 QuickBooks Online Invoice Form Get ready to start moving on up with QuickBooks Online Support Accounting Instruction by clicking the link below giving you a free month membership to all of the content on our website Broken out by category further broken out by course each course then organized in a logical Reasonable fashion making it much more easy to find what you need than can be done on a YouTube page We also include added resources such as excel practice problems PDF files and more like QuickBooks backup files when applicable So once again click the link below for a free month membership to our website and all the content on it We're gonna be using the free QuickBooks Online test drive Searching in our search engine for QuickBooks Online test drive Selecting the item that has into it comm in the URL into it being the owner of QuickBooks Selecting the United States version and verifying that we're not a robot Zooming in a bit by holding down control up on the scroll wheel currently at one two five percent on the zoom in Note that if you hit the cog drop down We're currently in the accountant view as opposed to the business view We will try to toggle back and forth so we can see those two views We're gonna be duplicating some tabs up top right clicking on the tab to do so and duplicating it Right clicking on the duplicated tab to duplicate it again Gonna go to the tab to the middle to open up the report as we do every time Reports on the left-hand side under the accountant view and then balance sheet report as that's thinking tab to the right Reports on the left and the income statement or profit and loss Range change up top. I'm gonna select the starting point and type in the range as easy as possible I believe is to just say 010122 January 1st 2022 is what it stands for to tab tab and then 1231 222 December 31st, 2022 run it. I'm gonna close the hamburger and then go to the tab to the left and then back down I'm sorry scroll back up and then just the dates from 010122 to 1231 222 January to December and run that one close the hamburger That's the setup process we do every time back to the first tab where we're gonna do our navigation Now if I hit the plus button up top, we've been looking at our Navigation of the customer cycle so the customers is a is a term for quick books That's going to mean which side of the table we are on in any business transaction We are going to be selling to the customer So that means that we're going to be Assuming at the end of the process typically having money coming in for goods and services We provided to the customer now remember your cycle here will differ Depending on the type of industry you're in so if you're in a gig work situation You might get paid directly by a platform And you might be able to use the bank feeds to record the deposits as they hit your bank with possibly a bank deposit That would be generated through the use of the bank fees That would be like the easiest system and then a cash based system We said that's the one where you might have a cash register and use a sales receipt and then Organize your cash and then you'll have to have another step of depositing it Or you'll have a cruel based system and that's the one we're going to focus on now Which will have the invoice form so In other words, you're not going to use an invoice unless you have a type of business That's an accrual based business and that would be something like a landscaping business bookkeeping Law firms oftentimes anytime you have to do the work first and then Build the client or invoice the client then you'll be using the invoice Now the invoice is another one of those terms You really got to be careful on which side of the table or how you're using the term and normal language You could say that if i'm going to charge a customer if I did a bookkeeping work, for example And i'm going to send out an invoice to the customer. I could call that a bill I could say i'm billing the customer for the work that I did that would be okay to use a normal even accounting language But when we're talking about quickbooks, we have to label the forms to be indicating a specific side of the transaction So the invoice is the form that we're going to use to bill the customer The bill is the is the form that we're going to use when we get Build from a vendor for works that we did for somebody else again interchangeably They can be used in normal language And also the bill is even more specific than that and within quickbooks The bill is a form that will increase the accounts payable So even though we might get a bill from a vendor when we enter it into our system We might just pay it with an expense form or a check or we could enter it as a bill The vendor is not it's a little less confusing because it always means it's the data input form that we're going to use To charge a customer So let's go into one and let's just create one here. We'll go into the invoice. I'm going to say this is for a a a I'm just going to keep on making up a a a as a customer because it'll show up at the top of our customer list and then notice that The type of detail that you're going to want on the invoice will be dependent upon The type of industry you're in some types of businesses. They have a lot of repeat Customer clientele and some business some businesses don't it's a one-time type of transaction So if you're going to have repeat transactions, you're going to want to have as much customer data as possible So, uh, we went through some of the customer data before but the minimum information you would need would be The name so i'm just going to keep that for now as