 QuickBooks Online 2022 invoice created from check created from purchase order or PO get ready because it's go time with QuickBooks Online 2022. Here we are in our get great guitars practice file that we set up with a 30-day free trial holding down control scrolling up just a bit to get to that one two five percent we're currently in the home page otherwise known as the get things done page in the business view as compared to the accounting view if you wanted to go to the accounting view it's something you can do by going to the cog up top and switching to the accounting view we will be toggling back and forth either here or by jumping over to the sample file which is in the accounting view so we can compare the two views let's open a few tabs up top by going to the tab up top right clicking on it duplicating it we're going to do this two more times back to the tab to the left right click on it again duplicate it again back to the tabs the left right click on it again duplicating it again we're going to be opening up reports let's first think about where the reports are located as those are thinking in the accounting view which are just straightforward it's just in the reports item on the left hand side if we go back to the business view currently in the second tab we're in the business overview is where the reports are located and then we're going to go into the reports open up our favorite reports which are going to be the balance sheet to start out with let's do a range change up top from 010122 to 123122 and run it and then we're going to close up the hamburger and then go to the tab to the right go back to the business overview again to open up another report in the reports area the other favorite report the financial statement report the profit and loss the income statement closing the hamburger we're going to do a range change up top from 010122 to 123122 and run it and then go to the tab to the right this time we're going to open up the reports again less well known report but one that should be used and I'm trying to encourage people to use it it's the trial balance which I'm going to find by just typing in trial balance and then selecting the trial balance and running that report closing up the hamburger and then we'll do the range change up top from 010122 to 123122 and run it and there we have our three reports. So let's go back to the first tab now now in prior presentations we went through the process of entering some purchase orders and then we paid for the inventory that we had received we imagined that we had some purchase orders that we had a request for the guitars the inventory in advance to see that and look at the story that we are telling here let's go back to our our screenshot of a flowchart this is the desktop version but we're just looking at the flow and the forms will be the same here so bear with me with the desktop version flowchart in prior presentations we said we purchased inventory we did so first with a purchase order as we entered the purchase order we were entering the purchase for a particular customer imagining the customer came into the store and said hey I want these particular guitars we want them from this vendor or in this fashion or in this color I don't have that in the store therefore we're going to make a purchase order by those guitars we're buying them specifically for you which we indicated on the purchase order now the purchase order is just a request for inventory the vendor the person person were purchasing the guitars from the epiphone in this case doesn't care about the customer that doesn't matter to them but it does matter to us that's why we put it on the purchase order so then when we paid for it and we then paid for it in the next step receiving the inventory paying for it at that point in time we pulled in the fact that we bought these guitars specifically for these customers so that we can then turn around and make the invoice which is what we're doing now we're going to turn around go to the sales side of things now that we got the guitars and make the invoice now there's a connection between either the bill form or the check form and the invoice that we will make if you use billable items although it's not a perfect connection and QuickBooks online I think this is one thing that the desktop version does better some sometimes the online does some things better and sometimes the desktop version has does some things better I think the desktop basically handles this connection between the bills on the inventory and the purchase order better and I'll show you kind of why that is the case you want to be careful of that but that's the idea so we're gonna go back on over jumping over to the first tab we're in the home page and we're gonna go down to the get paid or paid area the get paid or paid area and if you were in the accounting view just to jump over and see where that would be that would be under the expenses and we're looking at the vendor side of things we're gonna look for that purchase order so we're gonna go in here we're in the vendor side I'm gonna close up the hamburger I'm gonna go into Epiphone and Epiphone is who we're buying the guitars from we started out with the request of a purchase order I'm looking up this purchase order if I go into that purchase order then we can see that we actually referenced I believe a customer in the purchase order so we're requested the requesting these guitars the Epiphone Les Paul and the Epiphone semi hollow body but we're doing so specifically so we can turn around and sell it to this customer this customer information doesn't matter to the vendor Epiphone who has given us the guitars are selling us the guitars it's just so that we can track it internally and then we turned around and we got the guitars we imagine we got the guitars and we entered the check information here so now we've got the check instead of entering a bill we went right to the payment form which is a check form or expense form and we connected this to the purchase order pulling this information in from the purchase order and these two items once again are linked having a customer field and then we made that customer field billable now that billable tab is something that you have to turn on in the