qb hand notes1 13

7/30/2019 QB Hand Notes1 13

1/59

Hand outs for: MMOODDUULLEE 0011PPaaggee 11

Prepared by TOUHID IMAM KHANCell No. 01552-485898

INTRODUCTION TO QUICKBOOKSQuickBooks is an International standard Accounting, Inventory and Payroll management software designed to meet the mostbusiness MIS requirements. It has a long gradual development history. QuickBooks is developed in different part of the worldand has different database structures.

CREATING COMPANY (EASY STEPS INTERVIEW)A QuickBooks company contains all the financial records for a single business. If you are just starting out with QuickBooks, thefirst thing you must do is create a QuickBooks company for your financial records.

We recommend that you use the EasyStep Interview to create your QuickBooks company. The Interview walks you through thesetup procedure and helps you tailor QuickBooks to suit your business. The Interview also creates some of the QuickBooksaccounts and items you'll need.

1 From the File menu, choose New Company.2 (Required) Fill in the information for all the tabs (Welcome, Company Info, Preferences, and Start Date) in the General

section.3 When you have finished the General section, do one of the following:

Click Next to continue the Interview. Click Leave to exit the Interview.

Creating a QuickBooks company without using the InterviewUse this procedure to set up a QuickBooks company if you want to bypass the EasyStep Interview and enter only the minimumamount of information you need to get started.

1 From the File menu, choose New Company.2 Exit the EasyStep interview:

Click Next twice.Click Skip Interview.

3 In the Creating New Company window, enter information about your company and click Next.

How QuickBooks uses this information

This is how QuickBooks uses the information you enter:

Company name Appears on all reports.Legal name Appears on income tax reports, 1099s, 940s, 941s, W-2s, W-3s, and paystubs.Address If you choose to print your name and address on invoices, checks, or other forms, QuickBooks uses thename and address you enter here. You can add your company's phone number if you want it to print with youraddress.Phone and fax numbers Appears on the cover note for faxes you send using the fax service. These fields can beadded to your business forms using the Layout Designer.E-mail address Becomes the return address when you send invoices and estimates to customers by e-mail. Thisfield can be added to your business forms using the Layout Designer.Web site QuickBooks does not automatically use the URL to your company Web site other than to show it, along withyour company address and phone numbers, in the Company Information window. This field can be added to your

business forms using the Layout Designer.Fiscal year QuickBooks uses your fiscal year to set the date range for year-to-date reports.Tax year QuickBooks uses your tax year to set the date range for income tax summary and detail reports.Income tax form used QuickBooks associates your accounts with the appropriate tax lines on the form you choose.This is very useful if you use Turbo Tax for your business taxes, as it allows you to easily transfer the information. Ifyou change the tax form later, QuickBooks resets all of the associations between accounts and tax lines to. You'll have to reassociate your accounts with tax lines for the new tax form you've chosen.

You can change any of this information later by choosing Company Information from the Company menu. You canchange the date range of any report when you create the report.


2/59



4 Choose one of the QuickBooks preset charts of accounts by selecting the type of company that most closely matches yours.Then click Next.

Note: The company type cannot be changed later so be sure to select the one that most closely resembles your company.

What do you get from a preset chart of accounts?A preset chart of accounts gives you these benefits:Speedy setup The fastest way to develop your own chart of accounts is to choose the preset chart that best suitsyour company and then add or delete accounts as needed.Expertise You get a list of accounts developed by accounting experts after careful research into businesses like yourown.Other preset lists QuickBooks automatically supplies other lists (payment methods, customer and vendor types, andpayment terms) suited to your type of business.

5 In the Filename for New Company window, review the proposed filename and location, make any changes you'd like, and thenclick Save to create your new QuickBooks company.

After you've completed set up using the EasyStep Interview, there are a few more things you'll need to do before you get startedworking in your company file. Taking the time now to make sure your company file is set up properly will save you lots of timelater.

OPENING AND CLOSING COMPANY01. From the File Menu, choose Open. Now brows to the desired location and click open.02. If you work with several companies, you'll be keeping their financial records in separate company files. You can change to

another company file at any time. QuickBooks provides an easy way to find and open a company file that you've workedwith before.a. From the File menu, choose Open Previous Company.b. From the submenu, choose the company you want to open.

Tip: You can increase the number of companies that QuickBooks displays in the submenu.

Searching Company File\ Finding your company file01. From Windows, click Start.

02. Click Find, and then File or Folders.03. In the Named field, type *.qbw to look for QuickBooks files.04. In the Look In field, enter a broad area that's likely to contain your file, such as C:05. Select "Include folders."06. Click Find Now.

A list of files should appear at the bottom of the window. If your company file doesn't appear, click New Search and thenlook elsewhere on your computer, such as a different hard disk.

07. Double-click your company file in the list of files found.

UNDERSTANDING CHART OF ACCOUNTSThe chart of accounts is your most important list in QuickBooks or any other software or in a manual accounting system. You use

it to track how much money your company has, how much money it owes, how much money is coming in, and how much moneyis being spent.Important: The way your chart of accounts is set up determines how your profit and loss and balance sheet reports look, andwhat information they contain.When you set up your QuickBooks company, you may chose the preset chart of accounts designed for your business. Beforeyou customize the chart of accounts, print it and then determine which accounts you want to add, edit, or delete. In fact, it's agood idea to show the chart of accounts to your accountant before you set up your QuickBooks company.

For example, if you keep some cash on hand in a cash vault, you need to create a Cash at Vault account in your chart ofaccounts.


3/59



CREATING, DELETING AND MAKING A LEDGER/ACCOUNT INACTIVECreating a New Account:01. From the Lists menu, choose Chart of Accounts.02. From the Account menu button, choose New.03. In the New Account window, choose the type of account from the Type drop-down list.04. Enter the account's name in the Name field.05. If you use account numbers, enter the account's number in the Number field.06. (Optional) Enter a short description of the account in the Description field.07. (Optional) Enter a bank or credit card number for this account.08. If you want to make this account a subaccount of another account, select the "Subaccount of" checkbox. From the drop-

down list, select the account that will be the higher-level account for this subaccount.09. (For balance sheet accounts) Enter an opening balance based on the account's balance as of your QuickBooks start date. If

you're not sure of the balance, you can leave the field blank and enter the information later.

If the account is an A/R or A/P accountIf the account is an Accounts Receivable (A/R) account or an Accounts Payable (A/P) account, QuickBooks does not ask foran opening balance. Instead, you enter an opening balance for each individual customer or vendor when you set up theirrecords in QuickBooks.

10. Record your information about the new account. Press OK or Next.

Why add new accounts?You should add new accounts as your business grows and changes. For example, you may need to add one or more of thefollowing:1. Income accounts to track new sources of income.2. Expense accounts to track new types of expenses.3. Bank accounts when you open new checking, savings, or money market accounts at your local bank.4. Credit card accounts when you acquire new credit cards.5. Other kinds of balance sheet accounts to track specific assets, liabilities, or equity. For example, you may need to add

a fixed asset account to track the depreciation of a new equipment purchase, a long term liability account to track abusiness loan, or an equity account to track the investment from a new business partner.

CODE OF ACCOUNTS

Some organizations prefer to use an unique code for specifying each account. This code is termed as Account Number inQuickBooks. When you assign an account number to a new account, QuickBooks inserts the number before the account namein the chart of accounts. The account number also appears in Account fields, in reports that list the account, and on graphs.How to activate the Code of Accounts Feature:1 From the Edit menu, choose Preferences.2 In the Preferences window, select Accounting from the list on the left.3 Select the "Use account numbers" checkbox.5 Click OK.

CONCEPT OF SUB ACCOUNTWhen an account in your chart of accounts seems to cover too much, you can divide the account into one or more subaccounts.Subaccounts let you track several related types of income or expenses independently yet keep them all under the "umbrella" of asingle parent account.

In your chart of accounts, each subaccount appears indented immediately below its parent account. If the subaccount is abalance sheet account, QuickBooks includes its balance in the balance of the parent account. When you open the register of theparent account, the register shows all the transactions in the subaccounts.

For example, if your business has substantial advertising expenses, you might decide to divide your Advertisingexpense account into several subaccounts, such as Newspaper Ads, Signs, Yellow Pages Listing, and Direct Mailings.Your chart of accounts shows these accounts as follows:Advertising

Direct MailingsNewspaper AdsSigns

Yellow Pages Listing


4/59



Your reports will now show subtotals for the various ways that you advertise as well as the total for all of your advertising.

