 QuickBooks Online. Bill 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, then 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 going to be using the free QuickBooks Online test drive going into it by searching in our search engine for QuickBooks Online test drive. Selecting the option that has the into it int u i t dot com in it into it being the owner of QuickBooks, and then we'll be using the United States version and verifying that we're not a robot. Zooming in a bit holding down control up on the scroll wheel. I'm current at 125% zoom in remembering we're currently on the accounting view. If I hit the drop down, we can toggle back and forth between the accounting and business view starting off with the accounting view going back on over. We're going to open up a couple of tabs or duplicate them to put our financial statement reports in. This is what we do basically every time right click the tab up top to duplicate it. And then as that's thinking, I'm right clicking again on it and duplicating. And then as that's thinking, I'm going to go to the middle tab, go to the reports, which under the accounting view is on the left hand side and then into the balance sheet, which should be one of your favorites. If it's not, you have a problem. You got to put it in there because it's the balance sheet. It's a financial statement report. We're going to put the date 010122, which I think is the easiest rate of type. January 1st, 2022 tab, 1231 22, easiest way to type December 31st, 2022 tab, and then run it to make sure it updates tab to the right up top. And then what happened to my report? I thought I opened it reports. This is going to be the profit and loss report, the P and L, the income statement in other words, scrolling up date range. We're going to say from 010122 January 1st, 2022 again, 1231 22, tab, and then run it. That's what we do every time we're going to go back to the first tab. So now we've got our first tab where we enter the data, other two tabs with our major financial statements in them so we can see what the data does. So this time we want to be looking at if I hit the drop down, we're focusing in on the vendor cycle or the purchases cycle. The money at the end of the cycle going out of the business for goods and services that we will be using. Now the easiest way is on a cash based system to use simply an expense form. Usually if it's an electronic transfer to pay for things as they come do or a check form generally used when actually writing a physical check, but it's the same kind of transaction as the expense form. At this time, we're focused on the accrual form, which is the full cycle of an accrual cycle, which is to enter a bill. Now first thing we want to note with the terminology here, the vendor means that we're paying somebody else, even though in normal, even accounting terminology, it could mean that we're a vendor as well because we sell stuff, but the vendor were on the side of the table of we're purchasing things from the vendor. Then we have this term bill, the term bill in just normal language could be something that we might refer to as us billing our clients for work that we did. In other words, money coming in on the revenue side, or it could refer to someone giving us a bill, the vendor like the utility company giving us a bill. And in that case, and so we're talking about us receiving a bill, and it's even more specific than that, because if we've received a bill from a vendor, the telephone company, for example, gives us a bill, that bill might say invoice on it because it came from them and to them in their accounting system, that they're invoicing us to us, we're getting a bill from at least a software's perspective. However, I could respond to the physical bill they gave me by just wiring them money, which means I would just enter an expense form, which is like a check form with no check number. It's the form that decreases the check-in account. It's the form that's usually generated when we do a bank fee transaction for money going out, if we're entering the transaction with a bank fee, or I can pay it with a check. So even when I'm talking about a bill that comes from a vendor, it's still more specific when I'm talking about the bill form. The bill form specifically means that we're increasing accounts payable. It means that we're going to pay the bill in the future. We got an accrual kind of component to it. So let's go into the bill form and take a look at the layout. So we have a vendor. The first thing we're going to enter. And as we enter the vendor, we can add a new vendor. So oftentimes we're going to be choosing a vendor that has already been in place. Oftentimes the system will start to memorize the transaction as they choose a vendor that's already in place. So if I chose Bobs Burger here, then it's going to populate some of the information. It didn't populate the categories down below or the item. But let's choose another one and see if it memorizes more. So it's not really populating down below, but sometimes it'll memorize more of the detail down below in terms of the category. For example, we'll get into more of that in a future presentation. Or you might be adding a new item. So let's just create a new vendor as we go, which is quite common when entering bills or checks. Oftentimes the only thing we want to need or the only thing we need is the name. I'm just going to make up a name like a or whatever for the name. I do that because I want to show up at the top of our list when we go to our vendor list. And then we could add the company name. Now, all this other detail, as we saw in a prior presentation, often not necessary with a vendor because we might just be paying a company like a utility company, a telephone company. I need the name so I can sort the data by name. It's it's nice for reporting, but I don't need all the other information. Generally, unless it's going to be someone I do close business with, such as possibly someone I buy inventory from, for