Supplemental Guide. Module 2: Common Workflows

Transcription

1 QUICKBOOKS ONLINE CE R T I FICATION COURSE Supplemental Guide Module 2: Common Workflows

2 Copyright Copyright 2016 Intuit, Inc. All rights reserved. Intuit, Inc Headquarters Drive Plano, TX Trademarks 2015 Intuit, Inc. All rights reserved. Intuit, the Intuit logo, Intuit ProLine, Lacerte, ProAdvisor, ProSeries and QuickBooks, among others, are trademarks or registered trademarks of Intuit, Inc. in the United States and other countries. Other parties marks are the property of their respective owners. Notice to Readers The publications distributed by Intuit, Inc. are intended to assist accounting professionals in their practices by providing current and accurate information. However, no assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a client s particular situation. Accordingly, the information provided should not be relied upon as a substitute for independent research. Intuit, Inc. does not render any accounting, legal or other professional advice, nor does it have any responsibility for updating or revising any information presented herein. Intuit, Inc. cannot warrant that the material contained herein will continue to be accurate nor that it is completely free of errors when published. Readers should verify statements before relying on them.

3 Table of Contents Table of Contents About the Author... 3 Supplemental Guide Overview... 4 Purpose of this Guide... 4 Learning Objectives... 5 Training at a Glance Table... 6 QuickBooks Accountant Test Drive... 8 Topic 1: QuickBooks Concepts... 9 Define Common QuickBooks Concepts and Terms Related to Recording Transactions... 9 Topic 2: Money In Identify Best Practices when Using QuickBooks Online to Record Revenue Determine Appropriate Sales-related Settings Recognize Alternative Entry Points for Entering Sales Transactions Recognize the Features of Online Invoices Identify the Functionality of QuickBooks Payments Topic 3: Money Out Identify Best Practices when Using QuickBooks Online to Record Expenditures Determine Appropriate Expense-related Settings Recognize Alternative Entry Points for Entering Purchase Transactions Module 2: Common Workflows 1

4 Table of Contents Topic 4: Other Transactions Identify Additional Transactions Initiated Using the Quick Create Menu Guide Conclusion Module 2: Common Workflows 2

5 About the Author About the Author Laura Redmond QBO Pro Redmond Accounting Inc Cloud Consultancy, LLC Laura Redmond is a financial controller and IT manager turned cloud accounting advocate and app designer. She is a QuickBooks Online power user, Advanced Certified QuickBooks ProAdvisor, member of the Intuit Trainer/Writer Network, and co-author of QuickBooks Online training and certification courses. Laura has been awarded Top 100 ProAdvisor and Leading QuickBooks Online Practice. Laura runs QBO Pro Redmond Accounting Inc., a boutique cloud accounting firm providing client accounting services and consulting. The firm was selected by Intuit as a Top 20 Firm of the Future. Their service delivery is centered solely on QuickBooks Online and its eco-system of apps. Laura joined forces with other ProAdvisors to create the AERO Workflow app used by accounting firms to manage multiple staff performing multiple recurring tasks on multiple clients. Aero is built by accountants for accountants. These businesses are 100% paperless, cloud-based and run on QuickBooks Online. Module 2: Common Workflows 3

6 Overview Supplemental Guide Overview PURPOSE OF THIS GUIDE From the recorded session you learned about common workflows in QuickBooks Online and the concepts relevant to them. You learned how to record transactions for money coming in to the business as well as money going out of the business. You also learned about specific QuickBooks Online company settings that are related to common workflows and how to record other transactions. This set of topics will guide you through practice exercises for recording financial activity in QuickBooks Online. NOTE: For purposes of this introductory training, we will focus on money coming in as income and money going out as cost of goods sold or expense. While some of the Products and Services items in the sample company are tracked as inventory items which record revenue and cost when used on a sales form and inventory asset when used on a purchase form, we will not be focusing on that more advanced scenario. Each of the step-by-step activities presented in this handbook is intended to help you: Utilize the various screens and features built in to QuickBooks Online Complete sales- and expense-related transactions Complete other transactions Module 2: Common Workflows 4

7 Overview LEARNING OBJECTIVES In this module you will complete the following hands-on activities related to the learning objectives: Define common QuickBooks concepts and terms related to recording transactions Identify best practices when using QuickBooks Online to record revenue Determine appropriate sales-related settings Recognize alternative entry points for entering sales transactions Recognize the features of Online Invoices Identify the functionality of QuickBooks Payments Identify best practices when using QuickBooks Online to record expenditures Determine appropriate expense-related settings Recognize alternative entry points for entering purchasing transactions Identify additional transactions initiated using the Quick Create menu Module 2: Common Workflows 5

8 Overview TRAINING AT A GLANCE TABLE Use this as a guide to selecting specific training you want to cover. Topics Step-by-Step Workflows Learning Objective 1.QuickBooks Concepts Invoice vs. Bill Posting vs. Non- Posting Accrual vs. Cash Sales vs. Purchases Recording New Financial Activity Define common QuickBooks concepts and terms related to recording transactions 2.Money In Income vs. Sales Choose Sales Settings Manage Styles Import Styles Choose Payment Settings Create an Estimate Enter Delayed Charges and Credits Create an Invoice Invoice for Billable Charges Convert an Estimate to an Invoice Enter a Customer Payment Send an Online Invoice Send an Online Invoice with QuickBooks Payments Enter a Credit Memo Create a Sales Eeceipt Set up a Recurring Sales Receipt with QuickBooks Payments Record a Refund Deposit Undeposited Funds Explore the Customer Center Explore the Sales Center Identify best practices when using QuickBooks Online to record revenue Determine appropriate salesrelated settings Recognize alternative entry points for entering sales transactions Recognize the features of Online Invoices Identify the functionality of QuickBooks Payments Module 2: Common Workflows 6

9 Overview 3.Money Out Expenses vs. Purchases Choose Expense Settings Create a Purchase Order Create a Bill Pay Bills Enter a Vendor Credit Create a Check Enter Expenses Enter a Credit Card Credit Add a Purchase Order to a Purchase Record Billable Expenses Apply a Check to a Bill Explore the Vendor Center Explore the Expense Center Identify best practices when using QuickBooks Online to record expenditures Determine appropriate expenserelated settings Recognize alternative entry points for entering purchasing transactions 4.Other Transactions Enter Single Time Activity Enter wweekly Timesheet Mark Time Billable Enter a Deposit Transfer Funds Record a Journal Entry Create Customer Statements Identify additional transactions initiated using the Quick Create menu Module 2: Common Workflows 7

10 Overview QUICKBOOKS ACCOUNTANT TEST DRIVE Exercises contained in this handbook can be completed using a QuickBooks Accountant test drive file. The test drive uses a sample company file called Craig s Design & Landscaping Services. It can be accessed through the following link: Craig's Design & Landscaping You don t have to create an account or sign in to access the test drive file, just complete the security validation and click Continue. As soon as you log in, go to the gear icon QuickBooks Labs Redesigned Reports and make certain Redesigned Reports is turned Off. This test drive is designed for you to explore and try out new things without worrying you will break something or make a mistake. It is not designed to retain any changes you make. Once you close this QuickBooks Online test drive company it is completely refreshed, so please remember to allow sufficient time to complete each activity. Don t worry if you have to close the test drive before you are finished, you can always begin again. You can also share the test drive with your clients. NOTE: The test drive uses QuickBooks Accountant. It contains some features that are not available in QuickBooks Online Simple Start, Essentials or Plus. In addition, some features (such as in-product Help) are not enabled inside this test drive file. This is subject to change. Module 2: Common Workflows 8

11 Topic 1: QuickBooks Concepts Topic 1: QuickBooks Concepts DEFINE COMMON QUICKBOOKS CONCEPTS AND TERMS RELATED TO RECORDING TRANSACTIONS Invoice vs. Bill In the real world we frequently use the terms invoice and bill interchangeably to refer to a document created to request funds from someone. Invoice In QuickBooks, invoice is the term used for a document you send your customer for an amount they owe you. When an invoice is paid by the customer, money comes into the business. Bill In QuickBooks, bill is the term used for a document you receive from a vendor for an amount you owe them. When a bill is paid to a vendor, money goes out of the business. Posting vs. Non-posting Posting Transactions Posting transactions record debits and credits to the general ledger. For example, an invoice prepared for a customer posts as a debit to Accounts Receivable and a credit to an income account. Posting transactions in QuickBooks Online include: Module 2: Common Workflows 9

12 Topic 1: QuickBooks Concepts Customers Vendors Other Invoice Expense Deposit Payment Cash Expense Transfer Credit Memo Credit Card Expense Journal Entry Sales Receipt Check Inventory Qty Adjustment Refund Bill Bill Payment (Check) Bill Payment (Credit Card) Vendor Credit Credit Card Credit Sales Tax Payment Non-posting Transactions Non-posting transactions do not post a debit or credit to the general ledger. They do facilitate the business cycle by storing detailed information which may be used in a related posting transaction. For example, an estimate stores detailed information about proposed products and services that you would like to sell to a customer, including notes and attachments related to the proposed sale. Upon acceptance of the estimate and delivery of the goods and services, you can convert the estimate into an invoice. The invoice will debit and credit the general ledger; however, the estimate does not. If the estimate is not accepted by the customer, mark it as rejected and nothing will post to the general ledger. Non-posting transactions in QuickBooks Online include: Customers Vendors Employees Other Estimate Purchase Order Time Tracking Statement Delayed Credit Delayed Charge Accrual vs. Cash The accrual basis accounting method involves reporting income at the time it is earned and reporting expense at the time it is incurred. These can be in a period different from when the payment is made. The result of accrual Module 2: Common Workflows 10

13 Topic 1: QuickBooks Concepts accounting is that expenses are matched with related revenues and the income statement better measures the profitability of a company for a particular period. The cash basis accounting method involves reporting income in the period the cash is received and reporting expense when the cash is distributed. Cash basis accounting is simpler but can be less accurate than accrual accounting in the short term, as revenue and expense are not recognized or recorded until the payment transpires. Sales Transaction Forms vs. Purchase Transaction Forms Sales transaction forms and purchase transaction forms are screens in QuickBooks Online used to record financial transactions. Sales forms record money coming in Purchase forms record money going out Module 2: Common Workflows 11

