 QuickBooks Online 2024. Expense and vendor reports. Get ready and some coffee because we're diving into it. With Intuit, QuickBooks Online 2024. Here we are online in our browser, searching for QuickBooks Online Test Drive, looking for the result that has Intuit.com and the URL Intuit being the owner of QuickBooks, selecting the United States version of the software and verifying that we're not a robot. Opening up our major, first, a word from our sponsor. Yeah, actually we're sponsoring ourselves on this one because apparently the merchandisers, they don't want to be seen with us. But that's okay, whatever. Because our merchandise is better than their stupid stuff anyways. Like our crunchy numbers is my cardio product line. Now, I'm not saying that subscribing to this channel, crunching numbers with us, will make you thin, fit and healthy or anything. However, it does seem like it worked for her. Just saying. So, subscribe, hit the bell thing and buy some merchandise so you can make the world a better place by sharing your accounting instruction exercise routine. If you would like a commercial free experience, consider subscribing to our website at accountinginstruction.com or accountinginstruction.thinkific.com. Financial statement reports like we do every time, the reports on the left hand side, we're in the favorites. Right clicking on that balance sheet to open in a new tab. Same with the P&L profit and loss income statement. Right click to open in a new tab. Let's go to that middle tab to see what opened up, closing up the hamburger and change the range. Back to 03, 010123 tab, 123123 tab, run it to refresh it. Let's go to the tab to the right, close up the hamburger and those rangeings, they are a change in once again. 010123 tab, 123123 tab, run it to refresh it. That's the setup process we do every time. These being our major two financial statement reports, balance sheet income statements, sometimes called the profit and loss. All other reports generally giving more detail about one or multiple line items of these two major financial statement reports. This time we're continuing looking on the income statement, the performance report and looking at more detail related to the expenses. Let's take a look at the section. Let's go to the tab on the left, reports down below. I'm gonna close up the hamburger again and scroll down. So we're on this time the section of expense and vendors. Now when you hear that summary, the title of this section, you would expect that most of these reports would have to do with the income accounts of the expense accounts given us more detail. It also says vendors, so you might think that that would be given us more detail about the accounts payable balance sheet account, but the accounts payable is generally taken care of by this section which says what you owe. So I think the general idea of this title is to give us an idea that these are reports given us more information about the income statement expenses which are usually paid to vendors. All right, so we first have the 1099 transaction detail report. We'll get into the 1099s a little bit more specifically in a future presentation. That report is specific to tax preparation information that's necessary in the United States for people that are contractors, unincorporated businesses that we pay, that we pay over a certain dollar amount and we'll talk more about that later. Then we've got the check detail report. So the check detail, let's just right click and open that one up and we take a look at the check detail report and this is in the new format once again. Hold on a second, I messed it up. Let me open it up again. Let me do it again. Do it again. I'm gonna right click, open it up and then we'll close up the hamburger and then I'm gonna change the dates in the new format of the reports date range going from 010123 tab, 123123 tab and there's our check information and the detail about it. Now, this is a nice quick way to get the check detail. This is a report that you can kind of think of as related to a vendor type report. Why? Because the other side of the transaction is generally gonna be an expense type of account that we're paying for. So that's the idea. Although, of course, this is also detailed that you might find as information related to the cash account, which is a balance sheet account. So you might be able to do a similar report going to the cash account in here, drilling down, seeing the transaction detail which provides both the checks and deposits and then possibly filtering it from here so that you can add a filter of transaction type and then you can look for all the transaction types that are decreases to the checking account which can be kind of tedious. It's gonna be equal to because we have all these different kind of checks, right? So if I look through here, I have the different forms we might add. Billable, we've got to do tax, service chart, bill, payment, check. So there's a check type form and then a cash expense type form. We have then a payment, a check. So there's our standard check and there's just a few of them. Liability, payment check. So that's a check type form and so on and so forth. Pay check would be a check type form, an expense form, if I just had a normal expense form to do, then we have that one. So the benefit of having these different transaction types for check type forms is that it gives us a little bit more detail in terms of what that particular transaction is doing but you can see that if I'm looking for all decreases to the checking account, it gives me a little bit more of a sorting difficulty to try to pick all those up. So I think that this form could be nice in that it might pick up most of those decreased type forms and basically one report would be the general idea but in any case, it also gives us more detail about each of the transactions that are within them. So let's go back then and see the next one. So we've got the expense by vendor summary. So now we can see our expenses