 QuickBooks Online 2024. Vendor, expense, purchase, or pay center. Get ready because we're about to get into it. We're into it. QuickBooks Online. Here we are online in our browser searching for QuickBooks Online Test Drive. The primary tool we'll be using for the first part of the course looking for the result that has Intuit.com in the URL, Intuit being the owner of QuickBooks, selecting the United States version and verifying that we're not a robot. Let's duplicate some tabs to put reports in like we do every time. Right click in the tab up top to duplicate it. Right click in the tab up top as it's thinking to duplicate again. Back to the tab to the middle as the one to the right is thinking reports on the left hand side, opening up one of the favorites, the balance sheet reports, not just my favorite, by the way, tap into the right. It's everybody's favorite reports down below. If it's not your favorite, you have a problem because this is like one of the financial, the main fight and then the profit and loss, the other favorite, the P and L, the profit and loss, the income statement. And then we'll go back to the first tab. This is the setup process we do every time. In prior presentations, we went over the general layout of the QuickBooks online. We looked at the cycles in general, and now we're focusing in on the vendor cycle. So the vendor cycle, last time we talked about the general process from the easiest cycle to the most difficult cycle, the easiest cycle being one in which we're not only on a cash based system, but we're paying for bills as they become due by basically entering expense forms, but possibly not even entering the expense form directly here, rather using the bank feeds to connect it and then using the bank feeds to record the expense forms or having the credit card be entered. And so and then again, connecting the bank feeds to pay off the credit cards, the slightly more difficult cycle being still a cash based system, but one where we write checks because in that system, I can't rely on the bank feeds to actually enter the transactions. I want to enter the transactions first to track the outstanding checks that are in place. And then the accrual system where we enter a bill first, and then we're going to be paying the bill at a future time, meaning it's going to be going in and out of accounts payable. First, a word from our sponsor. Yeah, actually, we're sponsoring ourselves on this one, because apparently the merchandisers, they don't want to be seen with us. But, but that's okay, whatever, because our merchandise is, is better than their stupid stuff. Anyways, like our accounting rocks product line, if you're not crunching cords using Excel, you're doing it wrong. A must have product because the fact as everyone knows of accounting being one of the highest forms of artistic expression means accountants have a requirement, the obligation, a duty to share the tools necessary to properly channel the creative muse and the muse, she rarely speaks more clearly than through the beautiful symmetry of spreadsheets. So get the shirt because the creative muse, she could use a new pair of shoes. If you would like a commercial free experience, consider subscribing to our website at accountinginstruction.com or accountinginstruction.thinkific.com. Now, from a strictly journal entry standpoint, we'll talk about each of these forms, what the journal entries will be and the impact on the financial statements of them. A lot of times, if you're working or if you're starting your accounting career, for example, as a student of accounting first, then you might have a mindset that you see everything in terms of journal entries. You're looking at the impact on the financial statement from the standpoint of a journal entry, which is great because those are the building blocks of the financial statements. But it's also important to make sure that we understand the flow of the forms because oftentimes people kind of forget about what the forms are doing beyond just the journal entries. So the forms from a bookkeeping standpoint are going to be linked together. For example, the bill form and the pay bill form aren't just journal entries that are going to be making the financial statements. They also make the flow of the process easier internally, making it easier for us to enter the transactions and to communicate with the people we need to talk to our business partners and whatnot, which in this case, are our vendors. Now, so usually we do this and what I would call the vendor center, that's what it used to be called in the old or the QuickBooks desktop. And so now the current the current term that they have on the tab on the left is the expenses, you can call it the expenses cycle, you can call it the payables cycle, you can call it the vendor cycle. These are all different names for the general cycle in which money is going to be going out at the end of the cycle in order for the purchase of goods and services. Now note that the tracking of information in the vendor center or the expense center over here, which you can see actually has the vendors within it, meaning these are the people that were actually paying when you write a check or you enter the electronic transfer. These are the people that they are going to remembering that vendor for the purposes of QuickBooks represents that side of the table. We're paying other people the money is going out for goods and services that we are purchasing. The tracking of this information within