 Zero Accounting Software 2023. Assign expenses to a customer or project. Get ready to become an Accounting Hero with Zero 2020. Support Accounting Instruction by clicking the link below giving you a free month membership to all of the content on our website broken out by category, further broken out by course. Each course then organized in a logical, reasonable fashion making it much more easy to find what you need than can be done on a YouTube page. We also include added resources such as Excel practice problems, PDF files, and more like QuickBooks backup files when applicable. So once again click the link below for a free month membership to our website and all the content on it. Here we are in our custom zero homepage going into the new company file. We set up in a prior presentation that being get great guitars duplicating some tabs to put reports in like we do every time right click in the tab up top so we can duplicate it right click in that tab up top again so we can duplicate it again back to the tab to the middle. We're going to go into the Accounting drop down and open the balance sheet report and then we'll tab to the right go to the Accounting drop down and this time open up the profit and loss or income statement I'm going to go back to the left tab hit the drop down for the date and customize that date bringing it on up to 2023 the end of it and update the form. If I go to the income statement it is from January to December 2023 so it looks good to go from the start. Let's go back to the first tab now and now we're going to be entering a few expenses that we are imagining that we want to pull on over to bill a customer for. Now we touched on this technique with some inventory items but it's more likely that you would use this in a job cost kind of system say if you have a bookkeeping firm or something like that or construction type of system where when you're paying for your expenses you want to pull those expenses over into the invoice so let's take a look at a flow chart real quick here if I take a look at a flow chart we're have kind of a crossover between the vendor cycle which is going to be the outflow by the way this is a QuickBooks desktop flow chart but we're just looking at it to look at the flow of standard documents through the accounting process. So we're going to have an outflow we're going to be spending money on stuff and then as we do so we want to say hey look I would like to include what I spent the money for on a client invoice so that's going to mean that when we get into the invoice side of things we're going to start to build our invoice by the things that we spent the money on which is typical in like I say a job cost type of thing and you might use say projects in that type of system tracking your costs by the project. Now we have to be careful when we do this because when we're up top and we're recording it as an expense we're going to have it an outflow of cash the other side go into an expense like supplies expense or something like that or automobile expense or gasoline expense as we normally would but when we pull it into the invoice we would typically like to have the line items say hey look customer this is you us charging you for an expense related to automobile or supplies or whatever but usually we don't want to actually decrease the supplies expense treating it as like a reimbursement in terms of the expense account going down but rather we normally want the income account to go up we just want to be adding the line items to the invoice in terms of how we're getting to that bottom line amount that's going to be on the invoice that we're charging the customers for which we want to put on the top line item as sales or revenue so let's take a look at some examples of this now we set up our jobs in the past or projects so if you hit the drop down and the projects is usually over here if you haven't turned it on and then you get this projects tab up top if I go into the projects we have the two projects for 3005 4002 which are tied to customers Jones guitars and Sam the guitar man so now we're going to enter a normal type of expense I'm going to hit the plus button up top and let's say we're going to say spend money form so money is going out usually when that happens is because we're paying for some kind of expense that we need in order to help us generate revenue in the business and let's say that this is going to go to I'm just going to type in office depot so we have office depot and we'll say it happens on January let's hit this one Jan Jan 30th Jan 30th and so there we have it and then the item so I'm going to put in here now notice I'm not going to use an item because we're not going to be buying inventory items I'm just going to put we could put the descriptions supplies that we're going to be purchasing quantity one I'm just going to say the price of them I'm going to say is 130 we're going to assign it to the expense account of supplies do we have a supplies expense we do there's the supplies expense and then I want to be able to win I pull this over to the customer for it to pull this on to the customer side of things so we can do that by having this button down below which is assign expenses to a customer or project so I'm going to select that and then we could select the customer or project I'm going to say 3005 which was our project that we set up so we could assign it to a customer or the project going to the the project number and then I only have one line item so I'm just going to pick that line item and say that that supplies I want to assign it to the customer note that before you hit the big blue okay you want to make sure you select assign so we're going to assign it so now it has been assigned and then click okay if you just hit okay it won't assign it so if I go back in here now and I take a look at it again you can see that it has been assigned it's over here on the right hand side if I close this out note you can also see it here where it says Jones guitars 3005 now before I record this also note you want to make sure that you have a description which is something that you would like to be pulling over to the invoice because when we create the invoice it's not going to pull over the account name it will be pulling over the description so when we record this normal transaction decreasing checking account the other side going to supplies but it will also be available for us to populate an invoice with for the project 3005 so I'm going to record it let's just take a look at it go into the balance sheet updating the balance sheet and then going into the checking account just to see the normal transaction that has been recorded and scrolling on down we've got then the 130 there scrolling back up back to our report let's go to the income statement update it and the other side should be of course on the supplies expense showing the expense so it should be here so there's the 130 there that looks good going back now let's take a look at the project now if it wasn't a project but just a customer I might run like a billable expense type of report but here I'm tracking by the project so I want to go into the project icons we'll go into like the old projects and then we assign that to 3005 so if I go into 3005 and scroll down you see the supplies down here now note that you might have a system where you want to kind of mark it up