example. And down here, just note that the tax ID number could be something that could be important if you are paying, say, a contractor. If that's down here under additional information track payments for 1099, if they're not incorporated, for example, and you think you're going to have to pay them or send out a 1099, that could be useful as well. So I'm going to save this and let's just tap through the bill form. So we've got the mailing address, which would populate automatically if you put that into the vendor information. Oftentimes you might not need it because a lot of the stuff these days are being transactions are being handled, you know, over the internet, so you might not be mailing them anything. The terms if I hit the drop down, this is when you're going to have to pay the bill. Now, when you receive a pill, it'll probably have the due date on it. And it's more likely that you're just going to have to enter the due date because it'll be whatever's on there. But sometimes you might have a standard setup where it might be 30 days from now. So net 30 means in 30 days from the from the date. Of of the bill itself. So we entered the bill on 12 19 30 days later. It's going to be one 18 23 a bill number. If applicable, we're going to say tags. Now tax is kind of a specialty area that can help us in tracking information. So we'll talk more about tags later. That's another way to kind of sort our data in a more complex way. Now, down below, you've got these two drop downs. You've got the category detail and the item detail. So you might think of this for like category, meaning accounts. You're just going to assign it specifically to a general ledger account. If it was a utility company, you're paying, you put it to the utility account. If it was a telephone company, the telephone company, or you could put them both to utility, whatever strategy you have for the accounts that you're putting in place. But the item down here is typically reserved when we're paying a bill for something where we're tracking the inventory items within the system. So that would usually be inventory and that would be inventory on specifically a perpetual inventory system where we need to track not only the account it's going to, meaning inventory account. I just don't want to put inventory account up top because I want QuickBooks to be tracking a sub ledger by inventory item, the units of stuff that we purchased. So if I go up top, we can add a category such as utilities or something like that. Now, oftentimes if I start typing something into the field, then it'll start to populate down below, which is quite nice. If I can't find that, then I can hit the dropdown and search. I can also add expense categories as I enter a bill or any other form like an expense form or a check form. Be careful doing that, however, because the goal here is consistency. So when we get to the underlying foundational stuff, we'll talk about the chart of accounts, putting together the chart of accounts. This dropdown, in essence, is showing us the chart of accounts. And then we're going to want to make sure that the transactions we put in place are consistent. We're going to the same account when we make the same payment or different payments that are like and kind are going to the same account. Now, when we could set up our system, sometimes it'll start to memorize transactions, helping us to populate the same information on down below. And if we're using bank feeds, we can set up rules for it to try to to start to populate this stuff pretty much automatically. We can have a memo so we could put the date of range of the bill. We could put the amount here, whether it's billable or not. This gets into the idea of do I want to pull this over this item over into an invoice? And that might be the case if, for example, you had you had a system where you're basically going to do custom work for people, usually more of a job cost system. And as you pay for stuff, like you go to the office depot, you go to Home Depot, you drive around and whatnot and have gas or whatever. Then when you pay for it, you're going to make it possibly billable so that you can then turn around and include that billable item on an invoice. So you got to be careful doing that. We'll talk about that more later, but be quite careful because the billable item when we add it to an invoice isn't really using the items in the same way. So it could, if you don't be careful, it could try to decrease the expense account instead of recording revenue. And so we'll talk more about that later. And then whether it be billable and taxable, meaning subject to sales tax when you pull it over to the billable item, then you've got the customer. So if you made something billable, then you need to assign it to the customer so that when I make an invoice, when I then charge the invoice for this item, I can track this billable item over to the customer information. Now, if we had multiple line items, I can add another line, like telephone or whatever, you know, I wouldn't have a utility and telephone on the same one, but you can have multiple line items for whatever you're paying. You can assign them billable to even different customers if you needed to. So you might have like the utilities here that for whatever reason, you're going to bill out to your customer. So you got multiple lines to different customers because you're going to use some kind of ratio to apply them out to a customer. If I needed to delete one, I can delete the item with the trash can on the right hand side. I can move them here so I can put this one on top. If I needed to change the order of these items, I'm going to close this back out. I can add more lines. So I've got more space to make a really long bill. Usually the bills are fairly straightforward and clean. I can clear all the line items down here. If I so choose, I'm going to hit that now, clear the item and I can collapse the category. So then if I want to enter an inventory item, I hit the dropdown here. So