preferences you got to make sure you have the billable items turned on in order to use this but you need to be careful with the billable items there's two things to be careful of one is we're using items here is it going to pull over the billable item at the cost what we paid for it or is it going to pull it pull it over at the sales price we would like it to pull it over at the sales price but I believe it's going to pull it over in essence at the cost and that's going to be one problem that you want to take a look at the next problem with these billable items is sometimes when you're not using the actual items you want to note is it pulling over the invoice and is it going to record it to a sales line or is it going to record it to an expense line because even though you're it's kind of like a reimbursement in that you are adding it to the invoice you typically want to record it as revenue of referencing the line item that you paid for in the invoice so that those are the two questions you want to kind of have in mind when you pull over the billable items here I'm mainly concerned with the are they going to pull it in the cost or they're going to pull in the sales price so let's close this out and see how this works before I go into it just know where that preference is located it's in the cog up top it's in the accounting and taxes to turn on the billable items which might not be on by default because it does add another field and then we're in the expenses area and then you're looking at this billable item here so we turned on the make expenses and items billable item and then we got this check off in a single account here so that's what we're looking at going to close this back out and then open up the hamburger so now we're going to imagine that we're going to turn around and sell those guitars so we've got these guitars we purchased them specifically for the customer let's now make an invoice related to it so we're going to open up the invoice and I'm going to type in Eric music so we're going to say Eric music that's the customer that we referred to on the purchase order and the check and when I enter that we get this nice pop-up to the right which is great you get that great pop-up and we can say okay I want to add the billable item to it so I'm going to add both of them adding this and adding that on in so there we have it and then I'm going to just tap through this before we get to the bottom which is the interesting part just so I don't miss anything on the date we're going to say that the term is 30 let's say the day is the 23rd 123 22 we're going to say that means the due date is 222 and the invoice number looks good location looks good and then they pulled in this information on down below so again every everything it looks great it's it's tight it's linked out here except it looks like they pulled in the cost right instead of instead of pulling in the sales price and of course what I want here is the sales price not not the cost number and that's what the billable that when you use that bill tracking thing it's often used when you when you're linking to something like a like an expense like a utilities or something like that where you paid for the utilities and it doesn't have a difference between the sales price and then you might mark it up and have that kind of markup convention so for example if I put in the ELP down here if I typed in ELP down here I'm looking at a price of $500 it should be and so I like I have the link here that kind of tells me that everything is going the way it should go and I should have clicked off the sales tax item with it as well but I could then change up top and change this basically the 500 which is going to be the sales price that we want to be putting on it and then I could go down here and say the other one is an EPS H and that one should be for the 400 so this one should be 400 and so those should be the two items there I'm going to then close this one out and so again that's where it's a little bit that's not the perfect kind of link when you pull in those billable items into the invoice you got to be careful using that tool you might not want to use that tool in that instance but just track the customers and then basically repopulate the invoice instead of having it pull in with that billable item but I just want to show you that and then we also have the the tax which I'm going to say these are going to be taxable items here now the taxable items are something that I could have checked off and said they were taxable items but that's not really the problem here when you're using this kind of link thing the problem is in my opinion that you're worried about it pulling over in the cost and not pulling over the proper dollar amount which is why you might not want to use that connection with the billable items for this particular thing they might update that or just that it works a little bit differently in the desktop version where when you use the items it does pull in the the sales price because you're basically using the items along with it and so it does pull in the sales price there so in any case I'm going to change the math down here as we've seen for the generic problem just making a generic 5% so I'm going to do this just as we're going to do this every time we make a sale which is a bit tedious but that's what we're going to do so it can be the generic problem other confirm and close it so there we have it so that looks good so what's this going to do well now it's just a normal invoice so the invoice means it's going to increase the accounts receivable it's going to increase it by the $30,450 we're going to increase revenue by the $29,000 and then we're going to have the difference go to the sales tax payable a liability of the $1,450 we're going to have then inventory go down by the amounts that were originally in here because those were the costs that will still be driven by the items so it should still decrease the inventory properly and the other side should be going to cost a good sold and the accounts receivable sub ledger will be recorded by customer Eric music and the inventory sub ledger will be adjusted for the inventory parts and units for the epiphone less Paul and semi hollow bodies so let's go ahead and save