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copy2012 Pearson Education Inc publishing as Prentice Hall
6-1
QUICKBOOKSreg 2011 A COMPLETE COURSE
CHAPTER 6mdashLECTURE PAYABLES AND PURCHASES MERCHANDISING BUSINESS
All rights reserved No part of this publication may be reproduced stored in a retrieval system or transmitted in any form or by any
means electronic mechanical photocopying recording or otherwise without the prior written permission of the publisher Printed in the
United States of America
Copyright copy 2012 Pearson Education Inc publishing as Prentice Hall
copy2012 Pearson Education Inc publishing as Prentice Hall
6-3
Chapter Focus Payables and Purchases
bull QuickBooksrsquos inventory features are exploredbull Chapter features include recording purchase
ordersbull Receiving merchandise with and without a billbull Payment of bills using QuickBooksrsquo pay bill
featurebull Pay bills by preparing checks or using credit
cardsbull Pay sales tax liabilities
copy2012 Pearson Education Inc publishing as Prentice Hall
6-4
Accounting for Purchases and Payables Inventory
bull QuickBooks uses the Average Cost method of inventory valuation Example
bull Purchase 20 pairs of skis for $200 = $4000bull Purchase 20 pairs of skis for $300 = $6000bull Total value of the 40 pairs of skis = $10000bull Total value of $10000 divided by the total number of skis 40
= the average cost of one pair of skis $250
bull QuickBooks automatically tracks inventory and tells you when you need to reorder merchandise
copy2012 Pearson Education Inc publishing as Prentice Hall
6-5
Accounting for Purchases and Payables Cost of Goods Sold
bull The Cost of Goods Sold is the average cost you pay for an item you sell
bull Cost of Goods Sold is used when merchandise is sold in a business
bull Cost of Goods Sold is calculated on the Income Statement
copy2012 Pearson Education Inc publishing as Prentice Hall
6-6
Accounting for Purchases and Payables Cost of Goods Sold
bull Calculated Income ndash Net Cost of Goods Sold = Gross Profit Gross Profit ndash Expenses = Net Profit
bull Example without Merchandise DiscountIncome $5000
ndash Net Cost of Goods Sold 1000
= Gross Profit $4000
ndash Expenses 2000
= Net Income $2000
copy2012 Pearson Education Inc publishing as Prentice Hall
6-7
Accounting for Purchases and Payables Discounts
bull Three types of Discounts used Merchandise Discount is a discount on sales items
that are purchased for resale (Cost of Goods Sold account)
Purchase Discount is a discount for early payment for purchases made to run the business (Income account)
bull For example a discount on office supplies when paying early with terms of 210 n 30 or 110 n 30
Sales Discount is used when you give customers a discount for early payment with terms of 210 n 30 or 110 n 30 (Expense account)
copy2012 Pearson Education Inc publishing as Prentice Hall
6-8
Accounting for Purchases and Payables Effect of Merchandise Discount on Cost of Goods Sold
bull Example with Merchandise Discount
Calculate Net Cost of Goods Sold Cost of Goods Sold $1000
ndash Merchandise Discounts 100= Net Cost of Goods Sold $900
Calculate Net IncomeIncome $5000
ndash Net Cost of Goods Sold 900 = Gross Profit $4100
ndash Expenses 2000 = Net Income $2100
bull Effect of Merchandise Discount is an increase in Net Income of $100
copy2012 Pearson Education Inc publishing as Prentice Hall
6-9
Reminders List
bull Reminders list tells you what inventory needs to be ordered
bull Click Reminders on the Company menubull View the Reminders List
copy2012 Pearson Education Inc publishing as Prentice Hall
6-10
Reminders List
bull Click the Expand All button to display the items flagged for reorder
copy2012 Pearson Education Inc publishing as Prentice Hall
6-11
Change Reorder Limits for an Itembull Click the Items amp Services iconbull Double-click Underwearbull Change the reorder point to 35 click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-12
Inventory Stock Status by Item Report
bull An inventory report that shows Items in stock The reorder point What you have on hand What you need to order What you have on order (indicated by the
order date in Next Deliv)
copy2012 Pearson Education Inc publishing as Prentice Hall
6-13
Prepare the Inventory Stock Status by Item Report
bull Click the Reports button on the Item List
bull Point to Reports on All Items Inventory
bull Click Inventory Stock Status by Item
copy2012 Pearson Education Inc publishing as Prentice Hall
6-14
Analyze the Inventory Stock Status by Item Report
bull Sleds shows a reorder point of 5 on hand 4 and a check in the Order column
bull Sleds need to be orderedbull Boots-Snowbrd Gloves Poles-Ski Toboggans and Underwear
also need to be ordered
copy2012 Pearson Education Inc publishing as Prentice Hall
6-15
Prepare Purchase Orders Add a New Vendor
bull 011511 Order 3 sleds for $50 each from a new vendor Snow Gear
bull Click Purchase Order iconbull Type Vendor Name Snow Gear press Tabbull Click the Set Up button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-16
Add a New Vendor
bull Complete the Address Info tab Opening Balance 000
as of 01152011 Company Name Snow
Gear Address
7105 Camino del Rio Durango CO 81302
Contact Leo Jenkins Phone 303-555-7765 FAX 303-555-5677
copy2012 Pearson Education Inc publishing as Prentice Hall
6-17
Add a New Vendor
bull Complete Additional Info tab Terms
2 10 Net 30 Credit Limit
$200000
bull Click OK to add the vendor
copy2012 Pearson Education Inc publishing as Prentice Hall
6-18
Complete the Purchase Order
bull Hide the Historybull Resize by pointing to right side
and dragging the sizing handle to the left
bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost
Changed Item Cost in the Item List is
000 If you change the item cost it
will always show $5000 Not all the sleds we order will
be $5000
copy2012 Pearson Education Inc publishing as Prentice Hall
6-19
Complete Purchase Order
bull Click Save amp New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-20
Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes
Incbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-21
Purchase Order QuickReport
bull Purchase Order QuickReport shows all open purchase orders
bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order
copy2012 Pearson Education Inc publishing as Prentice Hall
6-22
Purchase Order QuickReportbull Prepare Purchase
Order QuickReportbull Click Chart of
Accounts iconbull Scroll to the
bottom of the Chart of Accounts
bull Double-click 2 Purchase Orders
bull Enter the dates of 010111 ndash 011511
bull Information for Purchase Orders 1 and 2 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-23
Receiving Items Ordered
bull When ordered items are received the quantity received may be complete or partial
bull The order may be received with or without a bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-24
Record Receipt of Items in Full without the Bill
bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate
bull Record the receipt of 3 sleds ordered from Snow Gear
bull Click Receive Inventory iconbull Click Receive Inventory without Bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-25
Record Receipt of Items in Full without the Bill
bull Click Snow Gear as vendor on the drop-down list
bull Click Yes for Open Purchase Orders
copy2012 Pearson Education Inc publishing as Prentice Hall
6-26
Record Receipt of Items in Full without the Bill
bull To select PO No 1 click in the check columnbull Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-27
Analyze Item Receipt
bull Note the mark of ldquoItem Receipt Onlyrdquo
bull The Memo shows Received items (Bill to follow)
bull Automatically the Qty shows 3
bull The Cost shows 5000
bull The Amount is 15000
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-28
Use Search to View Purchase Order
bull To view the Purchase Order click the PO button
bull Click Previous until you get to PO 1
bull The Purchase Order is automatically marked RECEIVED IN FULL
bull The Rcvrsquod column shows 3
bull Clsd has a check to indicate that the purchase order is closed
copy2012 Pearson Education Inc publishing as Prentice Hall
6-29
Record Receipt of Bill After Items Have Been Received
bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills
Against Inventory icon
On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear
There is no check column so click the line with the Item Receipt to highlight
Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-30
Record Receipt of Bill After Items Have Been Received
bull Complete the bill Date
011811 Ref No
97
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-31
Record Partial Receipt of Items with a Bill
bull Click the Receive Inventory icon
bull Click Receive Inventory with Bill
bull The Vendor is Clothes Inc
bull Click Yes on Open Porsquos exist
bull Select PO No 2bull Click OKbull The Date of the bill
should be 01152011
copy2012 Pearson Education Inc publishing as Prentice Hall
6-32
Record Partial Receipt of Items with a Bill
bull The bill shows Qty of 25
bull Change the Qty to 20
bull Press Tab to change the Amount
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-33
Use Search to View Purchase Orders and Reports
bull Access Purchase Orders by using Search
bull Click the Search icon on the icon bar
bull Search allows you to search for transactions and reports associated with a transaction
bull Type Purchase Orders in the textbox
bull Click Update search information so the search will include the most recent transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-34
Use Search to View Purchase Orders and Reports
bull QuickBooks will scan the transactions and include all of the recent entries
bull There are several Purchase Orders reports available
bull Point to Open Purchase Orders
bull Click the Locate Menu icon to show the menu selection for the report
bull The menus used to prepare the Open Purchase Orders are shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-35
Use Search to View Purchase Orders and Reports
bull Click the Launch icon to prepare the report
bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in
full so only Purchase Order 2 shows in the report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
All rights reserved No part of this publication may be reproduced stored in a retrieval system or transmitted in any form or by any
means electronic mechanical photocopying recording or otherwise without the prior written permission of the publisher Printed in the
United States of America
Copyright copy 2012 Pearson Education Inc publishing as Prentice Hall
copy2012 Pearson Education Inc publishing as Prentice Hall
6-3
Chapter Focus Payables and Purchases
bull QuickBooksrsquos inventory features are exploredbull Chapter features include recording purchase
ordersbull Receiving merchandise with and without a billbull Payment of bills using QuickBooksrsquo pay bill
featurebull Pay bills by preparing checks or using credit
cardsbull Pay sales tax liabilities
copy2012 Pearson Education Inc publishing as Prentice Hall
6-4
Accounting for Purchases and Payables Inventory
bull QuickBooks uses the Average Cost method of inventory valuation Example
bull Purchase 20 pairs of skis for $200 = $4000bull Purchase 20 pairs of skis for $300 = $6000bull Total value of the 40 pairs of skis = $10000bull Total value of $10000 divided by the total number of skis 40
= the average cost of one pair of skis $250
bull QuickBooks automatically tracks inventory and tells you when you need to reorder merchandise
copy2012 Pearson Education Inc publishing as Prentice Hall
6-5
Accounting for Purchases and Payables Cost of Goods Sold
bull The Cost of Goods Sold is the average cost you pay for an item you sell
bull Cost of Goods Sold is used when merchandise is sold in a business
bull Cost of Goods Sold is calculated on the Income Statement
copy2012 Pearson Education Inc publishing as Prentice Hall
6-6
Accounting for Purchases and Payables Cost of Goods Sold
bull Calculated Income ndash Net Cost of Goods Sold = Gross Profit Gross Profit ndash Expenses = Net Profit
bull Example without Merchandise DiscountIncome $5000
ndash Net Cost of Goods Sold 1000
= Gross Profit $4000
ndash Expenses 2000
= Net Income $2000
copy2012 Pearson Education Inc publishing as Prentice Hall
6-7
Accounting for Purchases and Payables Discounts
bull Three types of Discounts used Merchandise Discount is a discount on sales items
that are purchased for resale (Cost of Goods Sold account)
Purchase Discount is a discount for early payment for purchases made to run the business (Income account)
bull For example a discount on office supplies when paying early with terms of 210 n 30 or 110 n 30
Sales Discount is used when you give customers a discount for early payment with terms of 210 n 30 or 110 n 30 (Expense account)
copy2012 Pearson Education Inc publishing as Prentice Hall
6-8
Accounting for Purchases and Payables Effect of Merchandise Discount on Cost of Goods Sold
bull Example with Merchandise Discount
Calculate Net Cost of Goods Sold Cost of Goods Sold $1000
ndash Merchandise Discounts 100= Net Cost of Goods Sold $900
Calculate Net IncomeIncome $5000
ndash Net Cost of Goods Sold 900 = Gross Profit $4100
ndash Expenses 2000 = Net Income $2100
bull Effect of Merchandise Discount is an increase in Net Income of $100
copy2012 Pearson Education Inc publishing as Prentice Hall
6-9
Reminders List
bull Reminders list tells you what inventory needs to be ordered
bull Click Reminders on the Company menubull View the Reminders List
copy2012 Pearson Education Inc publishing as Prentice Hall
6-10
Reminders List
bull Click the Expand All button to display the items flagged for reorder
copy2012 Pearson Education Inc publishing as Prentice Hall
6-11
Change Reorder Limits for an Itembull Click the Items amp Services iconbull Double-click Underwearbull Change the reorder point to 35 click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-12
Inventory Stock Status by Item Report
bull An inventory report that shows Items in stock The reorder point What you have on hand What you need to order What you have on order (indicated by the
order date in Next Deliv)
copy2012 Pearson Education Inc publishing as Prentice Hall
6-13
Prepare the Inventory Stock Status by Item Report
bull Click the Reports button on the Item List
bull Point to Reports on All Items Inventory
bull Click Inventory Stock Status by Item
copy2012 Pearson Education Inc publishing as Prentice Hall
6-14
Analyze the Inventory Stock Status by Item Report
bull Sleds shows a reorder point of 5 on hand 4 and a check in the Order column
bull Sleds need to be orderedbull Boots-Snowbrd Gloves Poles-Ski Toboggans and Underwear
also need to be ordered
copy2012 Pearson Education Inc publishing as Prentice Hall
6-15
Prepare Purchase Orders Add a New Vendor
bull 011511 Order 3 sleds for $50 each from a new vendor Snow Gear
bull Click Purchase Order iconbull Type Vendor Name Snow Gear press Tabbull Click the Set Up button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-16
Add a New Vendor
bull Complete the Address Info tab Opening Balance 000
as of 01152011 Company Name Snow
Gear Address
7105 Camino del Rio Durango CO 81302
Contact Leo Jenkins Phone 303-555-7765 FAX 303-555-5677
copy2012 Pearson Education Inc publishing as Prentice Hall
6-17
Add a New Vendor
bull Complete Additional Info tab Terms
2 10 Net 30 Credit Limit
$200000
bull Click OK to add the vendor
copy2012 Pearson Education Inc publishing as Prentice Hall
6-18
Complete the Purchase Order
bull Hide the Historybull Resize by pointing to right side
and dragging the sizing handle to the left
bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost
Changed Item Cost in the Item List is
000 If you change the item cost it
will always show $5000 Not all the sleds we order will
be $5000
copy2012 Pearson Education Inc publishing as Prentice Hall
6-19
Complete Purchase Order
bull Click Save amp New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-20
Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes
Incbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-21
Purchase Order QuickReport
bull Purchase Order QuickReport shows all open purchase orders
bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order
copy2012 Pearson Education Inc publishing as Prentice Hall
6-22
Purchase Order QuickReportbull Prepare Purchase
Order QuickReportbull Click Chart of
Accounts iconbull Scroll to the
bottom of the Chart of Accounts
bull Double-click 2 Purchase Orders
bull Enter the dates of 010111 ndash 011511
bull Information for Purchase Orders 1 and 2 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-23
Receiving Items Ordered
bull When ordered items are received the quantity received may be complete or partial
bull The order may be received with or without a bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-24
Record Receipt of Items in Full without the Bill
bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate
bull Record the receipt of 3 sleds ordered from Snow Gear
bull Click Receive Inventory iconbull Click Receive Inventory without Bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-25
Record Receipt of Items in Full without the Bill
bull Click Snow Gear as vendor on the drop-down list
bull Click Yes for Open Purchase Orders
copy2012 Pearson Education Inc publishing as Prentice Hall
6-26
Record Receipt of Items in Full without the Bill
bull To select PO No 1 click in the check columnbull Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-27
Analyze Item Receipt
bull Note the mark of ldquoItem Receipt Onlyrdquo
bull The Memo shows Received items (Bill to follow)
bull Automatically the Qty shows 3
bull The Cost shows 5000
bull The Amount is 15000
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-28
Use Search to View Purchase Order
bull To view the Purchase Order click the PO button
bull Click Previous until you get to PO 1
bull The Purchase Order is automatically marked RECEIVED IN FULL
bull The Rcvrsquod column shows 3
bull Clsd has a check to indicate that the purchase order is closed
copy2012 Pearson Education Inc publishing as Prentice Hall
6-29
Record Receipt of Bill After Items Have Been Received
bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills
Against Inventory icon
On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear
There is no check column so click the line with the Item Receipt to highlight
Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-30
Record Receipt of Bill After Items Have Been Received
bull Complete the bill Date
011811 Ref No
97
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-31
Record Partial Receipt of Items with a Bill
bull Click the Receive Inventory icon
bull Click Receive Inventory with Bill
bull The Vendor is Clothes Inc
bull Click Yes on Open Porsquos exist
bull Select PO No 2bull Click OKbull The Date of the bill
should be 01152011
copy2012 Pearson Education Inc publishing as Prentice Hall
6-32
Record Partial Receipt of Items with a Bill
bull The bill shows Qty of 25
bull Change the Qty to 20
bull Press Tab to change the Amount
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-33
Use Search to View Purchase Orders and Reports
bull Access Purchase Orders by using Search
bull Click the Search icon on the icon bar
bull Search allows you to search for transactions and reports associated with a transaction
bull Type Purchase Orders in the textbox
bull Click Update search information so the search will include the most recent transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-34
Use Search to View Purchase Orders and Reports
bull QuickBooks will scan the transactions and include all of the recent entries
bull There are several Purchase Orders reports available
bull Point to Open Purchase Orders
bull Click the Locate Menu icon to show the menu selection for the report
bull The menus used to prepare the Open Purchase Orders are shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-35
Use Search to View Purchase Orders and Reports
bull Click the Launch icon to prepare the report
bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in
full so only Purchase Order 2 shows in the report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-3
Chapter Focus Payables and Purchases
bull QuickBooksrsquos inventory features are exploredbull Chapter features include recording purchase
ordersbull Receiving merchandise with and without a billbull Payment of bills using QuickBooksrsquo pay bill
featurebull Pay bills by preparing checks or using credit
cardsbull Pay sales tax liabilities
copy2012 Pearson Education Inc publishing as Prentice Hall
6-4
Accounting for Purchases and Payables Inventory
bull QuickBooks uses the Average Cost method of inventory valuation Example
bull Purchase 20 pairs of skis for $200 = $4000bull Purchase 20 pairs of skis for $300 = $6000bull Total value of the 40 pairs of skis = $10000bull Total value of $10000 divided by the total number of skis 40
= the average cost of one pair of skis $250
bull QuickBooks automatically tracks inventory and tells you when you need to reorder merchandise
copy2012 Pearson Education Inc publishing as Prentice Hall
6-5
Accounting for Purchases and Payables Cost of Goods Sold
bull The Cost of Goods Sold is the average cost you pay for an item you sell
bull Cost of Goods Sold is used when merchandise is sold in a business
bull Cost of Goods Sold is calculated on the Income Statement
copy2012 Pearson Education Inc publishing as Prentice Hall
6-6
Accounting for Purchases and Payables Cost of Goods Sold
bull Calculated Income ndash Net Cost of Goods Sold = Gross Profit Gross Profit ndash Expenses = Net Profit
bull Example without Merchandise DiscountIncome $5000
ndash Net Cost of Goods Sold 1000
= Gross Profit $4000
ndash Expenses 2000
= Net Income $2000
copy2012 Pearson Education Inc publishing as Prentice Hall
6-7
Accounting for Purchases and Payables Discounts
bull Three types of Discounts used Merchandise Discount is a discount on sales items
that are purchased for resale (Cost of Goods Sold account)
Purchase Discount is a discount for early payment for purchases made to run the business (Income account)
bull For example a discount on office supplies when paying early with terms of 210 n 30 or 110 n 30
Sales Discount is used when you give customers a discount for early payment with terms of 210 n 30 or 110 n 30 (Expense account)
copy2012 Pearson Education Inc publishing as Prentice Hall
6-8
Accounting for Purchases and Payables Effect of Merchandise Discount on Cost of Goods Sold