14 Topic 1: QuickBooks Concepts When you use Products and Services items to record financial activity in QuickBooks, it is important which transaction form you are using. The form you use determines which mapped account the transaction will be posted to. Sales Transaction Forms Sales forms are found on the Quick Create menu (plus icon) in the Customers column. Module 2: Common Workflows 12

15 Topic 1: QuickBooks Concepts When you use a sales form in combination with a Products and Services item, activity will be posted to the account that is mapped in the item s Sales Information section in the Income Account field. If you use a Products and Services item on an invoice to post a negative amount on a line item, the amount is still posted to the account designated in the item s Income Account field, because you are using a sales form If you use a Products and Services item on a credit memo or refund receipt to post a reversal of income, the amount is still posted to the account designated in the item s Income Account field, because you are using a sales form Module 2: Common Workflows 13

16 Topic 1: QuickBooks Concepts Purchase Transaction Forms Purchase forms are found on the Quick Create menu in the Vendors column. When you use a purchase form in combination with a Products and Services item, activity will be posted to the account mapped in the item s Purchasing Information section in the Expense Account field. Module 2: Common Workflows 14

17 Topic 1: QuickBooks Concepts If you use a Products and Services item on a bill to post a negative amount on a line item, the amount is still posted to the account designated in the item s Expense Account field because you are using a purchase form If you use a Products and Services item on a vendor credit or credit card credit to post a reversal of expense, the amount is still posted to the account designated in the item s Expense Account field because you are using a purchase form Setting up Products and Services items as two-sided items for use with purchase forms is only supported in QuickBooks Online Plus. If you do not have this feature turned on in your QuickBooks Online company, when you use purchase forms you will only have the option to select an account for the expenditure; you will not have the option to use a Products and Services item. Module 2: Common Workflows 15

18 Topic 1: QuickBooks Concepts Recording Financial Activity QuickBooks Online makes recording financial activity easy to access by giving you several places to add a new transaction. We will explore many of these throughout this guide. The Quick Create menu is found at the top of the screen at the plus icon. Come here to add any new transaction. Click the + icon to open the menu. When you open the menu the + icon spins to turn into an x icon. Click the x icon to close the menu. The condensed view of this menu shows only the four most frequently used transaction types. Click the Show more link to expand it and see all transaction types. Transaction types in the expanded view of this menu are grouped by their relation to Customers, Vendors, Employees or Other. Module 2: Common Workflows 16

19 Topic 1: QuickBooks Concepts This is a sticky menu so your choice of condensed or expanded view will be remembered next time. Select the type of transaction you want to add and a blank form for that transaction type slides down over the screen. Customer/Vendor centers: From the left navigation bar, you will find the Customer and Vendor centers to organize the people you do business with. The Customer and Vendor centers are very similar. If you want to add a new transaction from here, use one of the action links or drill into the customer or vendor you want to record activity for then click the New Transaction button. Sales/Expense centers: Click Transactions on the left navigation bar then select either Sales or Expenses. The Sales and Expense centers show grids of existing transactions. There are action links to record transactions related to those in the grid. You will also find a button to add a new transaction. In the Sales Center you find options to add new sales transactions; in the Expense Center you can add new expense transactions. Banking Center: The Transaction menu on the left navigation bar also leads to the Banking Center. This is another easy way to add financial activity to QuickBooks. You ll learn more in Module 3 about how QuickBooks Online has automated data entry by pulling information from your bank into the Banking screen. These transactions on the Banking screen have not been recorded in QuickBooks yet. They are waiting here for you to match them to an existing transaction or add them to the account register. Copy: Copying a transaction is another easy way to enter activity into QuickBooks, especially if there is a lot of detail. From any existing transaction, click the More menu in the footer bar then select Copy to make a duplicate. Change the necessary information and click Save. Module 2: Common Workflows 17

20 Topic 2: Money In Topic 2: Money In In this topic you will learn about the features built into QuickBooks Online for recording transactions related to money flowing into a business. IDENTIFY BEST PRACTICES WHEN USING QUICKBOOKS ONLINE TO RECORD REVENUE Income vs. Sales It s important to understand the difference in terminology between income vs. sales in QuickBooks recording income directly to an account or recording income to an account using a sales form and Products and Services items. All posting transactions record activity to the general ledger and can be found on a financial report, such as the Profit & Loss report. However, only transactions posted using sales forms and Products and Services items will be found on QuickBooks Online s sales reports. Income Income (or revenue) is recorded directly by selecting an Income account from a drop-down field on a transaction. On a Profit & Loss report, you can drill down into the Income account and find this transaction On a Sales Report, the transactions recorded directly to accounts will not be included Module 2: Common Workflows 18

21 Topic 2: Money In Sales Sales are recorded by using a sales form and Products and Services items to record the income to the account mapped to that Products and Services item. In the end, the sale may be recorded to the same Income account, just as if you had posted it there directly, but using Products and Services items gives you more options for reporting and more control over how activity is recorded. On a Profit & Loss report you can drill down into the Income account and find transactions posted directly to income accounts and transactions posted by sales forms using Products and Services items mapped to that Income account On a Sales Report, only transactions recorded using sales forms with Products and Services items will be included DETERMINE APPROPRIATE SALES-RELATED SETTINGS Sales Settings It s important to configure the sales settings related to the features you will use. Navigate to the gear icon and select Company Settings. Click the Sales category on the left side menu. There are six sections related to recording sales in QuickBooks Online. Customize The Sales category allows you to customize the way forms look. Click the button in the Customize section to Customize look and feel of sales forms. This customization applies to invoices, estimates and sales receipts. If you have no styles listed on screen, click the New style button to create one. If you have existing styles, you can modify them by selecting the Edit action on the appropriate row. Module 2: Common Workflows 19

22 Topic 2: Money In Style: The style section lets you designate which type of sales form this style will be used on. Select a template from the list of pre-designed options. You can use the template as-is or further customize it. Give your style a name, upload a logo and specify the color theme for this style. Appearance: Customize the appearance of this style by editing the logo s size and placement. You can further customize the font and page margins. You can also configure whether your print-out should be compatible with window envelopes and letterhead paper. There is also an option in the Appearance section to specify whether or not to show an account summary with the balance forward and total amount due. Module 2: Common Workflows 20

23 Topic 2: Money In Header: This section lets you specify form names, company info, customer info and custom field labels that will print on your form if, for example, the company calls estimates proposals. You can also identify which fields you want to see in the Header section, including three custom fields. Activity Table: The Activity Table lets you specify what columns you want to show and in what order. You can group activity by time period and subtotal these groups. You can collapse activity rows by combining rows that have the same rate and description and omit dates. There are also settings for billable time and expenses. Specify whether to show or hide the markup on billable expenses. When you invoice for time, you can specify whether to show or hide the employee name, hours and rate. Module 2: Common Workflows 21

24 Topic 2: Money In Footer: This setting allows you to add a custom message as well as an additional footer on sales forms. What if a business already has a design for their sales forms and they want to use that style in QuickBooks Online? You can try to import it. Importing sales form styles is a new option available in QuickBooks Labs. Module 2: Common Workflows 22

25 Topic 2: Money In Step-by-Step: Import Sales Form Styles To access the Lab, navigate to the gear icon and select QuickBooks Labs. Look for the plug-in called Import Style and turn it on. Click Done. One day you may not have to go to the Lab to turn it on; it may just become part of the standard sales settings Once the lab is turned on, go to the gear icon and click Custom Form Styles to go directly to the screen to customize your sales forms (which can also be accessed from the Company Settings > Sales > Customize look and feel button). The New style button now has a down arrow. Click the down arrow to find the Import style option. 6. On the import form style wizard, select the type of form you want to import (currently only invoice sales forms are available for import). Module 2: Common Workflows 23

26 Topic 2: Money In Follow the on-screen instructions to set up your template properly in Microsoft Word with angle brackets for each field then save it. Upload your template then click Next. Map the fields on your template to QuickBooks fields and click Next. Review the results and save your newly imported invoice style. Sales Form Content Now that we ve explored how to customize the look and feel of sales forms, let s return to the sales settings (gear icon > Company Settings > Sales). Underneath the Customize section is the Sales form content section, which lets you set the default value for invoice terms and delivery method. Regardless of your setting on this screen, you can override the default on individual sales forms. Turn on the fields that you want to show and use on your sales forms: Shipping fields for shipping date, tracking number, destination and subtotal Custom fields you want to track (the Internal indicator shows the field to you on-screen; the Public indicator prints the field on your sales forms) Custom transaction numbers lets you use your own numbering system if you leave the reference number field blank on a sales form, QuickBooks will automatically assign one Service date lets you track the date a service was performed separate from the invoice date. The service date is available on sales forms on every line in the Item grid. It is not related to the period that the sales transaction will be posted to the general ledger. It is a descriptive component of each charge on a sales form. Add a discount field to sales forms to apply a discount to the entire sale Add a deposit field to invoices to subtract a customer deposit from the invoice total to calculate a balance due Module 2: Common Workflows 24

27 Topic 2: Money In Products and Services The Products and Services section lets you: Add the Products and Services column so you can choose from this list on sales forms Add the quantity and rate columns on sales forms so you can track this information and help calculate the charge Track quantity on hand to manage the available inventory in stock for each product you sell and its related inventory cost (this inventory tracking feature is only available in QuickBooks Online Plus) Module 2: Common Workflows 25

28 Topic 2: Money In Messages The Messages section includes preferences to: Customize the default message sent with sales forms; you can create a different message for each sales form Define the default message printed on sales forms Module 2: Common Workflows 26

29 Topic 2: Money In Online Delivery The Online Delivery section is where you: Specify the option for invoices, sales receipts and estimates whether to attach the sales forms as pdf, and whether to show sales form summary or details in the body of the Set the options for invoices specifically. Choose between online invoicing, HTML and plain text. We ll learn more about how Online Invoices work in this guide. If you select Online invoice, consider unchecking the box beneath it (Attach sales form as pdf) if you want to encourage customers to click the link in the . Doing so will track the time/date stamp that they opened the invoice, thereby confirming they received the invoice. Statements Configure customer statement preferences on whether to list each transaction as a single line or include all detail lines and whether to show the aging table at the bottom of statements. Module 2: Common Workflows 27

