first.

Scroll down and look on the RIGHT side for "other current liability" accounts. Then on left see what the highest number is. If I set you up you'll notice numbering is in units of 5's or 100's. Determine your next number for an other current liability account.

I'm going to make mine using account number "25200".

Make our other current liability account.

Many of you know your way around QuickBooks, but for others, we need to make a new account, so while you're at the chart of accounts, go to the bottom left, click Account and at top New.

A short cut here is "Control + N" for new account.

Now..........

A new large box opens, at bottom choose "other account types" and then with down arrow choose "Other current liability" and "continue".

Give it a number and a name

Now that it's open, give it the number you thought of and in description call it

PPL Loan

Even though the PPL money will be forgiven it's not forgiven just yet! It's still a liability on the books and will be for probably 4-5 months.

This is the other side of the deposit we make when we get this PPL money

Hit save and close, one account made, one to go.

Now let's make our "Other Current Income" account. Again we will go to chart of accounts and make a new account. Follow the pictures or while in chart of accounts (if not, control+a) make a new account (control+n)

Make another new account in QuickBooks.

As before, click the bottom "Other Account Types" and choose from the list "Other Income". You should already looked the list to get next available number, see next picture if you didn't.

At the very bottom of our chart of accounts we'll see "Other Income". Other Income is usually money received that has nothing to do with selling or repairing jewelry.

Here i will choose the next number 70600.

We will give it number 70600 and we will call it what it really is:

EIDL/PPL Loan Nontaxable.

This is for the attention next year of our CPA and if you have to give a P&L to a bank for some reason.

The EIDL money will be accounted for her immediately and the PPL loan will be MOVED to this account from the PPL Loan liability account when we are forgiven..

Here's our "Other Income Account" for the non taxable money.

Here we received our EDIL money, it's a grant so it's income right now and we deposit it into our checking account using account 70600 EDIL/PPL Loan-Nontaxable account

Receiving & Depositing the PPL money

When the Payroll protection Loan money arrives we deposit it as well and on the account line we will use the 2520 PPL Loan "other current liability" account.

Remember it's a loan until we are forgiven.

Our liability account shows the PPL money

If you open your chart of account and look at account 25200 PPL Loan you'll see the balance.

You've made two deposits into the check regsiter

In your check register you'll see the money that came to you, usually through a wire transfer. You can also one went directly into the Other Income account and the PPL money is sitting in the PPL other current liability account

And when we are finally FORGIVEN.

After we are forgiven for the PPL loan debt we will zero out the 25200 PPL Loan "other current liability" account to the 70600 EIDL/PPP loan Non taxable other income account.

Easy enough to do with a journal entry. Go to the top menu Company and near bottom choose "make general Journal Entries.

Once open copy the picture to debit the 25200 other current liability account and next line credit the "70600 EDIL/PPL Loan Nontaxable" account. we are don and the CPA can see everything.

When the time comes to prove how you spent the money!

Here are some tips on how to track this money in Quickbooks as you'll have to show copies to the bank to be forgiven. 75% of the total PPL will have to be paid to employees over 8 weeks and the rest on

Rent
Utilities
Mortgage Interest (most jewelers won't have this.

Don't worry, every one tells me the remaining 25% left over after payroll won't be enough to fully cover rent so you'll easily be forgiven for all of the money you spend.

But how to find it inside of QuickBooks. i like "simple" and so for everything I deposit and spend I'm adding "PPL" in the memo field (the EDIL doesn't have to be proven).

You notices I put those letters in the Make A Deposit memo line at the top. On a check you could add "PPL" on the check memo line like this picture.

Use the FIND tool in QuickBooks to search memo field for PPL and EDIL.

Now you have a printable report.

In "FIND" click the right REPORT button for a printable report to give the bank.

This is what I'll do and when time comes to report to the bank I will print the report but also double click on each entry and print a copy on plain white paper to attach to the report to give the bank.

There is one other way to TRACK your PPL & EDIL money in QuickBooks.

CLASSES

We first have to tell QuickBooks that we want to use classes.

Then we Name the class

When we make a deposit or write a check there will be a new line item for class to be chosen.

Then you can run a Profit & Loss Statement by class and see money received and spent just for those items, print and give to the bank later to be forgiven.

To start, go to the TOP Of Quickbooks

Edit>Preferences (at the bottom)

Click on left Accounting tab, on right choose Company and click on both "Class" boxes and then click "OK'

Now we actually have to create a class called PPL

Back to the top, click on LISTS and class lists.

Make a class called "PPL"

Once the Class list opens, click at bottom left "Class" and make a new class (shortcut=control+n)

Just give it a name "PPL" and click OK

On the deposit screen on right is a new column called "Class". Down arrow and choose PPL.

Do the same on checks

Now pull up a profit & Loss statement by Class.

There is a little tweaking to do here, that's below this as I just wanted to show it quickly

"Tweaking" P&L by Class

Classes in QuickBooks are use by jewelers who have multiple stores. A one store operation never uses classes but multi store would have

Class "Downtown"

Class "The Other Town"

If a one store uses it on the P&L you'll have two columns

PP&L
"Uncategorized" Which means all of the transactions you did with no class for years.

the tweaking is simple. Once you have the P&L by Class pulled up, go to the upper left and click on the box "Customize Report"

A new window opens up, choose the 2nd tab "Filters", on the left column choose "Class" and in the middle choose "PPL" and click OK at bottom.

P&L is now only showing transactions for PPL

Now you won't have categorized which are all transactions your bank doesn't need to see. This will just be your PPL deposits and checks. Remember EDIL doesn't have to be reported to the bank, this is all you need.

It has only taken me 5 hours to put this together for you. This last "thing" is a link for you to click on on how to get your PPL loan forgiven..

"Inc" magazine has done an excellent article on the 4 steps you'll need to take to get your PPL loan forgiven. So instead of copying it here, click on the picture above or this link below to go to their website. It's not that long, an easy read.

Click this line to go to Inc Magazine site to read the 4 steps.

Here's the short version, details are on their site.

1. Review what loan uses will be forgiven.

2. Understand how your loan forgiveness can be reduced.

3. Document all of your loan expenses.

4. Follow your specific lender's guidelines.

Every instruction I've given to you here for QuickBooks will solve all of your problems with this. i just can't Get you the money.

David Geller

QuickBooks Pro Adviser

P.S. Click this link to download a PDF copy of this email so you can save it to your computer or pass along to anyone who should receive it.

How to enter EDIL & PPL money into QuickBooks

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How to enter EDIL & PPL money into QuickBooks

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