Type Of AccountsBankChecking, savings, and money market accounts. Add one bank account for every account your company has at a bank or otherfinancial institution. (You can also use this type for petty cash.)Accounts receivable (A/R)Transactions related to the customers that owe you money, including invoices, payments, deposits of payments, refunds, creditmemos, and statements. Most companies have only one A/R account.Other current asset

Assets that are likely to be converted to cash or used up within one year, such as petty cash, notes receivable due within a year,prepaid expenses, and security deposits.Fixed assetDepreciable assets your company owns that aren't likely to be converted into cash within a year, such as equipment or furniture.Other asset

Any asset that is neither a current asset nor a fixed asset, such as long-term notes receivable.Accounts payable (A/P)Transactions related to money you owe, including bills, bill payments, and any credit you have with vendors.Credit cardCredit card purchases, bills, and payments.

Current liabilityLiabilities that are scheduled to be paid within one year, such as sales tax, payroll taxes, accrued or deferred salaries, and short-term loans.Long-term liabilityLiabilities such as loans or mortgages scheduled to be paid over periods longer than one year.EquityOwner's equity, including capital investment, drawings, and retained earnings.Income and expense accountsIncome and expense accounts track the sources of your income and the purpose of each expense. When you recordtransactions in one of your balance sheet accounts, you usually assign the amount of the transaction to one or more income orexpense accounts. For example, not only do you record that you took money out of your checking account, but you keep track ofwhat you spent the money on: utilities, perhaps, or office supplies.QuickBooks does not display balances for income and expense accounts in the chart of accounts. One way to see these

balances is by choosing Company & Financial from the Reports menu and then choosing one of the profit and loss reportoptions. You can also select the income or expense account in the chart of accounts and click QuickReport.IncomeThe main source of money coming into your company.Other incomeMoney received for something other than normal business operations, such as interest income.ExpenseMoney that's leaving your company.Other expenseMoney spent on something other than normal business operations, such as corporate taxes.Cost of Goods soldThe cost of goods and materials held in inventory and then sold.QuickBooks sets up non-posting accounts for purchase orders and estimates if you turn on those features.

Deleting an Account1. From the Lists menu, choose Chart of Accounts.2. Select the account you want to delete.3. From the Account button, choose Delete.4. Click OK to confirm that you want to delete the account.Note: You cannot delete an Account If it is used by some transaction or used as a parent of a subaccount.

Making an Account inactiveWhen you make an account inactive, QuickBooks keeps the information associated with the account, but hides the account onthe chart of accounts and removes it from any drop-down lists that use accounts.


5/59



1. From the Lists menu, choose Chart of Accounts.2. Select the account you want to make inactive.3. From the Account menu button, choose Make Inactive.

Merging two accounts of the same typeMerging accounts is helpful if you've been using two similar accounts and want to see those accounts represented by a singleline in your reports.Important: Merging accounts is irreversible.To merge two accounts of the same type

1. From the Lists menu, choose Chart of Accounts.2. Make sure that the accounts you want to merge are at the same hierarchical level.

If they're not, move one account to the level of the other.

3. Select the account whose name you don't want to use.4. Choose Edit from the Account menu button.5. Change the account name so that it is the same as the account you're merging with.6. Click OK.7. Click Yes to confirm that you want to merge the two accounts.

OPENING BALANCESYou can put opening Balance at the time of Adding a New Account. As already discussed. If you do not put an opening balanceat the account creation stage later you can edit the account and put a balance. But once the balance is put, you can not directlychange it from the account edit option. For correcting any wrongly posted balance you need to open the Journal of OpeningBalance and edit the amount manually.


6/59



MAINTAINING VENDORSVendor is a person or an organization or an association from which your company generally purchases Goods or Service.Someone can avoid using the vendor maintaining features by entering all related transaction through General Journal Entries. InQuickBooks it is advised to use the appropriate tool for the specific transaction. If you do not go through the vendor managementmechanism in QuickBooks you will loose many important reporting facilities. For example for getting the A/P Aging Summaryreport you need to use the Vendors with proper tools.

Adding a VendorYou can add new vendors to the list at any time. QuickBooks uses the list to hold information about the people and companiesyou do business with; for example, this list could include the phone company, your office supplies vendor, and your tax board.

01. From the Lists menu, choose Vendor List.02. From the Vendor menu button, choose New.03. In the Vendor field, enter the name of the vendor as you'd like it to appear on your Vendor list.

For example, if the vendor is an individual and you list individuals last name first, that's how you should enter the name.

04. If you have an outstanding balance for money that you owe to this vendor, enter the Opening balance and "as of"information.

05. Enter the information requested on the Address Info tab and Additional Info tab.06. Click Next to save the vendor information and enter another vendor name. Or click OK to save the vendor information and

close the window.

Determining the opening balance and "as of" date for a vendorThese two fields help you establish a correct accounts payable balance as of the start date you chose for your QuickBooksrecords.1. In the Opening Balance field, enter the amount that you owed to this vendor on your start date.2. In the "as of" field, enter your QuickBooks start date.

Important: To keep your records up to date, you must enter all historical transactions from the day after your start date throughtoday. For example, if you paid bills to this vendor between your start date and today, you must enter those bills and record yourpayments for them in QuickBooks. This lets QuickBooks provide full financial reports for your company for any period of timeafter your start date.

Address Info TabThe Address Info tab holds contact information about the vendor. Important fields:Company nameMr./Ms.First name, M.I., Last nameAddressContactPhoneFAXAlt. Ph.Alt. contactE-mail

Print on check as ButtonAddress Details

Additional Info TabThe Additional Info tab holds credit, tax-related, and other information about the vendor. Important fieldsAccountEnter any information that you want QuickBooks to print in the Memo field of checks QuickBooks writes to pay for this vendor.

Any new bill payment checks you enter will reflect the account number. For example, if you enter your company's account


7/59



number with the vendor, QuickBooks automatically adds the account number to the Memo field on each bill payment check thatgoes to that vendor. (You can also enter a short note or message instead of an account number.)

An account number is required if you want to set up this vendor as an online payee. The payee uses this number to identify you.Example: You include an account number as part of a vendor, customer, other name, or employee entry. If thispreference is on, QuickBooks automatically adds the account number to the Memo field when you issue a check to thepayee. Where to find this preference. From the Edit menu, choose Preferences, and then select Checking from the liston the left.

TypeThis is a word or phrase that categorizes this vendor for your reports. From this drop-down list, you can choose a vendor typeyou have already set up, or you can enter a new vendor type and have QuickBooks add it to the list.

Vendor types let you categorize your vendors in ways that are meaningful to your business. For example, you could set up yourvendor types so that they indicate which industry a vendor represents, or a vendor's geographic location. You can create reportsand do special mailings that are based on your vendor types. For example, if you own a construction company and usesubcontractors, you might want to use the ones closest to each job. You could create a QuickBooks report that shows thesubcontractors in each geographic area.

Once you have assigned a vendor type to each vendor, you can create reports that provide useful information about yourvendors.Terms

This field lets you associate a specific set of payment terms with the vendor. When you enter a bill from the vendor, QuickBooksuses the terms to calculate when the bill is due.Example2% 10 Net 30 means "2% discount if paid within 10 days, net due in 30 days" if the terms are standard terms, or "2% discount ifpaid by the 10th of the month, net due by the 30th of the month" if the terms are date-driven terms.Credit limitEnter the credit limit that your company has with this vendor. QuickBooks warns you when you are about to exceed the limit.Tax IDNot Applicable for BangladeshVendor is eligible for 1099Not Applicable for BangladeshCustom fieldsIf you have set up any custom fields for the vendor, they appear on the Additional Info tab. You can fill in any or all of these fields

that apply to the vendor.

Vendor Detail CenterUse the Vendor Detail Center to manage your business with individual vendors. Use the drop-down list at the top of the windowto choose the vendor whose information you want to see.

