 QuickBooks Desktop 2023. Populate invoice using billable item that was created from a PO purchase order and then a bill. Let's do it within 2-its QuickBooks Desktop 2023. 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. Here we are in QuickBooks Desktop. Get great guitars, practice file. We started up in a prior presentation going through the setup process. Maximize the home page to the gray area. View drop down. Noting we got the hide icon bar. Open windows list checked off. Open windows open on the left hand side. Reports drop down. Company and financial. Let's open up the P and L profit and loss income statement. Range change 010123123123 and then customize fonts and numbers to change to 14. Okay. Yes. And okay. We open up the balance sheet now reports company the balance sheet. Customize it from 010123 to 123123 and fonts and numbers to change to 14. Okay. Yes. Okay. I also want to open up that trial balance and get used to seeing it accounting and taxes trial balance. The trustee TB from 010123 to 123123 customized that one. Also poor favor with the fonts and numbers bringing it up a notch to 16. Okay. Yes. Okay. That's the setup process we do every time going back to the home page. We're working on the inventory at this point in time looking at the flow of the purchasing cycle of it and then we're transitioning over to selling the inventory. So in prior presentations we imagined we had a customer come in that being a new music stuff store. This is a generic customer asking for guitars from a new vendor named Fender. So we had to then request the guitars from them with the use of a purchase order. So we entered the purchase order and here's the purchase order. And then we received the guitars in a box that we imagined that we received from the vendor Fender and we entered a bill. Now we tracked the fact that we purchased these 20 guitars specifically for the customer of new music stuff. So now we can turn around and go to the revenue cycle create an invoice which is linked to the bill with the billable item which is linked to the purchase order. Let's just review that process. So if I go to the vendor section I can do that by going to here or the drop down vendor center and we can go to the vendor side. Let's go over here and go to Vendor the vendor. We have the purchase order opening that up. This was for new music stuff. Now this is the customer not necessary for the population of the purchase order in terms of the vendor side of things. In other words Fender doesn't need to know about new music stuff our customer. But the fact that we put the customer here allows us to link it to the bill or check and then allow us to make that billable for the creation of the invoice. So then what happened is we got the box of stuff guitars and we build it. So now we entered the bill into the system. The bill increases our accounts payable represented that we owe money now to Fender for the guitars that we now physically now have the 20 guitars. We still have the new music stuff here populated and checked off as billable which should allow us to then pull this into the invoice. And that's what we will do now. So I'm going to close this back out and say OK now we're contacting our customer. Let's go back to the home page and make an invoice. And we're going to say OK this is for the new customer which is music stuff. So we're going to say this is for new or new music stuff. And then the pop up is saying hey we got some billable items I'm paraphrasing I'm going to say OK. And then it's not time it's not expensive. It's not mileage. It's items. So we're going to go to the items check off the item and say OK and it pulls in that information. So now we've got I'm going to say this is on the 24th of 2023 invoice populates automatically. Let's set the terms at net 30 which is just what we've been doing customarily. So we expect to receive the the stuff in 30 days or get paid I mean in 30 days. So we've got a squire 20 squire guitars that we are charging for 244 each and then the total it's a taxable item. So now we just got the standard invoice. So what's going to what's going to happen when we record this still fairly complex transaction because invoices kind of are. It's going to be an invoice accounts receivable is going to be going up. I'm going to uncheck this by the full amount including the sales tax of the 5124. The other side is going to go to revenue driven to the account by the item but not including the sales tax for the 40880. And then the sales tax is going to go into a payable account a liability account. Then we're going to have the inventory go down by an amount not on the invoice but driven by the item and cost of good souls going to go up. The net effect on the income statement is an increase to the revenue minus the cost of goods sold. The sub ledger will also be accounts affected for the invoice or accounts receivable sorting that by customer new music stuff being the one that owes us the money. And inventory sub ledgers will also be accounted for which will track the units of inventory which are now going down for the 20 squire guitars. All right let's do it. Let's save it and close it. And I'm going to say yes. Let's try to find this on on the trial balance now so we can kind of look through it and see if we can find all the stuff on just a trial balance without the subtotals. So we got the accounts receivable second account. It's an asset account double clicking on it. There it is right there music stuff store. If I double click on that we've got the total amount that's going up for accounts receivable that we expect to receive in the future. The other side is on the income statement which starts down here after equities equities the last balance sheet account sales is the first income statement account. If I double click on that there's the invoice. If I double click on it we're showing not including the sales tax here sales tax then closing this out is a liability account closing this out. So liabilities start at accounts payable and now we're looking at the sales tax payable. So in the sales tax payable there's the liability accounts closing this out then inventory goes down. That's an asset account. So it's up here next to the accounts receivable and the cash it went down with the invoice. So there it is. If I double click on it there it is for an amount that's not on the invoice but driven by the item closing it out and the other side goes to cost a good sold which is generally the first expense accounts which should be right after the revenue type accounts. Double clicking on it there it is closing this out if I want to see just the month of February I could go to the profit and loss and change this from 020123 to let's say 0228. So now we have the activity just for February we had an increase in the sales and increase in the cost of good sold the difference between the two is the impact on net income in essence. And then we can go back to the balance sheet. Let's look at the actual balance sheet this time and just verify the accounts receivable. We can see a sub ledger for the accounts receivable broken out by customer that could be found in the reports drop down and we can find that in the customers and receivables customer balance detail. Let's say and this was for new music stuff here. There it is they owe us money. The total comes out to the nineteen eight eleven fifty. There's the nineteen eight eleven fifty. It's nice to be able to tie that out. But usually we're probably not going to use that report as much because I can find that information for the most part on the customer balance detail. I'm sorry and the customer center. Let's go to the let's do it this way customer center and so left hand side we're looking for music a new music stuff I believe. Yeah that's the right customer. So there is our invoice now here and I can also track you know who owes us money fairly easily by hitting the drop down up top and looking at customers with open balances. We don't get the total here that would tie into what is on the balance sheet. But when you're looking through people oweing you money this is probably the place you will go. If if new music stuff had a question we would probably go here not to the report. We can also go to the transactions and look for invoices and I can look for all invoices or open invoices and then we can check out the open invoices this way. Let's go back to the balance sheet again this time looking at the inventory which should also have a sub ledger breaking it out by the items of inventory reports. And we're going to go to the inventory valuation summary report as of 1231 23 and so the squire guitars went back down here. So now we're at the 622 6266 which should tie out to the balance sheet 6266. Okay so let's go back to the trial balance which is going for the full year here which includes January and February of data and you could just go through here and check our numbers. If something doesn't tie out try changing the date range you could double click drill down to the source documents to make any changes necessary. We will be taking a look at a transaction detail report giving us more detail so we can hone down on any problems at that time.