30 Topic 2: Money In Payments Settings QuickBooks Payments is the merchant service solution that powers QuickBooks Online. It processes credit card payments right from the QuickBooks Online Sales Receipt and Receive Payments screens (use a card reader to do this using the mobile app) It processes credit card and bank account payments for customers who click to pay their QuickBooks Online invoices Funds move electronically directly from the customer to the merchant's bank account (there is typically a two-day window from the time the payment is submitted to the time it is received in the merchant s bank account) The bank deposit and merchant service fees are automatically recorded in QuickBooks Online by the QuickBooks Payment reconciliation feature No other merchant service has the ability to do this Let s explore the settings associated with QuickBooks Payments. From the gear icon, navigate to Company Settings and click the Payments category on the left menu. If the company has never applied for a QuickBooks Payments merchant services account, click Learn More. Review the two plans and select the one that fits the company s usage best. One plan has a monthly fee but lower rate. The other plan has no monthly fee but higher rate. These merchant service plans include Amex and commercial cards. Complete the requested company and owner information, including Social Security number and date of birth, then submit the application. This process is required so Intuit can validate the owner s identity and move money on their behalf. Once the QuickBooks Payment application is accepted, your merchant ID number will be created and you will receive an with all the account details. Module 2: Common Workflows 28

31 Topic 2: Money In If the company already has a QuickBooks Payments account (also known as GoPayment or QuickBooks Merchant Services or Intuit Merchant Services), you can connect the existing merchant services account to your QuickBooks Online company by clicking the Connect button. TIP: Best results occur when the person connecting QuickBooks Online to QuickBooks Payments is the master admin of the QuickBooks Online company and the merchant account. If you have trouble with this step, contact the QuickBooks Payments support staff to map the services together on the back end. NOTE: If you had an existing QuickBooks merchant service account that you were using with QuickBooks Desktop before converting to QuickBooks Online, and you were using the recurring payments feature for any of your customers, you need to log into your merchant services online account and turn off each recurring payment to avoid double-charging your customer. Once you ve either received notification that your application for a new merchant account has been approved or connected an existing merchant account number, your next step is to verify that your merchant ID number is linked to QuickBooks. Navigate to the gear icon > Company Settings > Payments settings screen to view the account number. The service will be available for use within 24 hours for both credit card and bank account payment processing. Once a new or existing QuickBooks Payments account is connected to QuickBooks Online, you can review your Payments settings. Step-by-Step: Review Payments Settings In the Merchant details section, click the Manage details button to launch the Merchant Center. This is where you would change the bank account information that funds are deposited to, and where you find details about transactions processed using QuickBooks Payments. In the Recording accounts section, specify the bank account you would like deposits recorded to and what expense account to record associated fees to. 12. Sometimes customers will click to pay an invoice and enter their own payment info, other times you may enter the payment info for a customer, perhaps to record a recurring sales receipt that will automatically charge your customer s credit card. In this case you may want to turn on the reminder to enter the CVV code when you are entering payment info for the customer. NOTE: Once QuickBooks Online is ready to use QuickBooks Payments, if you converted from QuickBooks Desktop and had the recurring payments feature set up for customers, remember to set that up in QuickBooks Online using a recurring sales receipt. We ll learn about that later in this module. Module 2: Common Workflows 29

32 Topic 2: Money In Advanced Settings Next, navigate to the Company Settings > Advanced category on the left side menu to look at some additional preferences related to sales. Chart of Accounts If you turned on shipping or discount in the Sales settings category, specify the account where you want to post amounts when these fields are used on sales forms. Automation Review the Automation section and decide whether to perform some functions automatically. The Pre-fill forms setting automatically copies the information from the last transaction using the same customer If you turn on the preference to automatically apply credits, QuickBooks will apply any available credits to the next invoice (be sure that your client wants to apply the credit to the next invoice and not a future invoice) QuickBooks can automatically invoice unbilled activity; if you turn on this preference you will define the level of automation and the schedule Turn on the feature to copy estimates to invoices if the company will benefit from this automation; you then have a choice to copy only for accepted estimates or pending and accepted estimates Module 2: Common Workflows 30

33 Topic 2: Money In Time Tracking In the Time tracking section, determine whether to show the service and customer fields to employees on their timesheets if you want to capture this information for billing time to customers. RECOGNIZE ALTERNATIVE ENTRY POINTS FOR ENTERING SALES TRANSACTIONS Record activity related to money coming in by using QuickBooks Online s sales forms. Sales forms have a lot in common. We ll go through each one and discuss its different purpose and functionality. Estimates You use an estimate to give a customer a quote (bid or proposal) for products and services. The purpose of the estimate is to begin negotiations with your customer. An estimate in QuickBooks is a non-posting transaction; it may or may not lead to a sale. Once an estimate is accepted, an invoice can be recorded. Estimates are available in all versions of QuickBooks Online. Step by Step: Create an Estimate 1. Select Estimate from the Quick Create menu in the Customer column. 2. Select the customer Amy s Bird Sanctuary. a. If a customer does not yet exist in the Customer List in QuickBooks Online, you can add them from any sales form by clicking the Customer field drop-down arrow then clicking + Add New at the top of the drop-down list. You can enter the name only and save, or click +Details to enter more information. b. Selecting the customer will pull the customer s and billing address onto the screen. If no information pulls onto the screen or if you want to change the information, make those changes on this screen The estimate defaults to a status of pending. You can change that status as the customer accepts or declines your proposal. Check the box if you want to this estimate later in batch. Module 2: Common Workflows 31

34 Topic 2: Money In Add the estimate date, expiration date and any other information such as custom fields available in the header section. In the Item details grid, use your Products and Services items to add details of the description and charges for the products and services that make up this proposal. Add one line for each Products and Services item to include on the estimate. 7. In the footer section, add any message for your customer, internal memo for your records, and add attachments such as images, supporting documentation and communication related to the estimate. If you are using sales tax and discounts, you can change the order of which is applied first by clicking the up/down arrow icon next to these two fields as it may affect the amount calculated. The form automatically calculates the subtotal and total for you. Module 2: Common Workflows 32

35 Topic 2: Money In 8. On the footer menu along the bottom of the estimate you have the options to cancel, print or preview, make recurring, customize and save. Cancel will roll away this screen, no harm done. Same function as the X in the upper right corner of the transaction. Clear removes the data entered in the fields. Print or preview will save the estimate and let you check the box to print it later in batch or view the PDF version on screen to see what your customer will see. Hover over the PDF for options to zoom, print to paper or save PDF. Make recurring will display a Recurring section above the header on the estimate and give you options to schedule this to enter itself automatically, give you a reminder or save it as a template to use later. Customize lets you pick from the custom sales form styles you have created in Company Settings. Module 2: Common Workflows 33

36 Topic 2: Money In You have several options to save the transaction. All of them record the transaction or any updates to it. Save leaves you on the screen. Save and new takes you to a new estimate. Save and close takes you back to the screen you were on previously. Save and send takes you to the Send screen where you can further customize the subject and body of your and preview your estimate before sending. Once sent, the date, time and address the estimate was sent to will display near the top of the form. Whichever save option you select, QuickBooks Online will remember it next time. 9. Once you save the estimate (or preview it, which saves it) you then have a More menu at the bottom of the screen. The More menu gives you options to: Copy the estimate to another new estimate. Delete the estimate. View the audit history to see when and who added or modified this estimate. Module 2: Common Workflows 34

37 Topic 2: Money In TIP: You can use a keyboard shortcut to save any transaction in QuickBooks Online: CTRL-ALT-S. You can run reports of estimates and filter by status to keep track of your pipeline. When your customer accepts an estimate and you complete delivery of the items ordered, you can convert the estimate into an invoice to save time when recording the sale and automatically mark the estimate closed. Delayed Charges and Credits Delayed charges and credits are available in QuickBooks Online Essentials and Plus. They are non-posting transactions and therefore do not debit or credit the general ledger. They are used to log charges to a customer you are not ready to invoice. For example, you are working on a project for a customer and have to drive to their office. That incurs a trip charge. Enter that as a delayed charge so you remember to invoice your customer when you charge them for the project. Or you pave driveways. Your crew comes back at the end of the day with a list of driveways they paved. You only invoice once a month, but you want to remember to invoice everyone whose driveway you paved. Enter a delayed charge in QuickBooks so at the end of the month you can add that paving to the invoice. Step by Step: Entering Delayed Charge 1. From the Quick Create menu, click Delayed Charge Select the customer name, Amy s Bird Sanctuary. In the date field type W to go to the beginning of the week. In the Item details grid, select Gardening under the Product and Service column. Enter 4 under the Quantity column and $35 under the Rate column. Click Save and new. Module 2: Common Workflows 35

38 Topic 2: Money In On the new screen, select Amy s Bird Sanctuary as the customer again. In the date field type K and the plus key (+). K brings us to the end of this week and the plus key advances a day, which brings us to the beginning of next week. Select Gardening under the Product and Service column. Enter 3 under the Quantity column and $35 under the Rate column. Click Save and close. Module 2: Common Workflows 36

39 Topic 2: Money In Invoices In QuickBooks Online, an invoice is what you send a customer so they can pay you. You ve extended credit terms, delivered the goods or services and the customer has not yet paid for them. You need to send them a document with details of the charges and the total amount due. The Invoice screen in QuickBooks Online is a sales form. This form posts an accrual transaction the income is recorded as earned but no cash has been received yet. The total amount of the invoice will post as a debit to increase Accounts Receivable. Individual charges on each line of the invoice are recorded using Products and Services items that post as a credit to increase the mapped account in the item s Sales Information column in the Income Account field. Step by Step: Create an Invoice 1. From Quick Create, click Invoice Select the customer Bill s Windsurf Shop. Select the appropriate terms to calculate the due date for payment of this invoice. In the Date field type H to go to the end of the month. Entering the invoice date will also calculate the due date based on the terms. If you ve turned on the setting to use custom transaction numbers, then you ll want to enter your custom invoice number; if not, QuickBooks will automatically assign a number. In the Item grid, choose Pest Control under Products and Services. Leave the quantity at 1 and the rate at $ Module 2: Common Workflows 37