we go through the invoice And then if we're going to email it to them then clearly we would need their email address Emailing is a common form to be sending out the invoice these days billing address if applicable the terms represent When you expect to be paid so if you're going to be sending out an invoice that means you did work We imagine we did bookkeeping work or something like that We're going to send out the invoice which is billing the client and then we got to expect when they're going to turn around and give us money So a standard range would be 30 30 15 10 so we'll keep it on net 30 here So that means the invoice date is 12 22 in our example. We expect to be paid By uh, 2 21 in that example, which is 30 days later And then i'm going to go down to the bottom here, which are the products that we sold now typically You're going to want to add a product and service even if the invoice is for a service item And this goes to kind of your billing for example If you do uh things like hourly service You could have an hourly rate and make your item like an hourly rate I just charge an hourly rate and that's fine But you might want to give more thought In terms of how you can cut how you can group your service items In such a way that you can you can build them out a little bit more easily So for example for bookkeeping you could just say that i'm going to do bookkeeping have an hourly rate for bookkeeping You might have different hourly rates for different types of activities you do in your accounting business Or you can try to say that i'm going to record the accounting by how many transactions I do So you might try to make a grouping saying that this is uh so many accounting transactions if you if I did within You know 50 to 100 uh transactions I'm going to charge you this much if I do that and then you can actually count the transactions That's a little bit more concrete sometimes and it sometimes makes the billing A little bit more easy to do if you can set things up that way And it makes it a little bit more concrete for the client Who can see you know a schedule instead of the just hours or a little bit more arbitrary Oftentimes but the major distinctions you're going to have down here are going to be are you talking about a service item? Or are we talking about an inventory item? Let's start off with the service item because that's the easiest thing to do So i'm going to hit the drop down. I'm going to add a new item And uh, we'll talk more about items later So we'll go through the items fairly quickly But these are the foundational things these items that you're going to need to populate an invoice. I'm just going to call this service service item One I'm going to copy that and then go through here and say category no category description Service item one. I'm just going to say we sell it for whatever a hundred dollars And then it's going to go to a service income account. So that means that's the income account It's going to hit when I record this on the income statement Whether it be taxable or not oftentimes service items are not taxable. So i'm going to in the united states So i'm going to click on this and i'm going to go down here and say it's a non taxable item and then done and so there we have that and so Let's go ahead and save it. We don't have to deal with any inventory or anything like that And then I can put the amount of service items like two It's non taxable. So I don't have the tax line checked off and then I could add another one. Let's just do the same one But you could have different items here, of course And so on so for different lines And so some some types of businesses could have very long invoices like a construction business You might be populating your invoice based on what you did if it was some kind of job cost type of system So you might list out the products that you purchased and this kind of stuff To make the invoice it'll be dependent upon the type of business But you can add lines here You can uh clear all the lines you can add a subtotal if you need a subtotal within here And then you can actually change the groupings of the line by moving these Around as well if you need to populate these or adjust them if you have a long invoice you can have a message Message on the invoice. So they have one. Thank you for your business as the default I'll just put high here so you can and then message on the statement So you can have another message on the statement and then any attachments if you need any attachments Cancel it. You can clear it. You can print or preview. So if I preview it Let's look at it. What it will look like here print or preview And so now you can see kind of what it looks like. There's a little message I put down at the bottom And so there it is there you could get into customizing of your invoice. We might talk about that a little bit more Later, but we're just looking at the basic data input at this time And so you can make it reoccurring You can customize it here and then you've got the more options copying it So if you had a long invoice and you wanted to copy it to another one So that you can make the data input a little bit faster. You can void it You can delete it a transaction journal and then audit the history We can save it and then we can save and send which means by email typically That's often the way you're going to send things out these days Or save and close and save and share link Here, so let's just think about the transaction that's going to happen with this. It's an invoice So when you think invoice you think accounts receivable is going to go up AR is going to go up The other