bull Example with Merchandise Discount
Calculate Net Cost of Goods Sold Cost of Goods Sold $1000
ndash Merchandise Discounts 100= Net Cost of Goods Sold $900
Calculate Net IncomeIncome $5000
ndash Net Cost of Goods Sold 900 = Gross Profit $4100
ndash Expenses 2000 = Net Income $2100
bull Effect of Merchandise Discount is an increase in Net Income of $100
copy2012 Pearson Education Inc publishing as Prentice Hall
6-9
Reminders List
bull Reminders list tells you what inventory needs to be ordered
bull Click Reminders on the Company menubull View the Reminders List
copy2012 Pearson Education Inc publishing as Prentice Hall
6-10
Reminders List
bull Click the Expand All button to display the items flagged for reorder
copy2012 Pearson Education Inc publishing as Prentice Hall
6-11
Change Reorder Limits for an Itembull Click the Items amp Services iconbull Double-click Underwearbull Change the reorder point to 35 click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-12
Inventory Stock Status by Item Report
bull An inventory report that shows Items in stock The reorder point What you have on hand What you need to order What you have on order (indicated by the
order date in Next Deliv)
copy2012 Pearson Education Inc publishing as Prentice Hall
6-13
Prepare the Inventory Stock Status by Item Report
bull Click the Reports button on the Item List
bull Point to Reports on All Items Inventory
bull Click Inventory Stock Status by Item
copy2012 Pearson Education Inc publishing as Prentice Hall
6-14
Analyze the Inventory Stock Status by Item Report
bull Sleds shows a reorder point of 5 on hand 4 and a check in the Order column
bull Sleds need to be orderedbull Boots-Snowbrd Gloves Poles-Ski Toboggans and Underwear
also need to be ordered
copy2012 Pearson Education Inc publishing as Prentice Hall
6-15
Prepare Purchase Orders Add a New Vendor
bull 011511 Order 3 sleds for $50 each from a new vendor Snow Gear
bull Click Purchase Order iconbull Type Vendor Name Snow Gear press Tabbull Click the Set Up button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-16
Add a New Vendor
bull Complete the Address Info tab Opening Balance 000
as of 01152011 Company Name Snow
Gear Address
7105 Camino del Rio Durango CO 81302
Contact Leo Jenkins Phone 303-555-7765 FAX 303-555-5677
copy2012 Pearson Education Inc publishing as Prentice Hall
6-17
Add a New Vendor
bull Complete Additional Info tab Terms
2 10 Net 30 Credit Limit
$200000
bull Click OK to add the vendor
copy2012 Pearson Education Inc publishing as Prentice Hall
6-18
Complete the Purchase Order
bull Hide the Historybull Resize by pointing to right side
and dragging the sizing handle to the left
bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost
Changed Item Cost in the Item List is
000 If you change the item cost it
will always show $5000 Not all the sleds we order will
be $5000
copy2012 Pearson Education Inc publishing as Prentice Hall
6-19
Complete Purchase Order
bull Click Save amp New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-20
Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes
Incbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-21
Purchase Order QuickReport
bull Purchase Order QuickReport shows all open purchase orders
bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order
copy2012 Pearson Education Inc publishing as Prentice Hall
6-22
Purchase Order QuickReportbull Prepare Purchase
Order QuickReportbull Click Chart of
Accounts iconbull Scroll to the
bottom of the Chart of Accounts
bull Double-click 2 Purchase Orders
bull Enter the dates of 010111 ndash 011511
bull Information for Purchase Orders 1 and 2 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-23
Receiving Items Ordered
bull When ordered items are received the quantity received may be complete or partial
bull The order may be received with or without a bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-24
Record Receipt of Items in Full without the Bill
bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate
bull Record the receipt of 3 sleds ordered from Snow Gear
bull Click Receive Inventory iconbull Click Receive Inventory without Bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-25
Record Receipt of Items in Full without the Bill
bull Click Snow Gear as vendor on the drop-down list
bull Click Yes for Open Purchase Orders
copy2012 Pearson Education Inc publishing as Prentice Hall
6-26
Record Receipt of Items in Full without the Bill
bull To select PO No 1 click in the check columnbull Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-27
Analyze Item Receipt
bull Note the mark of ldquoItem Receipt Onlyrdquo
bull The Memo shows Received items (Bill to follow)
bull Automatically the Qty shows 3
bull The Cost shows 5000
bull The Amount is 15000
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-28
Use Search to View Purchase Order
bull To view the Purchase Order click the PO button
bull Click Previous until you get to PO 1
bull The Purchase Order is automatically marked RECEIVED IN FULL
bull The Rcvrsquod column shows 3
bull Clsd has a check to indicate that the purchase order is closed
copy2012 Pearson Education Inc publishing as Prentice Hall
6-29
Record Receipt of Bill After Items Have Been Received
bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills
Against Inventory icon
On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear
There is no check column so click the line with the Item Receipt to highlight
Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-30
Record Receipt of Bill After Items Have Been Received
bull Complete the bill Date
011811 Ref No
97
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-31
Record Partial Receipt of Items with a Bill
bull Click the Receive Inventory icon
bull Click Receive Inventory with Bill
bull The Vendor is Clothes Inc
bull Click Yes on Open Porsquos exist
bull Select PO No 2bull Click OKbull The Date of the bill
should be 01152011
copy2012 Pearson Education Inc publishing as Prentice Hall
6-32
Record Partial Receipt of Items with a Bill
bull The bill shows Qty of 25
bull Change the Qty to 20
bull Press Tab to change the Amount
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-33
Use Search to View Purchase Orders and Reports
bull Access Purchase Orders by using Search
bull Click the Search icon on the icon bar
bull Search allows you to search for transactions and reports associated with a transaction
bull Type Purchase Orders in the textbox
bull Click Update search information so the search will include the most recent transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-34
Use Search to View Purchase Orders and Reports
bull QuickBooks will scan the transactions and include all of the recent entries
bull There are several Purchase Orders reports available
bull Point to Open Purchase Orders
bull Click the Locate Menu icon to show the menu selection for the report
bull The menus used to prepare the Open Purchase Orders are shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-35
Use Search to View Purchase Orders and Reports
bull Click the Launch icon to prepare the report
bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in
full so only Purchase Order 2 shows in the report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-4
Accounting for Purchases and Payables Inventory
bull QuickBooks uses the Average Cost method of inventory valuation Example
bull Purchase 20 pairs of skis for $200 = $4000bull Purchase 20 pairs of skis for $300 = $6000bull Total value of the 40 pairs of skis = $10000bull Total value of $10000 divided by the total number of skis 40
= the average cost of one pair of skis $250
bull QuickBooks automatically tracks inventory and tells you when you need to reorder merchandise
copy2012 Pearson Education Inc publishing as Prentice Hall
6-5
Accounting for Purchases and Payables Cost of Goods Sold
bull The Cost of Goods Sold is the average cost you pay for an item you sell
bull Cost of Goods Sold is used when merchandise is sold in a business
bull Cost of Goods Sold is calculated on the Income Statement
copy2012 Pearson Education Inc publishing as Prentice Hall
6-6
Accounting for Purchases and Payables Cost of Goods Sold
bull Calculated Income ndash Net Cost of Goods Sold = Gross Profit Gross Profit ndash Expenses = Net Profit
bull Example without Merchandise DiscountIncome $5000
ndash Net Cost of Goods Sold 1000
= Gross Profit $4000
ndash Expenses 2000
= Net Income $2000
copy2012 Pearson Education Inc publishing as Prentice Hall
6-7
Accounting for Purchases and Payables Discounts
bull Three types of Discounts used Merchandise Discount is a discount on sales items
that are purchased for resale (Cost of Goods Sold account)
Purchase Discount is a discount for early payment for purchases made to run the business (Income account)
bull For example a discount on office supplies when paying early with terms of 210 n 30 or 110 n 30
Sales Discount is used when you give customers a discount for early payment with terms of 210 n 30 or 110 n 30 (Expense account)
copy2012 Pearson Education Inc publishing as Prentice Hall
6-8
Accounting for Purchases and Payables Effect of Merchandise Discount on Cost of Goods Sold
bull Example with Merchandise Discount
Calculate Net Cost of Goods Sold Cost of Goods Sold $1000
ndash Merchandise Discounts 100= Net Cost of Goods Sold $900
Calculate Net IncomeIncome $5000
ndash Net Cost of Goods Sold 900 = Gross Profit $4100
ndash Expenses 2000 = Net Income $2100
bull Effect of Merchandise Discount is an increase in Net Income of $100
copy2012 Pearson Education Inc publishing as Prentice Hall
6-9
Reminders List
bull Reminders list tells you what inventory needs to be ordered
bull Click Reminders on the Company menubull View the Reminders List
copy2012 Pearson Education Inc publishing as Prentice Hall
6-10
Reminders List
bull Click the Expand All button to display the items flagged for reorder
copy2012 Pearson Education Inc publishing as Prentice Hall
6-11
Change Reorder Limits for an Itembull Click the Items amp Services iconbull Double-click Underwearbull Change the reorder point to 35 click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-12
Inventory Stock Status by Item Report
bull An inventory report that shows Items in stock The reorder point What you have on hand What you need to order What you have on order (indicated by the
order date in Next Deliv)
copy2012 Pearson Education Inc publishing as Prentice Hall
6-13
Prepare the Inventory Stock Status by Item Report
bull Click the Reports button on the Item List
bull Point to Reports on All Items Inventory
bull Click Inventory Stock Status by Item
copy2012 Pearson Education Inc publishing as Prentice Hall
6-14
Analyze the Inventory Stock Status by Item Report
bull Sleds shows a reorder point of 5 on hand 4 and a check in the Order column
bull Sleds need to be orderedbull Boots-Snowbrd Gloves Poles-Ski Toboggans and Underwear
also need to be ordered
copy2012 Pearson Education Inc publishing as Prentice Hall
6-15
Prepare Purchase Orders Add a New Vendor
bull 011511 Order 3 sleds for $50 each from a new vendor Snow Gear
bull Click Purchase Order iconbull Type Vendor Name Snow Gear press Tabbull Click the Set Up button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-16
Add a New Vendor
bull Complete the Address Info tab Opening Balance 000
as of 01152011 Company Name Snow
Gear Address
7105 Camino del Rio Durango CO 81302
Contact Leo Jenkins Phone 303-555-7765 FAX 303-555-5677
copy2012 Pearson Education Inc publishing as Prentice Hall
6-17
Add a New Vendor
bull Complete Additional Info tab Terms
2 10 Net 30 Credit Limit
$200000
bull Click OK to add the vendor
copy2012 Pearson Education Inc publishing as Prentice Hall
6-18
Complete the Purchase Order
bull Hide the Historybull Resize by pointing to right side
and dragging the sizing handle to the left
bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost
Changed Item Cost in the Item List is
000 If you change the item cost it
will always show $5000 Not all the sleds we order will
be $5000
copy2012 Pearson Education Inc publishing as Prentice Hall
6-19
Complete Purchase Order
bull Click Save amp New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-20
Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes
Incbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-21
Purchase Order QuickReport
bull Purchase Order QuickReport shows all open purchase orders
bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order
copy2012 Pearson Education Inc publishing as Prentice Hall
6-22
Purchase Order QuickReportbull Prepare Purchase
Order QuickReportbull Click Chart of
Accounts iconbull Scroll to the
bottom of the Chart of Accounts
bull Double-click 2 Purchase Orders
bull Enter the dates of 010111 ndash 011511
bull Information for Purchase Orders 1 and 2 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-23
Receiving Items Ordered
bull When ordered items are received the quantity received may be complete or partial
bull The order may be received with or without a bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-24
Record Receipt of Items in Full without the Bill
bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate
bull Record the receipt of 3 sleds ordered from Snow Gear
bull Click Receive Inventory iconbull Click Receive Inventory without Bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-25
Record Receipt of Items in Full without the Bill
bull Click Snow Gear as vendor on the drop-down list
bull Click Yes for Open Purchase Orders
copy2012 Pearson Education Inc publishing as Prentice Hall
6-26
Record Receipt of Items in Full without the Bill
bull To select PO No 1 click in the check columnbull Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-27
Analyze Item Receipt
bull Note the mark of ldquoItem Receipt Onlyrdquo
bull The Memo shows Received items (Bill to follow)
bull Automatically the Qty shows 3
bull The Cost shows 5000
bull The Amount is 15000
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-28
Use Search to View Purchase Order
bull To view the Purchase Order click the PO button
bull Click Previous until you get to PO 1
bull The Purchase Order is automatically marked RECEIVED IN FULL
bull The Rcvrsquod column shows 3
bull Clsd has a check to indicate that the purchase order is closed
copy2012 Pearson Education Inc publishing as Prentice Hall
6-29
Record Receipt of Bill After Items Have Been Received
bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills
Against Inventory icon
On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear
There is no check column so click the line with the Item Receipt to highlight
Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-30
Record Receipt of Bill After Items Have Been Received
bull Complete the bill Date
011811 Ref No
97
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-31
Record Partial Receipt of Items with a Bill
bull Click the Receive Inventory icon
bull Click Receive Inventory with Bill
bull The Vendor is Clothes Inc
bull Click Yes on Open Porsquos exist
bull Select PO No 2bull Click OKbull The Date of the bill
should be 01152011
copy2012 Pearson Education Inc publishing as Prentice Hall
6-32
Record Partial Receipt of Items with a Bill
bull The bill shows Qty of 25
bull Change the Qty to 20
bull Press Tab to change the Amount
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-33
Use Search to View Purchase Orders and Reports
bull Access Purchase Orders by using Search
bull Click the Search icon on the icon bar
bull Search allows you to search for transactions and reports associated with a transaction
bull Type Purchase Orders in the textbox
bull Click Update search information so the search will include the most recent transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-34
Use Search to View Purchase Orders and Reports
bull QuickBooks will scan the transactions and include all of the recent entries
bull There are several Purchase Orders reports available
bull Point to Open Purchase Orders
bull Click the Locate Menu icon to show the menu selection for the report
bull The menus used to prepare the Open Purchase Orders are shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-35
Use Search to View Purchase Orders and Reports
bull Click the Launch icon to prepare the report
bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in
full so only Purchase Order 2 shows in the report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-5
Accounting for Purchases and Payables Cost of Goods Sold
bull The Cost of Goods Sold is the average cost you pay for an item you sell
bull Cost of Goods Sold is used when merchandise is sold in a business
bull Cost of Goods Sold is calculated on the Income Statement
copy2012 Pearson Education Inc publishing as Prentice Hall
6-6
Accounting for Purchases and Payables Cost of Goods Sold
bull Calculated Income ndash Net Cost of Goods Sold = Gross Profit Gross Profit ndash Expenses = Net Profit
bull Example without Merchandise DiscountIncome $5000
ndash Net Cost of Goods Sold 1000
= Gross Profit $4000
ndash Expenses 2000
= Net Income $2000
copy2012 Pearson Education Inc publishing as Prentice Hall
6-7
Accounting for Purchases and Payables Discounts
bull Three types of Discounts used Merchandise Discount is a discount on sales items
that are purchased for resale (Cost of Goods Sold account)
Purchase Discount is a discount for early payment for purchases made to run the business (Income account)
bull For example a discount on office supplies when paying early with terms of 210 n 30 or 110 n 30
Sales Discount is used when you give customers a discount for early payment with terms of 210 n 30 or 110 n 30 (Expense account)
copy2012 Pearson Education Inc publishing as Prentice Hall
6-8
Accounting for Purchases and Payables Effect of Merchandise Discount on Cost of Goods Sold
bull Example with Merchandise Discount
Calculate Net Cost of Goods Sold Cost of Goods Sold $1000
ndash Merchandise Discounts 100= Net Cost of Goods Sold $900
Calculate Net IncomeIncome $5000
ndash Net Cost of Goods Sold 900 = Gross Profit $4100
ndash Expenses 2000 = Net Income $2100
bull Effect of Merchandise Discount is an increase in Net Income of $100
copy2012 Pearson Education Inc publishing as Prentice Hall
6-9
Reminders List
bull Reminders list tells you what inventory needs to be ordered
bull Click Reminders on the Company menubull View the Reminders List
copy2012 Pearson Education Inc publishing as Prentice Hall
6-10
Reminders List
bull Click the Expand All button to display the items flagged for reorder
copy2012 Pearson Education Inc publishing as Prentice Hall
6-11
Change Reorder Limits for an Itembull Click the Items amp Services iconbull Double-click Underwearbull Change the reorder point to 35 click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-12
Inventory Stock Status by Item Report
bull An inventory report that shows Items in stock The reorder point What you have on hand What you need to order What you have on order (indicated by the
order date in Next Deliv)
copy2012 Pearson Education Inc publishing as Prentice Hall
6-13
Prepare the Inventory Stock Status by Item Report
bull Click the Reports button on the Item List
bull Point to Reports on All Items Inventory
bull Click Inventory Stock Status by Item
copy2012 Pearson Education Inc publishing as Prentice Hall
6-14
Analyze the Inventory Stock Status by Item Report
bull Sleds shows a reorder point of 5 on hand 4 and a check in the Order column
bull Sleds need to be orderedbull Boots-Snowbrd Gloves Poles-Ski Toboggans and Underwear
also need to be ordered
copy2012 Pearson Education Inc publishing as Prentice Hall
6-15
Prepare Purchase Orders Add a New Vendor
bull 011511 Order 3 sleds for $50 each from a new vendor Snow Gear
bull Click Purchase Order iconbull Type Vendor Name Snow Gear press Tabbull Click the Set Up button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-16
Add a New Vendor
bull Complete the Address Info tab Opening Balance 000
as of 01152011 Company Name Snow
Gear Address
7105 Camino del Rio Durango CO 81302
Contact Leo Jenkins Phone 303-555-7765 FAX 303-555-5677
copy2012 Pearson Education Inc publishing as Prentice Hall
6-17
Add a New Vendor
bull Complete Additional Info tab Terms
2 10 Net 30 Credit Limit
$200000
bull Click OK to add the vendor
copy2012 Pearson Education Inc publishing as Prentice Hall
6-18
Complete the Purchase Order
bull Hide the Historybull Resize by pointing to right side
and dragging the sizing handle to the left
bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost
Changed Item Cost in the Item List is
000 If you change the item cost it
will always show $5000 Not all the sleds we order will
be $5000
copy2012 Pearson Education Inc publishing as Prentice Hall
6-19
Complete Purchase Order
bull Click Save amp New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-20
Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes
Incbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-21
Purchase Order QuickReport
bull Purchase Order QuickReport shows all open purchase orders
bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order
copy2012 Pearson Education Inc publishing as Prentice Hall
6-22
Purchase Order QuickReportbull Prepare Purchase
Order QuickReportbull Click Chart of
Accounts iconbull Scroll to the
bottom of the Chart of Accounts
bull Double-click 2 Purchase Orders
bull Enter the dates of 010111 ndash 011511
bull Information for Purchase Orders 1 and 2 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-23
Receiving Items Ordered
bull When ordered items are received the quantity received may be complete or partial
bull The order may be received with or without a bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-24
Record Receipt of Items in Full without the Bill
bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate
bull Record the receipt of 3 sleds ordered from Snow Gear
bull Click Receive Inventory iconbull Click Receive Inventory without Bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-25
Record Receipt of Items in Full without the Bill
bull Click Snow Gear as vendor on the drop-down list
bull Click Yes for Open Purchase Orders
copy2012 Pearson Education Inc publishing as Prentice Hall
6-26
Record Receipt of Items in Full without the Bill
bull To select PO No 1 click in the check columnbull Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-27
Analyze Item Receipt
bull Note the mark of ldquoItem Receipt Onlyrdquo