before you add it to an invoice so notice it hasn't really been added to the to be invoiced column yet it's in the time and expenses but not to the add to the invoice side so what we can do is we can go into this item and then and we could see the general information here the date the quantity that the markup the unit price and so on and so forth and we can create the invoice from this area so it has the draft invoice so I can or we can go to the bill so I can then go into the invoice from here and then it'll populate the invoice notice it pulled in the description so it's going to Jones guitars and then and then it populated the description so let's make this as of January 30 so I'm going to bring this back to January 30th as well invoice reference standard form notice that no item is being populated here because we pulled over just kind of we made it billable we didn't have an item it's not an inventory item that pulled over what did pull over is the description plus it gave us the little reference down below referencing the project it pulled over the amount it doesn't give us an account because it doesn't know the account to go to because that's usually populated by the item so then we can go in here and assign an account now it's important I oftentimes when I've seen people basically pull in something from a billable item sometimes they they feel like it's a reimbursement type of situation so they go in here with the account and they put in supplies expense right and that means that the supplies expense account went up and then back down again that's not typically what we want to do usually you want to put it into a revenue account I just want to show you what not to do just so we can see the difference between these two things so sometimes people might say well it's a reimbursement so I'm gonna put it into supplies right and because because they're repaying me for the supplies that I that I got so I didn't really pay for the supplies they pay me for the supplies right they would be the idea but usually wanted in the revenue account I'll just show a demonstration of the two the difference between the two now notice if you if you needed to mark it up at this point when you created the invoice you could then add another line item which would and say it was a 30% markup or something like that or we could change the unit price here if we wanted to mark it up from there but let's go ahead and approve it so this is an invoice so it's going to be increasing the the accounts receivable the other side's going to go to not revenue because we assigned it to an expense account which is not exactly right here but then it's going to track also the project that was assigned to 3005 so let's approve it and the due date field let's put that in February we'll say February 28 let's try it again and approve it por favor okay so if I go back to the balance sheet then and update it we should have in accounts receivable if I go into the AR accounts receivable we should have revenue scrolling down we're gonna have the revenue for the 130 and the accounts receivable and then the other side going back on over and on the income statement updating it notice normally you would think would be in the sales because I've recorded the expense down here but instead we put it to the reimbursement of the expense which is not generally what you want to do but I've seen people do that so you want to be careful not to do this in essence because really what you want to say is that I know this is a reimbursement of my expense but I want to put it on the on the revenue side so that the income statement has revenue minus expenses otherwise what's happening is I'm lowering my expense account here notice the net impact on net income is the same either method but it doesn't give you the detail of the revenue what you're charging versus the expenses revenue minus expenses it's netting out kind of a reimbursement on the expense side of side of things so I'm gonna go back on over if I go into my project over here go into my projects all projects then we're gonna go into 3005 and we can take a look at our profitability and and see our profitability and the invoiced amount here calculated and we can run the reports by project if we so choose alright so let's do this again and we could like start on the project so let's go into all projects here and this time let's go into 4002 and let's add basically the expense from this side of things well I'll still go up and add the expense up top here though I'm gonna say up top I'm just gonna make sure we're gonna go to 4002 and I'm gonna say spend money for him so I'm gonna imagine we have money going out again it's gonna go out of the checking account and then I'm gonna say this is gonna be office depot again office depot and we're gonna say that this happened on January 30th again and we're gonna say description is supplies and we're gonna say that this is one and or let's say quantity one and 200 let's go 200 this time and then I want to assign it to the supplies account supplies same process but then assign expenses to a customer or a project and we want to go to 4002 Sam the guitar man check it off make sure that we assign it which will populate it over here on the right hand side and when I hit okay with the big blue button I should see it down here as well now note again I didn't assign an item to it so what's gonna pull over when I pull it over to the invoice not the account because the account it doesn't know what account to assign it to on the income side it will pull over the description so we want to make sure even though you're gonna say well the account says supplies you want to put supplies in the description if you're gonna pull it into the invoice so it'll populate when we pull it over on the invoice side what's this going to do it's gonna be decreasing the the checking account the other side's gonna be going to the supplies expense account and it should pull into the project so we can make an invoice from it let's save it and then check it out so we'll save that go on over to the balance sheet update the balance sheet go into the checking account check out the checking and see k posso a key and we'll scroll down and we see then the 200 right there that makes sense and then going back let's go to the income statement update the report and go into the supplies once again we should have the supplies item and so I'm gonna scroll down and say okay now we've got the supplies for the 200 now instead of reversing it out when I record the invoice I want to make sure to record it as revenue to see the difference between these two so I'm gonna go back on over and let's go back to the first tab and then go to the projects drop down all projects and let's take a look at 4002 if I scroll down now we've got the supplies item down here if I go into it then it has the ability to edit in a sign now when I go into it so this is what else so now we can we can edit it so it's a supplies account track to estimate date quantity the price is pulling over and here's where we have the option to mark it up if we want to so if we want to mark it up we could or we could just pass the cost on so I'm gonna say pass the cost on to pull it into an invoice and then I'm gonna hit save here and so now we have that item in and it's now assigned so if I scroll up those that's the amount to be invoiced as a 1,800 