it and close it and check it out save and close checking it out let's go let's do it by going to the trial balance since we've seen an invoice before and the trial balance is the fastest way to do this we're going to go back in and say let's take a look at the AR accounts receivable and we're looking then at this invoice there's Eric music on the invoice there's the $30,450 remember if you click into it it might try to change the sales tax just don't save the changes if you're working along with the practice problem with the generic 5% going back on over now we're looking at the other side which is on the sales side of things so it's a sale of products going into it and that then should be recording the the sales items here for this invoice 1005 doesn't both one at a time for what we actually charged not including the sales tax going back on over the sales tax then is going to be in a liability account the liability account could be called sales tax payable but they for some reason put the vendor in which is this is who we're paying in California the California Department of Tax and fee administration's very bureaucratically appropriately bureaucratically sounding department you can just the bureaucratism just seeps through the name so there we got the one there is that one so that looks good and then we're going to go back on up top and say let's take a look at then the the inventory inventory which is right here inventory going back into that and I'm going to zoom back down again zooming in and out a lot apologize but trying to see the stuff here we're trying to see the stuff so there's the inventory in there by line item that's the cost that's not actually on the invoice but the invoice knows about it and then we're going to go back on up top and go back then and go to the cost of goods sold scrolling it again cost of goods sold is down on the income statement expense type of account there it is drilling down on it zooming back out zoom out zoom out panorama please zoom out we're going to say then invoice on here for one oh oh five and notice again you got four line items here so if I go into this and I drill down on it and look at the invoice you might say hey there's only like two line items here and when I go back on over here we've got these four line items for the for the semi hollow body the epiphone semi hollow body and epiphone and I believe that's because of the first in first out method it's trying to look at the layers and apply the proper layers even though we don't have any differences in the cost so there's not going to be any change with the flow assumptions because the cost has been the same thus far when we buy the inventory but I believe that is the reason you've got that differences in the line items due to it using that first in first out method let's also look at the sub ledgers right clicking on the tab up top and duplicating it let's let's look at it accounts receivable sub ledger the AR summary report it's sometimes called so let's go to the reports on the left hand side and just check that out and close up the hamburger and then scroll down and we're looking at who owes you reports and we want to take a look at the customer balance detail let's look at the detail customer balance detail basically the sub ledger for the AR accounts receivable and you can see Eric music now has our invoice right there and the total adds up to the 38 671 50 which ties out to the trial balance or it should there it is it totally does and then we're going to do it let's right click and make another tab right click another tab this time looking at the inventory report the other sub ledger type of report for inventory breaking out the units of inventory going to the reports on the left hand side and then I'm just going to type in inventory valuation summary report that's the one you're the one report you're the one so then here's the quantity and then the amounts 15 6 7 8 going back to the to here 15 6 7 8 the sub ledger ties out to the TB trial balance just like it should let's check out another one let's go back to the first tab hold down control scroll down a bit let's go back to the homepage just to start things out and we're going to go back down and just look at the story we're going to go back into the get paid paid area and I'm going to close up the hamburger and this time let's let's look at the Gibson USA Gibson USA and then we're going to go into one of these let's go into the purchase order and I think we assigned a customer to this one yeah music stuff store we assigned a customer to it and again when we purchase the inventory the vendor doesn't care but we put the customer on there so it can remind us that when we get the inventory we're going to turn around and sell it to the customer who we made the purchase for so I'm going to close this back out and then we wrote the check imagining we got the inventory and now we're paying for it at this point in time with a check we are once again bringing the customer over tying it in and then at this step this is where the question will pull point is do we want to pull it over from this point and make it a basically a billable item or possibly it would be better to just make it non-billable like this and then simply use the reference here in order to populate the other invoice so what I'm going to do is I'm going to say I'm going to change this I'm going to save and close it and the transactions you are editing is linked I'm going to say yes let's save that and so we've made that adjustment I'm going to go back into it now I'm going to go back into it and just imagine this time not using the billable component but saying that I'm just going to say that it's got this reference for me and then I can put it on another screen I could grab it for example like this and put it somewhere else so that I can use it to populate my invoice manually for that line item for that customer so once again I'm going to round the round in the corner now we've paid for we've paid for the inventory we in we sent out the purchase order on the vendor side we got the inventory we're round in the corner to the sales side of the thing and now we're going to make the invoice so I'm going to make the invoice and so to do that let's right click on the