bull The Memo shows Received items (Bill to follow)
bull Automatically the Qty shows 3
bull The Cost shows 5000
bull The Amount is 15000
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-28
Use Search to View Purchase Order
bull To view the Purchase Order click the PO button
bull Click Previous until you get to PO 1
bull The Purchase Order is automatically marked RECEIVED IN FULL
bull The Rcvrsquod column shows 3
bull Clsd has a check to indicate that the purchase order is closed
copy2012 Pearson Education Inc publishing as Prentice Hall
6-29
Record Receipt of Bill After Items Have Been Received
bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills
Against Inventory icon
On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear
There is no check column so click the line with the Item Receipt to highlight
Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-30
Record Receipt of Bill After Items Have Been Received
bull Complete the bill Date
011811 Ref No
97
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-31
Record Partial Receipt of Items with a Bill
bull Click the Receive Inventory icon
bull Click Receive Inventory with Bill
bull The Vendor is Clothes Inc
bull Click Yes on Open Porsquos exist
bull Select PO No 2bull Click OKbull The Date of the bill
should be 01152011
copy2012 Pearson Education Inc publishing as Prentice Hall
6-32
Record Partial Receipt of Items with a Bill
bull The bill shows Qty of 25
bull Change the Qty to 20
bull Press Tab to change the Amount
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-33
Use Search to View Purchase Orders and Reports
bull Access Purchase Orders by using Search
bull Click the Search icon on the icon bar
bull Search allows you to search for transactions and reports associated with a transaction
bull Type Purchase Orders in the textbox
bull Click Update search information so the search will include the most recent transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-34
Use Search to View Purchase Orders and Reports
bull QuickBooks will scan the transactions and include all of the recent entries
bull There are several Purchase Orders reports available
bull Point to Open Purchase Orders
bull Click the Locate Menu icon to show the menu selection for the report
bull The menus used to prepare the Open Purchase Orders are shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-35
Use Search to View Purchase Orders and Reports
bull Click the Launch icon to prepare the report
bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in
full so only Purchase Order 2 shows in the report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-6
Accounting for Purchases and Payables Cost of Goods Sold
bull Calculated Income ndash Net Cost of Goods Sold = Gross Profit Gross Profit ndash Expenses = Net Profit
bull Example without Merchandise DiscountIncome $5000
ndash Net Cost of Goods Sold 1000
= Gross Profit $4000
ndash Expenses 2000
= Net Income $2000
copy2012 Pearson Education Inc publishing as Prentice Hall
6-7
Accounting for Purchases and Payables Discounts
bull Three types of Discounts used Merchandise Discount is a discount on sales items
that are purchased for resale (Cost of Goods Sold account)
Purchase Discount is a discount for early payment for purchases made to run the business (Income account)
bull For example a discount on office supplies when paying early with terms of 210 n 30 or 110 n 30
Sales Discount is used when you give customers a discount for early payment with terms of 210 n 30 or 110 n 30 (Expense account)
copy2012 Pearson Education Inc publishing as Prentice Hall
6-8
Accounting for Purchases and Payables Effect of Merchandise Discount on Cost of Goods Sold
bull Example with Merchandise Discount
Calculate Net Cost of Goods Sold Cost of Goods Sold $1000
ndash Merchandise Discounts 100= Net Cost of Goods Sold $900
Calculate Net IncomeIncome $5000
ndash Net Cost of Goods Sold 900 = Gross Profit $4100
ndash Expenses 2000 = Net Income $2100
bull Effect of Merchandise Discount is an increase in Net Income of $100
copy2012 Pearson Education Inc publishing as Prentice Hall
6-9
Reminders List
bull Reminders list tells you what inventory needs to be ordered
bull Click Reminders on the Company menubull View the Reminders List
copy2012 Pearson Education Inc publishing as Prentice Hall
6-10
Reminders List
bull Click the Expand All button to display the items flagged for reorder
copy2012 Pearson Education Inc publishing as Prentice Hall
6-11
Change Reorder Limits for an Itembull Click the Items amp Services iconbull Double-click Underwearbull Change the reorder point to 35 click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-12
Inventory Stock Status by Item Report
bull An inventory report that shows Items in stock The reorder point What you have on hand What you need to order What you have on order (indicated by the
order date in Next Deliv)
copy2012 Pearson Education Inc publishing as Prentice Hall
6-13
Prepare the Inventory Stock Status by Item Report
bull Click the Reports button on the Item List
bull Point to Reports on All Items Inventory
bull Click Inventory Stock Status by Item
copy2012 Pearson Education Inc publishing as Prentice Hall
6-14
Analyze the Inventory Stock Status by Item Report
bull Sleds shows a reorder point of 5 on hand 4 and a check in the Order column
bull Sleds need to be orderedbull Boots-Snowbrd Gloves Poles-Ski Toboggans and Underwear
also need to be ordered
copy2012 Pearson Education Inc publishing as Prentice Hall
6-15
Prepare Purchase Orders Add a New Vendor
bull 011511 Order 3 sleds for $50 each from a new vendor Snow Gear
bull Click Purchase Order iconbull Type Vendor Name Snow Gear press Tabbull Click the Set Up button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-16
Add a New Vendor
bull Complete the Address Info tab Opening Balance 000
as of 01152011 Company Name Snow
Gear Address
7105 Camino del Rio Durango CO 81302
Contact Leo Jenkins Phone 303-555-7765 FAX 303-555-5677
copy2012 Pearson Education Inc publishing as Prentice Hall
6-17
Add a New Vendor
bull Complete Additional Info tab Terms
2 10 Net 30 Credit Limit
$200000
bull Click OK to add the vendor
copy2012 Pearson Education Inc publishing as Prentice Hall
6-18
Complete the Purchase Order
bull Hide the Historybull Resize by pointing to right side
and dragging the sizing handle to the left
bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost
Changed Item Cost in the Item List is
000 If you change the item cost it
will always show $5000 Not all the sleds we order will
be $5000
copy2012 Pearson Education Inc publishing as Prentice Hall
6-19
Complete Purchase Order
bull Click Save amp New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-20
Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes
Incbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-21
Purchase Order QuickReport
bull Purchase Order QuickReport shows all open purchase orders
bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order
copy2012 Pearson Education Inc publishing as Prentice Hall
6-22
Purchase Order QuickReportbull Prepare Purchase
Order QuickReportbull Click Chart of
Accounts iconbull Scroll to the
bottom of the Chart of Accounts
bull Double-click 2 Purchase Orders
bull Enter the dates of 010111 ndash 011511
bull Information for Purchase Orders 1 and 2 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-23
Receiving Items Ordered
bull When ordered items are received the quantity received may be complete or partial
bull The order may be received with or without a bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-24
Record Receipt of Items in Full without the Bill
bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate
bull Record the receipt of 3 sleds ordered from Snow Gear
bull Click Receive Inventory iconbull Click Receive Inventory without Bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-25
Record Receipt of Items in Full without the Bill
bull Click Snow Gear as vendor on the drop-down list
bull Click Yes for Open Purchase Orders
copy2012 Pearson Education Inc publishing as Prentice Hall
6-26
Record Receipt of Items in Full without the Bill
bull To select PO No 1 click in the check columnbull Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-27
Analyze Item Receipt
bull Note the mark of ldquoItem Receipt Onlyrdquo
bull The Memo shows Received items (Bill to follow)
bull Automatically the Qty shows 3
bull The Cost shows 5000
bull The Amount is 15000
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-28
Use Search to View Purchase Order
bull To view the Purchase Order click the PO button
bull Click Previous until you get to PO 1
bull The Purchase Order is automatically marked RECEIVED IN FULL
bull The Rcvrsquod column shows 3
bull Clsd has a check to indicate that the purchase order is closed
copy2012 Pearson Education Inc publishing as Prentice Hall
6-29
Record Receipt of Bill After Items Have Been Received
bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills
Against Inventory icon
On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear
There is no check column so click the line with the Item Receipt to highlight
Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-30
Record Receipt of Bill After Items Have Been Received
bull Complete the bill Date
011811 Ref No
97
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-31
Record Partial Receipt of Items with a Bill
bull Click the Receive Inventory icon
bull Click Receive Inventory with Bill
bull The Vendor is Clothes Inc
bull Click Yes on Open Porsquos exist
bull Select PO No 2bull Click OKbull The Date of the bill
should be 01152011
copy2012 Pearson Education Inc publishing as Prentice Hall
6-32
Record Partial Receipt of Items with a Bill
bull The bill shows Qty of 25
bull Change the Qty to 20
bull Press Tab to change the Amount
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-33
Use Search to View Purchase Orders and Reports
bull Access Purchase Orders by using Search
bull Click the Search icon on the icon bar
bull Search allows you to search for transactions and reports associated with a transaction
bull Type Purchase Orders in the textbox
bull Click Update search information so the search will include the most recent transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-34
Use Search to View Purchase Orders and Reports
bull QuickBooks will scan the transactions and include all of the recent entries
bull There are several Purchase Orders reports available
bull Point to Open Purchase Orders
bull Click the Locate Menu icon to show the menu selection for the report
bull The menus used to prepare the Open Purchase Orders are shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-35
Use Search to View Purchase Orders and Reports
bull Click the Launch icon to prepare the report
bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in
full so only Purchase Order 2 shows in the report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-7
Accounting for Purchases and Payables Discounts
bull Three types of Discounts used Merchandise Discount is a discount on sales items
that are purchased for resale (Cost of Goods Sold account)
Purchase Discount is a discount for early payment for purchases made to run the business (Income account)
bull For example a discount on office supplies when paying early with terms of 210 n 30 or 110 n 30
Sales Discount is used when you give customers a discount for early payment with terms of 210 n 30 or 110 n 30 (Expense account)
copy2012 Pearson Education Inc publishing as Prentice Hall
6-8
Accounting for Purchases and Payables Effect of Merchandise Discount on Cost of Goods Sold
bull Example with Merchandise Discount
Calculate Net Cost of Goods Sold Cost of Goods Sold $1000
ndash Merchandise Discounts 100= Net Cost of Goods Sold $900
Calculate Net IncomeIncome $5000
ndash Net Cost of Goods Sold 900 = Gross Profit $4100
ndash Expenses 2000 = Net Income $2100
bull Effect of Merchandise Discount is an increase in Net Income of $100
copy2012 Pearson Education Inc publishing as Prentice Hall
6-9
Reminders List
bull Reminders list tells you what inventory needs to be ordered
bull Click Reminders on the Company menubull View the Reminders List
copy2012 Pearson Education Inc publishing as Prentice Hall
6-10
Reminders List
bull Click the Expand All button to display the items flagged for reorder
copy2012 Pearson Education Inc publishing as Prentice Hall
6-11
Change Reorder Limits for an Itembull Click the Items amp Services iconbull Double-click Underwearbull Change the reorder point to 35 click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-12
Inventory Stock Status by Item Report
bull An inventory report that shows Items in stock The reorder point What you have on hand What you need to order What you have on order (indicated by the
order date in Next Deliv)
copy2012 Pearson Education Inc publishing as Prentice Hall
6-13
Prepare the Inventory Stock Status by Item Report
bull Click the Reports button on the Item List
bull Point to Reports on All Items Inventory
bull Click Inventory Stock Status by Item
copy2012 Pearson Education Inc publishing as Prentice Hall
6-14
Analyze the Inventory Stock Status by Item Report
bull Sleds shows a reorder point of 5 on hand 4 and a check in the Order column
bull Sleds need to be orderedbull Boots-Snowbrd Gloves Poles-Ski Toboggans and Underwear
also need to be ordered
copy2012 Pearson Education Inc publishing as Prentice Hall
6-15
Prepare Purchase Orders Add a New Vendor
bull 011511 Order 3 sleds for $50 each from a new vendor Snow Gear
bull Click Purchase Order iconbull Type Vendor Name Snow Gear press Tabbull Click the Set Up button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-16
Add a New Vendor
bull Complete the Address Info tab Opening Balance 000
as of 01152011 Company Name Snow
Gear Address
7105 Camino del Rio Durango CO 81302
Contact Leo Jenkins Phone 303-555-7765 FAX 303-555-5677
copy2012 Pearson Education Inc publishing as Prentice Hall
6-17
Add a New Vendor
bull Complete Additional Info tab Terms
2 10 Net 30 Credit Limit
$200000
bull Click OK to add the vendor
copy2012 Pearson Education Inc publishing as Prentice Hall
6-18
Complete the Purchase Order
bull Hide the Historybull Resize by pointing to right side
and dragging the sizing handle to the left
bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost
Changed Item Cost in the Item List is
000 If you change the item cost it
will always show $5000 Not all the sleds we order will
be $5000
copy2012 Pearson Education Inc publishing as Prentice Hall
6-19
Complete Purchase Order
bull Click Save amp New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-20
Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes
Incbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-21
Purchase Order QuickReport
bull Purchase Order QuickReport shows all open purchase orders
bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order
copy2012 Pearson Education Inc publishing as Prentice Hall
6-22
Purchase Order QuickReportbull Prepare Purchase
Order QuickReportbull Click Chart of
Accounts iconbull Scroll to the
bottom of the Chart of Accounts
bull Double-click 2 Purchase Orders
bull Enter the dates of 010111 ndash 011511
bull Information for Purchase Orders 1 and 2 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-23
Receiving Items Ordered
bull When ordered items are received the quantity received may be complete or partial
bull The order may be received with or without a bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-24
Record Receipt of Items in Full without the Bill
bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate
bull Record the receipt of 3 sleds ordered from Snow Gear
bull Click Receive Inventory iconbull Click Receive Inventory without Bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-25
Record Receipt of Items in Full without the Bill
bull Click Snow Gear as vendor on the drop-down list
bull Click Yes for Open Purchase Orders
copy2012 Pearson Education Inc publishing as Prentice Hall
6-26
Record Receipt of Items in Full without the Bill
bull To select PO No 1 click in the check columnbull Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-27
Analyze Item Receipt
bull Note the mark of ldquoItem Receipt Onlyrdquo
bull The Memo shows Received items (Bill to follow)
bull Automatically the Qty shows 3
bull The Cost shows 5000
bull The Amount is 15000
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-28
Use Search to View Purchase Order
bull To view the Purchase Order click the PO button
bull Click Previous until you get to PO 1
bull The Purchase Order is automatically marked RECEIVED IN FULL
bull The Rcvrsquod column shows 3
bull Clsd has a check to indicate that the purchase order is closed
copy2012 Pearson Education Inc publishing as Prentice Hall
6-29
Record Receipt of Bill After Items Have Been Received
bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills
Against Inventory icon
On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear
There is no check column so click the line with the Item Receipt to highlight
Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-30
Record Receipt of Bill After Items Have Been Received
bull Complete the bill Date
011811 Ref No
97
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-31
Record Partial Receipt of Items with a Bill
bull Click the Receive Inventory icon
bull Click Receive Inventory with Bill
bull The Vendor is Clothes Inc
bull Click Yes on Open Porsquos exist
bull Select PO No 2bull Click OKbull The Date of the bill
should be 01152011
copy2012 Pearson Education Inc publishing as Prentice Hall
6-32
Record Partial Receipt of Items with a Bill
bull The bill shows Qty of 25
bull Change the Qty to 20
bull Press Tab to change the Amount
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-33
Use Search to View Purchase Orders and Reports
bull Access Purchase Orders by using Search
bull Click the Search icon on the icon bar
bull Search allows you to search for transactions and reports associated with a transaction
bull Type Purchase Orders in the textbox
bull Click Update search information so the search will include the most recent transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-34
Use Search to View Purchase Orders and Reports
bull QuickBooks will scan the transactions and include all of the recent entries
bull There are several Purchase Orders reports available
bull Point to Open Purchase Orders
bull Click the Locate Menu icon to show the menu selection for the report
bull The menus used to prepare the Open Purchase Orders are shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-35
Use Search to View Purchase Orders and Reports
bull Click the Launch icon to prepare the report
bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in
full so only Purchase Order 2 shows in the report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-8
Accounting for Purchases and Payables Effect of Merchandise Discount on Cost of Goods Sold
bull Example with Merchandise Discount
Calculate Net Cost of Goods Sold Cost of Goods Sold $1000
ndash Merchandise Discounts 100= Net Cost of Goods Sold $900
Calculate Net IncomeIncome $5000
ndash Net Cost of Goods Sold 900 = Gross Profit $4100
ndash Expenses 2000 = Net Income $2100
bull Effect of Merchandise Discount is an increase in Net Income of $100
copy2012 Pearson Education Inc publishing as Prentice Hall
6-9
Reminders List
bull Reminders list tells you what inventory needs to be ordered
bull Click Reminders on the Company menubull View the Reminders List
copy2012 Pearson Education Inc publishing as Prentice Hall
6-10
Reminders List
bull Click the Expand All button to display the items flagged for reorder
copy2012 Pearson Education Inc publishing as Prentice Hall
6-11
Change Reorder Limits for an Itembull Click the Items amp Services iconbull Double-click Underwearbull Change the reorder point to 35 click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-12
Inventory Stock Status by Item Report
bull An inventory report that shows Items in stock The reorder point What you have on hand What you need to order What you have on order (indicated by the
order date in Next Deliv)
copy2012 Pearson Education Inc publishing as Prentice Hall
6-13
Prepare the Inventory Stock Status by Item Report
bull Click the Reports button on the Item List
bull Point to Reports on All Items Inventory
bull Click Inventory Stock Status by Item
copy2012 Pearson Education Inc publishing as Prentice Hall
6-14
Analyze the Inventory Stock Status by Item Report
bull Sleds shows a reorder point of 5 on hand 4 and a check in the Order column
bull Sleds need to be orderedbull Boots-Snowbrd Gloves Poles-Ski Toboggans and Underwear
also need to be ordered
copy2012 Pearson Education Inc publishing as Prentice Hall
6-15
Prepare Purchase Orders Add a New Vendor
bull 011511 Order 3 sleds for $50 each from a new vendor Snow Gear
bull Click Purchase Order iconbull Type Vendor Name Snow Gear press Tabbull Click the Set Up button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-16
Add a New Vendor
bull Complete the Address Info tab Opening Balance 000
as of 01152011 Company Name Snow
Gear Address
7105 Camino del Rio Durango CO 81302
Contact Leo Jenkins Phone 303-555-7765 FAX 303-555-5677
copy2012 Pearson Education Inc publishing as Prentice Hall
6-17
Add a New Vendor
bull Complete Additional Info tab Terms
2 10 Net 30 Credit Limit
$200000
bull Click OK to add the vendor
copy2012 Pearson Education Inc publishing as Prentice Hall
6-18
Complete the Purchase Order
bull Hide the Historybull Resize by pointing to right side
and dragging the sizing handle to the left
bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost
Changed Item Cost in the Item List is
000 If you change the item cost it
will always show $5000 Not all the sleds we order will
be $5000
copy2012 Pearson Education Inc publishing as Prentice Hall
6-19
Complete Purchase Order
bull Click Save amp New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-20
Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes
Incbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-21
Purchase Order QuickReport
bull Purchase Order QuickReport shows all open purchase orders
bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order
copy2012 Pearson Education Inc publishing as Prentice Hall
6-22
Purchase Order QuickReportbull Prepare Purchase
Order QuickReportbull Click Chart of
Accounts iconbull Scroll to the
bottom of the Chart of Accounts
bull Double-click 2 Purchase Orders