this vendor center will be more or less important depending on the type of industry that we are in and possibly how large of a company that we have. So remember when we look at these cycles, if you're in a situation where you're just paying for the goods and services, the utility bill comes in and you just pay it with an expense form, possibly waiting until it clears the bank feeds and just recording it at that point in time. All you really need to do is pay the bill. It would be nice to be able to track of course who you paid so that you can make sure that you can sort that information by who you paid. But you don't need to track when you need to pay them, right? All you need to do is enter the information to record the transaction because we're not tracking an accounts payable type kind of system. However, if you are in a system where you're tracking accounts payable, the bills are coming in, you're recording them as bill forms in your accounting system and then you're going to pay them at a later time. Therefore, they're going in and out of accounts payable. It becomes important to be able to track this information in the vendor center because you're going to need to do more communication possibly with the vendors and make sure that you're paying the vendors on time. And that's when tracking that information over here in the vendor center is going to be, you know, more important. So this is where we go to basically do the internal kind of processing of the form. So for example, if we're communicating with vendors, they might be asking where's our money and so on. And we could go in here and we could go into some of these tabs. Let's take a look at each of these tabs one by one. So we're in the expenses tab over here, you can go to the tabs on the dropdown or once in the expenses, you have the first tab, which is the expenses. I'm going to close this up. And this gives us our list of transactions. Now I'm going to close the hamburger up top. So we have a little bit more room. So when we think about all the forms that are on the expense side of things, if you look at the forms over here, you could see the expense, the checks, the purchase order, the vendor credit, all the stuff that was under the vendor center, which you can also get to from this dropdown, you can get to the form, most of the forms in many different areas. So you can get to them from here as well. Then once we enter those forms, we can sort those forms out here. So this is one where one place we can go to look at all those forms and sort them. So in the transactions dropdown, we can look at all transactions, we can look at each of the transactions individually. If we had an expense form that went out, possibly if we have a system where we are on a cashed based system paying with things for things with bank feeds, for example, if I want to go in and find a particular transaction, this might be one place that I can go and do it. I can also go and do it by going to the check register, or I can go up top into the checking account here, and I can click on the checking account, and that drills me down to the actual data that is within it. Now, this is going to be all the transactions that are impacting this form. So if I wanted to look at it more specifically just for expense types of transactions, then I could further filter this form so I can go to the filters up top and say I want to filter by the transaction type. And so then the options I want to be equal to and the transaction type would be the expense form. And then I could see that filtering option over here. So this is another way that you can kind of drill down on particular forms, which is a useful tool. So similar process, I'm going to exit that is going over here, I'm searching for everything that's basically an expense form. The other place you might go to look at anything cash related is the cash register. We'll talk more about that later. However, if I hit the drop down, then we could also be sorting by the bills. Now, if you're entering bills, remember that the bill means a bill form for QuickBooks means that accounts payable is going up. So if you're using bill forms, then this is going to be one of the most important, you know, things to track on the accounts payable side of things because you want to track whether or not you've paid off the bills. So we have our bills sorted by the date, the payee, the category, and then the due date, which is often going to be an important way to be sorting out the bills to make sure that you're going to pay them. You can sort, you can adjust the sort fields over here as well. And then we have the pay bills. Now, if you're entering bills, the pay bill is just basically a check or expense form in that it's decreasing the checking account. But the fact that it's a pay bill form gives you more information because that specifically means you're paying off the accounts payable. If I go back into the checking account up top, we can kind of see that if I go into my checking account again, and we see the types of transactions here, deposits, here's a pay bill. See, it still says check here, but it's a special check that we know was used just to pay off the accounts payable, as opposed to other checks, which might have been written and the other side going to like an expense form, for example. So we'll talk about that more in the future when we look at each of these forms. And then a check form is like an expense form, except that it just doesn't have the check number in essence, decreasing