by vendor. This is the main one I wanna take a look at in a little bit more detail. So I'll come back to that one. Then we've got the open purchase orders. Now the purchase orders, I'm gonna right-click and open this one would only be used if you have inventory and you're purchasing things and you're purchasing things with the use of the purchase orders. Let's change the date range once again, going back to, let's just do a custom range from 01, 01, 23, 12, 31, 23 tab. And so now we have our purchase orders and those are gonna be the form here that is the purchase order requesting the inventory but something that we have not yet paid for. Therefore there's nothing actually recorded yet on the financial statements until we actually receive the inventory. So that's kind of an internal type of form. The open purchase order detail. So similar kind of thing by giving us more detail. Purchase by product detail report. So this is the other one that I'm gonna go into in a little bit more detail. So we'll talk about that later. These two are the main ones that are similar to the income accounts that we looked at income being broken out by customer or product. Now we're looking at the expenses broken out by the vendor or product. And then we've got the purchase by vendor detail report. Similar, I'll take a look at that in a second. Transaction list by vendor. Let's open that one up. And so now we have our transactions by vendor. You would think that the things that we dealt with vendors for where we made purchases or recorded expenses by vendor. That's why it would be in the kind of expenses area. Let's do a custom range, 01, 01, 23, 12, 31, 12, 23, run it. So there it is. And so we have each of our vendors and the detail for each of those vendors. So that's good. However, if we're looking at the detail for each vendor, we might be easier to do this from an internal standpoint by going to the vendor center on the left-hand side and searching possibly by vendor in that way and looking at the activity within the vendor center. Okay, I'm gonna close this one up. I'm gonna close this one up. I'm gonna close this one up and then get to the main ones that I'm thinking to look into here. That's gonna be the expenses by vendor summary. I'll right-click and open that. And then the purchase by product service detail. So I'm gonna right-click and open that. And then the purchase by vendor detail. Let's open that one up. And let's take a look at those. I'm gonna go to the tab that we opened up, close up the hamburger and change the range, date range. Let's put it a custom range, bringing it back to 010123 tab, 123123 tab. So now we've got the purchase, the expenses that we have by vendor. So if I go back to the income statement, you'll recall when we looked at the income line, we said, hey, you don't want too many income lines because you wanna record just what it is that you're selling as a general category, not who you're selling it to by customer and not what you're actually selling by product. Why? Because then you can have sub reports that will allow you to tie in that more detail, meaning income by customer and income by product. Similar thing on this expense item down here. The cost of goods sold is kind of a special area because that deals with the selling of inventory that we can track more specifically with inventory, the flow of inventory reports. But the expenses down here, we have a similar kind of thing as with the income. If we have the expenses, you'll notice are being reported not by who we sold it to. We're not recording expenses that says Edison expense because it's the Edison company, utility company. Instead, we're putting it under utility or electric expense. We're putting it under the thing that we bought, not who we bought it from. So that's sometimes people have a tendency to want to enter things into the system here as expenses by vendor. And that might be even, that makes sense to some degree because if you look at the way most people enter on a small business, you might be using bank feeds. So if you go to the bank feeds over here and you're entering your expenses that way, then the data that comes in through the bank feeds is usually gonna be in the memo section if it was an electronic transfer. And the memo is gonna give you who you paid, right? So that means we're not gonna have an account yet unless you've set up an account and basically memorize the transaction to go to that account. So you might be tempted then to say, I'm just gonna make an expense account called like Hicks Hardware, Hicks Hardware expense. Well, that's not really what you wanna do. You wanna put it into supplies or whatever you actually purchased. And so that's the general concept here with the expense forms. Now most of the categories, we kind of have an idea of what they are because they're somewhat standardized like utilities expense or the telephone expense or automobile expense or something like that. But sometimes it can be a little bit more abstract and unique to a particular business as to what the expense is. But we still wanna generally record them by what we purchased and then we can have a sub report that gives us the more detail about who we purchased it from. Note it's a little bit different also from the income in that with the income line items we would expect not to have too many income accounts because we specialize in the thing that we do. Whereas in the expense accounts even though we're recording by the thing that we purchased we're still gonna have a whole lot of expense accounts because we're not specializing in everything else. Everything else we need to run the business we're purchasing from someone else. We're not doing it ourselves. We're purchasing everything else and then we're doing what we do well and that's what we're doing to generate the income. So there's gonna be a lot of expense categories. When I look at the expenses by vendors it's actually a smaller list or possibly the same size as the list of