40 Topic 2: Money In Scroll down to see the footer section of the transaction, if necessary. Add a message to the customer if you like. There is a statement memo field to type a summary of the charges you want to show on the statement. 10. In the Attachments field, click the paperclip to browse for a document to upload or drag a document from a folder on your computer to the field. Since this is an invoice, once the document finishes uploading you will see a checkbox to specify if you want the attachment to be sent with the invoice Click Save. The More menu will show in the footer menu bar. Click More to view the options on this menu. You have the options to copy, delete and view audit history. You also have some additional options not found on an estimate. You can void the transaction. This is sometimes preferable to deleting the transaction. A deleted transaction cannot be reversed. A deleted transaction disappears, only to be found in the audit log. A voided transaction zeros out the amounts but holds the place of the once-existing transaction plus potential notes and attachments. You can view the transaction. Since this is a posting transaction, you also have the option to view the Transaction Journal, which shows exactly how the invoice is debited and credited to the general ledger. The charges you enter on the detail lines will post to their mapped income account and the total of the invoice will post to Accounts Receivable. Module 2: Common Workflows 38

41 Topic 2: Money In Step by Step: Make an Invoice a Recurring Transaction What happens if you have monthly recurring charges and you don t want to have to remember to enter them? Ideally you d like QuickBooks to automatically create an invoice and it to your customers. Use the Recurring Transactions feature. Most transactions (sales, purchases and journal entries) can be made recurring Use the invoice in the exercise above. At the bottom of the screen click Make recurring. Module 2: Common Workflows 39

42 Topic 2: Money In This opens a screen to create a recurring invoice template Give the template a name. Specify the type. Scheduled will automatically create the transaction at the interval you define. Reminder will remind you to enter it. Unscheduled will save it to the list of recurring templates, which you can use anytime to quickly enter the information saved on it. Depending on the type you select, you may also see options to define how many days in advance of the interval date you want QuickBooks Online to create the transaction, options to automatically send the transaction via and whether to include unbilled charges. If scheduled, set the interval and start and end dates. Save the template. You have a lot of flexibility when creating a template. Experiment with it in the sample file. It s often fastest to find an already-recorded transaction that you want to make recurring. Open it and click Make recurring at the bottom of the screen. Remember, most transactions in QuickBooks Online can be made recurring. Invoices for Billable Charges Some companies record financial activity for money spent that is marked as billable to a customer. Later, when you create an invoice for the customer, the data marked as billable acts as a reminder to charge and collect the amount from the customer. Module 2: Common Workflows 40

43 Topic 2: Money In Step by Step: Create an Invoice for Billable Charges 1. From Quick Create choose Invoice. 2. Select Amy s Bird Sanctuary. As soon as you enter the customer name, if there are any time, expenses or charges that have been marked as billable to this customer and have not been added to an invoice, a drawer opens up on the right side of the screen. Drawer is a term to describe this right-side panel that slides open and closed to remind you when you have billable charges for the selected customer. It allows you to easily add them to the invoice. Module 2: Common Workflows 41

44 Topic 2: Money In Review the list of billable time, expenses and estimates and add them to the invoice or open them to learn more about them. If you performed the steps in the earlier exercise to enter delayed charges for Amy s Bird Sanctuary, then you may notice these charges in the drawer waiting to be added to an invoice. When you re finished with the drawer, click the arrow to collapse it. Add any additional charges, memos or attachments. Save the invoice. 6. Look in the upper left corner near the customer name field to see that linked transactions like billable charges show as a blue hyperlink. Click this link to view details of all the linked items from the drawer that were added to the invoice Look in the Item grid and notice the links on the far right of each row that were added from the drawer. Click the link to view details of the linked transaction(s). Click Remove to delete a billable charge from the invoice and send it back to the drawer for use later. Module 2: Common Workflows 42

45 Topic 2: Money In Converting an Estimate to an Invoice If you ve ever spent a lot of time working on a detailed estimate for a customer, then you understand the ability to copy an estimate to an invoice can be a real time-saver, especially for businesses with detailed line items and charges. There are several ways to do this in QuickBooks Online. Step-by-Step: Convert an Estimate to an Invoice 1. Once you save the estimate you will see a Copy to invoice button in the upper right corner. Click that button and you instantly have an invoice identical to the estimate. 2. Create a new invoice and select a customer with an open estimate. The drawer will open on the right side of the screen. Look for the estimate. Click Add on the estimate. This will copy all the information in the estimate onto the invoice. The estimate status will be updated to closed. Add additional information or send the invoice as-is. NOTE: If you change the invoice so it differs from the estimate, the estimate is still considered fully invoiced. There is no progress billing tool in QuickBooks Online. Receive Payment When a customer makes a payment you want to record that against their receivable balance. A payment is received against an invoice, decreases Accounts Receivable and increases either a bank account or Undeposited Funds. Step by Step: Receive a Payment from a Customer From Quick Create choose Receive Payment. Select the customer Red Rock Diner. QuickBooks Online will load all the open invoices awaiting payment for that customer. If there is a long list of open invoices and they ve paid for just one of them, click the Find by invoice no. button to select the proper invoice. Enter the payment date, payment method and reference number for the payment (such as the customer s check number). Enter the Deposit To account. Module 2: Common Workflows 43

46 Topic 2: Money In If the payment was deposited directly to a bank account with no other payments and the total of the deposit is the same as the total of this payment, select that bank account. If the payment was grouped with other payments then deposited, select the Undeposited Funds account. NOTE: Undeposited Funds is not a default preference setting, you ll need to make sure the proper account is selected each time. Whichever account you used last time will be selected. If you always use the Undeposited Funds account, it will automatically select that account Check the box for both rows to indicate the customer paid both invoices. Notice the Amount Received field reflects the total of the invoices selected. On invoice #1023, modify the payment amount in the grid to $10. This is how you record a partial payment on a particular invoice. Add a memo and attachments, as applicable. Save and close. You can also record a payment by navigating to the invoice the customer has paid and clicking the Receive Payment button. In this situation, the customer and invoice will already be populated, just enter the payment method, reference number, Deposit To account and payment amount. Module 2: Common Workflows 44

47 Topic 2: Money In Charge and Receive Payment Companies with an active QuickBooks Payments merchant services account can charge a customer s credit card when recording their payment in QuickBooks Online. If you ve received your customer s authorization to charge their card, you can record the payment and charge their card all in one step. NOTE: The QuickBooks Online sample company does not have an active QuickBooks Payments merchant service account activated so you will not be able to practice this in that environment. Step-by-Step: Charge and Receive Payment From the Quick Create menu, select Receive Payment. Select the customer with an open balance whose credit card you will charge. Fill out the payment date as today and select the open invoices associated with this payment. From the Payment method drop-down field, select a credit card. If there is no credit card on file for the customer, the No credit card information button will appear. Click the button and swipe the card or enter the credit card information. Click OK to save the information. If there is a credit card on file for the customer, the last four digits will show on a button under the Payment method field. Click the button to modify or view the credit card details. Module 2: Common Workflows 45

48 Topic 2: Money In 6. Under that button will be a checkbox to process the credit card. Check this box to tell QuickBooks Online you want to charge the customer s credit card when you save the transaction. 7. Click Save and close to record the payment and charge the customer s credit card. Credit Memo What if you overcharge your customer or something you shipped was damaged. When the invoice needs to be reduced, use a credit memo to issue a credit to your customer and apply it against their invoice. The Credit Memo screen in QuickBooks Online is a sales form and has the reverse effect of an invoice. This form posts an accrual transaction the income is reversed but no cash refunded. The total amount of the credit memo will post as a credit to decrease Accounts Receivable. Individual charges on each line of the credit memo are Module 2: Common Workflows 46

49 Topic 2: Money In recorded using Products and Services items that post as a debit to decrease the mapped account in the item s Sales Information column in the Income Account field. Sales Receipts The Sales Receipt transaction type in QuickBooks Online is the cash equivalent of an invoice. It s a receipt for a cash sale. It will record the income for the items you sold and also record the cash you were paid. The Sales Receipt screen in QuickBooks Online is a sales form and is used when you receive a payment at the time of sale. This form posts a cash basis transaction the income is recorded as earned and the payment is recorded as received. The total amount of the sales receipt will post as a debit to increase the bank account or Undeposited Funds account, as specified in the Deposit To field. Step-by-Step: Create a Sales Receipt 1. If the customer is giving you cash or a check, specify the Deposit To account. If the payment was deposited directly to a bank account, select that bank account. If the payment was grouped with other payments then deposited, select the Undeposited Funds account. Module 2: Common Workflows 47

50 Topic 2: Money In 2. Companies with an active QuickBooks Payments merchant services account can charge a customer s credit card when recording a sales receipt in QuickBooks Online. The process is similar to the way you charge a customer s credit card on the Receive Payment screen. a. Select a credit card from the payment method drop-down field. b. If there is a credit card on file for the customer, the last four digits will show on a button under the Payment method field. Click the button to modify or view any available credit card details (some of which may be hidden due to credit card security regulations). If there is no credit card on file for the customer, the Enter credit card details button will appear. Click the button and swipe the card or enter the credit card information. Click OK to save the information. c. Under that button will be a checkbox to process the credit card payment upon saving the sales receipt transaction screen. d. Click Save and close to record the sale and charge the customer s credit card. Refunds Sometimes you need to issue a refund. The Refund screen in QuickBooks Online is a sales form and has the reverse effect of a sales receipt. It s different than a credit memo that credits the customer s Accounts Receivable account so they have a lower balance due. With a refund you are going to give them back money. The Refund form posts a cash-basis transaction the income is reversed and the payment is refunded. The total amount of the refund will post as a credit to decrease the checking account, or whichever account is selected in the Refund from field. Individual charges on each line of the refund are recorded using Products and Services items that post as a debit to decrease the mapped account in the item s Sales Information column in the Income Account field. Step-by-Step: Create a Refund From the Quick Create menu, select Refund Receipt. Enter the customer, date and other details about the refund. Select the payment method for repaying the customer. List each Products and Services item and the amount to refund. Add any messages and attachments as needed. If you re refunding to a credit card, check the box to process the credit card and save the refund transaction to trigger the reimbursement of funds to the customer s credit card. If you re sending the customer a check, you can print it from here or check the box to print it later in batch. If you re refunding cash, save the refund screen and hand over the cash refund to the customer. 6. Save the transaction. Module 2: Common Workflows 48

