 QuickBooks Online 2022 OneNote Presentation Bill Form. Let's get into it within two weeks. QuickBooks Online 2022. If you have access to OneNote, we'd like to follow along. Icon, left-hand side, Topic Introduction 1180 Bill Form tab. Also take a look at the Immersive Reader Tool. The Topic Introductions will be in the text area, too, with the same name, same number, but with transcripts. Transcripts that can be translated into multiple languages, or listened to or read in them. Same name and number as the presentations as well. The Topic Introduction is designed to give an introduction to the topic, provide screenshots, links where applicable, give a county and background to compliment the presentations, and they can be used to follow along with them if you don't have access to the software at that time. Closing the icon on the left-hand side, Bill Form, form that increases the accounts payable, typically entered by entering the new button. Here's one way that you can get there. If you go to the business view, you also have the new button here. You can also go into the center, which here is the get paid or pay center up top. In the accounting view, it's the expenses area. So we've got these two views that they're toggling back and forth and A-B testing at QuickBooks at this time. If you hit the plus button in either view at this time, we're looking at the vendors area. We're entering the Bill Form. Remember that Bill has a different meaning for the software than it does in just normal language. In normal language, I could say that I got a bill. I could say that I gave a bill. I can take the bill and pay it in any way I want. When you're talking about the language of forms, the bill means you're going to increase accounts payable. So that means the vendor is to someone that gave you a bill. You didn't pay the bill directly with a check or expense form, but entered it into the system with a bill form. That's what it means in the system that's going to increase the accounts payable as opposed to taking somebody else's bill and just paying it with a check or an expense form. You can do that. You don't have to take the bill that we got and then enter it as a bill, but you can. So there's a difference between the bill form and an actual physical bill, how you use bill form in the software than in normal talk when you're talking even in accounting terminology. You can also go down to the expenses area down below, navigate your bill's information in the center here, and you can go to the new item and you could find your bill item there as well. If you're looking at the flow chart, we're looking at this is from the desktop version flow chart, but it's just looking at the flow of the normal accounting process. You enter a bill which increases the accounts payable other side, either going to an asset or an expense, and then of course you pay the bill with in essence a check, but QuickBooks will designate that check with a special name of a bill payment check indicating that we are paying off an accounts payable bill. If you look at the accounts payable transaction detail, it goes up with a bill and it goes down with a check in the form of a pay bill check, and so that's the normal process we expect to see in accounts payable. Those are the forms we expect to see in the accounts payable GL or detail. So when we enter a bill, we drill down on the bill. We've got the vendor, we've got the address, the bill date, the due date, and then we've got the thing that the bill was paid for or the thing that was we're going to pay when we pay off the bill, in this case legal and professional fees, which would be an expense, expense increasing, accounts payable increasing. Whenever you see the bill, you note that means for QuickBooks that accounts payable is increasing, a liability account. So if you went to the items down below, these would be items that you would be using if you had inventory items and tracking inventory on a perpetual inventory system. So the system can not only hit the account of inventory, but can also track the units of inventory. So now we're in the reports area. We're looking at the vendor balance detail. This is a report that's going to support the amount on the balance sheet for accounts payable breaking the information out by who owes the money. And this detail report shows the bills, which are the forms that are increasing accounts payable, which have not yet been paid, which means that's going to make up what's in the payable account. We're in the expenses area now. We're sorting by the bills. And if you sort by the bills, this is a way that you can see the bills that have been entered already and determine whether or not you want to pay them. So the bill means accounts payable has increased. These are the things, if they're open bills, that represent the accounts payable having been increased, that we can then pay off, decreasing accounts payable and decreasing the checking account at some point in the future. You've got your sorting tabs up top, which could show you the bills that are overdue and so on and so forth. You also have your sorting mechanism when you go to pay the bills with a pay bill form, gives you the bills listed out with some sorting capability so you can determine the bills that you want to pay, select those bills, and then choose a payment option for it. When you enter a bill just in terms of debits and credits, the accounting related to it, for example, would be if you got a utility bill from the utility company, then that bill from the utility company might say invoice on it, right? Because to the utility company, it's an invoice because they're paying it to us when you're using like software terminology. You can use bill and invoice interchangeably because it's on two sides that depends which side of the table you are on. So let's say we got a bill from the utility company, we could take that bill and just pay it with a check or a expense form, or we can take their bill or invoice, whatever they call it, on a physical piece of paper or an email or whatever, and we can enter it in our system as a bill in our system. The bill in our system means that we didn't pay it right away with a check or an expense form, but rather put it on the book's increase in accounts payable. There would then be a debit to utilities expense credit to the accounts payable. If we saw the beginning balances on the