Introducing Quick Books 2543

8/8/2019 Introducing Quick Books 2543

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Chapter 2

Managing Revenue 31



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Objectives1. Set up customer records in the Customer:Job list

2. Record Sales Receipts

3. Use the Undeposited Funds account to track your cash

receipts

4. Record Invoices and Payments from customers

5. Record bank deposits of cash, check, and credit card

receipts

6. Process customer returns and credits7. Write off customer invoices (record bad debts)

8. Create and print customer statements

9. Assess finance charges

10. Create Sales Reports 31



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Tracking Company Sales

1. Sales Receipt

Used for cash customers (pay by cash, check or

credit card at time of sale) Tracks detailed information about each sale

For a cash register, use the register tape (z-total)

each day and create one Sales Receipt that

summarizes the sales for the day

2. Invoice

Used for Credit Customers (pay on a date after

the sale date)

Tracks detailed information about each sale31



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Steps in the Sales Process

BusinessTransaction

Cash Customers (pay by cash,check or credit card at time of

sale)

Credit Customers (pay on a dateafter the sale date)

QuickBooks

Transaction

Accounting

Entry

QuickBooks

Transaction

Accounting Entry

Recording aSale

Increase (debit)UndepositedFunds,increase(credit) incomeaccount.

Increase (debit)AccountsReceivable, increase(credit) incomeaccount.

ReceivingMoney in

Payment ofan Invoice

No additional action is requiredon the sales form

Decrease (credit)AccountsReceivable, increase(debit)UndepositedFunds.

DepositingMoney in the

Bank

Decrease (credit)UndepositedFunds, increase(debit) bank

Account.

Decrease (credit)Undeposited Funds,increase (debit) bankAccount.

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Chapter

2

Objectives

1. Set up customer records in

the Customer:Job list



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Setting Up Customers1. For each of your

customers, createa record in theCustomer:JobList

2. Select the Listsmenu and then

selectCustomer:JobList or pressCTRL+J 35



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Job Costing

1. QuickBooks tracks jobs in addition to

customers

2. For each customer in the Customer:Job List,you can create one or more jobs

3. The Customer:Job field shows the Customer

name first, followed by a colon (:) and then

the job name4. This helps you track income and expenses

on each Job, so that you can create reports

showing detailed or summarized information

about each Job

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Objective




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Recording Sales Receipts1. When customers

pay at the time of the sale by cash,check, or creditcard, create aSales Receipttransaction

2. Select theCustomers menu,and then selectEnter Sales

Receipts

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Enter the name of the customer

here, or choose an existingcustomer from the list by clickingthe down-arrow



Chapter

2

Objective

3. Use the Undeposited

Funds account to track

your cash receipts





Chapter

2

Objective

4. Record Invoices and

Payments from

customers



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Creating Invoices

1. Use Invoices to

record sales to

your creditcustomers

2. Select the

Customers menu

and then selectCreate Invoices

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Select the

customer name

from the drop-down list.



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Receiving Payments from

Customers1. Receiving Payments by Check

2. Handling Partial Payments

3. Receiving Payments by Credit Card4. Where Do the Payments Go?

5. Preferences for Applying Payments

6. Recording Customer Discounts

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Receiving Payments by Check

1. To record

payments from

credit customersfor invoices, use

Receive Payments

option

2. Select theCustomers menu,

and then select

Receive Payments 57



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Handling Partial Payments

1. If a customer pays only a portion of an Invoice

you should record the payment using Receive Payments

function

Apply the partial payment to the appropriate Invoice The Invoice will remain open for the unpaid amount

2. The next time you use the Receive Payments

function for that customer, the Invoice will show the

remaining amount due

3. You can record additional payments to the Invoice

in the same way as before

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Receiving Payments by Credit

Card1. Select the

Customers menu,

and then selectReceive Payments

2. Enter the Credit

Card payment

method, credit cardnumber and Exp

date

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Where Do the Payments Go?

1. Receiving payments reduces the balance in Accounts Receivable

increases the balance in Undeposited Funds

2. Payments in Bank Account If you selected the Deposit to option in the

Receive Payments window (something that is notrecommended), QuickBooks will increase your bank balance when you receive payments

If you selected Group with other undepositedfunds option, then you must use Make Depositsfunction in order to have your payments show upin your bank account (and reduce UndepositedFunds) 62



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Preferences for Applying

Payments1. As soon as you enter the customer name at the top

of the Receive Payments window and press T AB,

QuickBooks displays all of the open Invoices for that

customer in the lower section of the window2. Automatically Apply Payments setting in Sales &

Customers Company Preferences allows

QuickBooks to match the payment with invoices

automatically

62By default, QuickBooks applies the payment to the oldest Invoice. Youchange the invoice to which the payment applies by removing thecheckmark in the left column and selecting another invoice from the list.