At the top of the center, you'll see the Vendor Contact Information for the selected vendor. Click Edit/More Info to see furtherinformation about the vendor or to edit the information.You can customize the two tables at the bottom of the center to show any of the following sets of data: All unpaid bills that you owe to the selected vendor All payments that you've already made to the selected vendor Outstanding purchase orders (if inventory tracking is on)You also have access to Decision Tools.To display the Vendor Detail Center

From the Vendors menu, choose Vendor Detail.To display information for a different vendorFrom the Centers drop-down list at the top of the window, choose a different vendor name.Vendor Contact ListThis report shows contact information for each vendor. The information comes from your Vendor list.You can add new columns to the report, or delete any of the existing columns, by clicking Modify Report and selecting the namesof the columns you want to add or delete. For example, selecting the Terms column adds your company's payment terms witheach vendor to the report.To create this report

From the Reports menu, choose Vendors & Payables and then Vendor Contact List


8/59



Entering Opening Balances for Vendors and CustomersAs you enter customers and vendors in QuickBooks, enter an opening balance with an as of date equal to your start date. To editor add this information to existing customers, use the customer's register.When you enter the opening balance for your customers, you're building the accounts receivable opening balance. When youenter the opening balance for your vendors, you're building the accounts payable opening balance.

Transactions that related to Vendors Bills from Vendors

When you enter a bill, it can be for: Expenses you track through expense accounts Items you track through your Item list

When you enter or pay bills, you need to use expenses to categorize what your money is being spent on. For example,if you pay $200 per month for utilities, you would assign that bill to an expense account set up for utilities.You need toset up items to count the services or products that your business buys. For example, if your business buys a service,the vendor may charge for that service item by the hour. If your business buys products or parts, you can track eachitem you pay for. When you enter a bill, you fill in the Expense or Items tabs as appropriate to correspond to whatyou're buying.Entering a bill for expenses1 From the Vendors menu, choose Enter Bills .

2 In the Vendor f ield, choose or enter a new vendor.3 (Optional) Change the date of the bill.4 In the Amount Due field, enter the amount of the bil l.5 Complete the Ref. No, Terms, and Memo fields as needed.6 In the detail area, assign the bill to one or more expense accounts.7 (Optional) To correct mistakes in the detail area, click Clear Splits or Recalculate.8 Save the bill.Entering a bill for items1 From the Vendors menu, choose Enter Bills .2 In the Vendor f ield, choose or enter a new vendor.3 (Optional) Change the date of the bill.4 In the Amount Due field, enter the amount of the bil l.5 Complete the Ref. No, Terms, and Memo fields as needed.

6 Click the Items tab. You can edit items that were entered from your purchase order and/or enter new items.

7 To enter shipping charges or taxes not associated with any one item, click the Expenses tab. In the detailarea, enter each charge and associate it with its correct expense account.

8 (Optional) Click Recalculate.9 Save the bill.

What if I already have a purchase order for this vendor?If an open purchase order exists for this vendor, you are prompted to receive against it.1 Click Yes to receive against one or more purchase orders.2 In the Open Purchase Orders window, click each purchase order that contains items you've

received and are being billed for.3 Click OK.

All item information (quantity received, etc.) can be edited.

Credits from Vendors ( may be used for goods returned)If you receive credit from a vendor, you can enter the credit amount in the Enter Bills window.1 From the Vendors menu, choose Enter Bills .2 At the top of the Enter Bills window, click Credit.3 Enter the vendor's name and the amount of the credit.4 In the detail area, enter the expense accounts, customers, jobs, or classes to which you want to assign the credit.5 Save the credit.


9/59



Bill payment1 From the Vendors menu, choose Pay Bills .

If you have more that one accounts payable account, choose the one you want to use to pay these bills.If you want, you can change the order in which the bills appear in the list.

2 Select the bills you want to pay.3 Set any discount or credits that you want to apply to the bill.4 From the Payment Method drop-down list, choose Check.

If you plan to print this check from QuickBooks, select the "To be printed" checkbox.If you plan to hand write the check or if you're using a debit card, select the "Assign check no." checkbox. When yourecord your bill payment after completing this form, you'll be prompted to enter check numbers and dates.

5 From the Payment Account drop-down list, choose the account from which you want to pay the bills.6 QuickBooks automatically enters today's date in the Payment Date field. This is the date that will appear on your

printed checks. You can change this date, if needed.7 Record the bill payment.

What if I don't see all my bills?If some bills seem to be missing from the Pay Bills window and you selected "Show bills due on or before," check thatthe date shown for this field is the date you want. For example, if the date in the field is May 1st, any bills due after May1st will not be listed. To list a bill due on May 5th, you must enter May 5th (or a later date) in the field.If you still don't see the bill you want, try choosing "Show all bills."

How does paying bills work?In the Pay Bills window, QuickBooks lists all unpaid bills or all bills due as of a date you enter. You mark the bills youwant to pay, and QuickBooks then writes and saves the checks or credit card charges or sends the online bankingpayment instructions. You also can apply a discount or credits to an individual bill as you're creating the payment for it.You don't have to use the Pay Bills window. You can enter checks, credit card payments, and cash expenditures in theappropriate account register. However, if you've entered bills into QuickBooks using the Enter Bills window or the

Accounts Payable register, you must use the Pay Bills window for your bill payment. Do not use the Write Checkswindow to pay a bill that you've entered with either of these methods.

Voiding or deleting a billWhat is the difference between voiding and deleting?Voiding changes the amount of the bill or payment to zero, but keeps a record of it in QuickBooks.

Deleting permanently removes the bill or payment. When you delete a bill that you've already paid, QuickBooks createsa credit with the vendor. If you delete a payment, the bill or bills it was paying will have unpaid balances.1 Display the Accounts Payable register.2 Find the specific bill or payment in the register window.3 From the Edit menu, choose Void Bill or Void Bill Pmt to void the transaction, or choose Delete Bill or Delete

Bill Pmt. to delete the transaction.4 Click Record to confirm your choice.Editing Bills or Payments1 Find the bill or bill payment.2 Make the necessary changes to the transaction.3 Save the bill or bill payment.Behind the scenes of editing a bill or paymentIf you reduce the bill amount, QuickBooks creates a credit with the vendor you overpaid. If you increase the bill

amount, QuickBooks considers the bill not fully paid until you pay the additional amount.

MAINTAINING CUSTOMERSCustomer is a person or an organization or an association to whom your company generally sells Goods or Service. Someonecan avoid using the customer maintaining features by entering all related transaction through General Journal Entries. InQuickBooks it is advised to use the appropriate tool for the specific transaction. If you do not go through the customermanagement mechanism in QuickBooks you will loose many important reporting facilities. For example for getting the A/R AgingSummary report you need to use the Customers with proper tools.


10/59



Adding a customer1 From the Lists menu, choose Customer:Job List.2 From the Customer:Job menu button, choose New.3 In the Customer field, enter the name of the customer as you'd like it to appear on your Customer:Job list.

For example, if the customer is Joan Green and you want the list to show last names first, enter Green, Joan.4 If you have an outstanding balance for this customer, enter the Opening balance and "as of" information.

Tip: You can quickly add a list of customers by entering the only customer's name,and, if they currently owe you money, their opening balance information. Then clickNext and enter the next customer's name.

Determining the opening balance and as of date for a customerThese two fields help you establish a correct accounts receivable balance as of the start date you chose for your QuickBooksrecords.To enter a customer opening balance1 In the Opening Balance field, enter the amount this customer owed to you as of your start date.2 In the "as of" f ield, enter your QuickBooks start date.

Important: Leave these fields blank if you are planning to set up one or more jobs forthis customer. QuickBooks will calculate and track the overall balance for thiscustomer from the balances you enter for the individual jobs.

Transactions related to Customers InvoicesIn the Create Invoices window, enter a copy of each historical invoice written between your start date and today.1 From the Customers menu, choose Create Invoices .2 Fill in the name of the customer or job.3 (Optional) Enter the class information if you want to track this sale by location, subsidiary, group, etc.4 Select a Form Template.5 In the detail area, enter the line items.6 Apply sales tax (if applicable).7 (Optional) Enter a message for your customer in the Customer Message field.8 (Optional) Enter a memo for this sale.

The memo is a reminder to you, it does not appear on the printed form. It appears onscreen, on sales reports, and ifyou send reminder statements, it will print on reminder statements that include this invoice.

9 Click Print on the toolbar to print the invoice now, or select the "To be printed" checkbox to print the form later.10 Save the invoice. Statement chargesIn the A/R register, enter the statement charges you have made against customers between your start date and today. Be sureto use the original transaction date and the historical billed date.1 Display the appropriate customer register.