bull Enter the dates of 010111 ndash 011511
bull Information for Purchase Orders 1 and 2 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-23
Receiving Items Ordered
bull When ordered items are received the quantity received may be complete or partial
bull The order may be received with or without a bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-24
Record Receipt of Items in Full without the Bill
bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate
bull Record the receipt of 3 sleds ordered from Snow Gear
bull Click Receive Inventory iconbull Click Receive Inventory without Bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-25
Record Receipt of Items in Full without the Bill
bull Click Snow Gear as vendor on the drop-down list
bull Click Yes for Open Purchase Orders
copy2012 Pearson Education Inc publishing as Prentice Hall
6-26
Record Receipt of Items in Full without the Bill
bull To select PO No 1 click in the check columnbull Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-27
Analyze Item Receipt
bull Note the mark of ldquoItem Receipt Onlyrdquo
bull The Memo shows Received items (Bill to follow)
bull Automatically the Qty shows 3
bull The Cost shows 5000
bull The Amount is 15000
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-28
Use Search to View Purchase Order
bull To view the Purchase Order click the PO button
bull Click Previous until you get to PO 1
bull The Purchase Order is automatically marked RECEIVED IN FULL
bull The Rcvrsquod column shows 3
bull Clsd has a check to indicate that the purchase order is closed
copy2012 Pearson Education Inc publishing as Prentice Hall
6-29
Record Receipt of Bill After Items Have Been Received
bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills
Against Inventory icon
On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear
There is no check column so click the line with the Item Receipt to highlight
Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-30
Record Receipt of Bill After Items Have Been Received
bull Complete the bill Date
011811 Ref No
97
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-31
Record Partial Receipt of Items with a Bill
bull Click the Receive Inventory icon
bull Click Receive Inventory with Bill
bull The Vendor is Clothes Inc
bull Click Yes on Open Porsquos exist
bull Select PO No 2bull Click OKbull The Date of the bill
should be 01152011
copy2012 Pearson Education Inc publishing as Prentice Hall
6-32
Record Partial Receipt of Items with a Bill
bull The bill shows Qty of 25
bull Change the Qty to 20
bull Press Tab to change the Amount
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-33
Use Search to View Purchase Orders and Reports
bull Access Purchase Orders by using Search
bull Click the Search icon on the icon bar
bull Search allows you to search for transactions and reports associated with a transaction
bull Type Purchase Orders in the textbox
bull Click Update search information so the search will include the most recent transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-34
Use Search to View Purchase Orders and Reports
bull QuickBooks will scan the transactions and include all of the recent entries
bull There are several Purchase Orders reports available
bull Point to Open Purchase Orders
bull Click the Locate Menu icon to show the menu selection for the report
bull The menus used to prepare the Open Purchase Orders are shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-35
Use Search to View Purchase Orders and Reports
bull Click the Launch icon to prepare the report
bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in
full so only Purchase Order 2 shows in the report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-9
Reminders List
bull Reminders list tells you what inventory needs to be ordered
bull Click Reminders on the Company menubull View the Reminders List
copy2012 Pearson Education Inc publishing as Prentice Hall
6-10
Reminders List
bull Click the Expand All button to display the items flagged for reorder
copy2012 Pearson Education Inc publishing as Prentice Hall
6-11
Change Reorder Limits for an Itembull Click the Items amp Services iconbull Double-click Underwearbull Change the reorder point to 35 click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-12
Inventory Stock Status by Item Report
bull An inventory report that shows Items in stock The reorder point What you have on hand What you need to order What you have on order (indicated by the
order date in Next Deliv)
copy2012 Pearson Education Inc publishing as Prentice Hall
6-13
Prepare the Inventory Stock Status by Item Report
bull Click the Reports button on the Item List
bull Point to Reports on All Items Inventory
bull Click Inventory Stock Status by Item
copy2012 Pearson Education Inc publishing as Prentice Hall
6-14
Analyze the Inventory Stock Status by Item Report
bull Sleds shows a reorder point of 5 on hand 4 and a check in the Order column
bull Sleds need to be orderedbull Boots-Snowbrd Gloves Poles-Ski Toboggans and Underwear
also need to be ordered
copy2012 Pearson Education Inc publishing as Prentice Hall
6-15
Prepare Purchase Orders Add a New Vendor
bull 011511 Order 3 sleds for $50 each from a new vendor Snow Gear
bull Click Purchase Order iconbull Type Vendor Name Snow Gear press Tabbull Click the Set Up button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-16
Add a New Vendor
bull Complete the Address Info tab Opening Balance 000
as of 01152011 Company Name Snow
Gear Address
7105 Camino del Rio Durango CO 81302
Contact Leo Jenkins Phone 303-555-7765 FAX 303-555-5677
copy2012 Pearson Education Inc publishing as Prentice Hall
6-17
Add a New Vendor
bull Complete Additional Info tab Terms
2 10 Net 30 Credit Limit
$200000
bull Click OK to add the vendor
copy2012 Pearson Education Inc publishing as Prentice Hall
6-18
Complete the Purchase Order
bull Hide the Historybull Resize by pointing to right side
and dragging the sizing handle to the left
bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost
Changed Item Cost in the Item List is
000 If you change the item cost it
will always show $5000 Not all the sleds we order will
be $5000
copy2012 Pearson Education Inc publishing as Prentice Hall
6-19
Complete Purchase Order
bull Click Save amp New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-20
Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes
Incbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-21
Purchase Order QuickReport
bull Purchase Order QuickReport shows all open purchase orders
bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order
copy2012 Pearson Education Inc publishing as Prentice Hall
6-22
Purchase Order QuickReportbull Prepare Purchase
Order QuickReportbull Click Chart of
Accounts iconbull Scroll to the
bottom of the Chart of Accounts
bull Double-click 2 Purchase Orders
bull Enter the dates of 010111 ndash 011511
bull Information for Purchase Orders 1 and 2 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-23
Receiving Items Ordered
bull When ordered items are received the quantity received may be complete or partial
bull The order may be received with or without a bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-24
Record Receipt of Items in Full without the Bill
bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate
bull Record the receipt of 3 sleds ordered from Snow Gear
bull Click Receive Inventory iconbull Click Receive Inventory without Bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-25
Record Receipt of Items in Full without the Bill
bull Click Snow Gear as vendor on the drop-down list
bull Click Yes for Open Purchase Orders
copy2012 Pearson Education Inc publishing as Prentice Hall
6-26
Record Receipt of Items in Full without the Bill
bull To select PO No 1 click in the check columnbull Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-27
Analyze Item Receipt
bull Note the mark of ldquoItem Receipt Onlyrdquo
bull The Memo shows Received items (Bill to follow)
bull Automatically the Qty shows 3
bull The Cost shows 5000
bull The Amount is 15000
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-28
Use Search to View Purchase Order
bull To view the Purchase Order click the PO button
bull Click Previous until you get to PO 1
bull The Purchase Order is automatically marked RECEIVED IN FULL
bull The Rcvrsquod column shows 3
bull Clsd has a check to indicate that the purchase order is closed
copy2012 Pearson Education Inc publishing as Prentice Hall
6-29
Record Receipt of Bill After Items Have Been Received
bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills
Against Inventory icon
On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear
There is no check column so click the line with the Item Receipt to highlight
Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-30
Record Receipt of Bill After Items Have Been Received
bull Complete the bill Date
011811 Ref No
97
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-31
Record Partial Receipt of Items with a Bill
bull Click the Receive Inventory icon
bull Click Receive Inventory with Bill
bull The Vendor is Clothes Inc
bull Click Yes on Open Porsquos exist
bull Select PO No 2bull Click OKbull The Date of the bill
should be 01152011
copy2012 Pearson Education Inc publishing as Prentice Hall
6-32
Record Partial Receipt of Items with a Bill
bull The bill shows Qty of 25
bull Change the Qty to 20
bull Press Tab to change the Amount
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-33
Use Search to View Purchase Orders and Reports
bull Access Purchase Orders by using Search
bull Click the Search icon on the icon bar
bull Search allows you to search for transactions and reports associated with a transaction
bull Type Purchase Orders in the textbox
bull Click Update search information so the search will include the most recent transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-34
Use Search to View Purchase Orders and Reports
bull QuickBooks will scan the transactions and include all of the recent entries
bull There are several Purchase Orders reports available
bull Point to Open Purchase Orders
bull Click the Locate Menu icon to show the menu selection for the report
bull The menus used to prepare the Open Purchase Orders are shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-35
Use Search to View Purchase Orders and Reports
bull Click the Launch icon to prepare the report
bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in
full so only Purchase Order 2 shows in the report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-10
Reminders List
bull Click the Expand All button to display the items flagged for reorder
copy2012 Pearson Education Inc publishing as Prentice Hall
6-11
Change Reorder Limits for an Itembull Click the Items amp Services iconbull Double-click Underwearbull Change the reorder point to 35 click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-12
Inventory Stock Status by Item Report
bull An inventory report that shows Items in stock The reorder point What you have on hand What you need to order What you have on order (indicated by the
order date in Next Deliv)
copy2012 Pearson Education Inc publishing as Prentice Hall
6-13
Prepare the Inventory Stock Status by Item Report
bull Click the Reports button on the Item List
bull Point to Reports on All Items Inventory
bull Click Inventory Stock Status by Item
copy2012 Pearson Education Inc publishing as Prentice Hall
6-14
Analyze the Inventory Stock Status by Item Report
bull Sleds shows a reorder point of 5 on hand 4 and a check in the Order column
bull Sleds need to be orderedbull Boots-Snowbrd Gloves Poles-Ski Toboggans and Underwear
also need to be ordered
copy2012 Pearson Education Inc publishing as Prentice Hall
6-15
Prepare Purchase Orders Add a New Vendor
bull 011511 Order 3 sleds for $50 each from a new vendor Snow Gear
bull Click Purchase Order iconbull Type Vendor Name Snow Gear press Tabbull Click the Set Up button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-16
Add a New Vendor
bull Complete the Address Info tab Opening Balance 000
as of 01152011 Company Name Snow
Gear Address
7105 Camino del Rio Durango CO 81302
Contact Leo Jenkins Phone 303-555-7765 FAX 303-555-5677
copy2012 Pearson Education Inc publishing as Prentice Hall
6-17
Add a New Vendor
bull Complete Additional Info tab Terms
2 10 Net 30 Credit Limit
$200000
bull Click OK to add the vendor
copy2012 Pearson Education Inc publishing as Prentice Hall
6-18
Complete the Purchase Order
bull Hide the Historybull Resize by pointing to right side
and dragging the sizing handle to the left
bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost
Changed Item Cost in the Item List is
000 If you change the item cost it
will always show $5000 Not all the sleds we order will
be $5000
copy2012 Pearson Education Inc publishing as Prentice Hall
6-19
Complete Purchase Order
bull Click Save amp New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-20
Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes
Incbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-21
Purchase Order QuickReport
bull Purchase Order QuickReport shows all open purchase orders
bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order
copy2012 Pearson Education Inc publishing as Prentice Hall
6-22
Purchase Order QuickReportbull Prepare Purchase
Order QuickReportbull Click Chart of
Accounts iconbull Scroll to the
bottom of the Chart of Accounts
bull Double-click 2 Purchase Orders
bull Enter the dates of 010111 ndash 011511
bull Information for Purchase Orders 1 and 2 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-23
Receiving Items Ordered
bull When ordered items are received the quantity received may be complete or partial
bull The order may be received with or without a bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-24
Record Receipt of Items in Full without the Bill
bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate
bull Record the receipt of 3 sleds ordered from Snow Gear
bull Click Receive Inventory iconbull Click Receive Inventory without Bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-25
Record Receipt of Items in Full without the Bill
bull Click Snow Gear as vendor on the drop-down list
bull Click Yes for Open Purchase Orders
copy2012 Pearson Education Inc publishing as Prentice Hall
6-26
Record Receipt of Items in Full without the Bill
bull To select PO No 1 click in the check columnbull Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-27
Analyze Item Receipt
bull Note the mark of ldquoItem Receipt Onlyrdquo
bull The Memo shows Received items (Bill to follow)
bull Automatically the Qty shows 3
bull The Cost shows 5000
bull The Amount is 15000
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-28
Use Search to View Purchase Order
bull To view the Purchase Order click the PO button
bull Click Previous until you get to PO 1
bull The Purchase Order is automatically marked RECEIVED IN FULL
bull The Rcvrsquod column shows 3
bull Clsd has a check to indicate that the purchase order is closed
copy2012 Pearson Education Inc publishing as Prentice Hall
6-29
Record Receipt of Bill After Items Have Been Received
bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills
Against Inventory icon
On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear
There is no check column so click the line with the Item Receipt to highlight
Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-30
Record Receipt of Bill After Items Have Been Received
bull Complete the bill Date
011811 Ref No
97
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-31
Record Partial Receipt of Items with a Bill
bull Click the Receive Inventory icon
bull Click Receive Inventory with Bill
bull The Vendor is Clothes Inc
bull Click Yes on Open Porsquos exist
bull Select PO No 2bull Click OKbull The Date of the bill
should be 01152011
copy2012 Pearson Education Inc publishing as Prentice Hall
6-32
Record Partial Receipt of Items with a Bill
bull The bill shows Qty of 25
bull Change the Qty to 20
bull Press Tab to change the Amount
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-33
Use Search to View Purchase Orders and Reports
bull Access Purchase Orders by using Search
bull Click the Search icon on the icon bar
bull Search allows you to search for transactions and reports associated with a transaction
bull Type Purchase Orders in the textbox
bull Click Update search information so the search will include the most recent transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-34
Use Search to View Purchase Orders and Reports
bull QuickBooks will scan the transactions and include all of the recent entries
bull There are several Purchase Orders reports available
bull Point to Open Purchase Orders
bull Click the Locate Menu icon to show the menu selection for the report
bull The menus used to prepare the Open Purchase Orders are shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-35
Use Search to View Purchase Orders and Reports
bull Click the Launch icon to prepare the report
bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in
full so only Purchase Order 2 shows in the report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-11
Change Reorder Limits for an Itembull Click the Items amp Services iconbull Double-click Underwearbull Change the reorder point to 35 click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-12
Inventory Stock Status by Item Report
bull An inventory report that shows Items in stock The reorder point What you have on hand What you need to order What you have on order (indicated by the
order date in Next Deliv)
copy2012 Pearson Education Inc publishing as Prentice Hall
6-13
Prepare the Inventory Stock Status by Item Report
bull Click the Reports button on the Item List
bull Point to Reports on All Items Inventory
bull Click Inventory Stock Status by Item
copy2012 Pearson Education Inc publishing as Prentice Hall
6-14
Analyze the Inventory Stock Status by Item Report
bull Sleds shows a reorder point of 5 on hand 4 and a check in the Order column
bull Sleds need to be orderedbull Boots-Snowbrd Gloves Poles-Ski Toboggans and Underwear
also need to be ordered
copy2012 Pearson Education Inc publishing as Prentice Hall
6-15
Prepare Purchase Orders Add a New Vendor
bull 011511 Order 3 sleds for $50 each from a new vendor Snow Gear
bull Click Purchase Order iconbull Type Vendor Name Snow Gear press Tabbull Click the Set Up button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-16
Add a New Vendor
bull Complete the Address Info tab Opening Balance 000
as of 01152011 Company Name Snow
Gear Address
7105 Camino del Rio Durango CO 81302
Contact Leo Jenkins Phone 303-555-7765 FAX 303-555-5677
copy2012 Pearson Education Inc publishing as Prentice Hall
6-17
Add a New Vendor
bull Complete Additional Info tab Terms
2 10 Net 30 Credit Limit
$200000
bull Click OK to add the vendor
copy2012 Pearson Education Inc publishing as Prentice Hall
6-18
Complete the Purchase Order
bull Hide the Historybull Resize by pointing to right side
and dragging the sizing handle to the left
bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost
Changed Item Cost in the Item List is
000 If you change the item cost it
will always show $5000 Not all the sleds we order will
be $5000
copy2012 Pearson Education Inc publishing as Prentice Hall
6-19
Complete Purchase Order
bull Click Save amp New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-20
Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes
Incbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-21
Purchase Order QuickReport
bull Purchase Order QuickReport shows all open purchase orders
bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order
copy2012 Pearson Education Inc publishing as Prentice Hall
6-22
Purchase Order QuickReportbull Prepare Purchase
Order QuickReportbull Click Chart of
Accounts iconbull Scroll to the
bottom of the Chart of Accounts
bull Double-click 2 Purchase Orders
bull Enter the dates of 010111 ndash 011511
bull Information for Purchase Orders 1 and 2 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-23
Receiving Items Ordered
bull When ordered items are received the quantity received may be complete or partial
bull The order may be received with or without a bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-24
Record Receipt of Items in Full without the Bill
bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate
bull Record the receipt of 3 sleds ordered from Snow Gear
bull Click Receive Inventory iconbull Click Receive Inventory without Bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-25
Record Receipt of Items in Full without the Bill
bull Click Snow Gear as vendor on the drop-down list
bull Click Yes for Open Purchase Orders
copy2012 Pearson Education Inc publishing as Prentice Hall
6-26
Record Receipt of Items in Full without the Bill
bull To select PO No 1 click in the check columnbull Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-27
Analyze Item Receipt
bull Note the mark of ldquoItem Receipt Onlyrdquo
bull The Memo shows Received items (Bill to follow)
bull Automatically the Qty shows 3
bull The Cost shows 5000
bull The Amount is 15000
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-28
Use Search to View Purchase Order
bull To view the Purchase Order click the PO button
bull Click Previous until you get to PO 1
bull The Purchase Order is automatically marked RECEIVED IN FULL
bull The Rcvrsquod column shows 3
bull Clsd has a check to indicate that the purchase order is closed
copy2012 Pearson Education Inc publishing as Prentice Hall
6-29
Record Receipt of Bill After Items Have Been Received
bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills
Against Inventory icon
On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear
There is no check column so click the line with the Item Receipt to highlight
Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-30
Record Receipt of Bill After Items Have Been Received
bull Complete the bill Date
011811 Ref No
97
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-31
Record Partial Receipt of Items with a Bill
bull Click the Receive Inventory icon
bull Click Receive Inventory with Bill
bull The Vendor is Clothes Inc
bull Click Yes on Open Porsquos exist
bull Select PO No 2bull Click OKbull The Date of the bill
should be 01152011
copy2012 Pearson Education Inc publishing as Prentice Hall
6-32
Record Partial Receipt of Items with a Bill
bull The bill shows Qty of 25
bull Change the Qty to 20