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Recording Customer Discounts

1. If the customer takesadvantage of the discountyou offer on your invoices,you¶ll need to reduce theamount due by thediscount percentage

2. To apply the discount tothis Invoice, click SetDiscount on the left side of the Receive Paymentswindow

3. QuickBooks automaticallycalculates a suggested

discount based on theterms on the customer¶sInvoice, you can overridethis amount if necessary

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Chapter

2

Objective

5. Record bank deposits of

cash, check, and credit

card receipts



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Making Bank Deposits

1. To ensure that your bank reconciliations go

smoothly, you should always deposit your

checks and cash separately from your creditcard payments using the following:

Depositing Checks and Cash

Holding Cash Back from Deposits

Printing Deposit Slips Depositing Credit Card Payments

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Depositing Checks and Cash

1. Select the Banking menuand then select MakeDeposits

2. Since you have fundsstored in theUndeposited Fundsaccount, QuickBooksdisplays the Payments toDeposit window

3. Select Cash and Checkfrom the View Payment

Method Type drop-downlist4. In the Make Deposits

window, select the bankaccount where paymentswill be deposited 67





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Printing Deposit Slips

1. QuickBooks can print deposit slips on preprinted deposit

slips

2. To make this feature work for you, you¶ll need to order

preprinted deposit slips that match the QuickBooksformat

3. Display the most recent deposit transaction by selecting

the Banking menu and then selecting Make Deposits

4. Click Print on the Make Deposits window

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Depositing Credit Card

Payments1. Select the Banking menu, and then select Make

Deposits. The Payments to Deposit window opens

2. Click in the left column on the line to select the

Credit Card receipt , then click OK3. The Make Deposits window opens

4. If your credit card processing company (or your

bank) charges a discount fee on each credit card

deposit (rather than monthly), enter a transaction for discount fee using QuickMath

5. QuickMath is a feature that helps you add, subtract,

multiply, or divide in any QuickBooks Amount field73



Chapter

2

Objective

6. Process customer returns and credits



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Recording Customer Returns

and Credits1. Use QuickBooks Credit

Memos for the followingsituations:

cancellation of an order

that has already beeninvoiced

return of merchandisefrom a customer

credit-on-account for acustomer

making a refund to acustomer

2. Select the Customersmenu and then selectCreate CreditMemos/Refunds 76



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Customer Open Balance Report

1. Select the

customer:job in

the Customer:Job

list

2. Click Reports

button at the

bottom

3. Select Open

Balance Report

option for theselected

customer:Job

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Applying a Credit Memo to an

Invoice1. To apply the Credit Memo to the open Invoice

Select the Customers menu and then selectReceivePayments.

Select Customer:Job from the list

Disregard the Date field

DO NOT enter an amount in the Amount field

Verify that the Show discount and credit informationbox is already selected.

Select the Invoice (do not click the first column)

Click Set Credits button and verify that QuickBooksapplied the Credit Memo to Invoice

Click Save & Close to apply the Credit Memo to theInvoice

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Refunding Customers By Credit

Card1. Create a new credit card Payment item in the Item

list for the credit card used in refund

2. Create a Credit Memo using the same items that

were originally invoiced to ensure QuickBookscredits back the original sales Items correctly

3. Add a final line on the credit memo using the

Payment item, in the RATE column, enter the total

amount of the credit as a negative number which

will zero out the Total on the Credit Memo

4. Verify that the total on the credit memo is zero, then

click Save & Close to record the transaction82



Chapter

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Objective

7. Write off customer invoices (record bad

debts)



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Writing Off a Bad Debt

1. If an Invoice becomes uncollectible, you¶ll need to

write off the debt by creating a credit memo (using a

Bad Debt Item) and then applying the credit memo

to the open invoice2. Bad Debt is an Other Charge Item linked to Bad

Debts expense

3. Fill out the Credit Memo using the Bad Debt item,

rate being the invoice total4. Click Save & Close to record the Credit Memo

5. Apply this credit memo to the original invoice using

Receive Payments and Set Credits89



Chapter

2

Objective

8. Create and printcustomer statements





Chapter

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Objective




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Assessing Finance Charges

1. When a customer is late in paying an invoice, you

can assess finance charges

2. To set up your finance charge settings

Click Assess Finance Charges on the Create Statements window

Click Settings on the Assess Finance Charges window to display

your finance charge settings

Enter Assessment Date

Select the customers to be charged

Review the finance charge amount automatically calculated byQuickBooks based on your Annual Interest Rate field of the

finance charge Company Preference

You can override the finance charge amount

Click Assess Charges to record the finance charges

Click Preview to see the finance charges in your statements

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Chapter

2

Objective

10. Create Sales Reports



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Sales by Customer Summary

Report1. Select the Reports menu, then select Sales,

and then select Sales by Customer

Summary

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Sales by Item Report

1. Select the Reports menu, then select Sales,

and then select Sales by Item Summary

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Summary of Key Points

1. Set up customer records in the Customer:Job list


3. Use the Undeposited Funds account to track your cash

receipts

4. Record Invoices and Payments from customers

5. Record bank deposits of cash, check, and credit card

receipts

6. Process customer returns and credits

7. Write off customer invoices (record bad debts)

8. Create and print customer statements


10. Create Sales Reports

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Introducing Quick Books 2543