51 Topic 2: Money In Deposit Undeposited Funds Earlier we learned that if the payment was deposited in a group with other customer payments, we should record it as deposited to the Undeposited Funds account, not directly to the bank account. The Undeposited Funds account is a holding account that allows you to group all of the payments into one deposit. Module 2: Common Workflows 49

52 Topic 2: Money In Step-by-Step: Deposit Undeposited Funds From Quick Create select Bank Deposits. In the upper half of the Deposit screen are all of the undeposited payments and sales receipts waiting to be taken to the bank. Check the box of each payment or sales receipt included in the deposit. Once the deposit screen total matches the total deposit at the bank, save the transaction. Now the deposit you ve posted to the bank account in QuickBooks Online will match the deposit amount shown on the bank statement, making for an easier bank reconciliation. Customer Center We ve explored each of the sales forms in QuickBooks Online and how to add them from the Quick Create menu. Next we ll explore the Customer Center to learn how to manage customers and their existing transactions and add new transactions. Navigate to the Customer Center by clicking Customers in the left navigation pane. The most obvious element in the Customer Center is the Money Bar. The Money Bar is a visual representation of open and recent sales activity for customers: Unbilled Activity, Unpaid Activity and Recently Paid Activity. Below the Money Bar is a list of customers. Drill down on any section of the Money Bar to filter the list of customers and show only those customers related to the Money Bar filter you selected. Click the Clear Filter/View All link to return to the list of all customers. Module 2: Common Workflows 50

53 Topic 2: Money In Above the Money Bar is a button to add a new customer. This is where you enter the customer s name and address information, notes, tax info and payment and billing info. Clicking the down arrow next to the New customer button lets you import customers. Below the Money Bar is a grid of customers. Select several clients by checking the box next to their name and use the batch actions button to create statements or send an to the selected customers Use the search box above the grid to quickly find a particular customer Click the column headers to sort forward and backward by that column Use the icons to print the customer list or export it to Microsoft Excel The columns of the grid can be configured by selecting the grid s gear icon to show the address, and phone, include inactive customers in the list, and change the number of rows showing from 50 to 150 to 300. The next time you open the Customer Center, QuickBooks Online will remember your preference. Click on a customer name to view the customer details. Here you can edit the customer s profile information and see a list of transactions related to the customer. You can add new transactions for the customer by either the New transaction button or clicking one of the action links next to an open transaction. In the Customer Center, click on the envelope icon next to a customer name to launch an already addressed to the customer Click an action link to perform the next logical action that QuickBooks Online suggests based on current open transactions. Review the list of customers and the suggested next actions. The action links also have a down arrow next to them to find other actions to perform: Send reminder, Create statement, Charge, Time activity, Invoice, Sales receipt or estimate or Make the customer inactive. If you click the Estimates filter in the Unbilled Activity (blue) section of the Money Bar, you ll see a list of customers with open estimates waiting to be invoiced. The action link on each customer s row suggests you start an invoice. NOTE: If you do not want to invoice for the whole amount of the estimate, you can change the quantity or line items on the invoice. However, QuickBooks still considers the estimate fully invoiced. There is no progress invoicing in QuickBooks Online. Module 2: Common Workflows 51

54 Topic 2: Money In Step-by-Step: Invoice Unbilled Activity from Customer Center 1. From the Customer Center, click the Unbilled Activity filter on the Money Bar. 2. View the list of customers with activity waiting to be invoiced. 3. Notice the action link on each customer s row suggests you start an invoice Click Start invoice for Video Games by Dan. QuickBooks Online will create an invoice for this customer with all the unbilled activity already added. Add additional information and charges then save. Recognize that this is an alternate method for creating an invoice for unbilled activity. You can also start a new invoice from the Quick Create menu and add unbilled activity from the drawer. TIP: If you have multiple activities and only want to create an invoice for one or some of the activity, you can unlink each charge from each row by clicking on the link, then the Remove button. Or, from the Customer Center, drill down into the count of unbilled activity and find the charge you want to bill for then click Start invoice for that one charge. Module 2: Common Workflows 52

55 Topic 2: Money In Step-by-Step: Receive Payment from Customer Center From the Customer Center, click the Open or Overdue Invoices filter on the Money Bar to see a list of customers with balances due. Notice that the action link suggests you receive payment. Module 2: Common Workflows 53

56 Topic 2: Money In Click the Receive payment link. QuickBooks Online will create a payment transaction for this customer and select all of the open invoices. If you have a customer with a lot of invoices that are all or mostly paid by one payment, this is faster than going to the Quick Create and checking every box. Enter remaining information about payment and save. Sales Center Navigate to the Transactions > Sales screen in the left navigation pane. The Sales Center lets you manage existing sales transactions and add new ones. It s similar to the Customer Center. Instead of a list of Customers, here we see sales transactions for the last 365 days. As in the Customer Center, we have a Money Bar showing information about unbilled, unpaid and recently paid activity. Click any segment of the bar to filter the sales transaction list below it. Above the Money Bar we can add new sales transactions. Below the Money Bar is a grid of existing sales transactions. Use the filter button to search by specific sales transaction type, status, delivery method, date and customer. Use the date filter to see more than the last 365 days. In the grid of transactions, select several rows by checking the box then use the batch actions button to print transactions, print packing slips, send transactions via or even create invoices. Module 2: Common Workflows 54

57 Topic 2: Money In Just like in the Customer Center, click the column headers to sort forward and backward, use the icons to print the sales list or export it to Excel, and use the gear icon to edit the grid. Pick which fields you want to show as columns, change the number of rows showing and switch to compact rows. The next time you open the Sales Center, QuickBooks Online will remember your preferences. Also similar to the Customer Center, the Sales Center has action links to perform the next logical action that QuickBooks Online suggests based on the status of the transaction. Or click the down arrow next to the link to perform the available actions for that transaction type on that row, such as Print, Send, Print packing slip or Copy. As we saw in the Customer Center, when you use the Unbilled Activity filter on the Money Bar, the grid below will show one row for each customer with unbilled activity. You can either drill down to view the unbilled activity, or click the action link to start an invoice for this customer with all of the unbilled activity already added to it. TIP: Unlike the Customer Center, the Sales Center gives us the option to check multiple rows for several customers with unbilled activity then use the batch action button to create invoices for all customers for all their unbilled activity at once. Similar to the Customer Center, Click the Open or Overdue Invoices filter on the Money Bar Then click the Receive payment action link and QuickBooks Online will create a payment for this customer for the invoice whose row you selected. Module 2: Common Workflows 55

58 Topic 2: Money In Step by Step: Invoice all Unbilled Activity in Batch From the Sales Center, click the Unbilled Activity section on the Money Bar. View the list of customers with activity waiting to be invoiced. Check the box in the header row to select all rows in the grid. Click the Batch actions button then select Create invoices Click the Open Invoices section on the Money bar and find the invoices that were instantly created dated today for the customers who previously had unbilled activity. Check the boxes next to each. Click the Batch actions button then choose Send transactions to them to customers. Module 2: Common Workflows 56

59 Topic 2: Money In RECOGNIZE THE FEATURES OF ONLINE INVOICES Online Invoices Earlier in this guide we learned about the Company Setting in the Sales category that turns on the online invoicing feature. With this feature turned on, QuickBooks Online will generate a special type of to your customer with a link to an Online Invoice. This Online Invoice is a webpage that opens in a browser and interacts directly with the invoice inside your QuickBooks Online account. Step-by-Step: Send an Online Invoice 1. From an invoice, click Save and send On the Send screen, edit the subject line and body of the . You may want to customize a specific message to the customer. View an image of the invoice. You may have forgotten to change the invoice style to a custom one. In the Online payment section, specify whether to let your customer pay you by credit card and/or bank account (ACH, electronic payment). If you are not signed up for QuickBooks Payments, this option won t be available. Click the Send button and the customer will receive an with a link to view the Online Invoice. (Sending Online Invoices is disabled in the sample company.) Module 2: Common Workflows 57

60 Topic 2: Money In Received By Customer When the customer clicks the View invoice button in the , a browser window opens to view the Online Invoice. The interactive Online Invoice is branded with the company s name and shows the customer an image of their invoice, the invoice number and due date. The balance due for that invoice at the time the customer opens the invoice will also be displayed. If the customer makes a partial payment, the next time they click to view the invoice the remaining balance due will show. The balance showing on the Online Invoice is connected to the balance due in QuickBooks Online. Print and save options let the customer archive a copy of the invoice by printing it or saving it as a PDF. Module 2: Common Workflows 58

61 Topic 2: Money In The customer can post a message and upload an attachment in the right side messaging section. The company will receive an notice that the message has been posted and includes the text of the message. In addition, the message is posted inside the QuickBooks Online account on the invoice in the activity feed and the company can post messages to the customer. This two-way messaging allows the company and the customer to communicate directly about this invoice and serves as an important archive of this communication. In addition to messages from customers, the company can also see when they sent the invoice and when the customer viewed the invoice. Online Invoices are tracked, making it easy for the company to know when their invoice has been opened. IDENTIFY THE FUNCTIONALITY OF QUICKBOOKS PAYMENTS Online Invoices with QuickBooks Payments Companies that have activated QuickBooks Payments have the option to allow customers to pay their Online Invoice via credit card or bank account. On an invoice in QuickBooks Online, when you click Save and send, check the options you want to make available to your customer. When the customer receives your ed invoice notification and clicks to view the invoice, there will be a Pay now button in the upper right corner. Module 2: Common Workflows 59

