 zero accounting software 2023 populate invoice using information from a purchase order or P.O. get ready to become an accountant hero with zero 2023 first a word from our sponsor well actually these are just items that we picked from the YouTube shopping affiliate program but that's actually good for you because these aren't things that were just given to us from some large corporation which we don't even use in exchange for us selling them to you these are things that we actually researched purchase and use ourselves focus right Scarlett solo third-gen USB interface with software suite I've been using a focus right for years for my audio needs before which time I had a USB microphone which plugged directly into the computer but I think you'll find as I have found if you want to increase the quality of your microphone you will need an interface and the focus right is to go to interface as far as I'm concerned I've been using this for years now it works well it's easy to use it seems quite durably built because I only do the screen recordings I only need the one solo interface however if you have multiple microphones you need to plug in or if you have other instruments you need to plug in you can look at a similar model that has more input ports if you would like a commercial free experience consider subscribing to our website at accounting instruction.com or accounting instruction.thinkific.com where we have many different courses you can purchase one at a time or have a subscription model given you access to all the courses courses which are well organized have other resources like excel files and PDF files to download and no commercials here we are in our custom zero home page going into the company file we set up in a prior presentation get great guitars we're gonna duplicate some tabs to put reports in by right-clicking the tab up top to duplicate it then we're gonna right-click the tab again and duplicate it again back to the tab to the middle accounting drop-down let's open up the balance sheet and then we'll go to the tab to the right accounting drop-down we're gonna open up the income statement but I'm gonna pick up this comparative income statement we made in a prior presentation comparing January and February the current month we are working in being February back to the balance sheet hitting the drop-down we're gonna customize that date range bringing it up to 2023 and the end of 2023 updating the report back to the first tab now we're gonna we're gonna now create an invoice from a purchase order that we created so let's take a quick look at the flow chart to get the scenario down this is a flow chart from a screenshot of QuickBooks desktop but we're just using it to see the normal flow of our forms through a general accounting process or accounting cycle so we're touching on inventory here which means we're gonna be touching on both the vendor or payable or expense cycle as well as the sales or revenue or customer cycle so we imagine our stories starting out someone came into the shop and said I would like a particular type of guitar we said hey we don't have that guitar they wanted it from Fender which is a new vendor we've never done business with Fender before that time so we said hey we'll try to contact Fender as a new vendor and see if we can get that guitar for you so we made then a purchase order to request inventory from the new vendor Fender now then of course we're hoping that that item comes through as inventory when we receive the inventory we entered it into the system with a bill type of form increase in accounts payable and the other side going to inventory now we have the guitar in the shop now what we would like to do is because we purchased this guitar for a particular customer is turn around an invoice go into the sales side of things using an invoice form to invoice the customer for the the piece of inventory that we purchased now zero has a nice feature for us to be able to do that fairly quickly by taking the purchase order and basically just copying it over to help us to automatically create the invoice so that's the strategy that we will use let's go back on over here so if we follow our story in zero we're gonna say all right what happened we entered our purchase order so if I go to the business drop down and we go down to the purchase order items we had a purchase order here it was approved and then we build out the purchase order for Fender so that there's the one that we build out now we want to turn around and have the invoice let's go to the first tab where we have our purchase order here and let's go into that purchase order notice that if it was in this section awaiting approval then it would have a little check box here and you'd be able to possibly copy it to a bill like from this screen but we've already build it out so I'm gonna go into the purchase order go into all the purchase orders and go into this Fender purchase order here and then we have the options tab up top so I'm gonna select the options tab and I want to copy it to and we will copy it this time not to a bill like we did before that's for us paying completing the purchases cycle but now to an invoice so we can turn around and use this to to populate the revenue side of things to generate the revenue so we're gonna go here I'm gonna say it's a new customer I'm gonna say it's gonna be new music I don't think we have this customer yet stuff new music stuff generic customer name for us there that's our new customer it's gonna happen let's see if I can get the date right for once get it right man just get it right for once okay get off my back get off my back I'm gonna get the day so to February 22 let's go with that one and standard so the squire pulled in properly that's looks good and notice this pulled it in like it should pulling in the sales price rather than the cost you'll recall that when we try to like take the billable items from an expense form using inventory items in other words if you if you purchase something purchase inventory with a bill and try to make it a billable item that you can then pull over or sign the cost to the customer then sometimes it gets a little bit tricky that the item doesn't pull over the proper sales price but rather