bull Press Tab to change the Amount
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-33
Use Search to View Purchase Orders and Reports
bull Access Purchase Orders by using Search
bull Click the Search icon on the icon bar
bull Search allows you to search for transactions and reports associated with a transaction
bull Type Purchase Orders in the textbox
bull Click Update search information so the search will include the most recent transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-34
Use Search to View Purchase Orders and Reports
bull QuickBooks will scan the transactions and include all of the recent entries
bull There are several Purchase Orders reports available
bull Point to Open Purchase Orders
bull Click the Locate Menu icon to show the menu selection for the report
bull The menus used to prepare the Open Purchase Orders are shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-35
Use Search to View Purchase Orders and Reports
bull Click the Launch icon to prepare the report
bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in
full so only Purchase Order 2 shows in the report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-12
Inventory Stock Status by Item Report
bull An inventory report that shows Items in stock The reorder point What you have on hand What you need to order What you have on order (indicated by the
order date in Next Deliv)
copy2012 Pearson Education Inc publishing as Prentice Hall
6-13
Prepare the Inventory Stock Status by Item Report
bull Click the Reports button on the Item List
bull Point to Reports on All Items Inventory
bull Click Inventory Stock Status by Item
copy2012 Pearson Education Inc publishing as Prentice Hall
6-14
Analyze the Inventory Stock Status by Item Report
bull Sleds shows a reorder point of 5 on hand 4 and a check in the Order column
bull Sleds need to be orderedbull Boots-Snowbrd Gloves Poles-Ski Toboggans and Underwear
also need to be ordered
copy2012 Pearson Education Inc publishing as Prentice Hall
6-15
Prepare Purchase Orders Add a New Vendor
bull 011511 Order 3 sleds for $50 each from a new vendor Snow Gear
bull Click Purchase Order iconbull Type Vendor Name Snow Gear press Tabbull Click the Set Up button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-16
Add a New Vendor
bull Complete the Address Info tab Opening Balance 000
as of 01152011 Company Name Snow
Gear Address
7105 Camino del Rio Durango CO 81302
Contact Leo Jenkins Phone 303-555-7765 FAX 303-555-5677
copy2012 Pearson Education Inc publishing as Prentice Hall
6-17
Add a New Vendor
bull Complete Additional Info tab Terms
2 10 Net 30 Credit Limit
$200000
bull Click OK to add the vendor
copy2012 Pearson Education Inc publishing as Prentice Hall
6-18
Complete the Purchase Order
bull Hide the Historybull Resize by pointing to right side
and dragging the sizing handle to the left
bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost
Changed Item Cost in the Item List is
000 If you change the item cost it
will always show $5000 Not all the sleds we order will
be $5000
copy2012 Pearson Education Inc publishing as Prentice Hall
6-19
Complete Purchase Order
bull Click Save amp New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-20
Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes
Incbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-21
Purchase Order QuickReport
bull Purchase Order QuickReport shows all open purchase orders
bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order
copy2012 Pearson Education Inc publishing as Prentice Hall
6-22
Purchase Order QuickReportbull Prepare Purchase
Order QuickReportbull Click Chart of
Accounts iconbull Scroll to the
bottom of the Chart of Accounts
bull Double-click 2 Purchase Orders
bull Enter the dates of 010111 ndash 011511
bull Information for Purchase Orders 1 and 2 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-23
Receiving Items Ordered
bull When ordered items are received the quantity received may be complete or partial
bull The order may be received with or without a bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-24
Record Receipt of Items in Full without the Bill
bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate
bull Record the receipt of 3 sleds ordered from Snow Gear
bull Click Receive Inventory iconbull Click Receive Inventory without Bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-25
Record Receipt of Items in Full without the Bill
bull Click Snow Gear as vendor on the drop-down list
bull Click Yes for Open Purchase Orders
copy2012 Pearson Education Inc publishing as Prentice Hall
6-26
Record Receipt of Items in Full without the Bill
bull To select PO No 1 click in the check columnbull Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-27
Analyze Item Receipt
bull Note the mark of ldquoItem Receipt Onlyrdquo
bull The Memo shows Received items (Bill to follow)
bull Automatically the Qty shows 3
bull The Cost shows 5000
bull The Amount is 15000
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-28
Use Search to View Purchase Order
bull To view the Purchase Order click the PO button
bull Click Previous until you get to PO 1
bull The Purchase Order is automatically marked RECEIVED IN FULL
bull The Rcvrsquod column shows 3
bull Clsd has a check to indicate that the purchase order is closed
copy2012 Pearson Education Inc publishing as Prentice Hall
6-29
Record Receipt of Bill After Items Have Been Received
bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills
Against Inventory icon
On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear
There is no check column so click the line with the Item Receipt to highlight
Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-30
Record Receipt of Bill After Items Have Been Received
bull Complete the bill Date
011811 Ref No
97
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-31
Record Partial Receipt of Items with a Bill
bull Click the Receive Inventory icon
bull Click Receive Inventory with Bill
bull The Vendor is Clothes Inc
bull Click Yes on Open Porsquos exist
bull Select PO No 2bull Click OKbull The Date of the bill
should be 01152011
copy2012 Pearson Education Inc publishing as Prentice Hall
6-32
Record Partial Receipt of Items with a Bill
bull The bill shows Qty of 25
bull Change the Qty to 20
bull Press Tab to change the Amount
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-33
Use Search to View Purchase Orders and Reports
bull Access Purchase Orders by using Search
bull Click the Search icon on the icon bar
bull Search allows you to search for transactions and reports associated with a transaction
bull Type Purchase Orders in the textbox
bull Click Update search information so the search will include the most recent transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-34
Use Search to View Purchase Orders and Reports
bull QuickBooks will scan the transactions and include all of the recent entries
bull There are several Purchase Orders reports available
bull Point to Open Purchase Orders
bull Click the Locate Menu icon to show the menu selection for the report
bull The menus used to prepare the Open Purchase Orders are shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-35
Use Search to View Purchase Orders and Reports
bull Click the Launch icon to prepare the report
bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in
full so only Purchase Order 2 shows in the report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-13
Prepare the Inventory Stock Status by Item Report
bull Click the Reports button on the Item List
bull Point to Reports on All Items Inventory
bull Click Inventory Stock Status by Item
copy2012 Pearson Education Inc publishing as Prentice Hall
6-14
Analyze the Inventory Stock Status by Item Report
bull Sleds shows a reorder point of 5 on hand 4 and a check in the Order column
bull Sleds need to be orderedbull Boots-Snowbrd Gloves Poles-Ski Toboggans and Underwear
also need to be ordered
copy2012 Pearson Education Inc publishing as Prentice Hall
6-15
Prepare Purchase Orders Add a New Vendor
bull 011511 Order 3 sleds for $50 each from a new vendor Snow Gear
bull Click Purchase Order iconbull Type Vendor Name Snow Gear press Tabbull Click the Set Up button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-16
Add a New Vendor
bull Complete the Address Info tab Opening Balance 000
as of 01152011 Company Name Snow
Gear Address
7105 Camino del Rio Durango CO 81302
Contact Leo Jenkins Phone 303-555-7765 FAX 303-555-5677
copy2012 Pearson Education Inc publishing as Prentice Hall
6-17
Add a New Vendor
bull Complete Additional Info tab Terms
2 10 Net 30 Credit Limit
$200000
bull Click OK to add the vendor
copy2012 Pearson Education Inc publishing as Prentice Hall
6-18
Complete the Purchase Order
bull Hide the Historybull Resize by pointing to right side
and dragging the sizing handle to the left
bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost
Changed Item Cost in the Item List is
000 If you change the item cost it
will always show $5000 Not all the sleds we order will
be $5000
copy2012 Pearson Education Inc publishing as Prentice Hall
6-19
Complete Purchase Order
bull Click Save amp New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-20
Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes
Incbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-21
Purchase Order QuickReport
bull Purchase Order QuickReport shows all open purchase orders
bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order
copy2012 Pearson Education Inc publishing as Prentice Hall
6-22
Purchase Order QuickReportbull Prepare Purchase
Order QuickReportbull Click Chart of
Accounts iconbull Scroll to the
bottom of the Chart of Accounts
bull Double-click 2 Purchase Orders
bull Enter the dates of 010111 ndash 011511
bull Information for Purchase Orders 1 and 2 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-23
Receiving Items Ordered
bull When ordered items are received the quantity received may be complete or partial
bull The order may be received with or without a bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-24
Record Receipt of Items in Full without the Bill
bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate
bull Record the receipt of 3 sleds ordered from Snow Gear
bull Click Receive Inventory iconbull Click Receive Inventory without Bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-25
Record Receipt of Items in Full without the Bill
bull Click Snow Gear as vendor on the drop-down list
bull Click Yes for Open Purchase Orders
copy2012 Pearson Education Inc publishing as Prentice Hall
6-26
Record Receipt of Items in Full without the Bill
bull To select PO No 1 click in the check columnbull Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-27
Analyze Item Receipt
bull Note the mark of ldquoItem Receipt Onlyrdquo
bull The Memo shows Received items (Bill to follow)
bull Automatically the Qty shows 3
bull The Cost shows 5000
bull The Amount is 15000
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-28
Use Search to View Purchase Order
bull To view the Purchase Order click the PO button
bull Click Previous until you get to PO 1
bull The Purchase Order is automatically marked RECEIVED IN FULL
bull The Rcvrsquod column shows 3
bull Clsd has a check to indicate that the purchase order is closed
copy2012 Pearson Education Inc publishing as Prentice Hall
6-29
Record Receipt of Bill After Items Have Been Received
bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills
Against Inventory icon
On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear
There is no check column so click the line with the Item Receipt to highlight
Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-30
Record Receipt of Bill After Items Have Been Received
bull Complete the bill Date
011811 Ref No
97
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-31
Record Partial Receipt of Items with a Bill
bull Click the Receive Inventory icon
bull Click Receive Inventory with Bill
bull The Vendor is Clothes Inc
bull Click Yes on Open Porsquos exist
bull Select PO No 2bull Click OKbull The Date of the bill
should be 01152011
copy2012 Pearson Education Inc publishing as Prentice Hall
6-32
Record Partial Receipt of Items with a Bill
bull The bill shows Qty of 25
bull Change the Qty to 20
bull Press Tab to change the Amount
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-33
Use Search to View Purchase Orders and Reports
bull Access Purchase Orders by using Search
bull Click the Search icon on the icon bar
bull Search allows you to search for transactions and reports associated with a transaction
bull Type Purchase Orders in the textbox
bull Click Update search information so the search will include the most recent transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-34
Use Search to View Purchase Orders and Reports
bull QuickBooks will scan the transactions and include all of the recent entries
bull There are several Purchase Orders reports available
bull Point to Open Purchase Orders
bull Click the Locate Menu icon to show the menu selection for the report
bull The menus used to prepare the Open Purchase Orders are shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-35
Use Search to View Purchase Orders and Reports
bull Click the Launch icon to prepare the report
bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in
full so only Purchase Order 2 shows in the report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-14
Analyze the Inventory Stock Status by Item Report
bull Sleds shows a reorder point of 5 on hand 4 and a check in the Order column
bull Sleds need to be orderedbull Boots-Snowbrd Gloves Poles-Ski Toboggans and Underwear
also need to be ordered
copy2012 Pearson Education Inc publishing as Prentice Hall
6-15
Prepare Purchase Orders Add a New Vendor
bull 011511 Order 3 sleds for $50 each from a new vendor Snow Gear
bull Click Purchase Order iconbull Type Vendor Name Snow Gear press Tabbull Click the Set Up button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-16
Add a New Vendor
bull Complete the Address Info tab Opening Balance 000
as of 01152011 Company Name Snow
Gear Address
7105 Camino del Rio Durango CO 81302
Contact Leo Jenkins Phone 303-555-7765 FAX 303-555-5677
copy2012 Pearson Education Inc publishing as Prentice Hall
6-17
Add a New Vendor
bull Complete Additional Info tab Terms
2 10 Net 30 Credit Limit
$200000
bull Click OK to add the vendor
copy2012 Pearson Education Inc publishing as Prentice Hall
6-18
Complete the Purchase Order
bull Hide the Historybull Resize by pointing to right side
and dragging the sizing handle to the left
bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost
Changed Item Cost in the Item List is
000 If you change the item cost it
will always show $5000 Not all the sleds we order will
be $5000
copy2012 Pearson Education Inc publishing as Prentice Hall
6-19
Complete Purchase Order
bull Click Save amp New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-20
Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes
Incbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-21
Purchase Order QuickReport
bull Purchase Order QuickReport shows all open purchase orders
bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order
copy2012 Pearson Education Inc publishing as Prentice Hall
6-22
Purchase Order QuickReportbull Prepare Purchase
Order QuickReportbull Click Chart of
Accounts iconbull Scroll to the
bottom of the Chart of Accounts
bull Double-click 2 Purchase Orders
bull Enter the dates of 010111 ndash 011511
bull Information for Purchase Orders 1 and 2 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-23
Receiving Items Ordered
bull When ordered items are received the quantity received may be complete or partial
bull The order may be received with or without a bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-24
Record Receipt of Items in Full without the Bill
bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate
bull Record the receipt of 3 sleds ordered from Snow Gear
bull Click Receive Inventory iconbull Click Receive Inventory without Bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-25
Record Receipt of Items in Full without the Bill
bull Click Snow Gear as vendor on the drop-down list
bull Click Yes for Open Purchase Orders
copy2012 Pearson Education Inc publishing as Prentice Hall
6-26
Record Receipt of Items in Full without the Bill
bull To select PO No 1 click in the check columnbull Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-27
Analyze Item Receipt
bull Note the mark of ldquoItem Receipt Onlyrdquo
bull The Memo shows Received items (Bill to follow)
bull Automatically the Qty shows 3
bull The Cost shows 5000
bull The Amount is 15000
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-28
Use Search to View Purchase Order
bull To view the Purchase Order click the PO button
bull Click Previous until you get to PO 1
bull The Purchase Order is automatically marked RECEIVED IN FULL
bull The Rcvrsquod column shows 3
bull Clsd has a check to indicate that the purchase order is closed
copy2012 Pearson Education Inc publishing as Prentice Hall
6-29
Record Receipt of Bill After Items Have Been Received
bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills
Against Inventory icon
On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear
There is no check column so click the line with the Item Receipt to highlight
Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-30
Record Receipt of Bill After Items Have Been Received
bull Complete the bill Date
011811 Ref No
97
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-31
Record Partial Receipt of Items with a Bill
bull Click the Receive Inventory icon
bull Click Receive Inventory with Bill
bull The Vendor is Clothes Inc
bull Click Yes on Open Porsquos exist
bull Select PO No 2bull Click OKbull The Date of the bill
should be 01152011
copy2012 Pearson Education Inc publishing as Prentice Hall
6-32
Record Partial Receipt of Items with a Bill
bull The bill shows Qty of 25
bull Change the Qty to 20
bull Press Tab to change the Amount
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-33
Use Search to View Purchase Orders and Reports
bull Access Purchase Orders by using Search
bull Click the Search icon on the icon bar
bull Search allows you to search for transactions and reports associated with a transaction
bull Type Purchase Orders in the textbox
bull Click Update search information so the search will include the most recent transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-34
Use Search to View Purchase Orders and Reports
bull QuickBooks will scan the transactions and include all of the recent entries
bull There are several Purchase Orders reports available
bull Point to Open Purchase Orders
bull Click the Locate Menu icon to show the menu selection for the report
bull The menus used to prepare the Open Purchase Orders are shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-35
Use Search to View Purchase Orders and Reports
bull Click the Launch icon to prepare the report
bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in
full so only Purchase Order 2 shows in the report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-15
Prepare Purchase Orders Add a New Vendor
bull 011511 Order 3 sleds for $50 each from a new vendor Snow Gear
bull Click Purchase Order iconbull Type Vendor Name Snow Gear press Tabbull Click the Set Up button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-16
Add a New Vendor
bull Complete the Address Info tab Opening Balance 000
as of 01152011 Company Name Snow
Gear Address
7105 Camino del Rio Durango CO 81302
Contact Leo Jenkins Phone 303-555-7765 FAX 303-555-5677
copy2012 Pearson Education Inc publishing as Prentice Hall
6-17
Add a New Vendor
bull Complete Additional Info tab Terms
2 10 Net 30 Credit Limit
$200000
bull Click OK to add the vendor
copy2012 Pearson Education Inc publishing as Prentice Hall
6-18
Complete the Purchase Order
bull Hide the Historybull Resize by pointing to right side
and dragging the sizing handle to the left
bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost
Changed Item Cost in the Item List is
000 If you change the item cost it
will always show $5000 Not all the sleds we order will
be $5000
copy2012 Pearson Education Inc publishing as Prentice Hall
6-19
Complete Purchase Order
bull Click Save amp New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-20
Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes
Incbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-21
Purchase Order QuickReport
bull Purchase Order QuickReport shows all open purchase orders
bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order
copy2012 Pearson Education Inc publishing as Prentice Hall
6-22
Purchase Order QuickReportbull Prepare Purchase
Order QuickReportbull Click Chart of
Accounts iconbull Scroll to the
bottom of the Chart of Accounts
bull Double-click 2 Purchase Orders
bull Enter the dates of 010111 ndash 011511
bull Information for Purchase Orders 1 and 2 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-23
Receiving Items Ordered
bull When ordered items are received the quantity received may be complete or partial
bull The order may be received with or without a bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-24
Record Receipt of Items in Full without the Bill
bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate
bull Record the receipt of 3 sleds ordered from Snow Gear
bull Click Receive Inventory iconbull Click Receive Inventory without Bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-25
Record Receipt of Items in Full without the Bill
bull Click Snow Gear as vendor on the drop-down list
bull Click Yes for Open Purchase Orders
copy2012 Pearson Education Inc publishing as Prentice Hall
6-26
Record Receipt of Items in Full without the Bill
bull To select PO No 1 click in the check columnbull Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-27
Analyze Item Receipt
bull Note the mark of ldquoItem Receipt Onlyrdquo
bull The Memo shows Received items (Bill to follow)
bull Automatically the Qty shows 3
bull The Cost shows 5000
bull The Amount is 15000
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-28
Use Search to View Purchase Order
bull To view the Purchase Order click the PO button
bull Click Previous until you get to PO 1
bull The Purchase Order is automatically marked RECEIVED IN FULL
bull The Rcvrsquod column shows 3
bull Clsd has a check to indicate that the purchase order is closed
