 QuickBooks Online 2024 Populate invoice using billable item that was created from a PO or purchase order form. Get ready and some coffee because we're making our books divine with QuickBooks Online 2024. Okay, maybe the books aren't divine, but still they're pretty darn nice. 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 crunching 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 works 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. Here we are in our gift rate guitars, 2024 QuickBooks Online sample company file. We set up in a prior presentation, opening up the major financial statement reports like we do every time. The reports located on the left hand side in the favorites. Right click in the balance sheet to open link in a new tab. Right click the profit and loss to open link in a new tab. Right click the trial balance to open link in a new tab. Let's go to those tabs up top. Closing up the hamburger. You've got to close the hamburger because if you leave the hamburger open, someone might steal the patty out of it. They'll probably leave you with the lettuce, but they'll steal the patty indicates. We're going from 010124 to 022824. Then we're going to hit the drop down to see it month by month, broken out month by month. Run the report. Let's tab to the right. Close the hamburger and scroll up and then change the range 010124 tab 022824 tab and then run it to refresh it. We'll do the months and then run it to refresh it. One more time, tapping to the right, closing the hamburger and changing the range in 010124 tab 022824. Then we'll see a month by month breakout and run that report. Once again, let's go back to the balance sheet tab as we discuss the next thing we're going to do. We're going to be making an invoice as we have seen in the past, but this time we have an invoice that we're going to populate from a billable item, that billable item having to do with inventory this time, which has a little bit of a glitch in it that we have to be aware of if using the billable items. Let's go to the first tab. Just as a reminder and note that if I hit the drop down over here and we go into the company settings, we have under the expenses this item for the expenses here for the bills and expenses. And we turned on these billable items. Now the first thing that usually comes to mind when we use these billable items is probably a job cost kind of system. So when you basically pay for the gasoline or something like that, you might want to or supplies or something. You might then pull that into an invoice and as you do that, it's going to assign it to an income account. That's usually the issue with this billable system is that you're not using items to then pull the expense over to the invoice so it doesn't know exactly what income account to go to. But it'll go to this kind of generic income account by default. Now if you are using items, in other words, now you're using this billable thing to track what we did which is the purchase order to the bill to then turn around and sell it to a particular customer, then you are using items. So you would think that QuickBooks can assign it to the proper income account according to what the item says, which it does. But it doesn't pull in the proper sales price. It pulls in the cost, the amount that was on the bill, which is still the kind of glitchy bit of it. So if I close this back out, you'll recall if I go into the sales tab over here and we go into the products and the services, when we look at inventory items, they have both a cost and a sales price. So if I edit this inventory item, for example, then this item, when I use it, should tell QuickBooks what account to hit, which is going to be an income account, and it should also pick up the sales price, not the cost. The amount that was on the bill is at cost. The sales price is going to be what we sell them for. So let's close this back out and do a little review of what we've done in the past. I'm going to open up the hamburger and now we can go into, let's first look at it from the sales tab and go into all sales, close up the hamburger, and you can look at this unbilled income, unbilled income. That means it's income that's not on the income statement because we've used some kind of billable item, possibly entering time entry in a job cost system that we then need to populate an invoice for, the invoice then will record the revenue, or we used this billable item, so here it is. Here's this billable item that we have in here that once I create another invoice, it will pull this information in which was an actual invoice for a guitar. I can also look that up on the customer side and we can go into the unbilled filtering this way, which is just really neat, and then I can go into here and then we have that billable expense charge. Let's track how that got on the books. It got on the books when we purchased the inventory. So if I open up the, open this one up, the hamburger again, so I could, the patty has been revealed again. Be careful when you're opening up the hamburger and we're going to go down to the expenses and then we'll recall that on the purchasing side of things, let's clear the, well let's go into the fender. Here's the fender and we created a purchase order to start with. So we imagined that if I go into this purchase order, a customer came in the shop, which was new music stuff, that's the customer. They ordered a guitar from a vendor we've never done business with by the name of Fender. And so we set up the new vendor to buy these guitars specifically for this customer. We put the customer on the invoice, even though Fender, the new vendor, doesn't care about the customer, but because when I then get the guitars, I want it to be indicated so I can remember to turn around and do the sales side of things so I can then sell the guitars. So this amount here has then been populated. You can see that the purchase