left-hand side and the ending balances on the right-hand side, I'm looking at debits and credits now. If you don't know debits and credits, that's okay. We'll just get a general idea of this. We've got the accounts payable. Was that the $1,006? It went up by $500 in the credit direction to $2,100. And then the utilities was at $1,900. It went up by $500 to $2,400. So you could see two accounts are always affected. The impact on net income, which represents the $200,000 minus all the expenses, was at $24,710. We had an expense that increased, which brought the net income down to $24,210, the difference being, of course, the $500 change. If you look at the general ledger, the general ledger represents the activity by date. This would be represented when you drill down on the QuickBooks software into the source data, giving you a transaction report, basically a general ledger, was at the $1,900, went up by $500 to $2,400. The accounts payable was at $1,600, went up by $500 to $2,100. Then if we look at the sub ledger, breaking out the accounts payable, not just by date, but by who we owe the money to, we're going to say here that we owe the money to Vendor 4, which is the utility company, increasing it by $500. If I look at the other items, $700, $300, $600, and $500, that adds up to $2,100, which ties out to what is on the general ledger and on the trial balance or financial statements. You can also see that information should tie out then to your financial statements as well. If we did another kind of accounts payable, this time let's pretend that we're purchasing an asset. So we still have the accounts payable form, the bill form that would be entered. The accounts payable would still go up with a credit, but then the debit would not be going to an expense in this case, but rather to an asset type of account because you purchase something large on the books using the same form. This would be the journal entry behind it. The accounts payable would be included in this number here, so it still went up, and then the other side went into the furniture and equipment, not an expense account as did when we paid the utility bill. So now we entered it up here bringing up the furniture and equipment, looking at the GL. The furniture and equipment was at $16,000, went up by $5,000 to the $21,000, and the accounts payable was at the $2,100, went up by the $5,000 to the $7,100. And then if we look at the sub-ledger account, we're going to assume this was vendor one, was at $700, went up by $5,000 to $5,700. That plus the $300, the $600, the $500 for the other three vendors adds up to $7,100, tying out to the general ledger and the financial statements. You can then go one more type of thing that we might use an accounts payable for. We might be buying inventory. Inventory also is going to be an asset, so we'd still use a bill form. The accounts that would be affected would be accounts payable would go up. The other side now going to an asset account, this time being the inventory asset and would also be increasing if we're using a perpetual inventory system, the sub-ledger for the actual piece of inventory that we purchased, we would have to use items on the bill in order to do this properly. So now we'd have the accounts payable going up and then the asset account of inventory now going up. If inventory goes up, we also need to track it by units of inventory. We need another sub-ledger. So if I go down here, the inventory was at $4,375 and the GL goes up by $1,000 to the $5,375. Accounts payable was at $7,100, goes up by $1,000 to $8,100. The sub-account for the accounts payable now is going to go up for vendor 3 from $300 to by $1,000 to $1,300, adding that to the other people we owe money to. The $5,007, the $600, the $500 for the other three vendors adds up to $8,100, which should tie out to the general ledger and to the financial statements. We're also going to have a sub-ledger now for the inventory units that we purchased. So now, or that, yeah, we purchased inventory units. So we'd have to have the inventory unit item that we would have and track the items that were purchased for that inventory unit. So now we can break out the inventory that we have on the financial statements by unit and by cost per unit. And when we sell the inventory, we're going to have to know which of those inventory units we sell, use some kind of flow assumption, LIFO, FIFO, weighted average, I believe the online version uses a FIFO inventory flow assumption. I won't get into that in detail here, but just to get an idea that you need that sub-ledger, we will look at inventory as we enter transactions into the practice problem. $5,375 should tie out on the sub-ledger to what is in the inventory account on the GL and on the financial statements. Then that trial balance would basically be used, you could think about it being used to create the balance sheet. So when you're thinking about this from what is the software actually doing? The software is basically taking the bill form that we are entering, using it to create the transaction, the journal entry, which would be posting to the journal entry, which would be creating the journal entry, which would then be posted to the general ledger, which is kind of like the transaction reports in QuickBooks, which would be used to create a trial balance traditionally, which would then be used to create the financial statements. The way we actually look at it in QuickBooks is we enter the bill form, jump to the financial statements, the end product, drill down on the financial statements to the source documents. So we're kind of leapfrogging from the data input form to the end product and then drilling back, whereas in actuality, if you were to enter the transactions, generally you'd be entering the bill form, which would be the financial transaction posted to the general ledger, which would be like the transaction detail report, creating the trial balance, then creating the balance sheet. And again, we then enter the bill form in QuickBooks, jump to the end product, the balance sheet, and then drill back down, double clicking, for example, on inventory to go back then to the general ledger detail account. And then we create another report, which would be the subsidiary type of report to get the subsidiary ledgers, for example, like the vendor summary report and the inventory detail or inventory summary reports.