this would be if I have inventory on, I'm tracking inventory within the system in a perpetual inventory system. Then I want to make sure I choose an item. So these are the items that have been set up. I'll call them items. They can be called products and services. These are the products that we buy and sell. So if I was to add a product, then now we've got this information for the product. So it gives you the amount on hand, the rate, the amount. And again, you can have it as a billable item or what not with regards to the billable item. So I could say, let's say we do like 10 of these or something. And then if I did another one and we're purchasing two of these, then it populates our amount. Now, if these are trackable items that we're purchasing here, then it's going to be it's going to be going into when we pay for it, the bill form. Let's talk about the transaction now. The bill form is going to be increasing the accounts payable. That's what the bill means, meaning we're going to pay it later. We're not going to pay it now. It's not a check. It's not an expense form. It's a bill form instead of cash going down. We're going to have an increase to a payable account. And then the other side, if I was going to record it to a category like utilities or telephone would normally go to an expense account. So the other side would be at the expense account, even though we had not yet paid cash. However, if we bought inventory, the other side is going to be driven by these items. So these items when we set them up are going to be going to a specific account when we purchase them, inventory usually. And then the other side is, of course, going to be increasing the bill and it's going to track the units of inventory that we're putting on place, which will be in a sub ledger. So then you can, of course, add here clear here. You can have memos. You can add more attachments if you needed to show attachments on down below and show the existing information if there's anything related to it. I'm going to say no here and I'm going to say let's go ahead and record it. But first we could cancel it. We can clear the whole information. We can make it reoccurring. So if this is a transaction, we think it's going to be populated periodically. We can do that. We can save it here. So if I just save the transaction, now it's been saved. And if I hit the drop down, we could say save and new, which would be selected if I wanted to enter another bill, save and close, which is most common if you're just in one bill, save and send. So if you're sending it directly at this point in time, then you could you could do the save and send here. So let's go ahead. I'm going to close this out. I've only saved it at this point. So I'm going to close this point out. And then we're going to go down to the expenses area, which is this is in the accounting view, which would be in the get pay pay area, I believe in the business view, which we'll take a look at later. We got the three tabs up top. The expenses we're currently looking at the bills up top. And then we're going to go into the unpaid bills. And we could see down here that we have this unpaid bill there. Now we can also search by vendor now. So if I go into the expenses and we go into the vendors. So now I made this vendor up top. So we've got a a a vendor right there so I can go into a a a. And we see the bill transaction on the right. We could schedule a payment. We can market as paid. The next thing that we would expect to happen is at some future point, we determine we're going to pay it whenever we're going to pay it. And then we hit the drop down. We can go to the next item in the lineup, which we'll talk about in the future is going to be the pay bill. And then this gives you another kind of management window that we can use to organize and then pay the bills and select the bills that we want to pay. We'll go into that more in a future presentation. I'm going to close this back out. Let's just take a look at what the impact is on the financial. So if I then go to the financial statement and I refresh, I'm going to run the report again to make sure that that new bill has been entered. I'm going to close the hamburger, hold control, scroll in a bit. And then I would expect accounts payable to go up. So here in accounts payable. Now notice I can deconstruct by going back down to the source this time. So I'm going to click on this item and that's going to take me back down to the source. I'm holding down control, scrolling down a bit. So I could see this a little bit more clearly. And there's the AAA bill. Notice it's in this transactions as a bill. Notice accounts payable only goes up with bills and down with pay bill forms. The pay bill form is in essence going to be a check type form. And we've got the name, we've got the memo, we've got the account. The split is the other account that would be impacted typically. And so and this was a little bit more complex one because we bought inventory. So the expense account oftentimes might be going to like the other side might be going to an expense account oftentimes for bills, for example, utilities and whatnot. This one we bought inventory. So it's going to inventory using the items. If I go into this, that'll take us back to the source document. So there's the actual bill that we put into place and there that is. So I'm going to close that back out. Look how nice that is. Now, knowing up top, I'm not going to go back with the arrow button up top here, but rather I'm going to use this button. Most of the stuff in QuickBooks Online for navigation is within the website itself. So I'm going to use that to go back. And then I want to find the other side, which didn't go to an expense yet because we didn't expense it instead went up to inventory. So we put into inventory an asset inventory. Let's go into that account. And we can then hold down control and scroll down a bit. And so here's our our item and it's in here in a couple line items because we had two line items that we