Important: If the Customer:Job list shows more than one job for the customer, be sure to select the correct job.QuickBooks maintains a separate register for each job.

2 (Optional) Change the date of the statement charge.3 In the Item field, enter the item you use to track this kind of charge.4 Enter the quantity in the Qty field.5 (Optional) Edit the description that QuickBooks filled in the Description field.6 If you have more than one A/R account, choose the account you want to use from the Account drop-down list.

7 (Optional) Assign a class to the sale.8 Click Record to record the charge.9 If you have other charges to enter, do the following:

If the charges apply to the current customer or job, continue to enter them in the register below the charge youjust entered.

If the charges apply to a different customer or job, choose that customer or job from the Customer:Job drop-downlist at the top of the register. Then enter the charges.

For doing the same You can use the A/R register instead


11/59



Sales receiptsIn the Enter Sales Receipts window, enter the quantities of each item you sold and received payment for at the time of sale. Youmay group the sales as you wish if you don't track sales by customer. If possible, group them so that the money received fromsales matches actual bank deposits.1. From the Customers menu, choose Enter Sales Receipts .2. Enter the name of the customer:job.3. (Optional) Select a class to the sale.4. Select a template from the Form Template drop-down list.5. Fill in the top part of the sales form.

Important: Make sure you select the payment method. Later, when you make deposits to yourbank account, you'll want to group deposits by the type of payment method.

6. Fill in the line item area.7. (Optional) Enter a message for your customer in the Customer Message field.8. (Optional) Change the sales tax shown in the Tax field.9. (Optional) Change the customer tax code, if appropriate. The code that appears is the one you defined for this customer.10. Select how you want to deposit the cash.11. (Optional) Enter a memo for this sale.

The memo is a reminder to you. It does not appear on the printed form. It appears onscreen and on sales reports thatinclude this sale.

12. Select the "To be printed" checkbox if you plan to print the sales receipt later. or Print it now.

Note: Printing the sales receipt does not save the transaction in QuickBooks.13. Save the transaction.

ReturnsIn the Create Credit Memos/Refunds window, enter returns for sales recorded previously.Use the Create Credit Memos/Refunds window to record a return when a customer returns items for which you have alreadyrecorded an invoice or sales receipt.

1 From the Customers menu, choose Create Credit Memos/Refunds .2 In the Customer:Job field, choose the customer or job the return is for.3 Select a template.4 From the Account drop-down list, choose which Accounts Receivable account to use.

This field appears only when you have more than one accounts receivable account (most companies have only one).

5 Enter the items being returned in the line item area. Use the same information that was on the original invoice or billingstatement. QuickBooks decreases the income accounts of the invoice items by the amount of the return.

6 (Optional) Assign a class to this credit memo.7 (Optional) In the Customer Message field, choose a message from the drop-down list or enter a new message to your

customer.8 (Optional) Enter a memo for this transaction.

The memo does not print on the credit memo, but it does appear in the Accounts Receivable register and the customerregister.

9 (Optional) Print the credit memo.10 Save the credit memo.

QuickBooks enters a negative amount in your A/R register for the credit memo.11 If you now owe the customer money, click Refund to create a refund check.

Payments received from customersIn the Receive Payments window, record each payment received from a customer for an outstanding invoice. Be sure that youapply the payment to the appropriate invoice, and that the Date field shows the payment date. If the payment was for all or partof the customer's open balance as of the start date, you see a QuickBooks invoice for that balance.The window you use to record a payment you receive depends on the payment type. Use the: Receive Payments window to record a payment against an invoice or billing statement, to record a single payment for

multiple jobs, to set discounts and credits, or to record downloaded online payments. Enter Sales Receipts window to enter full payment at the time of sale, whether by cash, check, or credit card. Create Invoices (use a Payment item) window to record a partial payment at or before the time of sale. Create Credit Memos/Refunds window to record a down payment or prepayment.


12/59



As you start to record a payment, you immediately see the customer's current balance, including any credits, and a complete listof outstanding invoices (or statement charges). You can assign the payment to any of the invoices or statement charges.

You can group payments in a deposit the same way your bank groups them on its statements, according to type (check, cash, orcredit card). You can also print a deposit summary and use it to prepare your bank deposit slip.

Deposits of paymentsRecord each deposit of payments. In the Payments to Deposit window, select all customer payments (whether for invoices orsales receipts) deposited on one date. In the Make Deposits window, be sure the Date field shows the deposit date.1 From the Banking menu, choose Make Deposits.2 If the Payments to Deposit window opens, select the payments you want to deposit now, click OK, then continue with

step 3. or If the Make Deposits window opens, continue with step 3.3 From the Deposit To drop-down list, choose the account you'd like to deposit into.4 Enter the date and an optional memo.5 Review your list of payments to deposit.

Enter any deposits that did not come from customer payments. Enter any cash amounts that you want to deposit. The cash amounts will be totaled and entered as one amount on the

deposit slip. (Optional) If depositing a payment made by credit card, enter the credit card fees as a negative amount and change

them to an expense account by listing the fees on a separate line here. You cannot deposit credit card payments whenusing a printable deposit slip.

Note: To return to the list of payments to deposit, click Payments on the window menu bar.

6 (Optional) If you are getting cash back from your deposit, fill in the cash back fields.7 Save the deposit. or Save and print the deposit by clicking Print on the toolbar.

Payments of sales taxIn the Pay Sales Tax window, record each payment you made of sales tax you collected. Be sure that you enter the amounts youactually paid the sales tax agencies, and that the Date field shows the payment date.

Note If the initial Pay Sales Tax window does not show the amounts you owed as ofyour QuickBooks start date, enter these amounts before you enter your payments.

1 From the Vendors menu, choose Sales Tax, and then choose Pay Sales Tax.

2 If you have more than one checking account, choose the checking account from which you want to pay the tax.3 Check the date that QuickBooks shows in the "Show sales tax due through" field. If necessary, edit the date.4 In the detail area, select the tax agencies you want to pay:

To select agencies individually, click in the Pay column.To select all the agencies, click Pay All Tax.To make an adjustment, click Adjust.

5 If you want to make a partial payment to an agency, edit the amount that QuickBooks shows in the Amt Paid column.6 Click OK.

After you record the sales tax checks, display your checking account register. Record the correct number of each check in theNumber field.Customer Detailed CenterUse the Customer Detail Center to manage your business with individual customers. Use the drop-down list at the top of the

window to choose the customer whose information you want to see.At the top of the center, you'll see the Customer contact information for the selected customer. Click Edit/More Info to see furtherinformation about the customer or to edit the information.You can customize the two tables at the bottom of the center to show any of the following sets of data: Open invoices and statement charges Payments you've received and credits you've issued Outstanding items on order (if inventory tracking is on)You also have access to Decision Tools.To display the Customer Detail CenterFrom the Customers menu, choose Customer Detail.


13/59



To display information for a different customerFrom the Centers drop-down list at the top of the window, choose a different customer name.

Setting a credit limit for a customer/vendor1 From the Lists menu, choose Customer:Job/vendor list .2 Select and double-click the customer/vendor for whom you want to set a credit limit.3 On the Payment Info tab, enter the credit l imit in the field provided.4 Record the credit l imit for this customer/vendor.

What if a Customer also is a vendor?In this case, you need to add the person's name to both your customer and vendor lists, but you need to vary the name slightlyon one of the lists. You may want to do something like adding a "_v" to the person's name on the vendor list.When you vary the name in the New Vendor or New Customer window, enter the person's real name in the "Bill to" field or the"Print on Check as" field, respectively, so that the correct name prints on invoices or checks.

Merging two list entries (customer or vendor)To merge two list entries1 Display the list that has the entries you want to merge.2 Select the list entry whose name you don't want to use.3 From the list 's left-most menu button, click Edit.

4 Change the list entry name to the same name as the entry you're combining it with.5 Click OK.6 Click Yes to confirm that you want to merge the two list entries under the same name.

Making a Vendor or Customer InactiveSimilar to Making an Account Inactive. Please refer to the Hand Out of Module 1

MAINTAINING INVENTORY ITEMSIn terms of Finance Inventory means merchandise or goods held for sale or for use in a manufacturing process to produce somesalable goods.However, In QuickBooks, an item is anything that your company buys, sells, or resells in the course of business, such asproducts, shipping and handling charges, discounts, and sales tax (if applicable).

