 QuickBooks Desktop 2024 Normal Cycle Estimate Sales Order and Purchase Order. Get ready and some coffee because we're locking into some non-stop QuickBooks Desktop 2024. Here we are in QuickBooks Desktop's sample company file. We set up in a prior presentation the enterprise version so we can focus in on the unearned revenue under the View tab. We have the hide icon bars and the open windows selected open windows then on the left hand side the home page currently being open if you don't have the home page open you can go to the company drop down and open up the home page. I'm going to open up reports which is usually my custom every time by going to the reports drop down up top company and financial going to go down to that balance sheet standard report and then i'm going to change the date to 12 3127 and then i'm going to customize it as well to make it a little bit larger on the font you can go to the fonts and numbers change the font i'm going to bring it up to 14 for the presentation purposes say okay yes and okay so now it's a little bit larger i'm going to go to the reports drop down again company and financial this time the profit and loss tabbing 010127 to 12 3127 our practice problem will be in that year so we have nothing to start with in the report i'm going to customize it just to show what i'm going to do every time customize fonts and numbers change the font size i'm going to bring it up to 14 okay yes and okay all right back to the home page what we want to do first is go through this process and think about the normal process when we do not have a deposit or unearned revenue to have something to compare and contrast to if you're not used to using the enterprise version you might not be used to this new this sales order so we'll kind of throw that in the mix as we do our normal process so first i'm going to do an estimate and then we're going to create a sales order from the estimate and then i'll use that to do the purchase order as though we're going to be selling inventory so let's imagine someone comes in and they have an order for a custom surf board or whatever and that's what they want to be purchasing we're going to make an estimate to say how much it's going to be costing now they might not accept the estimate if they do accept the estimate then we're going to create the sales order and that kind of locks in the estimate both of these being non-reporting transactions so we're going to record all kind of the non-reporting transactions first now if i need to order the surfboard because i don't have it on hand then i would have to go to the vendor side and create a purchase order if i'm using a purchase order for the purchasing process which will be a request for the for the order on my vendors side of things so that i can receive the surfboard and then turn around and take usually the sales order to create the invoice which i can now invoice the client now i'm not going to put in the down payment which is the added wrinkle that might happen in this scenario where i'm going to take some money down when i create the sales order because i want to contrast it first with just the process where i don't have to do that first all right so we're going to start with an estimate let's make an estimate and someone comes in they're saying like i want a surfboard man and and we're so so we're and we're like okay we have surfboards and they're like no we want some psychedelic like airbrush colors on it and like okay we're gonna have to order that one let's see how much it will cost we're gonna say and i'm gonna say i'm gonna name the customer a number one and then tab and i'm going to put just say this is the normal process so i'm going to try to name every everything in here to relate to the normal process i might misspell some things as i go but the point is i want to differentiate this normal process from the next process by labeling everything with a one and then the fact that it's going to be our normal process so i'm going to say tab and it says quick add we'll do the quick add i'm going to copy that thing right there and then no class estimate i'm going to make this as of 2027 so this is going to be 010127 tabbing through tabbing through tabbing through i'm going to make a new item which i'm going to say once again is a number one i'm pasting this in number one and then i'm just going to say item so tab quick books we don't have that so i'm going to make the item so i'm going to say let's make the item i'm going to say it's an inventory part so we have to deal with the inventory because i'm imagining we're purchasing the surfboard here so we're gonna have to say i'm going to tab through this normal item okay i'm not going to category i'm not going to deal with categories right now i'm just going to go down to the description and once again i'm going to call it uh normal process item tab and then the cost let's say it costs $100 and then tab it's going to go to cost of goods sold when we sell it tab tab tab and then on the purchase side same thing when i'm sorry cost goods yeah when we sell it and then the sales price we're going to sell it for $175 so we're going to make $75 on the sale is there tax related to it they already have some taxes set up let's make it a taxable item so that we have to add the complexity of sales tax and our practice problem and i'm going to make a new account the income account which i'm going to call income income and then tab the normal process so again it'll create another income account which is going to be an income type of account income normal process so i can then again distinguish the processes with different income accounts you wouldn't probably do that in practice but it'll be good for a practice problem i don't have any inventory on hand yet because i haven't purchased any yet i'm going to use this estimate to then create the sales order and once i have the sales order then uh we'll use that to make the purchase order to purchase the psychedelic airbrush surfboard that this person wants now normally if someone wants a psychedelic surfboard airbrush i'm going to want a down payment because you know i would like to have some confidence that they're going to pay me on it right but what's this going to do this isn't going to do anything in terms of financial statements it's not going to record anything on the financial statements it's just an estimate so we're like hey you know that's going to be what that's going to be costing you the markup is 75 now you're the format down here could be different depending on how you have it set up but we have this is the charge this is the markup this is the sales tax which gets us up to 188.56 so bottom line you're going to owe me 188.56 so we're going to say okay save it and close that if i want to track that can i do any i can't see it on my profit and loss or anything nothing new is happening here but if i if i go back to the home page and i go to my customer center dropping it down customer center then i can say and this is a little bit squished because i've increased the size of the screen to 150 so you might drop it down a little bit to 125 to toggle back and forth but i could make this over here and i'm looking for a normal process i can't see anything because i'm working in the future so i'm going to change the date range to say all dates and so there it is there's our estimate so we see our estimate there another place you could go to see the estimate just so you're aware of it if you go to the list drop down and you go to the chart of accounts and you go to the bottom of the chart of accounts the bottom of the chart of accounts then you've got your estimates here and if you and it's a non-posting transaction so it's not hitting the financial statements if i double click on that then you this is another kind of report that you can get to fairly easily you can also run reports for the estimates in the drop down up top where you have possibly in the sales so you've got the sales so it's none of their sales it's under the the jobs time mileage and then you've got some uh estimates down here we've got the estimates uh by job so you've got some reports that you can run in there but oftentimes internally we'd probably be going to the customer center and saying this is the particular customer we have an estimate basically outstanding for them uh now the next step would be if i go to my home page to look at the flow here we have an estimate nothing has happened we're going to email most likely or give the estimate to the person and if they accept the estimate then we could go ahead and you might make an invoice from the estimate that's what we would do if we didn't have this sales order in our workflow but if we do have a sales order in the workflow then we might go ahead and put this middle step in and say now i'm going to accept the estimate that's very important if you're like in a job cost system where oftentimes you might make