side is going to be driven by the items both these being service items Therefore it's going to go to a service income account no inventory. So that's a pretty straightforward transaction Let's save it and close it and check it out So I'm going to go to the next tab on over I'm going to run the report to refresh it and then it's going to go into the AR accounts receivable clicking on the A to the R accounts receivable scrolling all the way to the bottom There it is. So we have an increase there Clicking on it that drills us down to the source document. So the source document is making the transaction Notice how easy the data input is if you have these service items already set up We'll talk more about how to set those service items up later But you want the data input to be as easy as possible even if you're the one creating the invoices You don't want to be agonizing Over billing someone and how much you charge and this kind of stuff you want to think about What your billing process is how can you streamline that how can you make your Production of the billings as easy as possible Close in this back out scrolling up and then going back to the report Let's go to the next tab to the right and then run this one And this time it's in the what did I say service item that we put it into so it's right here Services and the income account Of services and there it is there Scrolling back up back to the report also if I go to the first tab We had accounts receivable. That means people owe us money. That means we got to get paid from them So we have to track the accounts receivable This will have a sub ledger that'll break out the accounts receivable by customer I'm going to go to the tab to the right right click on it and duplicate it So we can run another report just to see the sub report and how it ties in So we'll open that up. We'll go down to the reports And I'm going to close the hamburger and scroll down to who owes you and let's this time look at the the customer Balance detail. Let's do the customer balance detail report And so then I'm going to scroll up and change the date of death. It should be good And so there it is right there. There's the invoice. It's broken out by customer And at the bottom 558152 should tie out to what's on the balance sheet The 558152 here now you're also going to track the invoice Internally to try to collect on it. So if I go to the first tab Then we can find this in the sales area which sales means revenue That's like our customer cycle information in essence It would be in the get paid paid area in the business view Which we'll take a look at the at the end. Hopefully if I remember And then within here you can take a look at all the sales transactions I can close up the hamburger hold control scroll down a bit And I can organize my sales transactions by the invoices open invoices, for example And there's the AAA I would expect the next thing to happen is I get paid by it And then I can receive the payment You can also within here Have your other options. You could duplicate send it again So right we might want it might need to send it or send a reminder In order to try to collect on the payment We can also sort and find this in the sales area And we can go to the invoices tab directly, which is once again basically sorting out our Invoices and we can group them by the overdue And so on and then we've got our actual customers So if we had a if we wanted to contact an actual customer, we can go here or again We've got this nice sorting item up top so I can look at my open invoices But this time it breaks out the customer and then the open invoices We might then be going in here at some future point and taking all these people that owe us money And create statements for them, for example to try to help to collect on the funds So then if I was to go into this the next step would be to receive payment I can go there to do that. I can go into the actual invoice and there's the invoice where once again I can go to the receive payment now Let's make another invoice and this time one with inventory inventory adds a lot more complications So I'm going to hit the plus button and let's make another invoice And this time I'll just say bbb And we're going to set that up. I'm not going to spend a lot of time setting up the customer information But I will say they're going to be subject to taxes and the taxes by default will be down here by location so so Which is right here So we're going to be dealing with the taxes which is sales tax in this case in the united states sales tax similar to like a Use is attached. We're going to say the same date And we'll say 30 days again. The only difference down here is I'm going to make an inventory type item I'm going to make a new one so we can see exactly what we're doing Let's make it an inventory One And yes, I'm making a new one each time because I'm logging out and back into this this test file So it deletes everything going back into it Which I think is actually good because we can then make these things as we go It's going to go into an inventory asset account on purchase Well, let's do this first. I'm going to say there's a quantity on hand. Let's put 10 on hand This is the beginning balance you wouldn't normally put the items On hand unless you're first starting the company file because you would be purchasing them But I want to have some inventory on hand so that I can sell them With an invoice and the reorder point. I'm just going to put zero That's when we're going to the inventory goes down to a certain level. We order it back the inventory asset That's the account that will go up when