 QuickBooks Online 2024. Bank rules. Same vendor filter by amount. Get ready and some coffee because we get things done on schedule with QuickBooks Online 2024. 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 but that's okay whatever because our merchandise is is better than their stupid stuff anyways. Like our accounting rocks product line if you're not crunching chords using Excel you're doing it wrong. A must-have product because the fact as everyone knows of accounting being one of the highest forms of artistic expression means accounts have a requirement the obligation a duty to share the tools necessary to properly channel the creative muse and the muse she rarely speaks more clearly than through the beautiful symmetry of spreadsheets. So get the shirt because the creative muse she could use a new pair of shoes. If you would like a commercial free experience consider subscribing to our website at accountinginstruction.com or accountinginstruction.thinkific.com. Here we are in our QuickBooks Online bank feed practice file we set up in a prior presentation opening the major financial statement reports like we do every time the reports on the left hand side within the favorites we're going to be right clicking on that balance sheet to open a link in a new tab right click the profit and loss otherwise notice the income statement opening link and new tab right click in the trustee tb to do the same if you don't have the trial balance in the favorites you could search for it let's tab to the right close up the hamburger and then change the range we're going from 010124 tab 033124 tab on the months so we can see that and run it let's tab to the right close the hand boogie again so we can boogie down with the range change 010124 tab 033124 tab selecting the drop down we want the months and run it one more time tabbing to the right closing the hand boogie so we have more room on the dance floor to boogie going from 010124 tab 033124 tab selecting the drop down months run it to refresh it okay let's go back to the balance sheet we've been thinking about of course our bank feed now looking at some more complex rules with regards to the bank feeds so if we go back to the first tab you will recall that basically when we set up the bank feeds we went into the transactions tab and we went into the chart of accounts and we basically removed or made inactive in other words many accounts including many of the expense accounts so that as we add the bank feed information we can assign it to specific accounts creating those accounts as we go customizing our chart of accounts that works great and the rules work great as long as there's basically defined payments that we're making to one vendor but of course when we have situations where we're trying to break out the payments to multiple accounts multiple departments or possibly we buy different things from the same vendor then we get more complexity in terms of just trying to automate the system i can't just say i want this one vendor going to this one account because if i buy equipment versus supplies then it's going to go to a different account and you might also have a situation where you buy inventory for example versus supplies and whatnot so that's what we'll deal with now some more complex rules with possibly more than one straight line item within them if we go to the bank transactions we've been creating rules of thus far the rules on this tab we want to create the rules as we go the better the rules the more automated we can make things the easiest rules are for payments to like Verizon which was the phone bill for example where we simply have one condition that needs to be met if you see Verizon that's who we pay for the phone company apply it to then this account based on whether or not the description or bank text contains Verizon but this time we're going to be saying that we might be buying supplies versus equipment so we're going to set another rule for that so let's go back to the bank transactions and let's actually set up our our items in excel that we're going to imagine for our scenario so i'm going to say this is the date this is the amount this is going to be the amount that flows through for the bank feeds description and let's say on let's do it in february this time on two four uh two uh let's do it in march we don't have as much as oh three oh two and uh 24 let's say the amount is 78 dollars for let's do home depot this time home depot would be the description and the bank feed text might have a bunch of jargon right within uh the bank feed and then let's say on three uh eight 24 we bought another 105 from home depot and then the bank jargon would be different right we're gonna have different bank jargon and then on three 15 24 let's say we bought 2700 from home depot and let's say on the bank text and then on three uh 21 24 we bought another 307 a lot of sevens let's put a nine i'm liking the seven from home home depot dot dot dot dot dot and then on three uh 23 24 we bought 3600 from home depot all right so now the the the thing is here that we we might imagine that the smaller things that we purchase from home depot are going to be supplies and i can say hey look i'm just going to dump them into the supplies account but the larger purchases might be those that we're going to have to put on the books as a fixed asset and therefore we might want a rule which at least limits those larger ones from being automatically posted so i can review them to see whether or not they should be put on there as an asset versus being put on there as an expense so this would be a common rule and this is a common kind of procedure that we might do it like from an audit standpoint looking through the supplies account to see if there were any large purchases which possibly should have been on the books as an asset and then depreciated rather than just expense and this is one of those things you can't really get away from in the united states because of the income tax meaning the tax code will require you to capitalize certain things typically meaning putting them on the books as an asset and then depreciating them as opposed to just expensing them so we'll set a limit and say if it's over a certain limit now that limit's going to be arbitrary and may differ on based on the size of the company a larger company might have a larger dollar limit why because the dollar amounts are going to be immaterial possibly for decision making under a certain threshold so in other words the rule as to whether you should put something on the books as an asset versus expensing it is really whether or not it's going to have an impact on multiple periods into the future but in practice if it's a minimal dollar amount you would want to do the easiest thing typically which would be typically just