the checking account, the other side going to an expense, which would be a normal, you know, the same kind of normal types of transaction, except that if you're entering checks, then you want to enter the check not from the bank feeds, but you want to make sure that we're entering those before so we can track them. And then we have the purchase order. This would be a request for inventory, if we're in the type of business where we can use purchase orders, and that would be an order or request for the inventory, very important if you're in that kind of business to be able to sort them and know where to find them, because these transactions are not actually impacting the financial statements. And then you got the recently paid items, which could be a quicker way to find particular items. You have the print checks over here, and pay bills. So if you're entering checks, and you're then printing them to print checks out of QuickBooks, you actually still have to buy the checks, you can't print out checks on a blank piece of paper, because you still want the internal control of the check numbers. So you have to actually buy the checks, you got to make sure that you put them in the printer the proper way, and then enter the checks, and then you can go through and print out the checks. That's becoming less and less necessary these days as more people are moving to electronic transfers, because that's just the way things are going these days, whether you like it or not. So this is going to be export to Excel, you can export this to Excel, you can print it, and we have our options here for the columns, if you want to adjust the columns for a class location. Now class tracking is a, if you had class tracking turned on, that's just another way that you can sort your information on mainly the income statement, same with location tracking status, the method, the source, the memo, or the balance, you can add to the field, and this just increases the number of items that are displayed, and then you would have a next arrow if you have more items than this that you wanted, that you needed to go to, or you can try to display more on one screen at the given time. If we go to the bills form, this is going to give you information specific to the bill. So we've got for review, we've got the unpaid. So this is an area that we can go specifically for the bills, which is going to be the most biggest concern area. If you were working in accounts payable, for example, in a company that was a larger company tracking the bills, because of course, you'd be tracking your bills to see which ones you need to be paying. So these are the bills that have been entered. You could schedule a payment over here, Marcus paid, duplicate, delete the information. And then on the pay tab, these are the ones that have these have been paid. So you can see basically a flow from the unpaid to the paid. We have our filtering option up top for the vendors. So we can look at a particular vendor if we want to check a particular bill that would have been paid last 12 months, the date range to be able to find those bills. And then we have the vendors. So the vendors, if we were to, if a certain vendor contacted us and said where's my money or something like that, this might be the first place that we go. And within this first page, it gives you relevant information that can be sorted up top. So if we're talking about purchase orders, I could sort to the purchase orders. And here's the vendor that has the open purchase order. I have the overdue items. So these vendors have bills that are overdue. And then we've got five open bills. So these are the vendors with the open bills. And then we've got the 21 paid last 30 days. So these are the recently paid items. So those are basically filters. So if I want to clear the filters, I can clear the filters over here. And so now we're back to where we were having all the vendors. Now, if you wanted to remove this thing up top, this little triangle just removes that so it closes it up. And then down below, of course, we have we have our vendors. So if I go into any of the particular vendors, we can see the detail for them. Let's just go into this first one here. And so now we have this this is the people one of the people that we pay. So if Bob's burger joint asked us a question about a particular payment or something like that, we can go into the transaction detail. And we could see the activity cash expense, cash expense, credit card expense, and so on. And then if we had changes to the actual vendor information, we can go over here to the right hand side and we have the vendor information on the right, we can edit the vendor information, we can enter new transactions, which are the same kind of forms, but it will open with this vendor name within it. I remember a lot of times the vendor detail information in here is quite limited. We don't have a lot because we're just if you're paying the phone bill, I just need to name of the phone company. That's all I really care about. But sometimes some vendors will be quite important. Because if you if it's your main vendor that you buy inventory from, then that is going to be someone that you might want to have a lot more information in the detail over here. So notice you have your another little hamburger on the right so we can go to the hamburger up top, and we can go back to the vendors this way. So within QuickBooks, unlike other kind of web based software, QuickBooks is pretty good at keeping everything inside