 zero accounting software sales by customer and sales by item reports 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 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 home page we set up in a prior presentation zooming in by holding down control up on the scroll wheel currently at 175% zoom in opening the demo by selecting the reset button which will open the demo and reset the data at the same time we're then going to go through the setup process we do every time that being duplicating a couple tabs up top to put our financial reports and by right-clicking the tab up top to duplicate it right-clicking the duplicated tab to duplicate it again back to the middle tab so we can go to the accounting drop-down and pull up that balance sheet report tab to the right so we can go to the accounting drop-down again income statement P&L profit and loss whatever you want to call it back to the middle tab and let's do a change to the range a change to the date here to the 31st and update that's the setup process that we've been doing every time remembering that these are our two major financial statement reports all other reports typically given more information about one or multiple line items on these two major reports if I go to the income statement then we're gonna scroll down and we're looking at the sales items so now we want some reports that are gonna give us some more detail about the sales line item before we open them let's just give a quick recap of what's being reported on the income statement and why the sales revenue or income lines are typically recorded they way they are the income statement performance statement you will recall it's gonna show how we did over a time frame beginning to the end how far did we go how much revenue did we get how many expenses did we incur what's the difference between the two what's the net income in other words when we look at the income we usually have very few income accounts compared to the number of expense accounts because when you think about the types of things we do there's usually a specialization there's a limited number of things we do whereas the things that we purchase in order to facilitate the revenue generation has more categorization down below so in other words you might be tempted and this is important when you're setting up your company file to create multiple sales revenue or income accounts by say large customers you might say hey look I want to break out this revenue account by this customer you don't typically want to do that because for one you you might get that added detail on other reports and therefore you just typically want the sales by what you are selling inventory possibly and service items possibly possibly some large subcategories within them but you don't want to be breaking it out by every customer like a sales general ledger account the other thing people tend to do is have too many items breaking out their sales by item meaning inventory item or sales item which can make your income statement very long as well and you and that's usually not good for reading the income statement just generally and hopefully in many cases you can then generate other reports that will give you that added detail if you want it in that format breaking up the sales or revenue or income by customer so that's what we'll look at now so I'm going to right click on the tab up top and duplicate it and then let's go to the reports accounting drop-down reports and then you've got your sales by customer and you've also got the income and expense by customer I think it's income expense by this one income and expense by cuss by contact so contacts include customers so let's try this one off first I'm going to open this one up and this is a nice report that's going to be given us both the income and expenses but it's breaking it out by the contacts which are going to be of course customers in the case of the revenue items and vendors you would think general terminology in the case of the expense items now we just want the revenue items in this case so I can go up top and let's change the date range let's bring it for the full year of December so let's bring it to January at the starting point so January 1st to December 31st let's update it so there's our information now we're going to use our filtering tool I'm going to go to the filtering tool and say we just want the contact let's go to type let's go to the type and we just want the income items so we want all the income items and then apply the filter and update so then you've we've got our information up top that they're showing the multiple period comparisons by default what I'm going to do is turn that off right now I'm going to hit the drop-down and say none just to start off with an update okay so now we've got the contact which are in essence the customers because we're talking income line items and now we can see our income by customer so you so in this case you wouldn't then need to be putting all your customer line items on your income statement over here because it'll muddy up your income statement one and two you can run a report usually to give you this added information breaking it out by customer now note you would think that this total 30,000 65886 would tie out exactly to this number 30,000 it's pretty close but it's not exact and there's and there's a couple reasons it wouldn't be exact meaning if I looked at my flow chart for example we're on the revenue side of things and remember income is going to be entered into the system by when we enter a form either an invoice form or we can enter you know a form that would be a receive cash type of form like a check register type of situation so these are the natural two forms that you would use and usually when you use those two kind of forms an invoice or like a money in form you're going to be adding a customer field in those forms however it's possible to just enter a deposit and not add the customer and that could if you turn on bank feeds you might sometimes have a situation where the bank feed comes in but you don't have a customer name you just you have the deposit and maybe you don't add the customer in that case you might lose some of this added detail that you would get by breaking the information out by by customer so you got to be careful with the bank feeds can sometimes throw out these subsidiary reports although the ease of using the bank feed in certain situations like for example if you're just getting paid by YouTube or something is often worth worthwhile of the loss of the added kind of detail that you might get you can also enter a journal entry an adjusting journal