order is now closed and it's been linked to a bill. So if I close this back out, you can see the bill is also here and the detailed information. So if I go into the bill, then we can see that we have Fender and we paid off the bill, remembering that the purchase order doesn't actually record a transaction. It's a request for inventory, at which point we have not paid for the inventory or received the inventory. Now the bill is when we've received the inventory and we've got a bill inside it. This whole process being different than your experience as an individual purchaser of something online, at which point you typically pay for it up front when you buy it. Okay, so here we didn't pay for it up front. We requested it, received it, and now we're paying for it. Now here's where we have the customer pulls in. We could have just said, okay, I see that customer and now I'm going to turn around and make an invoice that will match the same line item. But it would be nice if I could use this billable item to then pull into the invoice. And we can, but there's kind of a glitch. Now you'll recall with the categories up here, if I had a category like supplies and I said it was billable, then all it knows is the account. There are no items. That's the problem when I use the method of just having categories. That's why QuickBooks just has one account for it to basically go to as an income account instead of decreasing the expense account. But down here we do have the items. So now you would think that it will, when I pull it into the invoice, it's not going to go to that generic billable income account. It will be driven by the item to properly go to the, in our case, product service income. But it doesn't seem to properly pull in the sales price but still seems stuck on pulling in the cost because that's what's on the bill and that's what typically happens when you're doing the category items rather than inventory items. So that's kind of the glitchy situation. So let's go ahead and show that. So if I close this back out and then now we're on the sales side. So now we're going back to the sales side and we could see in the customer area if we look at the unbilled items that we've got music stuff store and there's our time charge. So the next thing we can do from here is create an invoice, right? So I could say, okay, make an invoice and there it is, it pulls in automatically. Now if I was to just create an invoice it would still give me the suggestion to pull it in. So in other words, if I close this back out and I look at new music stuff and I just made an invoice, drop down invoice and I just said it was new music stuff on the new looking invoice then it gives me this thing. Do I want to add it? And I'm going to say add it pour favo or please and then I'm going to close this back out get out of here. I need more room. You're crowding me. You're crowding my space. All right. So then I'm going to say this is going back down to 22. All right. See there's doing it again. It's just like, I'll stop it. Stop it. All right. Then I'm going to go down here and we're going to say this is an SQ squire it pulled in but notice if I tap on over and I go to and if I add a line let's do another one SQ SQ Squire then there's the sales price. So it pulled it in at the cost. That's the problem. So you could use this system and still just change the price to the proper price. But again, I find that to be annoying. I don't see it. I keep on thinking that I'm missing something but I don't think I am because again the desktop version does that well and you would think it'd be able to do that and pull in the sales price because we're using items. So I'm going to change that now. That's just something once again to be aware of. It's linked up. Everything works beautifully other than that minor detail which is kind of a fairly unminor detail. But it's got the sales tax applied and everything else looks good. So now I'm going to change the sales down below and let's make this to the generic five for the sales tax because that's what our practice problem is. Generic five and then instead of the California tax and then we're going to then say well what's this going to do? It's an invoice. Decrease in the accounts receivable. I mean sorry, increase in the accounts receivable. Accounts receivable being the first account that should come to mind when you hear invoice by the full amount of the $5,124. The other side's going to go to revenue which is going to be assigned to the proper revenue account not the billable revenue but driven by the item product revenue hopefully of the $4,880 the difference of the sales tax $244 not on the income statement but the balance sheet the tax payable $244 and the inventory is going to be going down not by an item or amount on the invoice but by the amount that was on the invoice the cost that was pulled over from the bill but it knows about it because the item is set up and the item should be driving things here and then the cost of goods sold will go up that's the expense related to the sale of the inventory the impact on net income sales price minus the cost of goods sold and the sub ledger for the accounts receivable will be impacted by customer in this case the new music stuff and the inventory will be impacted decreasing by unit on the sub ledger as well as by dollar amount let's hit the drop down which is really a rise up and then we're going to say let's do this one rise up and then we're going to say save even though it's got a down arrow because you see it went above it instead of below it so it's really a rise up and not a drop down even though it has a drop down arrow because the arrow is going the wrong way the arrow is going the wrong way it's deceiving the arrow is lying to us let's go to the reports and run this I'm not going to get mad at the arrow right now I'll give it a scolding later I'm going to go into what was I doing let's