Items help you fill out the line item area of a sales or purchase form quickly. When you choose an item from your Item list,QuickBooks fills in a description of the line item and calculates its amount for you.

QuickBooks provides ten different types of items to help you fill out sales and purchase forms quickly.

ServiceServices you either charge for or purchase. Examples include specialized labor, consulting hours, and professional fees.Inventory partGoods you purchase, track as inventory, and resell. QuickBooks cannot track manufacturing inventory for products you build andsell.Non-inventory partGood you buy but don't track, like office supplies, or materials you buy for a specific job that you charge back to your customer.Other charge

Miscellaneous labor, material, or part charges, such as delivery charges, setup fees, and service charges.SubtotalTotals all items above it on a form, up to the last subtotal. Useful for applying a percentage discount or surcharge to many items.GroupUseful to quickly enter a group of individual items that you've already set up as single items on your list.DiscountSubtracts a percentage or fixed amount from a total or subtotal. Do not use this item type for an early payment discount.PaymentRecords a partial payment you received at the time of the sale. It reduces the amount owed on an invoice.Sales tax itemCalculates a single sales tax at a specific rate that you pay to a single tax agency.


14/59



Sales tax groupCalculates and individually tracks two or more sales tax items that apply to the same sale. The customer sees only the total salestax.

Creating items for inventory1 From the Lists menu, choose Item List.2 From the Item menu button, choose New.3 From the Type drop-down list, choose Inventory Part.4 Enter an item name or number.

What you enter here appears on the drop-down list of items when you are filling out a sales form or purchase order.Enter a name or number that will help you distinguish this item from all the others on the list.

5 If this item is a subitem of an existing item, select the "Subitem of" checkbox and specify the other item's name.6 Fill in the Purchase Information fields.

Description on Purchase Transactions What you enter here appears in the Description column of checks,bills, credit card charges, and item receipts when you reorder the item. If you need to, you can edit thedescription when you are filling out a purchase order.Cost Enter the cost you expect to pay when you order or buy this item. You can change the cost at the timeyou purchase the item.COGS Account Choose a different cost of goods sold account if you don't want to use the preset account.Preferred Vendor (Optional) Select or enter the name of your preferred vendor for this item. QuickBooks

displays the preferred vendor on the stock status report and the physical inventory worksheet.

7 Fill in the Sales Information fields for information you show to customers.Description on Sales Transactions What you enter here appears in the Description column of the salesform when you sell the item. If you need to, you can edit the description when you are filling out a sales form.Sales Price Enter your sales price for the item. If your sales price varies, leave the field blank.Tax Code Enter the tax code for the item. When you make a taxable sale, QuickBooks uses the sales taxitem to calculate the tax, but uses the code to determine if an item is taxable or not taxable. This field doesnot appear if sales tax is not set up.Income Account Choose an income account to track the income you earn from sales of this item.

8 Fill in the Inventory Information fields for easy reordering of stock.Asset Account Choose a different inventory asset account if you don't want to use the preset account.QuickBooks uses this account to track the current value of your inventory. If you use the same account for all

your inventory part items, the balance of this account shows the total value of your inventory at any one time.Reorder Point Enter the quantity at which you want QuickBooks to remind you to reorder this item. Thisinformation also appears on the stock status report.Qty on Hand and Total Value If this is an item you already have in stock, enter the quantity on hand andvalue as of the last time you measured your inventory. Be sure to enter any sales or purchases of the itemthat occurred between the date you measured your inventory and today to ensure that QuickBooks' record ofyour quantity on hand for the item is accurate.If this is a new item that you are adding to your inventory, leave the Quantity on Hand and Total Value atzero.As of (date) If this is an item you are converting to an inventory part item from a non-inventory part or othercharge item, the date you enter must be a date that is after the date of the last transaction that uses the item.

9 (Optional) Click Custom Fields to fill in or define custom fields for this item.10 Record the item.

COST OF GOODS SOLD (COGS) ACCOUNTAn account that QuickBooks automatically adds to your chart of accounts the first time you add an inventory item. QuickBooksuses this account to track how much you paid for goods and materials held in inventory that you eventually sold. After you entera sale, QuickBooks adjusts your costs of goods sold by multiplying the quantity sold times the average cost of each item.Your chart of accounts lists the type for this account as "Cost of Goods Sold." You can set up subaccounts to track costs fordifferent types of inventory sold.

Note: When you create your first inventory item, the Inventory Asset account is created.


15/59



GENERAL JOURNAL ENTRYIn traditional accounting, a record of a transaction in which the total amount in the Debit column equals the total amount in theCredit column, and each amount is assigned to an account on the chart of accounts. For day-to-day transaction entry,QuickBooks uses familiar forms (invoices, bills, checks).QuickBooks has a General Journal Entry window that you can use for special transactions (such as selling a depreciated asset)or for all transactions if you prefer the traditional system.

Also, when you enter a transaction directly into an asset, liability, or equity account register, QuickBooks automatically labels thetransaction "GENJRNL" in the register and "General Journal" on reports that list transactions.

When should I use the General Journal Entry window?The General Journal Entry window is for accountants or people who prefer the traditional system of accounting by enteringtransactions in a general journal. If you are unfamiliar with how a general journal works, you do not need to use this form.Typically accountants make general journal entries when working with an accountant's review copy.If you are not an accountant, you might use the general journal to transfer amounts from one income or expense account toanother, or from one class to another.

Creating a Journal EntryIn many locations of the QuickBooks screen you will have the access to enter into Journal Entry form. Like:

1 From the Banking menu, chose Make Journal Entry.

2 Change the date if you wish.3 Fill in the entry number.4 In the detail area, enter distribution lines.5 Save the journal entry.

Printing General Journal EntriesPrint a general journal entry if you want a hard copy for your records or to give to your accountant.

1 From the Banking menu, choose Make Journal Entry.2 Fill in the form, or click Previous or Next on the toolbar to display the entry you want to print.3 Click Print on the general journal entry toolbar.4 In the Print Reports window, check that all of the information is correct.5 Click Print.

Viewing General Journal Entries1 From the Reports menu, choose Custom Transaction Detail Report.2 Click Filters.3 From the Filter list, select Transaction Type.4 From the Transaction Type drop-down list, select Journal.5 Click OK.6 In the report, double-click the general journal transaction you want to view.7 (Balance sheet accounts only) In the register that opens, click Edit to view the transaction in its general journal form.

When the transaction originates in a balance sheet account, QuickBooks opens the account register and selects thetransaction. If the transaction also has split detail, QuickBooks opens the Splits window so you can see how theamount of the transaction was distributed to different accounts, customers, jobs, or classes.

INVOICE ENTRY/ CREDIT MEMO (GOODS RETURN)See Sheets of Module 2CASH SALES (SALES RECEIPT)See Sheets of Module 2BILL ENTRYSee Sheets of Module 2RECEIVE PAYMENTSee Sheets of Module 2


16/59



WRITE CHECK/ PAY BILLYou can write a check for any kind of expense you track through expense accounts and for the following types of items: non-inventory part, service, and other charge. If you are using the inventory/purchase order feature, you can write checks forinventory part items too.

1 Display the Write Checks window.You should NOT use the Write Checks window to do any of the following:Write a paycheck, pay your payroll liabilities, pay sales tax, or pay bills you'vealready entered in the Pay Bills window.

2 In the Bank Account field, choose your checking account or to create it.3 In the "Pay to the Order of" field, choose from the drop-down list or enter a new name.4 Enter the amount of the check in the $ field. If you leave this field blank, the amounts you enter in the detail area of the

check will total automatically and display here.5 Complete the Address and Memo fields as needed.

Tip: One of the checking preferences available to the QuickBooksAdministrator automatically displays a payee's account number whenever youwrite a check to a particular payee.

6 On the Items tab you can edit items that displayed from your purchase order and/or enter new items.7 To enter shipping charges, taxes, and other expenses not associated with any one item, click the Expenses tab. In the

detail area, enter each charge and associate it with its correct expense account.

8 Save the check.

If you have already entered a bill received from vendor, use Pay Bill instead of Write Check.

TRANSFER FUND1 From the Banking menu, choose Transfer Funds.2 Select an account to transfer funds from, and an account to transfer funds to.3 Enter the amount you want to transfer.4 Save the transaction.