copy2012 Pearson Education Inc publishing as Prentice Hall
6-29
Record Receipt of Bill After Items Have Been Received
bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills
Against Inventory icon
On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear
There is no check column so click the line with the Item Receipt to highlight
Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-30
Record Receipt of Bill After Items Have Been Received
bull Complete the bill Date
011811 Ref No
97
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-31
Record Partial Receipt of Items with a Bill
bull Click the Receive Inventory icon
bull Click Receive Inventory with Bill
bull The Vendor is Clothes Inc
bull Click Yes on Open Porsquos exist
bull Select PO No 2bull Click OKbull The Date of the bill
should be 01152011
copy2012 Pearson Education Inc publishing as Prentice Hall
6-32
Record Partial Receipt of Items with a Bill
bull The bill shows Qty of 25
bull Change the Qty to 20
bull Press Tab to change the Amount
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-33
Use Search to View Purchase Orders and Reports
bull Access Purchase Orders by using Search
bull Click the Search icon on the icon bar
bull Search allows you to search for transactions and reports associated with a transaction
bull Type Purchase Orders in the textbox
bull Click Update search information so the search will include the most recent transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-34
Use Search to View Purchase Orders and Reports
bull QuickBooks will scan the transactions and include all of the recent entries
bull There are several Purchase Orders reports available
bull Point to Open Purchase Orders
bull Click the Locate Menu icon to show the menu selection for the report
bull The menus used to prepare the Open Purchase Orders are shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-35
Use Search to View Purchase Orders and Reports
bull Click the Launch icon to prepare the report
bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in
full so only Purchase Order 2 shows in the report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-16
Add a New Vendor
bull Complete the Address Info tab Opening Balance 000
as of 01152011 Company Name Snow
Gear Address
7105 Camino del Rio Durango CO 81302
Contact Leo Jenkins Phone 303-555-7765 FAX 303-555-5677
copy2012 Pearson Education Inc publishing as Prentice Hall
6-17
Add a New Vendor
bull Complete Additional Info tab Terms
2 10 Net 30 Credit Limit
$200000
bull Click OK to add the vendor
copy2012 Pearson Education Inc publishing as Prentice Hall
6-18
Complete the Purchase Order
bull Hide the Historybull Resize by pointing to right side
and dragging the sizing handle to the left
bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost
Changed Item Cost in the Item List is
000 If you change the item cost it
will always show $5000 Not all the sleds we order will
be $5000
copy2012 Pearson Education Inc publishing as Prentice Hall
6-19
Complete Purchase Order
bull Click Save amp New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-20
Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes
Incbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-21
Purchase Order QuickReport
bull Purchase Order QuickReport shows all open purchase orders
bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order
copy2012 Pearson Education Inc publishing as Prentice Hall
6-22
Purchase Order QuickReportbull Prepare Purchase
Order QuickReportbull Click Chart of
Accounts iconbull Scroll to the
bottom of the Chart of Accounts
bull Double-click 2 Purchase Orders
bull Enter the dates of 010111 ndash 011511
bull Information for Purchase Orders 1 and 2 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-23
Receiving Items Ordered
bull When ordered items are received the quantity received may be complete or partial
bull The order may be received with or without a bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-24
Record Receipt of Items in Full without the Bill
bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate
bull Record the receipt of 3 sleds ordered from Snow Gear
bull Click Receive Inventory iconbull Click Receive Inventory without Bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-25
Record Receipt of Items in Full without the Bill
bull Click Snow Gear as vendor on the drop-down list
bull Click Yes for Open Purchase Orders
copy2012 Pearson Education Inc publishing as Prentice Hall
6-26
Record Receipt of Items in Full without the Bill
bull To select PO No 1 click in the check columnbull Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-27
Analyze Item Receipt
bull Note the mark of ldquoItem Receipt Onlyrdquo
bull The Memo shows Received items (Bill to follow)
bull Automatically the Qty shows 3
bull The Cost shows 5000
bull The Amount is 15000
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-28
Use Search to View Purchase Order
bull To view the Purchase Order click the PO button
bull Click Previous until you get to PO 1
bull The Purchase Order is automatically marked RECEIVED IN FULL
bull The Rcvrsquod column shows 3
bull Clsd has a check to indicate that the purchase order is closed
copy2012 Pearson Education Inc publishing as Prentice Hall
6-29
Record Receipt of Bill After Items Have Been Received
bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills
Against Inventory icon
On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear
There is no check column so click the line with the Item Receipt to highlight
Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-30
Record Receipt of Bill After Items Have Been Received
bull Complete the bill Date
011811 Ref No
97
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-31
Record Partial Receipt of Items with a Bill
bull Click the Receive Inventory icon
bull Click Receive Inventory with Bill
bull The Vendor is Clothes Inc
bull Click Yes on Open Porsquos exist
bull Select PO No 2bull Click OKbull The Date of the bill
should be 01152011
copy2012 Pearson Education Inc publishing as Prentice Hall
6-32
Record Partial Receipt of Items with a Bill
bull The bill shows Qty of 25
bull Change the Qty to 20
bull Press Tab to change the Amount
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-33
Use Search to View Purchase Orders and Reports
bull Access Purchase Orders by using Search
bull Click the Search icon on the icon bar
bull Search allows you to search for transactions and reports associated with a transaction
bull Type Purchase Orders in the textbox
bull Click Update search information so the search will include the most recent transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-34
Use Search to View Purchase Orders and Reports
bull QuickBooks will scan the transactions and include all of the recent entries
bull There are several Purchase Orders reports available
bull Point to Open Purchase Orders
bull Click the Locate Menu icon to show the menu selection for the report
bull The menus used to prepare the Open Purchase Orders are shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-35
Use Search to View Purchase Orders and Reports
bull Click the Launch icon to prepare the report
bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in
full so only Purchase Order 2 shows in the report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-17
Add a New Vendor
bull Complete Additional Info tab Terms
2 10 Net 30 Credit Limit
$200000
bull Click OK to add the vendor
copy2012 Pearson Education Inc publishing as Prentice Hall
6-18
Complete the Purchase Order
bull Hide the Historybull Resize by pointing to right side
and dragging the sizing handle to the left
bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost
Changed Item Cost in the Item List is
000 If you change the item cost it
will always show $5000 Not all the sleds we order will
be $5000
copy2012 Pearson Education Inc publishing as Prentice Hall
6-19
Complete Purchase Order
bull Click Save amp New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-20
Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes
Incbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-21
Purchase Order QuickReport
bull Purchase Order QuickReport shows all open purchase orders
bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order
copy2012 Pearson Education Inc publishing as Prentice Hall
6-22
Purchase Order QuickReportbull Prepare Purchase
Order QuickReportbull Click Chart of
Accounts iconbull Scroll to the
bottom of the Chart of Accounts
bull Double-click 2 Purchase Orders
bull Enter the dates of 010111 ndash 011511
bull Information for Purchase Orders 1 and 2 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-23
Receiving Items Ordered
bull When ordered items are received the quantity received may be complete or partial
bull The order may be received with or without a bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-24
Record Receipt of Items in Full without the Bill
bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate
bull Record the receipt of 3 sleds ordered from Snow Gear
bull Click Receive Inventory iconbull Click Receive Inventory without Bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-25
Record Receipt of Items in Full without the Bill
bull Click Snow Gear as vendor on the drop-down list
bull Click Yes for Open Purchase Orders
copy2012 Pearson Education Inc publishing as Prentice Hall
6-26
Record Receipt of Items in Full without the Bill
bull To select PO No 1 click in the check columnbull Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-27
Analyze Item Receipt
bull Note the mark of ldquoItem Receipt Onlyrdquo
bull The Memo shows Received items (Bill to follow)
bull Automatically the Qty shows 3
bull The Cost shows 5000
bull The Amount is 15000
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-28
Use Search to View Purchase Order
bull To view the Purchase Order click the PO button
bull Click Previous until you get to PO 1
bull The Purchase Order is automatically marked RECEIVED IN FULL
bull The Rcvrsquod column shows 3
bull Clsd has a check to indicate that the purchase order is closed
copy2012 Pearson Education Inc publishing as Prentice Hall
6-29
Record Receipt of Bill After Items Have Been Received
bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills
Against Inventory icon
On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear
There is no check column so click the line with the Item Receipt to highlight
Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-30
Record Receipt of Bill After Items Have Been Received
bull Complete the bill Date
011811 Ref No
97
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-31
Record Partial Receipt of Items with a Bill
bull Click the Receive Inventory icon
bull Click Receive Inventory with Bill
bull The Vendor is Clothes Inc
bull Click Yes on Open Porsquos exist
bull Select PO No 2bull Click OKbull The Date of the bill
should be 01152011
copy2012 Pearson Education Inc publishing as Prentice Hall
6-32
Record Partial Receipt of Items with a Bill
bull The bill shows Qty of 25
bull Change the Qty to 20
bull Press Tab to change the Amount
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-33
Use Search to View Purchase Orders and Reports
bull Access Purchase Orders by using Search
bull Click the Search icon on the icon bar
bull Search allows you to search for transactions and reports associated with a transaction
bull Type Purchase Orders in the textbox
bull Click Update search information so the search will include the most recent transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-34
Use Search to View Purchase Orders and Reports
bull QuickBooks will scan the transactions and include all of the recent entries
bull There are several Purchase Orders reports available
bull Point to Open Purchase Orders
bull Click the Locate Menu icon to show the menu selection for the report
bull The menus used to prepare the Open Purchase Orders are shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-35
Use Search to View Purchase Orders and Reports
bull Click the Launch icon to prepare the report
bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in
full so only Purchase Order 2 shows in the report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-18
Complete the Purchase Order
bull Hide the Historybull Resize by pointing to right side
and dragging the sizing handle to the left
bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost
Changed Item Cost in the Item List is
000 If you change the item cost it
will always show $5000 Not all the sleds we order will
be $5000
copy2012 Pearson Education Inc publishing as Prentice Hall
6-19
Complete Purchase Order
bull Click Save amp New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-20
Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes
Incbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-21
Purchase Order QuickReport
bull Purchase Order QuickReport shows all open purchase orders
bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order
copy2012 Pearson Education Inc publishing as Prentice Hall
6-22
Purchase Order QuickReportbull Prepare Purchase
Order QuickReportbull Click Chart of
Accounts iconbull Scroll to the
bottom of the Chart of Accounts
bull Double-click 2 Purchase Orders
bull Enter the dates of 010111 ndash 011511
bull Information for Purchase Orders 1 and 2 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-23
Receiving Items Ordered
bull When ordered items are received the quantity received may be complete or partial
bull The order may be received with or without a bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-24
Record Receipt of Items in Full without the Bill
bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate
bull Record the receipt of 3 sleds ordered from Snow Gear
bull Click Receive Inventory iconbull Click Receive Inventory without Bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-25
Record Receipt of Items in Full without the Bill
bull Click Snow Gear as vendor on the drop-down list
bull Click Yes for Open Purchase Orders
copy2012 Pearson Education Inc publishing as Prentice Hall
6-26
Record Receipt of Items in Full without the Bill
bull To select PO No 1 click in the check columnbull Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-27
Analyze Item Receipt
bull Note the mark of ldquoItem Receipt Onlyrdquo
bull The Memo shows Received items (Bill to follow)
bull Automatically the Qty shows 3
bull The Cost shows 5000
bull The Amount is 15000
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-28
Use Search to View Purchase Order
bull To view the Purchase Order click the PO button
bull Click Previous until you get to PO 1
bull The Purchase Order is automatically marked RECEIVED IN FULL
bull The Rcvrsquod column shows 3
bull Clsd has a check to indicate that the purchase order is closed
copy2012 Pearson Education Inc publishing as Prentice Hall
6-29
Record Receipt of Bill After Items Have Been Received
bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills
Against Inventory icon
On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear
There is no check column so click the line with the Item Receipt to highlight
Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-30
Record Receipt of Bill After Items Have Been Received
bull Complete the bill Date
011811 Ref No
97
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-31
Record Partial Receipt of Items with a Bill
bull Click the Receive Inventory icon
bull Click Receive Inventory with Bill
bull The Vendor is Clothes Inc
bull Click Yes on Open Porsquos exist
bull Select PO No 2bull Click OKbull The Date of the bill
should be 01152011
copy2012 Pearson Education Inc publishing as Prentice Hall
6-32
Record Partial Receipt of Items with a Bill
bull The bill shows Qty of 25
bull Change the Qty to 20
bull Press Tab to change the Amount
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-33
Use Search to View Purchase Orders and Reports
bull Access Purchase Orders by using Search
bull Click the Search icon on the icon bar
bull Search allows you to search for transactions and reports associated with a transaction
bull Type Purchase Orders in the textbox
bull Click Update search information so the search will include the most recent transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-34
Use Search to View Purchase Orders and Reports
bull QuickBooks will scan the transactions and include all of the recent entries
bull There are several Purchase Orders reports available
bull Point to Open Purchase Orders
bull Click the Locate Menu icon to show the menu selection for the report
bull The menus used to prepare the Open Purchase Orders are shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-35
Use Search to View Purchase Orders and Reports
bull Click the Launch icon to prepare the report
bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in
full so only Purchase Order 2 shows in the report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-19
Complete Purchase Order
bull Click Save amp New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-20
Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes
Incbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-21
Purchase Order QuickReport
bull Purchase Order QuickReport shows all open purchase orders
bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order
copy2012 Pearson Education Inc publishing as Prentice Hall
6-22
Purchase Order QuickReportbull Prepare Purchase
Order QuickReportbull Click Chart of
Accounts iconbull Scroll to the
bottom of the Chart of Accounts
bull Double-click 2 Purchase Orders
bull Enter the dates of 010111 ndash 011511
bull Information for Purchase Orders 1 and 2 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-23
Receiving Items Ordered
bull When ordered items are received the quantity received may be complete or partial
bull The order may be received with or without a bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-24
Record Receipt of Items in Full without the Bill
bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate
bull Record the receipt of 3 sleds ordered from Snow Gear
bull Click Receive Inventory iconbull Click Receive Inventory without Bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-25
Record Receipt of Items in Full without the Bill
bull Click Snow Gear as vendor on the drop-down list
bull Click Yes for Open Purchase Orders
copy2012 Pearson Education Inc publishing as Prentice Hall
6-26
Record Receipt of Items in Full without the Bill
bull To select PO No 1 click in the check columnbull Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-27
Analyze Item Receipt
bull Note the mark of ldquoItem Receipt Onlyrdquo
bull The Memo shows Received items (Bill to follow)
bull Automatically the Qty shows 3
bull The Cost shows 5000
bull The Amount is 15000
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-28
Use Search to View Purchase Order
bull To view the Purchase Order click the PO button
bull Click Previous until you get to PO 1
bull The Purchase Order is automatically marked RECEIVED IN FULL
bull The Rcvrsquod column shows 3
bull Clsd has a check to indicate that the purchase order is closed
copy2012 Pearson Education Inc publishing as Prentice Hall
6-29
Record Receipt of Bill After Items Have Been Received
bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills
Against Inventory icon
On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear
There is no check column so click the line with the Item Receipt to highlight
Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-30
Record Receipt of Bill After Items Have Been Received
bull Complete the bill Date
011811 Ref No
97
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-31
Record Partial Receipt of Items with a Bill
bull Click the Receive Inventory icon
bull Click Receive Inventory with Bill
bull The Vendor is Clothes Inc
bull Click Yes on Open Porsquos exist
bull Select PO No 2bull Click OKbull The Date of the bill
should be 01152011
copy2012 Pearson Education Inc publishing as Prentice Hall
6-32
Record Partial Receipt of Items with a Bill
bull The bill shows Qty of 25
bull Change the Qty to 20
bull Press Tab to change the Amount
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-33
Use Search to View Purchase Orders and Reports
bull Access Purchase Orders by using Search
bull Click the Search icon on the icon bar
bull Search allows you to search for transactions and reports associated with a transaction
bull Type Purchase Orders in the textbox
bull Click Update search information so the search will include the most recent transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-34
Use Search to View Purchase Orders and Reports
bull QuickBooks will scan the transactions and include all of the recent entries
bull There are several Purchase Orders reports available
bull Point to Open Purchase Orders
bull Click the Locate Menu icon to show the menu selection for the report
bull The menus used to prepare the Open Purchase Orders are shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-35
Use Search to View Purchase Orders and Reports
bull Click the Launch icon to prepare the report
bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in
full so only Purchase Order 2 shows in the report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-20
Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes
Incbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-21
Purchase Order QuickReport
bull Purchase Order QuickReport shows all open purchase orders
bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order
copy2012 Pearson Education Inc publishing as Prentice Hall
6-22
Purchase Order QuickReportbull Prepare Purchase
Order QuickReportbull Click Chart of
Accounts iconbull Scroll to the
bottom of the Chart of Accounts
bull Double-click 2 Purchase Orders
bull Enter the dates of 010111 ndash 011511
bull Information for Purchase Orders 1 and 2 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-23
Receiving Items Ordered
bull When ordered items are received the quantity received may be complete or partial
bull The order may be received with or without a bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-24
Record Receipt of Items in Full without the Bill
bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate
bull Record the receipt of 3 sleds ordered from Snow Gear
bull Click Receive Inventory iconbull Click Receive Inventory without Bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-25