entry that wouldn't use these forms and not include a customer and that will throw off your sub ledger from your income statements you got to kind of be aware of those things the sub ledger we looked at before the two we looked at before which were the accounts receivable let me change my date range didn't I change my date range I thought I did this to this should be 2022 we looked at the sub ledger for accounts receivable and the accounts payable now oftentimes software is more rigorous with these two accounts to kind of force your sub ledger to tie out by saying hey if you report something without a contact and it's going to be an invoice or a bill then maybe won't even let you report it right because we want you to basically tie these out they're not that strict with some of the other sub ledgers so with the income line item you can report something to the sales account without adding a customer if you want to but if you can add the customer you always want to do so because it's going to give you more searchability details within the system such as having your your income broken out by customers so now you can sort this data by customer now you've got your details to edit it up top so we saw before we have this comparison so I could compare like to the prior period as we saw with other kinds of reports and and look at what we did this year in a customer by customer two prior years and you can also of course export this report to excel which is a great tool because then you can sort this information say by who paid you the most kind of thing versus alphabetical order by contact and you can also do cool things there like make pie charts and whatnot this is good number to like make pie charts and whatnot with as well so that's that report let's make the other one I'm gonna right click on this tab duplicate it again and this time go to the accounting drop-down reports and this other one's gonna be a sales report I think it's all the way at the bottom sales by item which is kind of hard to remember sometimes you can also type it in here sales and you can find your different reports so a little confusing because you got the sales by item whereas this reports called income and expenses so they're using kind of different terms for sale for revenue sales income revenue but once you get this one open we can then say that this is gonna be I'm gonna go from January again January back on here first to December 31st and then I've got the item code versus the description I'll keep the let's see what it does with the description let's go to the description versus item code that we can sort the data on down below I'm gonna scroll in a bit and so there we have it now this one is giving us the item that we're breaking out by now the item is the thing that that we're recording on the invoice or the money in form so in other words if I go back to the first tab drop down and make an invoice then we generally want to sort our sales by item so these items here and that and that's a great tool even if you don't sell inventory items and you have service items because it allows you to break out in that format if you just have hourly work then you might not enter an item you might just enter your your price over here you know you might you know you might just say that you have a description hours you know three at $50 or something like that and you don't have the items over here but anytime even a service company that you can add the items it's often useful because it can help you with your billing process if you're doing the billing process and it can help you to sort your sales with a sub report by item now I'm gonna go back on over here now you can see that there's a big difference between the total by item nine thousand one twenty one twenty one and the sales line on the income statement thirty thousand six twenty three and that's because if I go to the sales line in here I believe that's because a lot of these invoices that were put in place to create this in the practice account aren't using the item see right here the item field is an input they just put the description and the quantity that's great you can still do that but notice you lose you lose the ability to sort by this sub sub ledger which maybe you don't need you know but if you if you add the items you get that more detail so in other words if I go back to my my flow chart over here if you have the kind of business where you're you're getting paid by like gig work first and you're just gonna wait till it clears the bank and then you enter it with a deposit form for example through the bank feeds then you're probably you're not gonna add items because typically you don't add items on just like a deposit type of thing right you're just gonna increase increase it there and you don't really need to track by the items because you have a fairly simplified system but if you're making sales at like a cash register or you're making an invoice then oftentimes you might have a more sophisticated system where you're selling different types of inventory or different types of services and there you would often want to be entering the item in here if you can because it'll give you it'll give you that added a level of detail that will able to sort our revenue out by item so we'd have our revenue line item that we can break out by basically what we sold up top so you can see here notice that they do tie it in they got the 30,000 6 58 86 which is which is the 30,000 6 23 and I think we might have like other income no but in any case it's pretty close but they got all the stuff down here here's your sales by item and then you've got other sales cash sales and and credits on down below so there's a fairly small amount of actual sales where they included the item in the invoice or the receive payment form so these these sub ledgers are not as reliable in that they're gonna tie out exactly to the income statement as the accounts receivable accounts payable sub ledgers often are more reliable to tie into the balance sheet accounts of accounts payable and accounts receivable that we saw before but the more you're using the actual accounting system forms which are invoices and they've received payments and the more you're assigning of course customers as you use those forms and items service items inventory items the more than these reports should should be accurate and line up and if they are then you've got that added level of detail and you can once again export this for example to excel and you can sort this data by item what you're selling you can make pie charts and whatnot out of that data for presentation purposes and so on