Alternatively, you can transfer fund from an account register. Please see next topic.

USING REGISTER FOR ENTRY

Each register is a record of all activity that affects that account's balance. You can use your account registers to enter mosttransactions (checks, bills, deposits, etc.) as well maintain the account (make adjustments, void transactions, etc.) InQuickBooks, only balance sheet accounts have registers. Income and expense accounts do not.

Opening a register

To open a register from the chart of accounts, choose Chart of Accounts from the Lists menu. Then double-click the nameof the account.

If the account is an income or expense account, a QuickReport appears instead of a register. Income and expense accounts donot have registers in QuickBooks. To open the register that lists the transaction you are viewing, choose Use Register from the Edit menu. To open the register for an individual customer or job, display the Customer:Job list, select the customer or job, and then

choose Use Register from the Activities menu button.

Jumping to a transaction in a registerWhen you are working in a register, click the Go To button to jump to a transaction if you know any of the following: exactamount of the transaction, the payee name, the transaction number, or a word or phrase that appears in the transaction's memo.

Limitations. Go To works only within the current register, and looks only foramounts, payee names, transaction numbers, or memo text. If you need to searchacross multiple accounts, or search for information that Go To can't find, use theFind command instead.

1 In the register toolbar, click Go To.2 From the Which Field drop-down list, choose the field that applies to what you're searching for.3 In the Search For field, enter one of the fol lowing:


17/59



The payee name (the name can be a customer, vendor, employee, or a name from your Other Names list) An amount The transaction number The text from the Memo field

4 Click Next to search forward through the register; click Prev to search backward.

QuickBooks selects the first transaction that matches the search criteria you set.5 When you are through searching, click Cancel or press Esc to close the Go To window.

Transferring funds from an account registerYou can transfer funds between any two balance sheet accounts in your chart of accounts. For example, you may need totransfer funds from a savings account to a checking account to cover your weekly payroll.1 Open the register for the account from which you want to transfer funds.2 At the end of the register, enter a transaction to transfer the funds:

Leave the Number and Payee fields blank. In the Account field, enter the account you want to transfer the funds to. Enter the amount to transfer in the Payment column. (Optional) In the Memo field, add a description of this transaction.

3 Click Record.

Adjustment of Inventory Items1 From the Vendors menu, choose Inventory Activities, and then choose Adjust Quantity/Value on Hand.2 Change the Adjustment date, if appropriate, and enter a Ref. No. (optional).3 Enter the name of the Adjustment account where you track inventory loss and shortages.4 Change the customer:job and class, if needed.5 For each inventory item whose quantity has changed, enter either the new quantity or the quantity difference.

6 (Optional) Edit the value of the inventory.7 Save the inventory adjustment.

Note: You must be in Single User mode to do this.

Why should I adjust quantities or values?

Although QuickBooks automatically adjusts your inventory quantities after every purchase and sale, you may need toadjust them yourself from time to time. If the quantities change because of, say, fire, theft, or breakage, you need toadjust the quantity on hand for each inventory item affected.When you adjust a quantity, QuickBooks assumes that the average cost of the item remains the same and adjusts thevalue accordingly. For example, if the average cost is $10 and you reduce the quantity by 2, QuickBooks reduces thevalue of the items on hand by $20.

You can also adjust the average value of items in inventory because of such things as spoilage or changes in seasonaldemand.

Receiving Items and getting a bill laterWhether or not you use purchase orders, there are three ways to record the inventory items you receive, depending on how youpay for the items:

Buy items over-the-counter Receive items without a bill Receive items with the bill included

When you receive items and get the bill later, first create an item receipt to let QuickBooks know you received the items. Then,enter the bill when it arrives.

1 Create an item receipt. The procedure is different if you used a purchase order to order the items, or didn'tuse a purchase order.

2 Enter a bill when it comes.


18/59


19/59



ACTIVATING CLASS1 From the Edit menu, choose Preferences.2 In the Preferences window, select Accounting from the list on the left.3 Select the "Use class tracking" checkbox.4 Click OK.

Adding a ClassWhen class tracking has been turned on in the Accounting Preferences window, QuickBooks adds a Class field to the windowswhere you enter transactions. You can fill in this field by choosing a class from your Class list.

1 From the Lists menu, choose Class List .2 From the Class menu button, choose New.3 Enter a name for the class.4 If you want the class to be a subclass of another class, select the "Subclass of" checkbox and enter the name of the

parent class.5 Record the class.

UNDERSTANDING CLASS IN QUICKBOOKSIn QuickBooks, classes give you a way to classify your transactions. You can use QuickBooks classes to classify your incomeand expenses by department, business office or location, separate properties you own, or any other meaningful breakdown of

the business you do.For example, a general contractor might classify all income and expenses as relating to either residential or commercial work. Afarmer might create a class for each enterprise -- for example, "Corn," "Hogs," and "Soybeans." At the end of an accountingperiod, the contractor could create separate reports for the residential and commercial parts of the business. Likewise, the farmercould create separate reports for each farm enterprise.

The classes you create appear on your Class list. The "Use class tracking" preference in the Accounting Preferences windowadds a Class field to windows where you enter invoices, checks, bills, credit card charges, or other transactions.

General tips for using classes

Set up classes on the basis of the type of reporting you want to do, and consider how you want to see your businesssegmented on reports.

Set up a class such as "other" that you can use to deliberately classify transactions that don't fit into any specific class that

you've defined. Don't use classes for two different purposes. For example, don't create classes for tracking office locations as well as for

tracking partners. Identify both income and expenses for each class you set up. Consistently enter the class information on your forms and registers to ensure that this information is valid and useful.

PREFERENCESThrough preferences, you can customize QuickBooks to suit the needs of your business and your personal style of working.1 From the Edit menu, choose Preferences.2 In the Preferences window, change, if needed, these preferences:a. MY PREFERENCES

What you enter on this tab affects only your QuickBooks sessions, not those of other users.b. COMPANY PREFERENCES

Changes that affect all users.Only the QuickBooks Administrator can enter changes on the Company Preferences tab.

Pressing Enter moves between fieldsChanges how the Enter key behaves in QuickBooks. Normally, pressing Enter is the equivalent of clicking OK or Record(both of which close the current window). For windows that use the Save & New button, pressing Enter saves your work andopens a new form so that you can continue working. Some people, however, expect the Enter key to move to the next fieldso that they can continue to enter data. If you select this preference, the text cursor moves to the next field when you pressEnter.


20/59



When this preference is on, you can press Enter to move between fields, but you must record transactions by clicking OK,Record, Save & Close, Save & New, or by pressing Ctrl+Enter.When this preference is off, you must press Tab or click in a field to move from field to field.Where to find this preference. From the Edit menu, choose Preferences, and then select General from the list on the left.Beep when recording a transactionBeeps to confirm that a transaction is being recorded.When this preference is off, transactions are recorded with no accompanying sound.Automatically place decimal point

Automatically inserts a decimal point between the second and third digit from the right when you enter a number with nodecimal point. For example, if you type 4995, the number becomes 49.95.When this preference is off, QuickBooks places a decimal point at the end when you enter a number with no decimal point.For example, if you type 4995, the number becomes 4995.00.Where to find this preference. From the Edit menu, choose Preferences, and then select General from the list on the left.Warn when editing a transactionWarns you when you change a transaction and then try to leave it without recording the change.When this preference is off, QuickBooks allows you to change a transaction and then leave it without warning. QuickBooksautomatically records the change if the transaction does not have links to other transactions. (If the transaction has links,QuickBooks asks if you want to record the changes.)Where to find this preference. From the Edit menu, choose Preferences, and then select General from the list on the left.Warn when deleting a transaction or unused list item

Warns you when you try to delete a transaction or a list entry not currently in use. When this preference is off, QuickBooksallows you to delete a transaction or an unused list entry without warning.Where to find this preference. From the Edit menu, choose Preferences, and then select General from the list on the left.Bring back all one-time messagesRestores all one-time messages that you have turned off.One-time messages provide helpful information on how to use QuickBooks. When one of these messages appears, you canturn it off so that it doesn't appear again.Automatically recall last transaction for this nameTurns on AutoRecall, QuickBooks automatic data entry feature. When you enter a name, QuickBooks automaticallycompletes the transaction by filling in what you entered in the last transaction of that type for that person. For example,when you enter a vendor's name on a bill and press Tab, QuickBooks fills in the entire bill, just like the last one you enteredfor that vendor. If you have more than one previous bill from the vendor, QuickBooks bases the new bill on the bill with themost recent date.