and the one 1000 so now I can make an invoice from that so if I go to the invoice drop down up top and I want to say tasks and expenses for example here's my my tasks I'm looking at the expenses so here's my expenses down below on the 200 and let's go say let's say up top let's say save an open draft invoice let's go to that and it should populate an invoice for us so it gives us the name let's go to the the date bring it on back to January 30th and date let's go to Feb February 28 let's say and then it populates everything down here again it pulls in the description just gives us the supplies and then the the project and so there we have that now we have to assign the account so I'm not gonna assign the account to supplies this time but some kind of revenue account right that's where it should be going so possibly sales or service revenue let's go into service revenue and I'm not gonna say it's gonna have a tax rate for it notice the tax rate isn't populating automatically either because there's no item to drive that to populate it so you need to when we create the invoice pulling this information in make sure that we assign the proper account and the tax and then when we make the bill we have a nice description to pull in so that the client can see what we're billing them invoicing them for what's this gonna do it's gonna increase the accounts receivable the other side this time is gonna go to the proper revenue account and the project is going to be charged for this as well so we're gonna say let's approve it and let's go back into it's thinking alright it's approved balance sheet update the balance sheet we should have an increase to the accounts receivable now going into the accounts receivable on the balance sheet scrolling down we've got this Jones was the 130 here's the Sam here's the 200 back to the report income statement let's update the income statement and then now we put it into the service which is where we wanted it to go so if I go into services we have it properly populated in the revenue account so that on the income statement now we're not having a reimbursement of the expense that's decreasing the expense accounts because the expense accounts usually only go up we shouldn't have them go down typically and so this would be the proper way to do it we build the client even though it's for the same amount it's gonna net out to zero and you can't you can think of it as a reimbursement of the expense but it's revenue you expended the expense in order to help you to generate the revenue so we should be breaking those two line items out generally so let's go back on over to the first tab now and just note that we can track the invoices like we normally would we can we can say okay let's go to the business drop down and take a look at the invoices and so we've got our invoices that have been populated we can look at them this way there's you know the Sam the guitar man and Jones guitars and we could say a waiting payment here the invoices a waiting payment we could go into the contacts and we can go into the customers and look at them this way because remember that the projects are assigned to a customer so we're following up with Sam the guitar man and and Jones guitars was the other project I think so I can go into Sam the guitar man here and track the invoices this way we can then go into the projects if we so choose so I can go into my projects all projects and I can look at my reports on a project by project basis so I can go into the Jones guitars so here's the estimate we didn't make any estimates we have the invoiced amounts the time and expenses and the to be invoiced notice that this to be invoice includes I believe some time that we actually did invoice so if I go into my time here and if I had already invoiced this item we can hit the drop down here and say mark as invoiced so now it's been invoiced and if I go back on over to my summary then everything has been invoiced out and our reports look good from that summary statement quotes and invoices and then the profitability gives us our nice summary of the profit which is the invoiced amount revenue minus the costs that we have assigned out we could take a look at the project financial report going into the project financial report and so here's our information here so the the project name project items we've got the expenses and then the cost amounts the charge amounts and the invoice amounts we can also go into our reports on the right-hand side duplicate this tab and let's just take a quick look at the project reports and so we can go in here and say okay let's go into our accounting and let's go into our reports and then you have your various project reports we can type in up top project in project detail project details the old version time and expenses so let's go to project detail reports and so then we'll make this going from January we want to say this is going to be in progress all the in progress reports and so here we've got our project detail for the two projects that we broke out let's open up another one right-click and duplicate and let's go into the reports up top so we'll go into accounting reports and go into project reports now we've got the project detail let's go into the project summary report project summary report for let's just take a look at the in progress ones and so here we have it for Jones 3005 Sam the guitar man gives us a summary of the cost to charge the invoice online item let's take a look at another one let's go to the accounting and reports and go into the project reports we got the project financials let's take a look at that one and we can go into here and say I'm just looking at the in progress items again and so project financials cost charge invoiced amount and your profit percentage profit for the two projects and last lay let's take a look at that last one accounting reports and go into project and detailed time you got the project time and expense report if we go into that and we go into our in progress and so we have our time and expense reports okay so notice that as the projects are populated if I go back into this first tab and take a look at the all projects then you can transfer the projects to being you know in progress versus draft versus closed right so draft projects when you start the projects it's in progress and then of course when you're done with the project you can move it into the closed as you could see then being populated or shown on the reports so for example if I went into 3005 here and I go into the three dots if I close the project and then go back to my project summary now we only see this as open and then the closed project has now been moved on over to the closed project all right so let's go back on over to the tab to the right and open up our trial balance to see where we stand at this point in time accounting drop-down reports opening up the trustee trial balance so I'm going to go up top and type in trial balance and go into that and then let's do our date range change bringing it up to 2023 and the end of it running it so this is where we stand at this point in time so if your numbers tie up to these numbers great if not it might be a date issue so so you can expand the date and see if there's a change see if that's changing the numbers if it is then drill down on the information go back to the source document and make a change to the date