Each detail line in the QuickBooks Online (QBO) transaction (e.g. Cheque or Bank Deposit) has a description box. The information in the description box tags to the ledger account (or item), and each line can have a different description. For example, when entering a cheque payment to staff:
Basic Salary for the month
17% Employer CPF
37% Accrued CPF
The memo box at the bottom of the transaction page serves a similar function as the description box; it provides more information about the transaction (e.g. the memo for the cheque payment to the staff could be ‘Salary for Jan 2021’).
So, what’s the difference between the description and the memo box?
The memo tags to the transaction header account (e.g. Bank, Accounts Receivable or Accounts Payable account), and the description is for the transaction detail account.
Let take a look at the cheque payment to the staff again. The journal behind the cheque is:
DR. Payroll Expense
DR. CPF Employer
CR. Accrued CPF
CR. Cash at Bank
You will notice that the memo information does not show in the detail line account (e.g. Payroll Expense or CPF Employer) but only at the Cash at Bank ledger (the transaction header account) when printing a General Ledger report.