tab up top and make another tab let's right click on it and duplicate it so I can refer back to that check to make the invoice so I'm going to make another tab going to hit the plus button up top because we're doing some kind of activity here plus button and then I'm going to then I'm going to make an invoice hold on a second the check I got to get rid of the check my computer is a little slow it's a little slow but that's okay it's old slow and steady it'll get there that's how we win the race so this is going to be music stuff store music stuff store tab and so there we have it and then I'm just going to use the data from the prior one this is going to be on the 24th and then 1006 so there we have it and I'll bring down here so now I'm just going to pull in the idea that we have Gibson the GSB and we've got 10 of them so I've got the GSB and we've got 10 of them and so notice this way it pulls in the sales price which is what we want not the cost which was on the check right I don't want the cost to pull over I want the sales price to pull over which we now have so let's do our I'm going to make the generic sales tax adjustment down here to make it 5% so I'm going to go down here to our generic sales tax adjustment 5% generic problem why because it's a generic problem quick books that's why just do it man I know what I'm do okay so that means then what's this going to do and voices is an accounts receivable so in the accounts receivable is going to go up because it's an invoice for the full amount including the sales tax 815850 the sales are going to go up by the 7770 the amount we charge the sales tax payable liability going up by 38850 then the inventory is going to go down by an amount not on the invoice but in essence by this amount over here the 5,980 the cost and the cost of goods sold is going to go up by that amount will also have an impact on the sub ledger tracking by customer music stuff store and the sub ledger for the inventory for this piece of inventory let's save it and close it and check it out save it and close it and then go back on over to the trial balance to check things out because that's look how nice it easy it is to use the trial balance it's so underappreciated I'm telling you but anyways we're going to go into the accounts receivable click on that one and then we're going to go down and say that there is this one invoice for the full amount here going back to our report holding control zoom in and again zoom zoom zoom in my spaceship and then I'm going to go down to the product sales and then zoom back out zoom back out and then there it is on this one for the for the sales that's what we charged not including the sales tax going back up to the to the trial balance zoom in back zoom in zoom and we're going to the liability here's the liability account in the liability sales tax payable or the big bureaucratic California California Department of Tax and Fee Administration Department and we're going to say zoom back out there's the tax that we paid to those good folks over there is going back up back to the report zoom in back in zoom and we're going to go into the inventory inventory zooming back out again zoom zoom a lot of scroll work on the mouse scroll button here and there's the 5382 and then going back is that because there's two of them here again again that and there's only one line item on the invoice which again I believe is because of the first in first out method so I'm going to go back out that's my assumption there I'm going to go back up that might be a little disturbing to people but once once you know the rationale then less disturbing less disturbing or maybe I'm the only one that gets disturbed by these kind of things but whatever cost a good sold going back into that one and then zooming out zooming out I'm sure someone else was disturbed I'm not the only one I don't think so then we're going to go back up and then double check the sub ledge for the accounts receivable so here's the AR 46 830 let's go to the tab to the right where our AR sub ledge sub ledge let's run it again to make sure we got fresh stuff and we're going down to you this is who was this music stuff store that funny name who makes up these names that no one would call their store whatever 46 830 back on over here 46 830 and then we've got the inventory asset the 9 6 9 8 back to the third tab let's make sure this is a fresh report freshen it up and then down here 9 6 9 8 on that one as well so that looks good and then if we were to go back on over to the first tab I'm going to close out the check hold down control scroll down just a bit and now of course we would track the accounts receivable by hitting the plus button or the hamburger I should say and then going down we could go down to the get paid and paid area and we can go into the customer side of things now because we expect to get paid in the future for example by music stuff store and now we've got this open invoice there's the open invoice if you were to look in that area on the accounting view then you would be jumping over to the sales side of things which would be kind of like the customer cycle and going into the customer area you can also try to look by transactions by going to and here it would be all transactions in the accounting view whereas it's in a different view if you go into here into the business view it's under the bookkeeping area you can also then the transactions up top and that's where the sales transactions are different area but same stuff different area same stuff and then we can hit the drop-down and say I want to look my invoices I want to look at the open invoices for example and then I can see my invoices right there that that I'm collecting on these people owe me money man is anyone called these people recently and see if we can get the money that they owe us let's go on back to the trial balance this is where we stand at this point in time standing on our two feet left foot debit right foot credit and so if your numbers tie out to this great if not check the date range sometimes it's the dates range problem and then drill down and see if that is the issue and we'll be doing a transaction detail report at the end of the sections which also can be a way to diagnose any differences