expenses. That's kind of normal on the expense side whereas on the income side you would expect the expenses or the income by customer to be much longer than the list of types of income accounts on the income statement. So in any case this of course then we have our expenses that would be by customer the total at the 8198.59 you would think would tie out to the total down here. So we have, so if I minimize these ones I'm gonna say that the expenses here are at the 5203.31 plus we have these expenses for the other expenses 2916 and we're not gonna come out to be exactly what we had over here on the expenses by vendor. Well is it exact? It's not, right? It's pretty close but the idea would be that it might not be exact for the same reason that the income side was not exact and that is that when we record things to the expenses we're not forced to, QuickBooks doesn't force us to add a vendor. For example it's possible, possibly for us to use even these bank feeds and even if there's nothing in the vendor that we can record the expense. You don't typically wanna do that, you wanna have an expense because using the expense form will give you the more detail so that you can make sub ledger reports like this. So that's different like we saw with the income line items it's different than the balance sheet accounts because on the balance sheet accounts over here with accounts receivable and accounts payable QuickBooks does force us to record a customer with the accounts receivable for example therefore the sub ledger ties out basically automatically it doesn't do that with this report so it's possible for us to mess up the sub ledger report but if you're using the proper forms which is gonna be typically the expense forms and the checks forms, bill forms for example and you're populating a vendor as you do the transaction every time then the total here should tie out if it doesn't tie out and you're doing something wrong such as you're recording expense forms with no vendor through the bank feeds or something then you can fix it going forward and it should start to work once you start doing that from systematically because remember the income statement accounts will close out to the balance sheet so that it will kind of be correct from one point going forward after you start doing it correctly. So this is another report as well that you could make a pie chart from by exporting this to Excel which we might do in a future presentation it's probably not as important as the income line items those are the ones that people are most focused on where you can make nice charts with that are usually people like to see but the expense ones you might break it out by who you paid as well and then on this side we've got the purchase by product let's go ahead and change the range this is the detail report let's go from 010123123 tab close up the hamburger so now we've got the purchases that we made by product let's go to the one to the right too this is the purchase by vendor detail I'll close up the hamburger here change the range going from 010123123123 tab now we have the purchases by vendor detail and the purchases by product slash service detail usually when we're thinking about purchases from the QuickBooks standpoint we're thinking about purchases of items usually the inventory items although you could have purchases of the service items so unlike with the expenses over here when I look at the expenses by vendor summary the expenses are usually the things that we can think of as often coming through the bank feeds oftentimes small businesses and many businesses will record the expenses with the bank feeds as they have done electronic transfers and that means that when you pay it it's kind of like a check form that you're gonna be paying it with and the other side's gonna go to an expense such as utility expense or the telephone expense and so on and so forth however when we're thinking about the purchases we're usually thinking about the purchases of an inventory item of some kind so if I go to this first tab for example and I go into my transactions and I go into not my transactions my sales and then I go into my products and services these are the things that we're actually selling so most of the time when we think about these things most people think about when we sell the items inventory as inventory service items with an invoice or a sales receipt however of course when we purchase those items we're purchasing them from vendors but instead of recording the purchase directly to an account we are we're going to be purchasing them to an item so that means when I purchase them like with an expense form for example then now I'm making a purchase but instead of going to an account down here like telephone I'm entering an item so now I'm purchasing it with a vendor just like when I had a telephone expense but now I'm purchasing an item so when you're thinking about those inventory items that's gonna tie in more towards this report which might not be as useful if you don't have usually generally the inventory items so here's the fountains, the pump, the rock fountain and so on, the sprinkler heads that were purchased and so on here and then over here we've got a similar thing in terms of the purchases by vendors so this was purchases by product or service so we're listing out the things that we purchased in terms of inventory items not including like telephone expense and stuff the things that we purchased that had an item related to it and then this over here is gonna be the purchase that we made by vendor so now we made the vendor from Hicks Hardware here's the detail of the items that we purchased in the description you can see rock fountain sprinklers and so on and so forth now the purchases when we make them might not be on an income statement item but rather when we purchase them we're dealing with the inventory so that's kind of giving us more detail about basically the inventory items if we're tracking inventory on a perpetual inventory method