 Zero Accounting Software Invoice Form. Get ready to be an Office Hero with Zero. 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 then 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. We set up in a prior presentation holding down control scrolling up a bit on the mouse wheel to 175% zoom in. I'm going to open the demo file but before we do I'm just going to reset the information within it that will reset and open the demo file once open. We're going to be opening up the major two financial statements going to hide this balance sheet and income statement that is in a new tab by right clicking the tab up top and duplicating it. I'm going to right click on the duplicated tab and duplicate it again going back to the middle duplicated tab so we can go to the accounting drop down reports open up the balance sheet report one of the faves and then on the tab to the right we're going to go into the accounting drop down reports and this time open up the income statement or profit and loss back to the balance sheet tab we're going to go to the drop down I'm going to change the date to bring it on up to 2022 so the end of 2022 update it back to the first tab so now we've been talking about the revenue cycle the customer cycle the cycle in which we expect at the end of the process to be receiving cash increasing the checking account from customers for goods and services provided if we look at the flow chart you'll recall that we could have multiple different formats depending on the type of industry we are in the easiest one being we have youtube or something give us money or a platform where we might just use a deposit form or we might have a cash register situation being on a cash based system but not one which we can wait till the deposit clears the bank before recording it or on an accrual based system which we are talking about now where we will have to do the work first invoice the client and that will increase the accounts payable account and then we'll have to track and get the payment on the payable account so I'm going to go back on over and say all right let's do that process we can go to the drop down here and we've got the invoice this would be the form used if we're going to bill the client and expect to be receiving the money in the future versus the receive money form if we're going to get paid at the same point in time such as like with a cash check register a cash register situation food truck or something like that so let's go to the invoice up top entering an invoice so we're going to say this is going to go to let's just make another customer of a a a so it'll be at the top of the list we're going to say December 2nd invoice number and that looks good dollar okay and I'm going to say tax exclusive let's actually create another item now the items are the things that we actually sell so we'll talk more about items in the future but you might be having service items or you might have inventory items now if you don't have an item and you just want to record the the dollar amounts over here and assign an account you may be able to do that but you're going to lose a little bit of information in that you can't really track subsidiary reports by item by the thing that you're selling even if that's service item stuff so let's go ahead and add another item as we go and so I'm just going to say let's say add a new item as we go let's just call it test item test item one and I'm going to copy that generic name and paste it here test item one let's say that it has a unit price of uh we're going to say one thousand dollars and the sales account we're just going to put it to sales which is a revenue type of account and then the tax on it let's say that we have the tax on sale for this item so I'm going to say there's a tax on the sale for the sale side of things and this tax is going to be dependent on where you're located so you might have the tax on the sale tax on the purchase tax different taxes per the location but usually we're going to have to set up the sale tax items to be able to select that we will probably dive into that more in the future but now I just want to note that if you have the item set up then that can help you to drive the taxes and we want to see what the tax implications or impacts will be when we record an invoice and then if we want to track the item meaning we're not using a a periodic system but rather a perpetual system we would turn on the tracking of the item down below we're going to track it to the our inventory account and that also adds this item up top on the purchase side of things when we purchase the inventory let's say we purchase it for seven hundred dollars and we sell it for a thousand cost of good sold there's just going to be the cost of good sold account meaning the account that's going to be expensed when we create the invoice and I'm going to say it's tax exempt on the purchasing side of things that looks good I'm going to say save it now we're not going to have any on hand I might have to include one on hand in order to make the sale but for now let's just think about what this would do if recording it so now we're going to say okay there's the total down here includes the tax so because it's an invoice it's going to increase the accounts receivable it's going to increase the accounts receivable by the full amount including the tax and then the sales is going to be increased by the amount that we charged the one thousand dollars not including the tax go into the sales account of the of the four thousand here which is driven by the fact that we set it up in the item to go to that particular account now the sales tax is not going to go into the income statement generally but rather to a payable account because the idea is that we're not really charging the sales tax whoever's forcing us the government is forcing us to be their tax collector so we're not going to generally record the the sales tax that we collect or are going to collect on the income statement and we're not going to record an expense for sales tax expense because it's going to be an off-income statement item it's going to go in and out of a payable account on the balance sheet and then we're going to have the inventory that would be going down by not the thousand dollars in this case but rather the seven hundred dollar price that we would have bought the the inventory for on a perpetual