62 Topic 2: Money In When a customer clicks the Pay now button they can designate the amount they want to pay and enter their credit card or bank information. There is an option to save payment method to pay faster next time by not requiring them to enter the credit card or bank info the next time they click to view and pay an Online Invoice. Then the customer will verify the information entered is correct and click the button Submit payment. A confirmation page and receipt confirms to the customer that payment has been processed successfully. The Online Invoice will now show the paid status, the date payment was received and any remaining balance due. The company will receive an notification of the sale and QuickBooks Online is updated automatically with the payment, deposit and merchant fees. Recurring Sales Receipts with QuickBooks Payments Another use for QuickBooks Payments and QuickBooks Online is scheduling automatic charges to a customer s credit card. Companies with customers with fixed recurring fees can create a recurring sales receipt for each customer and schedule it to automatically record the sale and charge the customer s credit card. Module 2: Common Workflows 60

63 Topic 2: Money In Step-by-Step: Make Recurring Sales Receipts with QuickBooks Payments Navigate to the gear icon and select Recurring Transactions. Create a new recurring sales receipt. If you already have a sales receipt created for this customer that you d like to make recurring, navigate to that sales receipt and click Make recurring on the footer menu. Enter details about the template: the name of the template, schedule, interval and start date. Enter or review and modify details about the sale that you want QuickBooks Online to post for you automatically. Specify the payment method for the credit card you want to charge. Check the box to process payment. At the defined schedule, the sales receipt will be recorded and the customer s credit card will be charged. Funds will be deposited to the company s bank account. Be sure to keep a signed authorization form on file for these customers. You can attach it to the recurring sales receipt. Module 2: Common Workflows 61

64 Topic 3: Money Out Topic 3: Money Out In this topic you will learn about recording financial activity in QuickBooks Online for money flowing out of a business IDENTIFY BEST PRACTICES WHEN USING QUICKBOOKS ONLINE TO RECORD EXPENDITURES Expenses vs. Purchases It s important to understand QuickBooks terminology related to recording expenses directly to an account vs. recording expenses to an account by using a purchase form and Products and Services items. All posting transactions record activity to the general ledger and can be found on a financial report, such as the Profit & Loss report. However, only transactions posted using purchase forms and Products and Services items will be found on QuickBooks Online s purchase reports. Using Products and Services items to record both sales and purchases is referred to as double-sided items. This feature is only available in QuickBooks Online Plus and must be turned on in the Company Settings of your QuickBooks Online company in order to show the Products and Services Items section on sales and purchase forms. Expense Expense (or cost) is recorded directly by selecting the Cost of Goods Sold (COGS) or Expense account from a dropdown field. On a Profit & Loss report you can drill down into the COGS or expense account and find this transaction On a Purchase Report the transactions recorded directly to accounts will not be included Module 2: Common Workflows 62

65 Topic 3: Money Out Purchase Purchases are recorded by using a purchase form and Products and Services item to record the expenditure to the account mapped to that Products and Services item. In the end, the expenditure may be recorded to the same expense account, just as if you had posted it there without a Products and Services item, but using Products and Services items gives you more options for reporting and more control on how activity is recorded. On a Profit & Loss report you can drill down into the COGS or expense account and find transactions posted directly to the accounts and transactions posted by purchase forms using Products and Services items mapped to that COGS or expense account On a Purchase Report only transactions recorded using purchase forms and Products and Services items will be included DETERMINE APPROPRIATE EXPENSE-RELATED SETTINGS Expense Settings Before getting started recording transactions, configure the Company Settings for Expenses. Navigate to the gear icon, select Company Settings and click the Expenses category on the left side. Module 2: Common Workflows 63

66 Topic 3: Money Out There are two sections related to Expenses. Bills and Expenses Bills and expenses preferences allow you to: Use items on purchase forms (only available in QuickBooks Online Plus) Track purchases by customer and mark them as billable Specify default markup rate for billable expenses Define how to track billable expenses Choose whether you want billable expense income posted to a single account or multiple accounts Choose whether to charge sales tax on billable expenses Set default bill payment terms Purchase Order The Purchase Order setting lets you: Turn on or off the Purchase Orders functionality in QuickBooks Online depending on whether or not you will be using it (this feature is only available in QuickBooks Online Plus) Add custom fields to purchase orders, activate custom transaction numbers and create a default message for your purchase orders Module 2: Common Workflows 64

67 Topic 3: Money Out Advanced Settings Navigate to the Advanced category on the left side menu. Chart of Accounts The Chart of Accounts section lets you specify: If you turned on markups in the Expenses settings, you select the income account for markups here If you selected to track billable expenses to a single account, you select the income account here Automation Review the Automation section to set your preferences for pre-filling forms based on the last saved transaction for that vendor and automatically applying bill payments. Other Preferences In the Other preferences section it s a good idea to turn on the warning when a duplicate check number or bill number is used. Module 2: Common Workflows 65

68 Topic 3: Money Out RECOGNIZE ALTERNATIVE ENTRY POINTS FOR ENTERING PURCHASE TRANSACTIONS Purchase Orders Record money going out of the business using QuickBooks Online s purchase forms. Purchase forms have a lot in common. We ll go through each one and discuss their different purposes and functionality. You use a purchase order to tell a supplier you want to order goods or services. Recording them in QuickBooks helps you keep track of what you have ordered and what you have received. A purchase order in QuickBooks is a non-posting transaction; it may or may not lead to a purchase. Once the goods or services on the purchase order are received, the purchase order can be marked closed and the bill can be recorded. Purchase order functionality is only available in QuickBooks Online Plus. Step-by-Step: Create a Purchase Order Verify that Purchase Orders is turned on in Company Settings. Navigate to the Quick Create menu. Purchase-related transactions can be found in the Vendor column. Select Purchase Order. Enter the vendor name in the Vendor field. If the vendor does not yet exist in the Vendor List, you can add a vendor from any purchase form by clicking the Vendor field drop-down arrow then clicking + Add New at the top of the drop-down list. You can enter the name only and save, or click + Details to enter more information about this vendor. Selecting the vendor will pull in the vendor s and billing address. If no information pulls onto the screen, or if you want to change the information, make those changes on this screen. The purchase order defaults to a status of open. You can change the status to closed when the vendor fulfills the order or the order is cancelled. If the order is being shipped to one of your customers, select the customer from the Ship to field. This will pull in the customer s shipping address. Otherwise, your company information will be displayed by default. You may type in any manual changes in the Shipping address field. Enter the purchase order date. Add the shipping method, sales rep and any other information, such as custom fields available in the header section. These fields are text-based, there is no drop-down to an associated list. The Account details and Item details sections allow you to use accounts or Products and Services items to detail what you are ordering. Add a message for your vendor or internal memo for your records. Add attachments such as images, supporting documentation and communication related to the purchase order. 11. Notice that the form automatically calculates the total of the amounts in the detail grids for you. Module 2: Common Workflows 66

69 Topic 3: Money Out 12. Along the bottom of the purchase order you have the options to Cancel, Print, Make recurring and Save. Cancel will roll away this screen without saving the purchase order. Clear removes the data entered in the fields. Print will save the purchase order then let you view the PDF version on screen to see what your vendor will see. Hover over the PDF for options to Print to paper or Save PDF. Make recurring will give you the options to schedule this to enter itself automatically, give you a reminder or save it as a template to use later. You have several options to save the transaction. All of them record the transaction or any updates to it at the time you press the button. Save leaves you on the screen. Save and new takes you to a new purchase order. Save and close takes you back to the screen you were on previously. Save and send takes you to the Send screen where you can further customize the subject and body of your and preview your purchase order before sending. Once sent, the date, time and address the purchase order was sent to will display near the top of the form. 13. Once you save the purchase order you then have a More menu at the bottom of the screen. The More menu gives you options to copy the purchase order to another new purchase order, delete the purchase order, and view the audit history to see when and who added or modified this purchase order. Module 2: Common Workflows 67

70 Topic 3: Money Out You can run the Open Purchase Order report by vendor to keep track of upcoming open cash requirements. When you receive the items ordered from the vendor, you can convert the purchase order into a bill or check to save time when recording the purchase and automatically mark the purchase order closed. Bills In QuickBooks Online, a bill is something you owe to a vendor. You buy something that you haven t paid for yet and the vendor sends you a bill requesting payment. The Bill screen in QuickBooks Online is a purchase form. This form posts an accrual transaction the expense is recorded as incurred but no cash has been paid yet. The total amount of the bill will post as a credit to increase Accounts Payable. Individual charges on each line of the bill may be recorded using accounts or Products and Services items. These detail or split lines post as a debit to increase the account or mapped account in the item s Purchasing Information column in the expense account field. You use a bill when you are not going to pay the vendor right now, or you want to post the purchase to a date or period that is different than the payment date. Step-by-Step: Create a Bill The Bill screen is similar to the Purchase Order screen except now you have received the products/services and are recording the expense From the Quick Create menu in the Vendor column, select Bill. Select vendor Ellis Equipment Rental. Select the terms of Net 30 and enter a Bill date to calculate the due date for payment of this bill. Click the arrows to open/close the Account details or Item details section, as needed. In the Account details section, enter Equipment Rental expense, add a description and enter $ Recognize that if you ve turned on the appropriate settings, you will see options to mark charges as billable, taxable and assign to a customer. We ll skip these fields for now. Attach the scanned bill and any approval documentation you received in the Attachments section. Along the bottom of the bill you have options to Cancel, Make recurring and Save. Click Save. Once you save the bill the More menu is available to copy, delete and view audit history. Since it is a posting transaction you also have the option to view the Transaction Journal, which shows exactly how the bill is debited and credited to the general ledger. Click to view the Transaction Journal. Recognize that the charges you entered on the detail lines posted as a debit to the Equipment Rental account and the total of the bill posted as a credit to Accounts Payable. Entering bills gives you the ability to manage cash flow by running Accounts Payable reports to view unpaid bills and aging reports. Module 2: Common Workflows 68