to expense it if it's going to have a material impact then on decision making we put it on the books as an asset so let's save this i'm going to say file save save it and then do it and then i'll save as and put it into here let's put it as a csv file a csv that's the type of file we can upload to quickbooks csv file so we'll say okay and then we'll go into quickbooks and let's bring this on in for our practice data into the checking account selecting the drop-down upload from a files select the file and we want then this 665 which should be the number of the presentation we're on continue drop down into the checking account continue yes one column date format month month day day year year year year yeah yeah yeah yeah yeah so we have the date date call description description bank amount amount looks good except that these should be negative notice i put them in there on the wrong way they should be negative now note i could go in and adjust it but i could also reverse it i can just say reverse it right here and then it makes it negative which is cool so i did that on purpose just to just to show you that let's add them all and then continue and so five have been added movie b to the end and so it has been it has been done all right so then we're going to go back on over let's say these are going to be on the transactions we're going to say this is money out this time and we're looking at these home depot ones particularly so now i'm just going to simply make a rule that if it's over an arbitrary number like a thousand dollars then we're not going to apply it to we're going to have a different rule so let's first think about the ones that are under a thousand because that's probably the ones that we deal with more if we go to office depot all the time for supplies we're probably usually under under the rule that we're going to need to to increase it to a fixed asset maybe so and then so i'm going to go into this one first and sarah this is home depot and that will be the vendor just like we normally do we add the vendor now we might add a different vendor you could add a different vendor for one that's under the threshold and one that's over so that you can break out the the things that are going to fall under supplies versus fixed assets or you might just use one vendor for both of them i'm going to use one vendor for both rules this time so we'll say save it it's going to go this time it's going correctly guessed correctly good job quick books into supplies and materials i'm not going to assign it to a class and then we can make a rule for it so the rule there are rules here needs to this is going to be for under let's say a thousand dollars one thousand this is the rule for it's if it's under a thousand money out rule for the checking account all conditions must be met which is important because we will have more than one this time we want the bank text as long as it contains home depot just like normal but then we'll add another rule which will be an amount rule saying it has to be uh less than less than one thousand dollars less than one thousand dollars now note that like if i say it has to be less than a thousand dollars here and then next time i say that it has to be over a thousand dollars you might say well what would happen then if you made a purchase for exactly a thousand dollars well first of all that's not likely but i mean it's possible so so you could uh you could make another rule which which was exactly for a thousand dollars or i i believe the way quick books does it is if two rules would be applied the first rule that you make uh is the one that quick books is going to is going to take so if you made this for for one thousand one then and then you made the next rule uh that's going to be over a thousand dollars go into a different account for one thousand then the ones that have overlap will fall into the first rule that you made i think that's how quick books will work it but i think we'll be okay there because there's probably not going to have a lot of purchases for exactly one thousand so three of them have been applied so it looks like it's it's doing what it should be doing this is what it's going to do expense account supplies uh i'll leave that as is what i could say this should be a home depot and okay let's save it and check it out it says something's wrong you can't put a dollar sign in the rule name all right i guess is what they're thinking get rid of the dollar sign and then save it all right i also got rid of the comma i got rid of the comma and saved it okay so then and here it applied the rule out to these three this one this one and this one so if i was to automate the rules i can then add these i'm going to say check check check and then add those in so we'll say confirm and then if i go to my balance sheet and we run it then of course within the checking account for march we should have the decreases as is normally the case with the expense type forms for the home depots there they are the other side go into the supplies account we're going to go over here and then run it and then on the supplies we've got within march there's our supplies that we have been purchasing from home depot all right let's go back now the point is it didn't apply the rule so if i had automated this it wouldn't have just like dumped these two larger purchases into supplies which is an often place of error that people make right because if you're doing your taxes for example and you can imagine if this was even a larger dollar amount if it was like you know ten thousand dollars or something like that thirty thousand dollars that you paid to office depot and then it pulls into your expense as an expense it's going to look outsized right it's going to look off so setting a rule for those kind of supply shops is is fairly common and then these larger purchases we may we may then want to discuss with our accountant to make sure that we're grouping our fixed assets in the proper type of grouping we talked about that a little bit before i believe if we go to the balance sheet over here you will recall if we make large purchases then they're going to have to be going into a fixed asset type of account typically and we want our fixed assets to be to be tied out to the sub ledger which which will break out in detail hopefully the the assets that we actually purchased not just grouping them as machinery and equipment but saying we bought a forklift we bought a computer we bought whatever whatever it is that we bought and so that we can actually identify and then give the related accumulated depreciation to it so in order for that to happen we probably want to be attaching the purchase detail possibly to the form that we are we're adding for large purchases to make sure that it can be put on the sub ledger as