system and the cost of goods sold would be going up which is an expense account related to the inventory for that seven hundred dollars the net impact on the income statement would be the thousand dollars we charged minus the seven hundred dollars for the cost of the inventory so that's going to be so notice there's a lot going on with just this pretty basic invoice and even though there's a lot going on the data input should be fairly straightforward and easy meaning we can allow someone to do the data input that doesn't have any understanding really too much of how the thing was set up or the impact on all the accounts in the end result we can see that for example when you check something out on a self-checkout in like the grocery store there's a lot going on every time you scan something but if we have the whole system set up they can do it basically automatically without you needed to know much about what's happening from an accounting standpoint and and so that's the beauty of the process now note that if you just sold something that wasn't subject to tax and didn't have any inventory related to it the invoice would generally just be increasing the accounts receivable the other side going to the sales account now when it increases the accounts receivable it's also going to be applied out to this customer so we'll have a sub ledger that we're going to have to track a customer and we'll have a sub ledger for the inventory that will be impacted now again it might not let me record it because i don't have any of that inventory on hand also note though that you could save it as a draft you can you can submit for approval and you can save and add another or you can simply go to the straight approval approve and add another and then and and so if you're in a smaller company with less checks you're probably just approve it but let's go through the process let's save it as a draft so i'm going to save that as a draft and then i'm going to go into my inventory and add a piece of inventory that we can then sell with that one so i'm going to go into the business drop down and let's go into the products and services and we've got our item that we set up i'm going to hide this we've got the item that we set up here the test item it's got nothing on hand right now so let's just make an adjustment for that we talked about adjustments in a prior presentation so that we could put one on hand i'm going to add one so there's currently zero i'm going to say there's an increase let's just put five of them on hand at the cost of uh uh cost price 700 so there so the new uh new quantity on hand is going to be five and then we're going to say the adjustment account i'm just going to put to cost a good sold region reference i'm just going to call it beginning balance and then i'll say next so so the new quantity new average costs 700 that the journal entry that's going to be in place inventory is going to go up by that 3005 and we've just put the other side to cost a good sold so that's just a setup so that we can make the inventory have something to be dealing with all right so then let's go back to the drop down and let's go back to the invoices so now we have this item here it's in drafts so if i go into the drafts there it is in drafts now then i can select it i can select it here and say that possibly uh we want to approve it or i could go into it clicking on it and say what's the next step it went for it was in a draft let's let's uh save and submit for approval save and submit for approval okay so now if i go back in here i say a waiting approval we've got this added step before we have approved it no actual transaction has actually taken place no impact in other words on the balance sheet or income statement as of yet so then i can click this off and i can approve it or i can go into it again and we could we could have just gone originally to just simply approve which will actually record the transaction so let's do that now finally approve it and that will move it of course from if i hit the drop down invoices the awaiting approval to uh to the approved items which are awaiting payment so we go into awaiting payment there it is so we haven't yet received payment the next step of course when we get the payment what you know we could check it off and say that we've got a deposit for it or i can go into it here and then go down and say there's the amount uh paid to but we'll get into that in a future presentation for now i'm going to go back and i just want to look at what the impact of that invoice is on our financial statements because again it's fairly complex let's go into the update of the balance sheet we know that the accounts receivable should go up no impact on cash yet there will be when we receive the payment for the invoice we set out so i'll go into the accounts receivable and we'll scroll down to the uh there it is so there it is it's notice it's it's a receive in receivable invoice that's what the source recording is it's useful to see that source and know what that means the other side is going to the sales and sales tax notice it's split here and it's actually given us the two accounts that are that are impacted that's really pretty neat you don't see that in other software like uh like quickbooks for example if there's more than two accounts affected it'll just say split over here so it actually gives you a little bit more detail in that case not maybe not all the detail because there's possibly cost a good sold in inventory effect but that's kind of neat so let's go into that that takes us to the source document if you wanted to edit it you can hit the drop down and you can edit it from here and that that looks like the screen we saw before so of course the full amount is here not now zero one thousand ninety two fifty if i go back and i go back again so now i'm back to here i'm going to go back one more time and we're going to go back to the balance sheet now the other side is on the income statement next tab over i'm going to update the income statement get this thing out of here and that went to sales driven by the item telling it to go to sales for the revenue side of things and then down here i'm going to go all the way to the bottom we've got our transaction there it is again notice that only the one thousand dollars went into here if i go into it it doesn't include the sales tax that's just what we