Record Receipt of Items in Full without the Bill
bull Click Snow Gear as vendor on the drop-down list
bull Click Yes for Open Purchase Orders
copy2012 Pearson Education Inc publishing as Prentice Hall
6-26
Record Receipt of Items in Full without the Bill
bull To select PO No 1 click in the check columnbull Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-27
Analyze Item Receipt
bull Note the mark of ldquoItem Receipt Onlyrdquo
bull The Memo shows Received items (Bill to follow)
bull Automatically the Qty shows 3
bull The Cost shows 5000
bull The Amount is 15000
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-28
Use Search to View Purchase Order
bull To view the Purchase Order click the PO button
bull Click Previous until you get to PO 1
bull The Purchase Order is automatically marked RECEIVED IN FULL
bull The Rcvrsquod column shows 3
bull Clsd has a check to indicate that the purchase order is closed
copy2012 Pearson Education Inc publishing as Prentice Hall
6-29
Record Receipt of Bill After Items Have Been Received
bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills
Against Inventory icon
On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear
There is no check column so click the line with the Item Receipt to highlight
Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-30
Record Receipt of Bill After Items Have Been Received
bull Complete the bill Date
011811 Ref No
97
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-31
Record Partial Receipt of Items with a Bill
bull Click the Receive Inventory icon
bull Click Receive Inventory with Bill
bull The Vendor is Clothes Inc
bull Click Yes on Open Porsquos exist
bull Select PO No 2bull Click OKbull The Date of the bill
should be 01152011
copy2012 Pearson Education Inc publishing as Prentice Hall
6-32
Record Partial Receipt of Items with a Bill
bull The bill shows Qty of 25
bull Change the Qty to 20
bull Press Tab to change the Amount
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-33
Use Search to View Purchase Orders and Reports
bull Access Purchase Orders by using Search
bull Click the Search icon on the icon bar
bull Search allows you to search for transactions and reports associated with a transaction
bull Type Purchase Orders in the textbox
bull Click Update search information so the search will include the most recent transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-34
Use Search to View Purchase Orders and Reports
bull QuickBooks will scan the transactions and include all of the recent entries
bull There are several Purchase Orders reports available
bull Point to Open Purchase Orders
bull Click the Locate Menu icon to show the menu selection for the report
bull The menus used to prepare the Open Purchase Orders are shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-35
Use Search to View Purchase Orders and Reports
bull Click the Launch icon to prepare the report
bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in
full so only Purchase Order 2 shows in the report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-21
Purchase Order QuickReport
bull Purchase Order QuickReport shows all open purchase orders
bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order
copy2012 Pearson Education Inc publishing as Prentice Hall
6-22
Purchase Order QuickReportbull Prepare Purchase
Order QuickReportbull Click Chart of
Accounts iconbull Scroll to the
bottom of the Chart of Accounts
bull Double-click 2 Purchase Orders
bull Enter the dates of 010111 ndash 011511
bull Information for Purchase Orders 1 and 2 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-23
Receiving Items Ordered
bull When ordered items are received the quantity received may be complete or partial
bull The order may be received with or without a bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-24
Record Receipt of Items in Full without the Bill
bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate
bull Record the receipt of 3 sleds ordered from Snow Gear
bull Click Receive Inventory iconbull Click Receive Inventory without Bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-25
Record Receipt of Items in Full without the Bill
bull Click Snow Gear as vendor on the drop-down list
bull Click Yes for Open Purchase Orders
copy2012 Pearson Education Inc publishing as Prentice Hall
6-26
Record Receipt of Items in Full without the Bill
bull To select PO No 1 click in the check columnbull Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-27
Analyze Item Receipt
bull Note the mark of ldquoItem Receipt Onlyrdquo
bull The Memo shows Received items (Bill to follow)
bull Automatically the Qty shows 3
bull The Cost shows 5000
bull The Amount is 15000
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-28
Use Search to View Purchase Order
bull To view the Purchase Order click the PO button
bull Click Previous until you get to PO 1
bull The Purchase Order is automatically marked RECEIVED IN FULL
bull The Rcvrsquod column shows 3
bull Clsd has a check to indicate that the purchase order is closed
copy2012 Pearson Education Inc publishing as Prentice Hall
6-29
Record Receipt of Bill After Items Have Been Received
bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills
Against Inventory icon
On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear
There is no check column so click the line with the Item Receipt to highlight
Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-30
Record Receipt of Bill After Items Have Been Received
bull Complete the bill Date
011811 Ref No
97
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-31
Record Partial Receipt of Items with a Bill
bull Click the Receive Inventory icon
bull Click Receive Inventory with Bill
bull The Vendor is Clothes Inc
bull Click Yes on Open Porsquos exist
bull Select PO No 2bull Click OKbull The Date of the bill
should be 01152011
copy2012 Pearson Education Inc publishing as Prentice Hall
6-32
Record Partial Receipt of Items with a Bill
bull The bill shows Qty of 25
bull Change the Qty to 20
bull Press Tab to change the Amount
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-33
Use Search to View Purchase Orders and Reports
bull Access Purchase Orders by using Search
bull Click the Search icon on the icon bar
bull Search allows you to search for transactions and reports associated with a transaction
bull Type Purchase Orders in the textbox
bull Click Update search information so the search will include the most recent transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-34
Use Search to View Purchase Orders and Reports
bull QuickBooks will scan the transactions and include all of the recent entries
bull There are several Purchase Orders reports available
bull Point to Open Purchase Orders
bull Click the Locate Menu icon to show the menu selection for the report
bull The menus used to prepare the Open Purchase Orders are shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-35
Use Search to View Purchase Orders and Reports
bull Click the Launch icon to prepare the report
bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in
full so only Purchase Order 2 shows in the report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-22
Purchase Order QuickReportbull Prepare Purchase
Order QuickReportbull Click Chart of
Accounts iconbull Scroll to the
bottom of the Chart of Accounts
bull Double-click 2 Purchase Orders
bull Enter the dates of 010111 ndash 011511
bull Information for Purchase Orders 1 and 2 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-23
Receiving Items Ordered
bull When ordered items are received the quantity received may be complete or partial
bull The order may be received with or without a bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-24
Record Receipt of Items in Full without the Bill
bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate
bull Record the receipt of 3 sleds ordered from Snow Gear
bull Click Receive Inventory iconbull Click Receive Inventory without Bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-25
Record Receipt of Items in Full without the Bill
bull Click Snow Gear as vendor on the drop-down list
bull Click Yes for Open Purchase Orders
copy2012 Pearson Education Inc publishing as Prentice Hall
6-26
Record Receipt of Items in Full without the Bill
bull To select PO No 1 click in the check columnbull Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-27
Analyze Item Receipt
bull Note the mark of ldquoItem Receipt Onlyrdquo
bull The Memo shows Received items (Bill to follow)
bull Automatically the Qty shows 3
bull The Cost shows 5000
bull The Amount is 15000
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-28
Use Search to View Purchase Order
bull To view the Purchase Order click the PO button
bull Click Previous until you get to PO 1
bull The Purchase Order is automatically marked RECEIVED IN FULL
bull The Rcvrsquod column shows 3
bull Clsd has a check to indicate that the purchase order is closed
copy2012 Pearson Education Inc publishing as Prentice Hall
6-29
Record Receipt of Bill After Items Have Been Received
bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills
Against Inventory icon
On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear
There is no check column so click the line with the Item Receipt to highlight
Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-30
Record Receipt of Bill After Items Have Been Received
bull Complete the bill Date
011811 Ref No
97
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-31
Record Partial Receipt of Items with a Bill
bull Click the Receive Inventory icon
bull Click Receive Inventory with Bill
bull The Vendor is Clothes Inc
bull Click Yes on Open Porsquos exist
bull Select PO No 2bull Click OKbull The Date of the bill
should be 01152011
copy2012 Pearson Education Inc publishing as Prentice Hall
6-32
Record Partial Receipt of Items with a Bill
bull The bill shows Qty of 25
bull Change the Qty to 20
bull Press Tab to change the Amount
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-33
Use Search to View Purchase Orders and Reports
bull Access Purchase Orders by using Search
bull Click the Search icon on the icon bar
bull Search allows you to search for transactions and reports associated with a transaction
bull Type Purchase Orders in the textbox
bull Click Update search information so the search will include the most recent transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-34
Use Search to View Purchase Orders and Reports
bull QuickBooks will scan the transactions and include all of the recent entries
bull There are several Purchase Orders reports available
bull Point to Open Purchase Orders
bull Click the Locate Menu icon to show the menu selection for the report
bull The menus used to prepare the Open Purchase Orders are shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-35
Use Search to View Purchase Orders and Reports
bull Click the Launch icon to prepare the report
bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in
full so only Purchase Order 2 shows in the report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-23
Receiving Items Ordered
bull When ordered items are received the quantity received may be complete or partial
bull The order may be received with or without a bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-24
Record Receipt of Items in Full without the Bill
bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate
bull Record the receipt of 3 sleds ordered from Snow Gear
bull Click Receive Inventory iconbull Click Receive Inventory without Bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-25
Record Receipt of Items in Full without the Bill
bull Click Snow Gear as vendor on the drop-down list
bull Click Yes for Open Purchase Orders
copy2012 Pearson Education Inc publishing as Prentice Hall
6-26
Record Receipt of Items in Full without the Bill
bull To select PO No 1 click in the check columnbull Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-27
Analyze Item Receipt
bull Note the mark of ldquoItem Receipt Onlyrdquo
bull The Memo shows Received items (Bill to follow)
bull Automatically the Qty shows 3
bull The Cost shows 5000
bull The Amount is 15000
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-28
Use Search to View Purchase Order
bull To view the Purchase Order click the PO button
bull Click Previous until you get to PO 1
bull The Purchase Order is automatically marked RECEIVED IN FULL
bull The Rcvrsquod column shows 3
bull Clsd has a check to indicate that the purchase order is closed
copy2012 Pearson Education Inc publishing as Prentice Hall
6-29
Record Receipt of Bill After Items Have Been Received
bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills
Against Inventory icon
On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear
There is no check column so click the line with the Item Receipt to highlight
Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-30
Record Receipt of Bill After Items Have Been Received
bull Complete the bill Date
011811 Ref No
97
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-31
Record Partial Receipt of Items with a Bill
bull Click the Receive Inventory icon
bull Click Receive Inventory with Bill
bull The Vendor is Clothes Inc
bull Click Yes on Open Porsquos exist
bull Select PO No 2bull Click OKbull The Date of the bill
should be 01152011
copy2012 Pearson Education Inc publishing as Prentice Hall
6-32
Record Partial Receipt of Items with a Bill
bull The bill shows Qty of 25
bull Change the Qty to 20
bull Press Tab to change the Amount
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-33
Use Search to View Purchase Orders and Reports
bull Access Purchase Orders by using Search
bull Click the Search icon on the icon bar
bull Search allows you to search for transactions and reports associated with a transaction
bull Type Purchase Orders in the textbox
bull Click Update search information so the search will include the most recent transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-34
Use Search to View Purchase Orders and Reports
bull QuickBooks will scan the transactions and include all of the recent entries
bull There are several Purchase Orders reports available
bull Point to Open Purchase Orders
bull Click the Locate Menu icon to show the menu selection for the report
bull The menus used to prepare the Open Purchase Orders are shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-35
Use Search to View Purchase Orders and Reports
bull Click the Launch icon to prepare the report
bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in
full so only Purchase Order 2 shows in the report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-24
Record Receipt of Items in Full without the Bill
bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate
bull Record the receipt of 3 sleds ordered from Snow Gear
bull Click Receive Inventory iconbull Click Receive Inventory without Bill
copy2012 Pearson Education Inc publishing as Prentice Hall
6-25
Record Receipt of Items in Full without the Bill
bull Click Snow Gear as vendor on the drop-down list
bull Click Yes for Open Purchase Orders
copy2012 Pearson Education Inc publishing as Prentice Hall
6-26
Record Receipt of Items in Full without the Bill
bull To select PO No 1 click in the check columnbull Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-27
Analyze Item Receipt
bull Note the mark of ldquoItem Receipt Onlyrdquo
bull The Memo shows Received items (Bill to follow)
bull Automatically the Qty shows 3
bull The Cost shows 5000
bull The Amount is 15000
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-28
Use Search to View Purchase Order
bull To view the Purchase Order click the PO button
bull Click Previous until you get to PO 1
bull The Purchase Order is automatically marked RECEIVED IN FULL
bull The Rcvrsquod column shows 3
bull Clsd has a check to indicate that the purchase order is closed
copy2012 Pearson Education Inc publishing as Prentice Hall
6-29
Record Receipt of Bill After Items Have Been Received
bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills
Against Inventory icon
On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear
There is no check column so click the line with the Item Receipt to highlight
Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-30
Record Receipt of Bill After Items Have Been Received
bull Complete the bill Date
011811 Ref No
97
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-31
Record Partial Receipt of Items with a Bill
bull Click the Receive Inventory icon
bull Click Receive Inventory with Bill
bull The Vendor is Clothes Inc
bull Click Yes on Open Porsquos exist
bull Select PO No 2bull Click OKbull The Date of the bill
should be 01152011
copy2012 Pearson Education Inc publishing as Prentice Hall
6-32
Record Partial Receipt of Items with a Bill
bull The bill shows Qty of 25
bull Change the Qty to 20
bull Press Tab to change the Amount
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-33
Use Search to View Purchase Orders and Reports
bull Access Purchase Orders by using Search
bull Click the Search icon on the icon bar
bull Search allows you to search for transactions and reports associated with a transaction
bull Type Purchase Orders in the textbox
bull Click Update search information so the search will include the most recent transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-34
Use Search to View Purchase Orders and Reports
bull QuickBooks will scan the transactions and include all of the recent entries
bull There are several Purchase Orders reports available
bull Point to Open Purchase Orders
bull Click the Locate Menu icon to show the menu selection for the report
bull The menus used to prepare the Open Purchase Orders are shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-35
Use Search to View Purchase Orders and Reports
bull Click the Launch icon to prepare the report
bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in
full so only Purchase Order 2 shows in the report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-25
Record Receipt of Items in Full without the Bill
bull Click Snow Gear as vendor on the drop-down list
bull Click Yes for Open Purchase Orders
copy2012 Pearson Education Inc publishing as Prentice Hall
6-26
Record Receipt of Items in Full without the Bill
bull To select PO No 1 click in the check columnbull Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-27
Analyze Item Receipt
bull Note the mark of ldquoItem Receipt Onlyrdquo
bull The Memo shows Received items (Bill to follow)
bull Automatically the Qty shows 3
bull The Cost shows 5000
bull The Amount is 15000
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-28
Use Search to View Purchase Order
bull To view the Purchase Order click the PO button
bull Click Previous until you get to PO 1
bull The Purchase Order is automatically marked RECEIVED IN FULL
bull The Rcvrsquod column shows 3
bull Clsd has a check to indicate that the purchase order is closed
copy2012 Pearson Education Inc publishing as Prentice Hall
6-29
Record Receipt of Bill After Items Have Been Received
bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills
Against Inventory icon
On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear
There is no check column so click the line with the Item Receipt to highlight
Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-30
Record Receipt of Bill After Items Have Been Received
bull Complete the bill Date
011811 Ref No
97
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-31
Record Partial Receipt of Items with a Bill
bull Click the Receive Inventory icon
bull Click Receive Inventory with Bill
bull The Vendor is Clothes Inc
bull Click Yes on Open Porsquos exist
bull Select PO No 2bull Click OKbull The Date of the bill
should be 01152011
copy2012 Pearson Education Inc publishing as Prentice Hall
6-32
Record Partial Receipt of Items with a Bill
bull The bill shows Qty of 25
bull Change the Qty to 20
bull Press Tab to change the Amount
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-33
Use Search to View Purchase Orders and Reports
bull Access Purchase Orders by using Search
bull Click the Search icon on the icon bar
bull Search allows you to search for transactions and reports associated with a transaction
bull Type Purchase Orders in the textbox
bull Click Update search information so the search will include the most recent transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-34
Use Search to View Purchase Orders and Reports
bull QuickBooks will scan the transactions and include all of the recent entries
bull There are several Purchase Orders reports available
bull Point to Open Purchase Orders
bull Click the Locate Menu icon to show the menu selection for the report
bull The menus used to prepare the Open Purchase Orders are shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-35
Use Search to View Purchase Orders and Reports
bull Click the Launch icon to prepare the report
bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in
full so only Purchase Order 2 shows in the report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-26
Record Receipt of Items in Full without the Bill
bull To select PO No 1 click in the check columnbull Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-27
Analyze Item Receipt
bull Note the mark of ldquoItem Receipt Onlyrdquo
bull The Memo shows Received items (Bill to follow)
bull Automatically the Qty shows 3
bull The Cost shows 5000
bull The Amount is 15000
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-28
Use Search to View Purchase Order
bull To view the Purchase Order click the PO button
bull Click Previous until you get to PO 1
bull The Purchase Order is automatically marked RECEIVED IN FULL
bull The Rcvrsquod column shows 3
bull Clsd has a check to indicate that the purchase order is closed
copy2012 Pearson Education Inc publishing as Prentice Hall
6-29
Record Receipt of Bill After Items Have Been Received
bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills
Against Inventory icon
On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear
There is no check column so click the line with the Item Receipt to highlight
Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-30
Record Receipt of Bill After Items Have Been Received
bull Complete the bill Date
011811 Ref No
97
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-31
Record Partial Receipt of Items with a Bill
bull Click the Receive Inventory icon
bull Click Receive Inventory with Bill
bull The Vendor is Clothes Inc