cleanly as possible most likely by the CPA or accountant at the end of the year within the tax software so that's why oftentimes you might not want to make a rule for the upper half that applies automatically we might still make a rule for a suggestion but maybe i wouldn't have it record automatically so i can at least check it and then possibly add as an attachment the purchasing documentation so that it will be there so when the when the accountant does the process at the end of the year they can see what was actually purchased in detail okay so that said we'll make another rule so this is going to be Home Depot again this time it's not going to go into supplies it's going to go into machinery and equipment the fixed asset account on the balance sheet and so let's and then we could add the attachment here to the file as we do this which would be great but now i'm going to create a rule for it and i'm going to say this is Home Depot over 1000 and this is going to be a money out rule contains all description i like to use the bank test text does it have Home Depot that's the first condition second condition it's going to be an amount condition this time less than or greater than greater than uh and we'll say 1000 so we have that overlap between the one dollar right because if it was 1000 and one dollar we have we could have a purchase that falls under both rules it meets both rule conditions and in that case i think it'll default to the prior rule given the fact that we created it first i think is how it will work let's go ahead and test it two of them are being applied it's going to be an expense type of form not an expense account that's the form that will be used category machinery and equipment an asset account Home Depot and then down here like i said i would make sure not to confirm it because i would like to to double check the larger purchases most likely and then possibly again add if i could as a pdf attachment uh to it the purchase forms so that my accountant has that at the end of the year oftentimes you might also have finance information when you purchase largest large equipment and so one way that you might give that information to your tax preparer to do year end adjustments would be to attach those forms to the purchasing documentation so let's check that out let's go ahead and save it and so there we have it so we can confirm these two i'm going to confirm roger that and then if i go to the balance sheet run it again and we go into the checking account for march then we have all those happening these two are going to machinery and equipment and if i go back then the other side did not go to the income statement but rather to the machinery and equipment now again when you give your file to an accountant at the end of the year to help you to prepare the taxes at the least and possibly help you with your financial statements they can drill down on the machinery and equipment because they're going to have to put this on the books in order to do the taxes and record the depreciation expense normally there's not a lot of information in here because we don't purchase a whole lot of machinery and equipment because by by its nature it's something that's going to last for a long period of time so there shouldn't be a lot of detail in here and then the accountant can look in here and say okay there's machinery and equipment i can see it was bought from home depot what i would really like to see is what was actually purchased so if it was like a forklift or something i can put the license plate number or whatever on it the identification number on it i can break out between multiple things that were purchased if we purchased you know five different pieces of fixed assets i would like to identify them separately so if we go into this form and we had added as an attachment that that documentation then that should make the the the whole depreciation kind of issue recording of the fixed assets easier on the accountant and you can kind of do that as you go and and reduce one of those kind of things that will most likely come up if you have a a good tax preparer which is they're going to ask you could you give me the purchase documentation so i can properly put this on the fixed assets depreciation schedule rather than just putting it under a generic machinery and equipment was purchased on this date because if you put it on the books as a generic machinery and equipment was purchased it's going to be more difficult to identify later on when you dispose of different types of machinery and equipment right you can kind of figure it out you'd have to go back whenever five years to when you purchased it and see when you know when you purchased it and what it was that you purchased maybe but that's not the way you want to do it you want it you want to put it on the books on the sub ledger so that you can identify what was purchased 10 years later when you dispose of it so you can properly take it off the books as well as the sub ledger all right so that's the general idea if i go back to the first tab we can of course track these rules within the rules over here and we've been creating all of our rules the better we get these rules down the easier it will be and you can see this is rule number 12 versus rule number 13 like i say if one of the conditions of a transaction meet both the conditions of rule 12 and 13 i believe that quickbooks will default to to applying the first rule which was in this case under 1000 so in this case if we had a transaction from home depot for a hundred and one dollars it would meet both conditions because this one we actually made a condition of 1001 under 1001 or something so if it was a thousand dollars i should say then it would meet both conditions and it would fall into this rule so that's one way you can you can deal with those overlap kind of situations without having to make three rules right you don't need another rule possibly to say well what if it's exactly a thousand dollars actually i'm not sure if a 101 wouldn't meet both rules because this one was under 101 and this was over a thousand but if there was a situation where it met both rules then then i think i like i said a little apply the first one so i think that's how it works anyway let's go to the balance sheet and this is where we stand at this point in time so just to check that out if you're following along and then here's the profit and loss and so this is where we stand with a good old p and l i think the easiest thing to check is the trial balance which is basically the balance sheet on top of the income statement if your numbers tie out to these numbers great if not try changing the date it's often a date range issue and then you can drill down to the source document and change the date on the source document if you need to