charged so i'm going to go back and then go back again the sales tax should go into a balance sheet account back to the balance sheet in a liability account here sales tax this is something that we're going to have to pay so we're collecting money from the customers but we're just being the tax collector with regards to sales tax that's why it's going to a payable account it's not part of our revenue in theory right and then we're going to pay it because because we're not going to record a revenue and an expense when we pay it we're just going to record it as a payable when we collect it and then when we have to pay the sales tax we'll pay it out in a future date we'll talk about that more later so let's go back and back and then we've got the inventory also impacted so we put the inventory on the books and now the inventory is impacted so if i go into the inventory and scroll down we see the 700 right there so there it is and notice it's 700 notice that that amount the 700 that is of course is not actually on the invoice but we know about it because we set it up it was in the item it was in the item that we set up so that's what the system knows it's just like when you scan something at a grocery store and the store you know you don't know what the store paid for it you don't know the journal entry related to the cost that the store paid you only know the sales price that you're paying okay so then we're going to go back and the other side of that is going to go to the income statement in the cost of good sold the cost of good sold is going to be here and we should see that 700 there as well so there it is so the net impact on the net income of the income statement is going to be the 1000 that increased minus the 700 dollars increase in the expense the cost of good sold cost of good sold being a really special expense because if you sell inventory it's going to be one of the largest expenses typically and it's the cost of us consuming the inventory in order to generate you know the sales we we gave the inventory away in order to generate revenue okay so then if we go back to the balance sheet we also have the sub ledger accounts related to receivables and inventory so i need to see the receivable broken out not by date as i would see if i drill down onto the general ledger transaction account but by customer so i'm going to go to the tab to the right just to see it in report format right clicking on it and duplicating this tab and then let's go into the accounting let's go into the reports and just open up the sub report to see how this works so we'll go into the payables and receivables the the aged receivable summary let's do that one so we'll go into that and i'll change the date to the end of december the end of december and update so now we have a a a owing us one nine uh one zero nine two fifty and the total down here for all the the customers ten thousand two sixty five thirteen and that should match what's on the balance sheet ten thousand two sixty five thirteen now that's useful to note we might not always go to this report to see who owes us the money but if we're reporting it externally that's a good tool and the total tying out over here is a good tool for us to visualize what is happening internally when we're trying to collect on the receivables we're probably going to go first tab to either hitting the drop down here and the business side of things and invoices that's going to show us you know the invoices that we looked at so we've got the awaiting payments and we can sort our invoices this way we can sort by you know to date the due date and so on and try to see who owes us money so we can collect on it and we can also use this area to send statements right i can select these and send out the statements to try to say hey look you guys owe us money and so on so we saw that in a prior presentation and we might also go to the contact drop down and the customers here so we're in the customers notice i have the drop down up top if i scroll down a bit i've got the tabs up top if i scroll up just a hair more i got the drop down and there's our AAA customer my voice is cracking if i go into that so there it is so there's the invoice that's awaiting payment so if i'm talking to a particular person i'd be like hey look there's the invoice we can attach something here of course we've got the options up top and we can edit the customer we also have new transactions sales invoice sales credit repeating sales invoice and so on within a particular contact zone as well let's go back to the balance sheet and look at the inventory now which also should have a subsidiary report if we're not on a perpetual system but a if we're not on a periodic system but on a perpetual inventory system tracking the inventory in the system let's go to the last tab i'm going to duplicate it again and so we can open up another report in a new tab again how many tabs are you gonna have this is crazy there's stuff all over the place i'm just gonna type it in here inventory inventory and i'll say the inventory item summary inventory item summary let's look at that one the new version and so this is going to be as of the end of the period so this is the activity that we put into place we added the 3500 and then we had the cost of goods sold that was the activity that happened now again i don't think they put the beginning balances over here on the balance sheet so we've got the 2800 right here which represents the pulling out the trusty calculator the one thousand i'm sorry we put on seven seven thousand on the books minus uh the the no we put on the books again 700 times five 3500 that's what we put on the books when i just added those five units minus the 700 that we we had a cost of goods sold for so we'll we'll talk more about the tracking of of this sub subsidiary report in the second half of the course but just note that the general idea being that we should have a backup or support of this number uh in terms of the inventory units if we're tracking the inventory in the system on a perpetual inventory basis so that's the general idea with the invoice there's actually a lot going on with the invoice especially if you have taxes and you have the and you have uh inventory but if you set it up properly it's still quite easy to do the data input next time we'll talk about the next step which would be to receive repayment on the invoice