purchased on. So from an inventory perspective, even though if I drill back down onto it, we're looking at the same bill. We entered those two, two separate line items for two things that we purchased for it. Closing that back out, I'm going to scroll back up top and go back with the back to reports. We also note that that we have a sub ledger account related to accounts payable. The accounts payable is tracking everything. This shows what we owe to people. Now, the next question is who do we owe? Now, there's two reasons we want to know that we want to know who we owe the money to so we can sort out what we owe and pay it at some point with the pay bill. That's when we go to the left most of the time here and sort by vendor or sort by the bills, the unpaid bills, for example, or we go to the pay bills and we sort the pay the bills that haven't been paid. I also just want maybe to see a list that ties out to to the amount that's here on and we might look at a report for that. So if I go to the tab to the right, I'm going to right click on it and duplicate it again so I can show this in a report format for the bills. So we're going to go down to the reports on the left. And then and then let's scroll on down here. We're going to go to who owes you know, we're looking at what you owe type of reports. So we've got an accounts payable aging detail report accounts payable aging summary. So let's take a look at the aging summary report. And just before I click on that, notice we also have the vendor balance detail and vendor balance summary. So these two give you the information broken out by vendor. But a lot of times you might go to the first tab and look at it in that format when doing business. This one gives you a little bit more detail breaking out in an aging format. But these are all reports that give you more detail about a line item on the balance sheet as most reports other than the financial statement reports, balance sheet and income statement do. I'm going to change the date. Notice it's got one date because it's as of a point in time. To 1231 to two tab, close the hamburger, hold down control, scroll up a bit. And the first point I want to note is that we now have our vendors broken out. This is who we owe the money to. And then we've got the total. So this total down here, 170417, that should tie out to what's on the balance sheet. If I go back to the balance sheet tab, there's the 170417. So that that has to be the case, right? So all this is kind of fitting together. So oftentimes people look at this as a kind of two microscopically where they're kind of just sorting their bills over here, but they don't really see how it impacts the financial statements. But it's useful to know that this financial statement report here, all those unpaid bills are what is making the accounts payable, which is what is making up the bills that are outstanding over here, which you can also see in report format nicely, which is nice because then the total should tie out to what's on the balance sheet. So you could see, okay, this is how much money we owe people. This is who we owe the money to. Now, this report gives some added detail in terms of it being either current or 1 to 30 past due 31 to 60. So it gives you some detail in terms of how past due of something is as well, which is an added level of detail. You don't, you know, get just from working in over here. Now also note, if I go back onto this tab, we entered something into inventory. If I go to the balance sheet inventory. Now, if we're tracking inventory in the system on a perpetual inventory system, then if I go to this tab to the right, let's look at that inventory report opening the reports and the hamburger and then the reports. And then usually I just type in inventory up top inventory. Let's do the valuation summary. So, so now you've got this list of the quantity of items we have and then the value of the items. So this is a subsidiary report. It added into 697 75 that should tie out to what's on the balance sheet. 697 75. So that's why, uh, when we, when we have that breakout between, I'm not just going to hit the account of inventory. I've got it into the inventory item, which will not only hit the account of inventory on the balance sheet, but provide the information necessary for the sub ledger to, to enter the inventory items will dive more into how to create. The, the items and whatnot in a future presentation, but we just want to see how some of those sub ledger reports tie into this main, uh, balance sheet and income statement with some of these entries. Let's go to the first tab. Now let's just take a quick look. If I hit the drop down here and go to the business view, just to, uh, get our bearings on that view as well. Same information is just going to be laid out a little different. So I'm going to scroll back down. So we saw that the reports, if we go into the reports, it's in the overview and then we go into the reports and then you're basically in the same area here, searching around the reports. And we know that, uh, if we go to the get paid pay area, I would think about this as kind of like the tab. If we're talking about like a ribbon format similar to Microsoft office, and then these are going to be the groups which within that tab, and then we're looking at the group of pay of the pay items. And here are our vendors, which we can sort and notice when we have the bills, this outstanding, I can sort by open bills right here, sort by, and there's the open bill. And then I can clear the sorting as well. And then we've got the, uh, the bills here. And then we've got the unpaid bills. So we can track in that, uh, fashion for them as well. And then of course we, we can go into the pay bills, the plus button and we're in the future going to go from entering the bills to the pay bills, which also gives you another window to kind of sort the bills that you need to pay. So you can pay them like a group type of format and we'll look more at that in a future presentation.