When this preference is off, QuickBooks does not complete transactions automatically. You still have the ability to recall atransaction from the Memorized Transaction list, however.Restrictions: AutoRecall works only with bills, checks, or credit card charges. You cannot use AutoRecall with purchaseorders, invoices, sales receipts, payroll liability checks, or credit memos. Also, you cannot AutoRecall a transaction from oneaccount to another. For example, if you have two checking accounts, you cannot write a check in one account, go to theother account, and then AutoRecall the check in the other account.Where to find this preference. From the Edit menu, choose Preferences, and then select General from the list on the left.

Setting accounting preferences1 Display the Accounting Preferences window.2 Click the Company Preferences tab.3 Change, as needed, these preferences:

Use account numbersGives you the ability to assign numbers to your accounts. When this preference is in effect, a Number field appears inthe New Account and Edit Account windows. QuickBooks includes your account numbers in the chart of accounts, inall Account fields, and on reports and graphs.Show lowest subaccount onlyControls how QuickBooks displays subaccounts when you choose a subaccount in the Account field of a transaction.This preference is available only if you select Use Account Numbers.When this preference is on, QuickBooks displays only the lowest subaccount. For example, if the account you select is

5400Rent:5410Office:5411Main


21/59



QuickBooks displays5411Main

When this preference is off, QuickBooks displays the parent accounts along with the subaccount.Where to find this preference. From the Edit menu, choose Preferences, and then select Accounting from the list onthe left.

Require accountsPrevents you from recording a transaction unless you have assigned it to an account.When this preference is off, QuickBooks allows you to record transactions that have no assigned accounts. QuickBooksautomatically assigns these transactions to Uncategorized Income or Uncategorized Expense.Where to find this preference. From the Edit menu, choose Preferences, and then select Accounting from the list on the left.Use class trackingLets you categorize transactions by assigning them to the classes on your Class list.In QuickBooks, classes give you a way to classify your transactions. You can use classes to classify your income andexpenses by department, business office or location, separate properties you own, or any other meaningful breakdown ofthe business you do.For example, a general contractor might classify all income and expenses as relating to either residential or commercialwork. A farmer might create a class for each enterprise for example, "Corn," "Hogs," and "Soybeans." At the end of anaccounting period, the contractor could create separate reports for the residential and commercial parts of the business.Likewise, the farmer could create separate reports for each farm enterprise.When this preference is onQuickBooks includes a Class field on all transactions.

Use audit trail Automatically assign general journal entry numberAutomatically assigns a number to a general journal entry. The number assigned is the number of the previous entry plusone. No number is assigned, however, if the number of the previous entry is blank.When this preference is off, you need to enter the number manually.Closing date/Set PasswordSets a password-protected closing date for your company file.To set the closing date1 Enter the date through which you want your books to be closed.2 Click Set Password to create the password.Once you've set a password QuickBooks requires the password to make any changes that would alter balances for theaccounting period you have closed. This includes editing or deleting transactions entered on or before the closing date, andentering new transactions dated on or before the closing date.

4 Click OK.

Setting Preferences for Checking1 Display the Checking Preferences window.2 On the My Preferences tab, decide if you want to set a default account for the following forms:

Write Checks Pay Bills Pay Sales Tax Make Deposits

3 If you are the QuickBooks administrator, click the Company Preferences tab.4 Change, as needed, these preferences:

Print account names on voucher Change check date when check is printed

Start with payee field on check Warn about duplicate check numbers

Then decide if you want to set a default account for the following forms: Create Paychecks Pay Payroll Liabilities

5 Click OK.

Setting up for Finance Charges1 From the Edit menu, choose Preferences.2 In the Preferences window, select Finance Charges from the scroll box, and then click the Company Preferences tab.3 Enter your annual interest rate, minimum finance charge, and grace period.


22/59



4 Enter the name of the account you use to track income from finance charges. Usually, this is an income account.5 (Optional) If you don't want QuickBooks to assess finance charges on overdue finance charges, clear the checkbox for

assessing overdue finance charges.Important: Laws vary about whether you can charge interest on overdue interest payments. Please confirmwith the appropriate jurisdiction that you are in compliance with that jurisdiction's lending laws.

6 Indicate the date (due date or invoice/billed date) you want QuickBooks to calculate finance charges from.7 (Optional) If you want to be able to print all your finance charge invoices in a single operation, select the "Mark finance

charge invoices as 'To be printed'" checkbox. If you send statements. Leave this checkbox cleared. QuickBooks will include the finance charges on the next

statement to the customer.8 Click OK.

Customizing the Icon barStart by including tasks you do on a daily basis, such as entering and paying bills, creating invoices, and receivingpayments. If you run payroll for your company, consider adding icons for your payroll forms.In addition to deciding which features to include on the Icon Bar, you can reorder icons, group icons, and select differentgraphics and text.Use the View menu to display the Icon Bar and make any changes.

Ways to customize the Icon Bar Add icons for the windows or features you use most Edit icons by changing the icon text, graphic, or description Reorder icons Display icons with or without text Group icons by inserting spaces Remove icons

Setting up for Job tracking, estimates, or progress invoicing1 From the Edit menu, choose Preferences.2 In the Preferences window, select Jobs & Estimates from the scroll box.3 Click the Company Preferences tab.4 (Optional) Change the text of any or all of the five job status descriptions.5 If you create estimates:

Make sure that Yes is selected in response to the question "Do you create estimates?" If you want to be warned when you try to record an estimate that has the same number as an existing estimate, select

the "Warn about duplicate estimate numbers" checkbox.6 If you do progress invoicing:

Make sure that Yes is selected in response to the question "Do you do progress invoicing?"Specify whether you want line items that have zero amounts to print on your progress invoices.

7 Click OK.

Turning on Inventory and Purchase Order1 From the Edit menu, choose Preferences.2 Select Purchases & Vendors from the list on the left.3 Select the Company Preferences tab.

4 Select the "Inventory and purchase orders are active" checkbox.5 Change, as needed, these preferences:

Warn if not enough inventory to sell Warn about duplicate purchase order numbers

To find out about the preferences for entering and paying bills, press F1.6 Click OK.

Setting preferences for Sales and Customers1 From the Edit menu, choose Preferences.2 In the Preferences window, select the Sales & Customers icon.3 Click the Company Preferences tab.


23/59



4 Set the preferences to suit your needs. Press F1 for specific information about any of the preferences you see.5 Click OK.

Automatically applying discounts and credits to bill payments1 From the Edit menu, choose Preferences.2 In the Preferences window, select Purchases & Vendors from the list on the left.3 In the Paying Bills section of the Company Preferences tab, select "Automatically use discounts and credits."4 Select a Default Discount Account for tracking this information.5 Click OK.

As you select and highlight each bill in the Pay Bills window, the amount of any discount or credits will automatically bededucted from the Amt. to Pay for that bill.

Setting preferences for reports and graphs1 From the Edit menu, choose Preferences.2 In the Preferences window, select Reports & Graphs from the list on the left.3 On the My Preferences tab, select one of these options:

Refresh automaticallySelect this option if up-to-the-minute accuracy is important to you, yet you don't want to worry about when or howoften a report or graph needs to be refreshed. This is the slowest of the three options. If you happen to be working

with a report or graph during a busy time, you may experience lengthy interruptions because other users aremaking changes that cause QuickBooks to refresh the report or graph.

Prompt me to refreshSelect this option if you want to decide whether to refresh a report or graph yourself. A message tells you when areport or graph needs to be refreshed, but QuickBooks does nothing to the report or graph. If you want the reportor graph to be refreshed, click the Refresh button in the report or graph window.

Don't refreshSelect this option if you don't want interruptions of any kind when you work with a report or graph and up-to-the-minute accuracy is not that important. This is the fastest of the three optionsQuickBooks leaves the report or graph alone, and no prompts interrupt your work.If a change to your data makes a report or graph out of date, you can still refresh the report or graph yourself byclicking the Refresh button in the report of graph window. You'll know that the report or graph needs to berefreshed when (Refresh needed) appears in the title bar.

Caution. If you use "Windows Standard (Extra Large)" as your appearance scheme in Windows 95, there may notbe enough room to show the message (Refresh needed) when you maximize a report or graph. In this case, youmay want to select "Prompt me to refresh" or "Refresh automatically" instead.