go into the February numbers on the AR accounts receivable hold on I did the wrong date let me go back I'm going to go back and then I'm going to edit this one edit the invoices should be I should be in February see it's a date issue this is the problem of working when you're working in the future so now I'm going to save it again let's try it again alter the vase maybe if you would stop babbling about nonsense okay whatever I'm going to then go back on over and then here's the accounts receivable if I go into the AR here then we have our invoice for the full amount the 5124 let's go back on over and then go to the income statement run that one and notice it didn't go into the billable income as it would if it was driven that billable item but rather the item was used properly here go into the proper account it just didn't put the it just defaults to the cost which isn't the proper amount but it does go to the proper account so there's that and then if I go back on over going back to the balance sheet the difference is going to go into the sales tax payable which is on one of these two items those are the difference is going to go in here into these two areas as we've seen in the past for the sales tax boom and let's go back and then the inventory is going to go down inventory is going to go down so if I go into the inventory there should be a decrease to it so that is looks correct correcto moondo and then the cost of goods sold back to the income statement is impacted here and we see the cost of goods sold boom all right let's go back we also know that the sub ledger for accounts receivable will be impacted let's open up a sub ledger to check it out tap into the right right clicking duplicating and then going down to the reports on the left hand side I want to report on the inventory inventory I need to report on the inventory so I need an inventory valuation summary 28 to the future because that's where I work 28 I got everything done in the present and now I work in the future and so there we have it there's our information totals at the 6266 that should tie up to what's on the A to the R no I did the inventory that should tie up to the inventory 6266 and then let's do the accounts receivable report I'm a little backwards I'm still not quite doing things are not working exactly properly here I'm going to go out to the reports close up the hand boogie and then go down to who owes you and let's go down to the customer balance detail just to see the sub ledge and I think that'll be fine and so now we have our invoice in here I think this was the music stuff now this one is the one we put in there I think the total is the point comes out to 1981150 that should tie up to the balance sheet 1981150 and when we look at it internally we can see then that we have on the customer side we're in our customer now we have that billable expense charge has been converted so if I click on it conversion here we could see that and if I go into the invoice we could track the information on it now as well open invoice looks good if I go into it we edit the invoice here's what the invoice looks like so that looks good I'm going to close this back out if I go back to my sales all sales the unbilled income is now gone right or wait a second it's here's the unbilled income and it's been converted and then if I filter by it let's go into unbilled income there it is there it's gone and then so that's good and then if I go into the invoice side of things we've got a new invoice on the books so I can look at the unpaid invoices and we should have a new invoice on the books that we have now that we're going to be tracking and collecting on so that's that one let's go to the trial balance and see where we stand trial balance and so that looks good let's run it again if your numbers tie out to these numbers great if not then try changing the date range and see if it's a date range issue drill down to the source document and possibly fix the date we have our assets on top we've got the checking account asset accounts receivables asset the inventories and asset investments asset the payments to deposit asset prepaid insurance asset accumulated depreciation the funny contra asset the only one that has a credit in it thus far because it's a contra asset and it's intimately related to the furniture and equipment asset and then we have the liabilities remembering assets represent what the company has the other side of the coin the flip side of the coin who has claimed to those assets we've got the accounts payable liability third party liability visa liability the government the state for the sales tax liability the bank because of the loan liability the payroll taxes liability the government because they made us their tax collector made us into their pawn and then the opening balance equity on the equity side of things our claim to the assets opening balance equity owner's investment and the owner's equity and then as part of owner's equity otherwise known as retained earnings if it was a corporation is the income statement so all the income statement the credits should be beating the debits in other words income is credits debits are expenses so the credits should be winning and it should be winning by net income which is part of and will roll into at the end of the year because that's how quick books works although you could do it monthly too if if if you didn't you know you could think of it rolling in monthly it should go into the owner's equity so let's check that out so this is the bottom of it let's check out by changing the date 010125 to 010125 run it just one day later one day later and it's all squished together in the one number we only have the balance sheet accounts if we were to be starting for 2025 because the income statement would be reset like reset in the odometer when you're going on a new drive and a new trip and you want to count from zero on the miles