the cost here this function works quite well as you would imagine it would because this is designed specifically for this usage and we'll recall that this item has two costs related to it or two dollar amounts related to it one the cost side when we set up the item and to the sale side and we're on the sale side of the transaction so this should be the sales amount here alright so we have a standard invoice then what's the invoice going to do well it's an invoice it's gonna increase accounts receivable by the 5124 the 5124 the other side is going to be going to revenue but for the amount that we put in for the sales price 4880 the difference the 244 sales tax is going to go into a payable account as a liability and the inventory is going to go down not by this amount but by the cost which the system knows because of the item and the cost of goods sold the expense related to us selling our inventory is going to go up net effect on net income is going to be the sales price 5124 minus that cost of goods sold and the sub ledger for the accounts receivable but we'll be tracking who owes us money by customer and the sub ledger for the inventory will track not only the dollar amount but the units of inventory on a perpetual inventory system let's approve it and check it out and see if that is indeed the case or if I'm a dang liar your liar I'm not a liar let's go back on let's check it out we'll go to the balance sheet here and say let's drill down on the accounts receivable to see what's in it so drilling down to see what's in it we're gonna go down and say okay there it is so that's for the full amount in the accounts receivable see see I told you so and then if I go to the tab to the right and we update then we're gonna go then to the sales tab sales in February and check it out and we should have that one item on there not for not including the sales tax so here it is there it is not including the sales tax so that's correct I believe let's go back up the difference going back to the balance sheet is on the sales tax payable let's just check it out drilling down to take a look drilling down to go down to the see what's happening receive invoice so there it is on this one okay and we know that inventory is going down to so inventory is here let's take a look at that one it's going on the books not at the sales price but at the cost which is known by the system because of the inventory item and so there it is that's not an amount actually on the invoice but known by the system back on over and the cost of goods sold on the income statement again is here it's right there I yeah right there and so we're gonna say new music stuff there it is what's the net impact on net income well we had an increase in sales and an increase in the cost of goods sold the difference between the two is the impact on the income statement then if I go back to the balance sheet we know there should be a sub ledger that ties out to that accounts receivable tracking by customer let's make another report tap into the right right click on it duplicate it and make another report breaking it out by customer just so we can double check that concept so accounting drop down we're gonna go into the reports and let's scroll down to the payable and receivable reports let's go into the aged receivable summary just give us the summary just give us the summary if you would so we're I think the date will be okay there so we'll just I just want to break it out by there's our four customers here's the totals that each of them owe us there's the 19111 50 there it is also the 1918 1150 on the balance sheet I said it wrong did I say it wrong or was it wrong it's not wrong I just said it wrong 1981150 1981150 okay and we should have a sub ledger for inventory breaking out the inventory items by unit and by dollar amount so let's break that out tab into the right right click let's duplicate again so we can open up another report to double check double check reports let's just type in inventory up top to look at our inventory reports and just to note that it is doing behaving as it should so now we have our inventory items on the right and then our total cost is the 6864 that should tie up to what's on the balance sheet and on the balance is this the balance sheet it is where's the 686 there it is 6864 right there it's right in front of your face man okay then let's go to the tab to the left and we can also track of course the inventory the invoice so if I hit the business drop down and look at my invoices internally now we expect to get paid on the invoices here's all the invoices these are the ones that are open over here awaiting payment so we can see that we can also track it by going to the customers contacts customers and we made a new customer you can see basically the detail of they owe you which is kind of like our report that we opened up but it doesn't give us that nice total to give us that double check that verification that this is indeed breaking out more information about the line item on the balance sheet of accounts receivable so here's the new music stuff that's the one we set up pretty generic name but I'm still at least it wasn't just cuts customer one right I came I came up with something at least alright so let's open up the trial balance and see where we stand at this point tab and to the right we're gonna go to the accounting drop down reports and see the trustee trial balance you can always trust the trial balance because it's it's on trial it's got a trial court to it or something I don't know customize 2023 and update it here's where we stand at this point in time if your numbers tie out great if not then if you tied out last time and you're checking that your numbers and you're off this time the things we changed were the accounts receivable we changed the inventory we changed the sales tax payable we changed the revenue line item down here on sales line item and we changed the cost of good soul so if something's off you would think those would be the thing that's off if you were on last time and you could try to change the date range see if it's a date issue then drill down on the data and possibly down to the source document that invoice perhaps and correct the date if that's the issue