4 If you are the QuickBooks Administrator, click the Company Preferences tab. Change, as needed, these preferences: Summary reports basis

For summary reports, determines when income counts as income and expenses count as expenses.Accrual. Select this option if you want your reports to show sales as income from the moment you enter a sale,and bills as expenses from the moment you enter a bill. For example, an accrual basis profit and loss reportshows all invoices as income regardless of whether you have received payment, and all bills as expensesregardless of whether you have paid them.Cash. Select this option if you want your reports to show sales as income from the moment you receive payment,and bills as expenses from the moment you pay them. For example, a cash basis profit and loss report does not

show outstanding invoices as income, or unpaid bills as expenses.Which reports are affected?This preference affects most summary reports (reports that summarize amounts and do not list transactions). Itdoes not affect reports that list individual transactions, 1099 reports, or sales tax liability reports. You can changethe report basis of sales tax liability reports in the Sales Tax section of the Preferences window. Transactionreports and 1099 reports are always on a cash basis.

Aging reportsSets the starting point for counting the number of overdue days on aging reports. These reports track unpaidinvoices or bills by showing how much is currently due and how much is overdue. This preference affects all agingreports as well as the accounts receivable and accounts payable graphs.


24/59



Age from due date. Select this option if you want the overdue days to start from the due date that appears on aninvoice, statement, or bill.

Age from transaction date. Select this option if you want the overdue days to start from the date you wrote aninvoice, wrote a statement, or received a bill.To set this preference, choose Preferences from the Edit menu. Select Reports & Graphs and then click theCompany Preferences tab. You must be logged in as the QuickBooks administrator to set the preference.

Show accounts byNormally, accounts appear by name in reports. If you want, you can have your reports list accounts by thedescriptions you entered when you created the accounts.Where to find this preference. From the Edit menu, choose Preferences, and then select Reports & Graphs fromthe list on the left.

FormatChanges the appearance of the report. You can:

Change the fonts for your reports. Choose how QuickBooks displays negative amounts in a report. Show all report amounts as thousands of dollars ($ x 1000). Eliminate cents from all report amounts. Eliminate all zero amounts from reports.

Display Modify Report window automatically

Opens the Modify Report window automatically when you create a report. You use this window to change the daterange of the report, add or delete columns, and change appearance of the report in other ways.When this preference is off, the Modify Report window doesn't appear automatically. To display the window, clickModify Report on the report's buttonbar.Where to find this preference. From the Edit menu, choose Preferences, and then select Reports & Graphs fromthe list on the left.

Statement of cash flows report: Classify CashQuickBooks automatically generates the statement of cash flows report using the types of accounts that typicallyappear in each section of the report. After consulting with your accountant, you may decide to customize thereport.

5 Click OK.

Setting up reminders work in QuickBooks1 From the Edit menu, choose Preferences.2 In the Preferences window, select Reminders from the list on the left.3 Click the Company Preferences tab.4 For each type of task listed, choose one of these preferences:

Show summary Show list Don't remind me

5 For the date-driven events, enter the number of days in advance that you would like QuickBooks to add a reminder tothe list.

6 (Optional) If you want the Reminders to appear each time you start QuickBooks, click the My Preferences tab andselect the "Show Reminders when opening a company file" checkbox.

7 Click OK.


25/59



REPORT MENUData are the building blocks for a report. A report is generated from arithmetical and logical processing of the data. In earliermodules you have how you enter data. This session helps you find the result or report drawn from the entered data. QuickBooksprovides you various reports in the built-in Report menu.

QUICK REPORTS FROM LISTSAs an alternative of the report menu you can get into quick report or your desired report from any list. Such as from the Chart ofAccount list you can view the Quick Report of an account.

TRIAL BALANCEIn traditional accounting, a document that adds up all the debits and credits so that mistakes can be traced if debits don't equalcredits. Because QuickBooks always adds correctly, you do not need to do a trial balance. Nevertheless, QuickBooks provides atrial balance report if you want to see your data in this format. To create this report:From the Reports menu, choose Accountant & Taxes and then Trial Balance .

BALANCE SHEETA report that summarizes the financial position of a business. A balance sheet shows the value of your company's assets,liabilities, and equity as of a particular day. It is called a balance sheet because the value of the assets is always exactly equal tothe combined value of the liabilities and equity.QuickBooks offers four different preset balance sheet reports. You'll find these reports under Company & Financial on the

Reports menu.Balance sheet accounts

Accounts that appear on a balance sheet report. In QuickBooks, these include the following types of accounts: bank accounts receivable accounts payable fixed asset, other asset, other current asset other current liability, long term liability credit card equityEach balance sheet account in QuickBooks has its own register that tracks the balance of the account. You can alsosee the account balances by looking at your chart of accounts.

QuickBooks offers you the following pre-designed Balance Sheets. However, you can change those balance sheet reports byfiltering and customization. This shall be covered in the next module. Right now see what is given by default.01. Balance Sheet Standard:

This report provides a financial snapshot of your company as of a specific date. Initially, the date is today's date, but youcan change the date by entering a different date in the As Of field.The report calculates how much your business is worth by subtracting all the money your company owes (liabilities) fromeverything it owns (assets). The result is what your company is worth: your business's equity. The total for equity includesyour company's net income for the fiscal year to date. To create this report:From the Reports menu, choose Company & Financial and then Balance Sheet Standard.

02. Balance Sheet Detail:This report is a more detailed version of the standard balance sheet report. For each account, the report shows the startingbalance at the beginning of last month, transactions entered in the account for this month to date, and the ending balanceas of today.

Like the other balance sheet reports, this report calculates how much your business is worth by subtracting all the moneyyour company owes (liabilities) from everything it owns (assets). The result is what your company is worth: your business'sequity. To create this report:From the Reports menu, choose Company & Financial and then Balance Sheet Detail.

03. Balance Sheet Summery:This report provides a financial snapshot of your company as of a specific date. Initially, the snapshot date is today's date,but you can change the date by entering a different date in the As Of field.The report calculates how much your business is worth by subtracting all the money your company owes (liabilities) fromeverything it owns (assets). The result is what your company is worth: your business's equity. The total for equity includesyour company's net income for the fiscal year to date.


26/59



This report is a briefer version of the standard balance sheet report. It shows totals for each type of account, but does notlist balances of individual accounts (for example, the report would show the total balance of all credit card accounts, butwould not list individual credit card balances). If you need to see individual account balances, create a standard balancesheet report instead. To create this report:From the Reports menu, choose Company & Financial and then Balance Sheet Summary.

04. Balance Sheet previous year comparisonThis report compares the worth of your business as of a specific date to the same date last year. Initially, the date forcomparison is today's date, but you can change the date by entering a different date in the As Of field. The report calculateshow much your business is worth by subtracting all the money your company owes (liabilities) from everything it owns(assets). The result is what your company is worth: your business's equity. The total for equity includes your company's netincome for the fiscal year to date.

The "$ change" and "% change" columns provide the comparison to one year ago. They show how much the balance ofeach balance sheet account has changed since a year ago. To create this report:From the Reports menu, choose Company & Financial and then Balance Sheet Prev Year Comparison

PROFIT & LOSS ACCOUNTProfit and Loss Account summarizes & classify Income and Expenses for a given period and shows profitability of the companyon that period. QuickBooks offer the following built-in Profit & Loss Accounts:01. Profit & Loss Standard Report:

This report summarizes your income and expenses for the month, so you can tell whether you're operating at a profit or aloss. The report shows subtotals for each income or expense account in your chart of accounts. The last line shows your netincome (or loss) for the month. This type of report is also known as an income statement. To create this reportFrom the Reports menu, choose Company & Financial and then Profit & loss Standard.

02. Profit & Loss Detail Report:This report shows year to date transactions (instead of totals only) for each income and expense account. To create thisreport:From the Reports menu, choose Company & Financial and then Profit & loss Detail .

03. Profit & Loss YTD comparison Report:This report summarizes your income and expenses for this month and compares them to your income and expenses for thecurrent fiscal year. You can tell whether you're operating at a profit or loss this month, and you can compare this month'sperformance against your profit or loss for the fiscal year. The intermediate lines in the report show subtotals for eachincome or expen

qb hand notes1 13

Documents