bull Click Yes on Open Porsquos exist
bull Select PO No 2bull Click OKbull The Date of the bill
should be 01152011
copy2012 Pearson Education Inc publishing as Prentice Hall
6-32
Record Partial Receipt of Items with a Bill
bull The bill shows Qty of 25
bull Change the Qty to 20
bull Press Tab to change the Amount
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-33
Use Search to View Purchase Orders and Reports
bull Access Purchase Orders by using Search
bull Click the Search icon on the icon bar
bull Search allows you to search for transactions and reports associated with a transaction
bull Type Purchase Orders in the textbox
bull Click Update search information so the search will include the most recent transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-34
Use Search to View Purchase Orders and Reports
bull QuickBooks will scan the transactions and include all of the recent entries
bull There are several Purchase Orders reports available
bull Point to Open Purchase Orders
bull Click the Locate Menu icon to show the menu selection for the report
bull The menus used to prepare the Open Purchase Orders are shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-35
Use Search to View Purchase Orders and Reports
bull Click the Launch icon to prepare the report
bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in
full so only Purchase Order 2 shows in the report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-27
Analyze Item Receipt
bull Note the mark of ldquoItem Receipt Onlyrdquo
bull The Memo shows Received items (Bill to follow)
bull Automatically the Qty shows 3
bull The Cost shows 5000
bull The Amount is 15000
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-28
Use Search to View Purchase Order
bull To view the Purchase Order click the PO button
bull Click Previous until you get to PO 1
bull The Purchase Order is automatically marked RECEIVED IN FULL
bull The Rcvrsquod column shows 3
bull Clsd has a check to indicate that the purchase order is closed
copy2012 Pearson Education Inc publishing as Prentice Hall
6-29
Record Receipt of Bill After Items Have Been Received
bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills
Against Inventory icon
On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear
There is no check column so click the line with the Item Receipt to highlight
Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-30
Record Receipt of Bill After Items Have Been Received
bull Complete the bill Date
011811 Ref No
97
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-31
Record Partial Receipt of Items with a Bill
bull Click the Receive Inventory icon
bull Click Receive Inventory with Bill
bull The Vendor is Clothes Inc
bull Click Yes on Open Porsquos exist
bull Select PO No 2bull Click OKbull The Date of the bill
should be 01152011
copy2012 Pearson Education Inc publishing as Prentice Hall
6-32
Record Partial Receipt of Items with a Bill
bull The bill shows Qty of 25
bull Change the Qty to 20
bull Press Tab to change the Amount
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-33
Use Search to View Purchase Orders and Reports
bull Access Purchase Orders by using Search
bull Click the Search icon on the icon bar
bull Search allows you to search for transactions and reports associated with a transaction
bull Type Purchase Orders in the textbox
bull Click Update search information so the search will include the most recent transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-34
Use Search to View Purchase Orders and Reports
bull QuickBooks will scan the transactions and include all of the recent entries
bull There are several Purchase Orders reports available
bull Point to Open Purchase Orders
bull Click the Locate Menu icon to show the menu selection for the report
bull The menus used to prepare the Open Purchase Orders are shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-35
Use Search to View Purchase Orders and Reports
bull Click the Launch icon to prepare the report
bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in
full so only Purchase Order 2 shows in the report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-28
Use Search to View Purchase Order
bull To view the Purchase Order click the PO button
bull Click Previous until you get to PO 1
bull The Purchase Order is automatically marked RECEIVED IN FULL
bull The Rcvrsquod column shows 3
bull Clsd has a check to indicate that the purchase order is closed
copy2012 Pearson Education Inc publishing as Prentice Hall
6-29
Record Receipt of Bill After Items Have Been Received
bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills
Against Inventory icon
On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear
There is no check column so click the line with the Item Receipt to highlight
Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-30
Record Receipt of Bill After Items Have Been Received
bull Complete the bill Date
011811 Ref No
97
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-31
Record Partial Receipt of Items with a Bill
bull Click the Receive Inventory icon
bull Click Receive Inventory with Bill
bull The Vendor is Clothes Inc
bull Click Yes on Open Porsquos exist
bull Select PO No 2bull Click OKbull The Date of the bill
should be 01152011
copy2012 Pearson Education Inc publishing as Prentice Hall
6-32
Record Partial Receipt of Items with a Bill
bull The bill shows Qty of 25
bull Change the Qty to 20
bull Press Tab to change the Amount
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-33
Use Search to View Purchase Orders and Reports
bull Access Purchase Orders by using Search
bull Click the Search icon on the icon bar
bull Search allows you to search for transactions and reports associated with a transaction
bull Type Purchase Orders in the textbox
bull Click Update search information so the search will include the most recent transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-34
Use Search to View Purchase Orders and Reports
bull QuickBooks will scan the transactions and include all of the recent entries
bull There are several Purchase Orders reports available
bull Point to Open Purchase Orders
bull Click the Locate Menu icon to show the menu selection for the report
bull The menus used to prepare the Open Purchase Orders are shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-35
Use Search to View Purchase Orders and Reports
bull Click the Launch icon to prepare the report
bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in
full so only Purchase Order 2 shows in the report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-29
Record Receipt of Bill After Items Have Been Received
bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills
Against Inventory icon
On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear
There is no check column so click the line with the Item Receipt to highlight
Click OK
copy2012 Pearson Education Inc publishing as Prentice Hall
6-30
Record Receipt of Bill After Items Have Been Received
bull Complete the bill Date
011811 Ref No
97
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-31
Record Partial Receipt of Items with a Bill
bull Click the Receive Inventory icon
bull Click Receive Inventory with Bill
bull The Vendor is Clothes Inc
bull Click Yes on Open Porsquos exist
bull Select PO No 2bull Click OKbull The Date of the bill
should be 01152011
copy2012 Pearson Education Inc publishing as Prentice Hall
6-32
Record Partial Receipt of Items with a Bill
bull The bill shows Qty of 25
bull Change the Qty to 20
bull Press Tab to change the Amount
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-33
Use Search to View Purchase Orders and Reports
bull Access Purchase Orders by using Search
bull Click the Search icon on the icon bar
bull Search allows you to search for transactions and reports associated with a transaction
bull Type Purchase Orders in the textbox
bull Click Update search information so the search will include the most recent transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-34
Use Search to View Purchase Orders and Reports
bull QuickBooks will scan the transactions and include all of the recent entries
bull There are several Purchase Orders reports available
bull Point to Open Purchase Orders
bull Click the Locate Menu icon to show the menu selection for the report
bull The menus used to prepare the Open Purchase Orders are shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-35
Use Search to View Purchase Orders and Reports
bull Click the Launch icon to prepare the report
bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in
full so only Purchase Order 2 shows in the report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-30
Record Receipt of Bill After Items Have Been Received
bull Complete the bill Date
011811 Ref No
97
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-31
Record Partial Receipt of Items with a Bill
bull Click the Receive Inventory icon
bull Click Receive Inventory with Bill
bull The Vendor is Clothes Inc
bull Click Yes on Open Porsquos exist
bull Select PO No 2bull Click OKbull The Date of the bill
should be 01152011
copy2012 Pearson Education Inc publishing as Prentice Hall
6-32
Record Partial Receipt of Items with a Bill
bull The bill shows Qty of 25
bull Change the Qty to 20
bull Press Tab to change the Amount
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-33
Use Search to View Purchase Orders and Reports
bull Access Purchase Orders by using Search
bull Click the Search icon on the icon bar
bull Search allows you to search for transactions and reports associated with a transaction
bull Type Purchase Orders in the textbox
bull Click Update search information so the search will include the most recent transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-34
Use Search to View Purchase Orders and Reports
bull QuickBooks will scan the transactions and include all of the recent entries
bull There are several Purchase Orders reports available
bull Point to Open Purchase Orders
bull Click the Locate Menu icon to show the menu selection for the report
bull The menus used to prepare the Open Purchase Orders are shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-35
Use Search to View Purchase Orders and Reports
bull Click the Launch icon to prepare the report
bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in
full so only Purchase Order 2 shows in the report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-31
Record Partial Receipt of Items with a Bill
bull Click the Receive Inventory icon
bull Click Receive Inventory with Bill
bull The Vendor is Clothes Inc
bull Click Yes on Open Porsquos exist
bull Select PO No 2bull Click OKbull The Date of the bill
should be 01152011
copy2012 Pearson Education Inc publishing as Prentice Hall
6-32
Record Partial Receipt of Items with a Bill
bull The bill shows Qty of 25
bull Change the Qty to 20
bull Press Tab to change the Amount
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-33
Use Search to View Purchase Orders and Reports
bull Access Purchase Orders by using Search
bull Click the Search icon on the icon bar
bull Search allows you to search for transactions and reports associated with a transaction
bull Type Purchase Orders in the textbox
bull Click Update search information so the search will include the most recent transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-34
Use Search to View Purchase Orders and Reports
bull QuickBooks will scan the transactions and include all of the recent entries
bull There are several Purchase Orders reports available
bull Point to Open Purchase Orders
bull Click the Locate Menu icon to show the menu selection for the report
bull The menus used to prepare the Open Purchase Orders are shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-35
Use Search to View Purchase Orders and Reports
bull Click the Launch icon to prepare the report
bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in
full so only Purchase Order 2 shows in the report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-32
Record Partial Receipt of Items with a Bill
bull The bill shows Qty of 25
bull Change the Qty to 20
bull Press Tab to change the Amount
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-33
Use Search to View Purchase Orders and Reports
bull Access Purchase Orders by using Search
bull Click the Search icon on the icon bar
bull Search allows you to search for transactions and reports associated with a transaction
bull Type Purchase Orders in the textbox
bull Click Update search information so the search will include the most recent transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-34
Use Search to View Purchase Orders and Reports
bull QuickBooks will scan the transactions and include all of the recent entries
bull There are several Purchase Orders reports available
bull Point to Open Purchase Orders
bull Click the Locate Menu icon to show the menu selection for the report
bull The menus used to prepare the Open Purchase Orders are shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-35
Use Search to View Purchase Orders and Reports
bull Click the Launch icon to prepare the report
bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in
full so only Purchase Order 2 shows in the report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-33
Use Search to View Purchase Orders and Reports
bull Access Purchase Orders by using Search
bull Click the Search icon on the icon bar
bull Search allows you to search for transactions and reports associated with a transaction
bull Type Purchase Orders in the textbox
bull Click Update search information so the search will include the most recent transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-34
Use Search to View Purchase Orders and Reports
bull QuickBooks will scan the transactions and include all of the recent entries
bull There are several Purchase Orders reports available
bull Point to Open Purchase Orders
bull Click the Locate Menu icon to show the menu selection for the report
bull The menus used to prepare the Open Purchase Orders are shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-35
Use Search to View Purchase Orders and Reports
bull Click the Launch icon to prepare the report
bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in
full so only Purchase Order 2 shows in the report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-34
Use Search to View Purchase Orders and Reports
bull QuickBooks will scan the transactions and include all of the recent entries
bull There are several Purchase Orders reports available
bull Point to Open Purchase Orders
bull Click the Locate Menu icon to show the menu selection for the report
bull The menus used to prepare the Open Purchase Orders are shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-35
Use Search to View Purchase Orders and Reports
bull Click the Launch icon to prepare the report
bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in
full so only Purchase Order 2 shows in the report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-35
Use Search to View Purchase Orders and Reports
bull Click the Launch icon to prepare the report
bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in
full so only Purchase Order 2 shows in the report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-36
Use Search to View Purchase Orders and Reports
bull Point to Purchase Order 2 click the Open icon
bull Purchase Order 2 is shown
bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-37
Manually Close a Purchase Order
bull Purchase Order 2 was for 25 pairs of gloves
bull Clothes Inc is no longer stocking the gloves you ordered
bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-38
Manually Close a Purchase Order
bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes
Incbull The Purchase Order shows Qty 25
Backordered 5 and Rcvrsquod 20bull Clsd is blank
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-39
Manually Close a Purchase Order
bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-40
Prepare a Credit Memo for an Item Return
bull Click the Enter Bills icon
bull Click Creditbull Enter the return
of return one sled for $50 to Snow Gear on 011811
bull Click No if you get a change item cost screen
bull Click Save amp Close when finished
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-41
Record a Credit Card Purchase
bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company
bull Click Banking on the menu barbull Click Enter Credit Card Charges
OR bull Click the Enter Credit Card
Charges icon in the Banking section of the Home Page
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-42
Record a Credit Card Purchase
bull Credit Card is 2100 - Visa
bull Click the drop-down list arrow for Purchase From
bull Click Sierra Office Supply Company press Tab
bull Click OK on the Warning screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-43
Record a Credit Card Purchase
bull Date 012011bull Amount 2198bull Account 1311
Office Supplies (Supplies are purchased to have on hand so the asset is used)
bull Memo Purchase Fax Paper to Have on Hand
bull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-44
Pay Bill for Merchandise and Use a Discount
bull Click the Pay Bills iconbull Verify
Payment Date 012011 Payment Method Check Payment Account 1100 Checking
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-45
Pay Bill for Merchandise and Use a Discount
bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-46
Pay Bill for Merchandise and Use a Discount
bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-47
Pay Bill for Merchandise and Use a Discount
bull QuickBooks enters the Amount of Discount automatically
bull Click the drop-down list arrow for Discount Account
bull There is no merchandise discount account
bull Click Add New
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-48
Add a Discount Account for Merchandise
bull This payment is for the 20 pairs of gloves received
bull Gloves are merchandise that Your Name Sports sells
bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-49
Add a Discount Account for Merchandise
bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-50
Complete Bill Payment for Merchandise Using a Discount
bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the
Discount and Credits screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-51
Complete Bill Payment for Merchandise Using a Discount
bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-52
Pay Bill for Merchandise and Use a Credit
bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-53
Pay Bill for Merchandise and Use a Credit
bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available
bull Click the Set Discount button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-54
Pay Bill for Merchandise and Use a Credit
bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total
amount due This will not change when
the credit is applied The discount amount may
be changed manually At this point accept the $3
bull The Discount Account is 5100 Merchandise Discounts
bull Click the Credits tab to apply the credit
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-55
Pay Bill for Merchandise and Use a Credit
bull Click the credit shown to select it This will insert a radic
bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97
bull Click the Done button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-56
Pay Bill for Merchandise and Use a Credit
bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc
The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes
Inc The total of $391 is shown
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-57
Pay Bill for Merchandise and Use a Credit
bull Click the Pay Selected bills button
bull The Payment Summary screen appears
bull Click Print Checks to print Alternate Click
Done and print checks individually from the Write Checks window
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-58
View Paid Billbull Click Enter Bills
iconbull Click Previous until
you get to the bill for Snow Gear
bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks
does not mark a Credit even when it has been used
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-59
Sales Tax
bull Sales tax is collected on sales of merchandise
bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-60
Prepare a Sales Tax Liability Report
bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed
to each agency
bull Click Reports on the menu bar
bull Point to Vendors amp Payables
bull Click Sales Tax Liability
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-61
Prepare a Sales Tax Liability Report
bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice
Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-62
Pay Sales Tax
bull Click the Manage Sales Tax icon
bull Click the Pay Sales Tax button
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-63
Pay Sales Tax
bull Account 1100 ndash Checking
bull Check Date 012511
bull Show sales tax due through 012511
bull Click the Pay column to select
bull Click OKbull Click Close on
the Manage Sales Tax screen
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-64
View Checking Register
bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks
icon and clicking previous Open the Checking account register to see all
checking transactions
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-65
View Checking Register
bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State
Board of Equalization
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-66
Prepare Inventory Valuation Summary Report
bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item
bull Click Inventory on the Reports Menu
bull Click Inventory Valuation Summary
bull Enter the date 012611
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-67
Prepare Inventory Valuation Summary Report
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-68
Edit a Vendor in the Vendor Center
bull The Vendor Center is used to obtain information regarding individual vendors
bull Click the Vendor Center icon to open
bull Click Snow Supplies in the Vendor list
bull Notice the Company Name in Vendor Information shows Ski Supplies
bull Edit the vendor Snow Supplies
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information
copy2012 Pearson Education Inc publishing as Prentice Hall
6-69
Edit a Vendor in the Vendor Center
bull Click the Edit Vendor button
bull Change the Company Name to Snow Supplies
bull View the change in the Vendor Information