we purchase the inventory It's going to go up by the 10 items that I purchased which is going to be a journal entry made by the system here And in the sales price, let's say it's going to be 250 The sales account when we sell it. This is a sales type of form So it will be recorded here to sales of product income notice It's a different income account. We're breaking out our income by service item and product item I'm not breaking out my income account by Customer for example, we're getting too detailed in the types of things that I'm selling. I'm not calling it inventory one item Income account. I'm just calling it service items. We're going to say that it's taxable Here, so I'll keep that there and then the purchase side of things. I'm going to say we purchase them for $100 That's when we purchase them. We purchase them for 100. We sell them for 250 The cost of goods sold is the account that will be impacted when we create the invoice Removing it from assets to cost of goods sold. I won't put a preferred vendor. Let's save and close it And then let's say that we have Two of those that gives us a nice 500. It's a taxable item So everything else is somewhat similar, but the transaction is going to be a little different here What's going to happen? Well, it's still an invoice. That means the accounts receivable is going to go up The other side it's going to go up by the full amount which includes the tax here Which now has been populated. We talked about how to turn sales tax on in a prior presentation Which means first you got to turn on the sales tax You have to put the location in place and all that kind of stuff And then we've got to deal with the items which we set up the item here Which we said was a taxable item and then we have to think about the customer Which would be whether they're going to be exempt from taxes So by default usually they would be subject to the tax based on location Unless they are exempt in some way and then you would have to put the exemption here So now the tax is being driven by the item because we set up the sales tax and the item is telling them It's going to be taxed and the customer is not overriding that in any ways basically have what would go So it's going to go up on the ar for 540 The other side is going to go to the revenue account which is driven by the item But not including the sales tax of 500 The difference of the sales tax $40 is going to go into a payable account And the reason for that is because We are the collection agency meaning the tax for sales tax is in theory a tax on the customer Not a tax to us as the business Therefore, we're not going to record revenue of 540 and then when I pay the sales tax an expense of 40 Which would still net out to 500 on the income statement But instead we're not going to hit the income statement at all with the sales tax item Because it's not really an expense or revenue to us It's it's just we're just a collection agency, right? So we're just going to collect the 40 dollars as a payable And then we'll pay it at some future point and Inventory is going to be going down Not by any amount on the invoice but driven by this item by the hundred dollars per item So 200 dollars here And uh, they cost a good sold is going to go up So there's kind of a lot going on here And this is the same kind of transaction that happens when you're checking something out at a grocery store If you have a manual checkout or if the checker's checking it out Then you can see how brainlessly it easy it is just to scan your thing But the system's actually doing a fairly complex bit of Calculations here. There's kind of a lot going on Uh within the system. Also, you're going to have the bbb customer account is going to increase Which is the sub ledger and the sub ledger for inventory because we're doing a perpetual inventory system Is going to be increasing the units of inventory not just a dollar amount of inventory so a lot going on Let's check it out. Let's save it and close it And then I'm going to go to the tab to the right and run it again to refresh it. It's fresh again I only work with fresh things I work with fresh reports like I eat my fruit. It's got to be fresh Okay, whatever. We're going to go down to the bottom. Hold on. I'm in the wrong thing here Just Here we go. We're going to go into the accounts receivable a to the r scrolling down and so there's our invoice for bbb. It's at 540 going into the 540 and So that's the full amount including the sales tax. Let's go back closing this out And then I'm going to scroll up to the top and go back And then let's go to the tab to the right to the income statement Run the report to refresh it And then this went into what did we call this one? We put it into Sale of product income there it is right there. So we're going to go into that one And then hold control scroll down notice it went into here only for 500 Which doesn't include the sales tax. That's the point if I scroll back down or zoom in On into the source doesn't include the sales tax closing that out. Where's the sales tax? It's on the balance sheet. I'm going to go back to the income statement here tab to the left again Hold the control scroll up a bit going down to the liabilities section. So I'm in the liabilities section. I'm looking for the liability account for I think it's the board of equalization because it's the california Notice you would think they would just call it sales tax payable But they are naming it by who you're paying because that might help you to to know if you have multiple sales tax items. That's my My theory as to why they do that Let's go into here instead of