71 Topic 3: Money Out Bill Payments When it s time to pay the bills you ve accrued for your vendors, you will record a bill payment. A bill payment is recorded against a bill and decreases Accounts Payable and cash. When the company is ready to pay a bill, you can do this one at a time or in batch. Step-by-Step: Pay a single Bill Navigate to an unpaid bill. Click the Make payment button in the upper right corner The vendor and bill you are paying are already selected. Update the bank or credit card account you will make the payment from. If you choose to pay the bill from a credit card you will not have the print options. If you pay the bill from a bank account the transaction type will be Bill Payment (Check). If you pay from a credit card, the transaction type will be Bill Payment (Credit Card). 5. Enter the payment date you may be recording a manual check paid yesterday or you may be printing a check now. Module 2: Common Workflows 69

72 Topic 3: Money Out Enter the reference number (check number, wire confirmation number, etc.) or check the box to print later. Adjust the amount if you are making a partial payment. Attach documents, like a copy of the hand-written check or wire advice. In the footer menu, print the check or save. Step by Step: Pay Multiple Bills If you want to pay multiple bills for multiple vendors at one time you need to access Pay Bills from Quick Create From Quick Create choose Pay Bills. Select Checking as the Payment Account. If you choose to pay bills from a credit card you will not have the print options. If you pay bills from a bank account the transaction type will be Bill Payment (Check). If you pay bills from a credit card the transaction type will be Bill Payment (Credit Card). 3. Enter the payment date as today. Module 2: Common Workflows 70

73 Topic 3: Money Out Check the box to print later. Click the Filter button and check the box to show bills with overdue status only. Check the box in the header row to select all overdue bills for payment. In the bottom right, verify the checking account register balance has sufficient funds to cover these bill payments Click Save and close. For purposes of this exercise, we will learn to create the bill payments here then print them in the following exercise. In practice you may click the Save and print button. When you click Save and print, the same steps will occur the Pay Bills screen will go to the Print Checks screen. Print Checks When you check the Print later box on any checks or bill payments it saves the transaction in a queue for you to print later. Step by Step: Print Checks in Batch From Quick Create choose Print Checks. In the sample company, if you encounter the Print checks setup screen, click the Yes, I m finished button to continue. The first time you click on this you need to make sure your checks line up correctly. Module 2: Common Workflows 71

74 Topic 3: Money Out On the Print Checks screen, select the Checking account. All checks and bill payments recorded and waiting to print later for this bank account will show in the list below. In practice you would now put the proper check stock for this bank account in the printer. Select the rows to print by checking the box. The Remove from list button takes the check out of the list. That means they did not get printed and you need to open each check individually to print it or mark it again to print later. You will probably only use this when you find a check that has already been printed or written manually. Recognize that sort and filter buttons exist to change the order of the rows and to limit the list to only show checks versus bill payments. Enter the starting check number 109 in the batch. Click Preview and print. Use the hover buttons on the print preview to print to paper or save to PDF. Some accounting professionals may the PDF to their client to print on paper check stock then sign and mail. Vendor Credits What if your vendor charged you a higher rate by accident, or you return something you bought from them but haven t paid for yet? When a bill you received from a vendor needs to be reduced, contact the vendor to issue a credit and record it in QuickBooks as a Vendor Credit to apply against the original bill. The Vendor Credit screen in QuickBooks Online is a purchase form and has the reverse effect of a bill. This form posts an accrual transaction the expense accrual is reversed and the balance due to the vendor is reduced. If there is no balance due to the vendor, a credit balance remains but no cash event is recorded. The total amount of the credit memo will post as a debit to decrease Accounts Payable. Individual charges on each line of the credit Module 2: Common Workflows 72

75 Topic 3: Money Out memo are recorded using accounts or Products and Services items that post as a credit to decrease the account or item s mapped account in the item s Purchasing Information column in the expense account field. Checks The check transaction type in QuickBooks Online is the cash equivalent of a bill. Sometimes you need to hand-write a check for something on the spot, like the UPS driver who has just delivered a COD shipment and is waiting in the lobby for the check. Hand-written checks can be entered in QuickBooks Online on the Check screen. Maybe your client sends checks to vendors and contractors using their online banking bill pay service. The payment has been sent but you ll still want to enter the check in QuickBooks Online. When companies don t accrue expenditures or track payables, these cash expenditures paid by check outside of QuickBooks Online can be recorded using the Check screen. The Check screen in QuickBooks Online is a purchase form. This form posts a cash transaction the expense is recorded as incurred and the payment is recorded as paid. The total amount of the check will post as a credit to decrease cash in the bank account selected on the screen. Individual charges on each line of the check are recorded using accounts or Products and Services items that post as a debit to increase the account or item s mapped account in the item s Purchasing Information column in the expense account field. Step-by-Step: Create a Check Billable to a Customer Craig s Design & Landscaping wrote a manual check From Quick Create choose Check. Select the vendor Cal Telephone. Specify the Checking account as the bank account used to pay the expenditure. Type a T in the date field to make sure it shows today s date then type (the minus key) to go back one day to yesterday. Specify the check number In the Account details grid, select the Utilities:Telephone account and enter the amount $ Click Save and close. Module 2: Common Workflows 73

76 Topic 3: Money Out Expenses The Expense transaction type in QuickBooks Online is similar to a check but with no check number. This is used to record cash purchases, bank account withdrawals such as bank fees, and credit card purchases. This screen allows you to record expenditures and purchases from any bank or credit card account. The check transaction only let s you record payments made out of a bank account. When a client hands you a shoebox full of receipts paid by various bank and credit card accounts and asks you to record everything in the box, this screen is your one-stopshop for doing so. The Expense screen in QuickBooks Online is a purchase form. Just like the check, the expense form posts a cash transaction the expense is recorded as incurred, and the payment is recorded as paid. The total amount of the expense will post as a credit to the account selected in the header section of the screen. If a bank account is selected the transaction will decrease cash in the bank. If a credit card account is selected the transaction will increase the balance due in the credit card liability account. Individual charges on each line of the expense are recorded using accounts or Products and Services items that post as a debit to increase the account or mapped account in the item s Purchasing Information column in the expense account field. You can add a new expense from the Quick Create menu and fill out the screen just like a check, except you won t specify a check number, you won t be able to print it later, and you will specify which bank or credit card paid for the expense. Module 2: Common Workflows 74

77 Topic 3: Money Out Credit card credit When you get a refund on your credit card and need to record it, use a credit card credit. The Credit Card Credit screen in QuickBooks Online is a purchase form and has the reverse effect of an expense. This form posts a cash transaction the expense is reversed and the credit card charge is refunded to the credit card. The total amount of the credit card credit will post as a debit to decrease the balance due in the credit card liability account. Individual charges on each line of the credit card credit are recorded using accounts or Products and Services items that post as a credit to decrease the account or mapped account in the item s Purchasing Information column in the expense account field. Add a new credit card credit from the Quick Create menu and fill out the screen just like an expense, knowing it has the opposite effect and you can only select a credit card account in the upper header section. Adding a Purchase Order to a Purchase If you used a purchase order to request items from a vendor, you can automatically close out the purchase order and apply it to the purchase. This saves time and completes two tasks at once. Step-by-Step: Add a Purchase Order to a Bill Once you receive the goods/services ordered, record the purchase by creating a new bill From Quick Create select Bill. Select the vendor Tim Philip Masonry. Open purchase orders for that vendor will show in the drawer. Module 2: Common Workflows 75

78 Topic 3: Money Out 4. Add the purchase order to the bill to quickly copy the details of the order to the purchase form. 5. Add any additional adjustments and save the purchase form. QuickBooks will update the status of the purchase order to closed and add a link from the purchase order to the bill. If you add a purchase order to a purchase then decide to remove it, you ll need to clear the lines added to the account or Item details table and reopen the purchase order manually by changing its status back to open. Billable Expenses When a vendor charges you for an expenditure that you want to charge to your customer, mark it as billable. This makes the billable reminder available to charge to your customer when you prepare an invoice. Mark expenditures billable on Account and Item details rows on most purchase forms bills, checks, expenses and credit card credits. If any of the charges from the vendor are billable, check the box then enter the customer to which they are billable. If mark-ups have been activated in QuickBooks Online, confirm or specify the mark-up for the charge. If the charge is taxable to the customer, check the box. Module 2: Common Workflows 76

79 Topic 3: Money Out Step-by-Step: Record an Expense Billable to a Customer From Quick Create choose Expense. Enter the vendor Tania s Nursery. Specify the Mastercard account as the account used to pay the expenditure. Type a T in the date field to make sure it shows today s date then type (the minus key) to go back one day to yesterday. Delete any pre-filled information in the Account and Item details sections; click the Account details section to close/hide it. In the Item details grid, select Soil from the Products and Services column s drop-down list to enter the purchase of 20 bags of soil at $6.50 each. Notice that there are only a few Products and Services items available in the drop-down list. Only those items that have been activated by assigning purchasing information and expense accounts are available for use on purchase forms. If you ve turned on the appropriate settings you will see options to mark charges as billable, taxable and assign to a customer. Mark this expenditure as billable to Cool Cars. Check the box to mark it as taxable. Save and close. 10. From Quick Create select Invoice. Module 2: Common Workflows 77

80 Topic 3: Money Out Select Cool Cars in the customer field. Notice that the drawer opens showing the billable expense for the soil to remind you to charge the customer for it. Click Open on the billable charge. (Click Yes to leave the invoice without saving.) 13. This billable expense is a non-posting transaction. No accounts are debited or credited by this billable expense. A billable expense is created by and linked to a posting transaction that you marked as billable to a customer. When you open the billable expense from the drawer, you can see and change details about the billable expense. It is a reminder to add it to an invoice at some point, at which time it will then post to the general ledger via the invoice. TIP: If the charge was not billable to a customer but was still related to a customer, do not check the billable box but still enter the customer. Then when you run a P&L by Customer, you can allocate all the expenses you incurred against the income for that customer. Convert Check to Bill Payment When you enter a check to record a purchase, be sure to review the drawer when it opens for the vendor. You may find that a bill has already been recorded for this expenditure. You don t want to enter a check and debit the account or item details again, when the bill has already recorded them. Instead, add the bill to the check from the drawer and QuickBooks will convert the check transaction into a bill payment transaction then mark the bill as paid. This functionality helps reduce overstated expenses and growing accounts payable balances that have already been paid. Module 2: Common Workflows 78