so you're not using the back button in the webpage. If you find yourself using this back button in the webpage a lot, then you're probably there's probably a more efficient way to do it within QuickBooks because QuickBooks is pretty good at utilizing these hamburgers and whatnot to not be doing that. So you can use this back button, but it's probably not the best way because QuickBooks web pages are kind of designed so that you don't need to use that as much. So just to keep that in mind. So then you can print these items. You can export and we have our cog here which has the columns you can add the addresses in the columns of the 1099 tracking in the columns and you have the number of rows. This inactive is quite important or could be because as you pay, although you don't track as much information about vendors, you usually have more vendors than customers right because with customers you provide a particular thing for them. And what you're doing is you're paying everything else that your business needs you're paying for to a particular vendor. That means over time, you're probably going to have a whole bunch of vendors because you're paying money out to a bunch of different people as your needs happen. And so at some point you might have to go in here and try to try to remove some of the vendors. You might want to go through this list and say I'm not I don't need these vendors anymore in here and I'd like to remove as many of them as I can. So the way you can do that is you can make them inactive, right? We can make them a vendor inactive. You can't usually delete it because there's going to be transactions recorded to that vendor. But if I don't want to see it here, I can make it inactive. Now if I made something inactive, then I can go in here and reactivate it or look at the active or the inactive items, right? So that I can then find it and do and make it reactive. It's or make it make it no longer inactive. It's now reactive to it. If you needed to do that. So there's that button. You also have your search items. So if you wanted to search for the particular vendor, you can search for it here. Now the 1099 information in the United States, we typically have to deal with the 1099s. We'll talk more about that in the future. That's basically purely a tax reporting type of situation, usually for not large incorporated businesses, but rather usually for contractors that we're dealing with, sole proprietors that we pay that the IRS wants us to be issuing the 1099. We'll talk more about those later. You've got the new vendor. We could import vendors if we need to. But if we look at the new vendor, now most of the time when we enter a new vendor, we're probably not going to be going here to the vendor center and entering a new vendor. We're probably if we're using our bank feeds, for example, as the information comes through the bank feeds, we're going to see that we made a payment to somebody that we don't have yet and will enter the vendor on the fly as we go as we do the data input. But the general process would be this is all the information for the vendor. You got the company information, the vendor display name, all this other information. Oftentimes you might not enter for the vendor because again, that might not be as important, but for important vendors, you've got all their vendor information here, the address, notes and attachments, payments, additional information, taxes, expense rates, billing rates, payment terms. These are going to be the terms that are beyond the bill forms when we enter a bill for them. So we'll see these more as we basically kind of enter the vendors as we go. And then you've got the contractor information. So the contractors are generally when we think about people that work that we work for that do work for us, the two primary categories they might be in our employees, in which case we would be dealing with them in the employee center, if we have them payroll turned on, or they might be contractors, meaning they're not large businesses, I'm not paying for the telephone company or whatnot, but I'm paying possibly a sole proprietor, for example, that is doing a particular job for me. And in that case, we have to deal with the 1099 issue once again is we have to track them. So we have to pay basically the 1099. The mileage thing over here is where we can track the mileage and this could be useful for tax purposes in the United States for income tax purposes. We have a mileage method and a direct write off method. If you're using a mileage method, it becomes a pain, because then you have to I mean, it's easier. So it's good, but it's also kind of a pain, because it's going to be different than your what you're actually recording in QuickBooks because you're recording stuff based on what you actually paid at the pump and at the repair shop and whatnot. So we might have a whole nother section so you can take a look at this, looking at this mileage information, just if you want to dive into that in more detail. So that's the overall vendor center. So in future presentations, we'll go into each of these forms, we'll see the impact of them on the financial statements, and then we'll also consider how we have to deal with them from an internal bookkeeping standpoint to track that they have been issued to deal with our vendors so that we can, if they call us and ask us where the money is, we can try to find what's going on and so that we can track the bills that are outstanding so that we can hopefully pay them on time.