just calling it sales tax payable Which would make more sense from just a reporting perspective, but there's the 40 dollars right there All right, and then I'm going to go back up and then We know that we have inventories also going down because we have a perpetual inventory system So if I go into the inventory asset We go into that holding control down scrolling We see now this this top one I think this is the one we entered when I put the inventory item in the system and it recorded I put the beginning balance in it had to record a transaction here We'll get into that more in the second half of the course when we start a new company file But the thing we're looking at here is this decrease from the invoice of 200 dollars notice that that 200 dollars is not On the invoice, but the invoice was the thing that recorded it The invoice knows what to record because the item says that we bought them for the 200 dollars in essence Although there's a a flow assumption that's being used, but I'm going to close this close this back out and go back To the left and then we're going to say the other side is on the Income statement In cost of goods sold so cost of goods sold going into the cost of goods sold There's the 200 dollars right there as well So a lot of accounts affected On that transaction and you can see if you're tracking the inventory in the system It gets somewhat complicated To track you got to make sure you got the the system Set up the net impact on the income statement the profit and loss then is the increase Of the sales the 500 in this case not including the sales tax minus the cost of goods sold Which was 200 in this case. So let's go back to the first tab We also know that we have the accounts receivable is now at 6 1 2 1 52 if I go to my sub ledger, which is all the way to the right This is my inventory. Let's right click on this one and duplicate it and open another sub ledger because I I closed up my sub ledger. Let's go to the reports And close up the hamburger and then we're going to go down to the customer balance detail again And so now we've got a a a and bbb. So bbb is included now They owe us money the point of this ledger I just want to point out at the bottom ties out to 6 1 2 1 52 if I go back to the balance sheet. There's the 6 1 2 1 52 So we can see that the the sub ledger is breaking that number out by who owes us the money in practice clearly We would once again be tracking that on the left hand side typically by going to our sales items And searching all of our sales items here tracking the invoices or looking at the invoices or going to our customers And possibly sorting our customers by open invoices. For example, there's bbb right there We would expect to be receiving a payment From them at some future point and that'll be a next step which we'll do in a future presentation Also, if we go back to the balance sheet The inventory account is here if I go then to the uh, is this the inventory account? This is Customer balance. No, I opened this twice. Let's go to this one on the right. I'm going to open up an inventory account reports Inventory, I'm just going to type it in there inventory valuation summary So now we can see let's make it as of 12 31 2 2 and run it And close the hamburger hold down to control scroll in we've got the inventory. So here's the quantity Of inventory. I think we put 10 on hand and then we sold two of them, right? So we've got our inventory and we've got the units of inventory being tracked in the system because we're using a Perpetual inventory system as opposed to tracking the inventory outside and using a periodic inventory system. So that total comes up to 1396 25 which should tie out to This number here and note that that number represents what we buy them for not what we sell them for So that's going to be so that's uh, the the invoice so the next time We're going to go into the next step, which would generally be the receiving payment But before we do let's go to the first tab Let's hit the cog drop down and switch to the business view Just so we can see where to find some of the same stuff on the business view So if I go up to the get things done page, this is our home page And then our reports were found in the business Overview information and then the reports. That's where we found our balance sheet our income statement the inventory report and the who owes you money reports and then the the Get paid and pay area is where I would find what I would call the customer center Or the sales cycle center But it's down here both the vendor center and customer center are in here We're up top in what I would call the customer center, which they call the get paid area. So get paid Why you can you can tell your customers? Why are you contacting me because I'm trying to get paid Anyway, so and the customers is the one where we could sort the open open items And then invoices some customers would probably like that in any case And then the open items This is where we could sort our invoices down here As well and then that transactions one is a and it's in a little bit different spot for some reason They put that down here in the bookkeeping area. It's in the transactions up top So if I close the hamburger, we've got all transactions This is where they kind of sort all the transactions if I hit the plus button that are in the customer area And so you can kind of sort you can sort those items here either with the filtering options up top that we've seen in a prior presentation Or you know with your filtering options down here oftentimes we're kind of filtering for invoices When we're dealing with customers