81 Topic 3: Money Out Step-by-Step: Convert a Check to a Bill Payment From Quick Create, add a check to Brosnahan Insurance Agency coded to Insurance expense for $ Notice while entering this information that the drawer is out with a bill showing in it. You realize this expense has already been recorded by the bill. 3. Add the bill in the drawer to the check. Module 2: Common Workflows 79

82 Topic 3: Money Out 4. Recognize that QuickBooks replaces the insurance account coding and converts the check to a bill payment linked to the bill. Now the expenditure hasn t been overstated and the Accounts Payable balance is accurate. Even if the check had already cleared the checking account and been marked as reconciled, this fix works and retains the reconciled status on the new bill payment transaction type. Module 2: Common Workflows 80

83 Topic 3: Money Out Vendor Center Just like the Customer Center, QuickBooks has a Vendor Center for all the entities from whom we make purchases. Navigate to the Vendor Center in the left navigation pane in QuickBooks Online. The Vendor Center lets you manage vendors, their existing transactions, new transactions and batch actions. The Vendor Center includes a Money Bar to quickly view important information related to expenditures: Unbilled Activity, Unpaid Activity and Recently Paid Activity. Below the Money Bar is a list of vendors. Drill down on the Money Bar to filter the list of vendors below. Above the Money Bar is a button to add a new vendor. Add the vendor s address, contact information, terms, account number, 1099-eligibility and notes. Clicking the down arrow next to the button lets you Import Vendors. QuickBooks Online Plus subscribers will see a white button that takes you to the three-step wizard to prepare 1099-Misc. Below the Money Bar is a grid of vendors. Use the search box above the grid to quickly find a particular vendor Print or export the vendor list to Excel Module 2: Common Workflows 81

84 Topic 3: Money Out The columns of the grid can be edited by selecting the grid s gear icon to show the address, and phone, include inactive vendors in the list, and change the number of rows showing from 50 to 150 to 300. The next time you open the Vendor Center, QuickBooks Online will remember your preference. Click the column headers to sort forward and backward by that column Click on a vendor name to view or edit the profile information and see a list of transactions related to the vendor or add a new transaction for the vendor. Click on the envelope icon next to a vendor name to launch your native client and compose an already addressed to the vendor Click the Action link to perform the next logical step that QuickBooks Online suggests based on current open transactions, or click the down arrow next to the link to create bill, create expense, write check, create purchase order for or make inactive the vendor on that row Click the Purchase Order filter on the Money Bar to view open orders you may want to close out and enter a bill for. Click the Open or Overdue Bills filter on the Money Bar for a list of vendors you owe. Drill down into the open bill link if you want to view details. Notice that the action link suggests making a payment. If you click this link, QuickBooks Online will create a bill payment for this vendor for all of the open bills. In addition, you can vendors in batch by using the Batch Actions drop-down list. These s can use your choice of web-based or client. Module 2: Common Workflows 82

85 Topic 3: Money Out Entering Transactions from the Vendor Center Step by Step: Create Bills from the Vendor Center On the Vendor Center, locate the row for Bob s Burger Joint. Under Action, click Create bill for Bob s Burger Joint. NOTE: Because of the company setting, you have the choice to post directly to an account on the Chart of Accounts or use an item off the Products and Services List or a combination. 3. Under Account details, enter Advertising for $2,500, billable to customer Amy s Bird Sanctuary. Module 2: Common Workflows 83

86 Topic 3: Money Out Save and close. The action link suggests you make a payment but you want to enter another bill. Click the down arrow next to the action link and choose to add a bill for Bob s Burger Joint. Record this bill for Meals and Entertainment, $ then click Save and close. In the Vendor Center, click on the Money Bar s Open Bills section. See that there are two open bills for Bob s Burger Joint. Step by Step: Pay Bills from the Vendor Center 1. In the Vendor Center, from the Action column, click Make payment next to Bob s Burger Joint. QuickBooks opens the Bill Payment screen with the outstanding bills listed and check-marked for you to pay. At the top of the screen you can choose to pay via bank account or credit card. Module 2: Common Workflows 84

87 Topic 3: Money Out 2. At the bottom of the screen click Save and close. Expense Center The Expense Center is found by navigating to the Transactions > Expenses screen in the left navigation pane. The Expense Center lets you manage existing purchase transactions and add new ones. Instead of a list of vendors, we see purchase transactions for the last 365 days. Unlike the Customer, Vendor and Sales centers, there is no Money Bar. Module 2: Common Workflows 85

88 Topic 3: Money Out At the top of the screen we can add new purchase transactions. We can also access the Pay Bills and Print Checks screens we saw earlier on the Quick Create menu. Most of the screen shows a grid of expenditures. Use the filter button to search by specific purchase transaction type, status, delivery method, date, payee and category; use the date filter to see more than the last 365 days Print or export the expense list to Excel The columns of the grid can be edited by selecting the grid s gear icon to show the method, source, memo, due date, balance, status, attachments, type, number, payee and category, change the number of rows showing from 50 to 150 to 300, and switch to compact rows. The next time you open the Expense Center, QuickBooks Online will remember your preference. Click the column headers to sort forward and backward Notice the category column lets you change it without opening the form; this is different than the other centers Click the Action link to perform the next logical action QuickBooks Online suggests based on current open transactions to print checks or copy purchase orders Step by Step: Enter Expense Type of Transaction On the Expense Center s New Transaction button s drop-down menu, choose Expense. Enter an expense for the vendor Books by Bessie. It was paid with a Mastercard; it was for Dues & Subscriptions for $10. Module 2: Common Workflows 86

89 Topic 3: Money Out At the bottom of your screen click Save and new. Enter a transaction for Computers by Jenni. It was paid out of Checking with manual check number 32. It was for Commissions and Fees for $100. Save and close. On the Expense Transactions page, both expenses show up but one affected the bank account and the other a credit card account. If you find you categorized the expense account incorrectly, then you can change it here in the Expense Center by using the drop-down fields in the Category column. Module 2: Common Workflows 87

90 Topic 4: Other Transactions Topic 4: Other Transactions IDENTIFY ADDITIONAL TRANSACTIONS INITIATED USING THE QUICK CREATE MENU There are other types of transactions that can be accessed from the Quick Create menu. Timesheets Time tracking is only supported in QuickBooks Online Plus. QuickBooks Online Plus allows for unlimited time tracking users so employees can log in and enter the details of the work they ve performed. Time tracking-only users can only see their timesheets in; they cannot navigate to other screens. Time can be tracked using the Single Time Activity or the Weekly Timesheet function. Timesheets are non-posting transactions that capture hours worked. Time tracking entries can be viewed on Time Tracking reports. Timesheets can be used to calculate paychecks. This feature can be used even if you are not signed up for QuickBooks Online Payroll. Billable Time Timesheets can be used to create billable time charges for customers. Configure the advanced Company Settings for Time Tracking to activate using Service and Customer fields on time tracking. Step-by-Step: Enter Billable Time From Quick Create in the Employees column, select Single Time Activity. Enter the name of the employee or vendor whose time is being tracked. Enter the date the work was performed. If the employee was providing a service, enter the customer for whom the work was performed. Enter the service performed. Check the box to mark it billable if the hours should be pulled onto an invoice. If the work is for a fixed-fee engagement or weekly maintenance plan, leave it unchecked so it won t show in the drawer. Adjust the billing rate if needed. Enter the time tracked as three and a half hours, either in HH:MM format ( 3:30 ) or decimal format ( 3.5 ). If you enter a decimal, QuickBooks will convert it to hours and minutes. Alternatively, check the box next to Enter Start & End Times then fill in the fields for Start Time and End Time. Module 2: Common Workflows 88

91 Topic 4: Other Transactions 9. Enter a description of the work done. Billable time tracking descriptions are not internal notes, this will pull onto the invoice. 10. Select Save and close or, by clicking on the drop-down box next to Save and close, select Save and new. Module 2: Common Workflows 89

92 Topic 4: Other Transactions Step by Step: Fill out a Weekly Timesheet Select Quick Create (+) at the top of the QuickBooks Online window. If necessary, select Show More. Under Employees, select Weekly Timesheet. Enter the name of the employee or vendor whose time is being tracked. Enter the work week for which the time is being tracked (the preferred first day of a work week for this company is determined in the Company Settings for Time Tracking). In each row of the Weekly Timesheet grid, enter the customer for whom this individual s time is being tracked, the service being rendered during this time, and the time tracked day by day during the week, either in HH:MM format ( 3:30 ) or decimal format ( 3.5 ). If necessary for invoicing purposes, enter the rate and the Taxable status as well. Select Save and close or, by clicking on the drop-down box next to Save and close, select Save and new. Module 2: Common Workflows 90

93 Topic 4: Other Transactions Deposits In the sales transaction section of this module, we learned about depositing customer payments and sales receipts to the Undeposited Funds account. Then we learned how to navigate to this Deposit screen to group them together. There are additional uses for this form. Some examples are: For companies that don t record income using sales transactions and want to record deposits directly to income accounts, use this Deposit form For companies that receive a refund from a vendor and want to record it directly against the expense account or to a Refunds Received income account, use this Deposit form When an employee reimburses the company, use this Deposit screen to record it against the Employee Loan receivable account When you receive a tax refund, use this Deposit screen to record it to Tax Refunds account Step by Step: Make a Bank Deposit Select Quick Create (+) at the top of the QuickBooks Online window. If necessary, select Show More. Under Other select Bank Deposit. Select which bank account you are using for the deposit. Fill in the date. If there are any monies in Undeposited Funds, they will show up on the top part of the screen. Select Existing Payments if they are part of the deposit. In the Add New Deposits area, add any other payments received, typically non- sales-related transactions. If you are taking cash back from the deposit, click in the posting account, i.e., Petty Cash or Owner s Draw, and the amount of cash be taken. 10. Click Save and close or Save and new. Module 2: Common Workflows 91

94 Topic 4: Other Transactions You can also print a deposit slip and summary using preprinted deposit slips or a summary only that you can print on plain paper. Module 2: Common Workflows 92