 QuickBooks Online 2023 Populate invoice using billable item that was created from purchase order or PO. Get ready to start moving on up with QuickBooks Online 2023. Here we are in our Get Great Guitars practice file. We started up in a prior presentation using the 30-day free trial. We also have opened the free QuickBooks Online sample company. 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. If you want the to open at the same time, we suggest using the incognito window or another browser. You can open incognito if using Google Chrome by selecting the three dots in the browser, incognito window, type into the search engine, QuickBooks Online Test Drive. We're going to use the sample company to compare the accounting view, the one that Get Great Guitars company files in and the business view, the one that the sample company is in. You can switch between the two views by selecting the cog up top and switch the view down below. Let's open up some tabs or duplicate tabs in order to put reports in by right-clicking the tab up top, duplicate it like we do every time, right-click in the tab up top, duplicate it back to the tab to the middle, reports on the left, opening up the big balance sheet, one of the favorites that we open up every time. By the way, if you're in the business view, you go to the business overview and then the reports to open the balance sheet. That's where they're located. Back to the accounting view, back to Get Great Guitars tab to the right, reports on the left, other favorite report, profit and loss, the income statement, close up the buggy, change the range, 01012320223, months for the breakdown. We want to see month by month, run it to refresh it. There's Jan, there's Feb, there's the total of Jan and Feb. Tab to the middle, close up the buggy, range to the change from 0101230223 and then I'm just going to run that one. That's the setup process that we do every time. In prior presentations, we entered a purchase order, then we entered a bill. Now we're going to turn around and use that information to create an invoice. Let's take a look at the flow chart real quick. If we look at the purchase order and the bill, that's part of the purchasing process, but the inventory will span from the purchasing process to the customer cycle and we're using a perpetual inventory system. Therefore, we imagine a scenario, someone came into the shop, they said, hey, I want this guitar from Fender and we're like Fender, we don't buy guitars from them. That would be a new vendor. So we set up the new vendor Fender, made the purchase order and told the purchase order or put on the purchase order that we're buying these guitars, this inventory, for a particular customer, not because we need that to populate the purchase order form for Fender, the new vendor. The new vendor Fender doesn't care, but so that we can then use that information to then make an invoice once we get the guitars. So now we've received the guitars and we entered a bill. That's the next step that we have. We still need to pay off the bill. But at this point in time, we have the guitars at this point and we would like to turn around now and create an invoice, the revenue side of things, billing the customer for the guitars that we now have and have purchased. Now there's a bit of an issue in that when we have a billable item, they don't pull over to the invoice perfectly because they're going to pull over at cost, which is actually a little bit different than the desktop version, which actually pulls over with the item quite nicely. And so I just want to point that out when you're using this kind of system. So let's go back to the first tab and let's just track what we have done. If I go to the expenses area here, I can look at my vendors and I'm going to close this out. I'm going to say clear the filters and I want to look at all my vendors and just pick up Fender here. And you can see that we had a purchase order. That was the start of the process. And so there is our purchase order. New music stuff was who we purchased it for, the customer that we had here closing that back out. And then we bill, we entered the bill. And then within the bill, notice I didn't check this off as being billable last time. I'm going to make that change. I'm going to say, okay, here's the new customer. I'm going to make it a billable item so that I can then turn around and create the invoice. Now you have to be careful with this. However, because like I say, the billable thing only generally pulls into the cost instead of using the item to pull in the sales price, but it can still help us to give us that link. So you might use this customer field just to show you that you can then make an invoice matching this. Or you can use this billable item, but you have to be careful to do that. So I'm going to, I'm going to say it's billable here. We can apply the tax to it. And then I'm going to say save it and close it. So now I've made that bill billable. The transaction you are editing is linked to others. I'm going to say that should be okay. And then I'm going to go to the other side, which is an invoice, meaning customer cycle. Now, now when the customer cycle as opposed to the vendor cycle, turn around an invoice music stuff store. I think it was. Is that who we are? Inventory music, music, music stuff store or something like that. Some crazy name that I came up. Why is this showing here? Music stuff, new music stuff. And there it goes. I had to log out and back into it, but I typed in two new music stuff and there, there's the billable item. So I'm going to pull in the billable item. And so now I'm, this is an invoice. So I, if I was to send it to him, I would need the email, but I'm not going to add it for the practice problem terms. And let's say the date is that's keep that date. That's fine. And then down here, it has populated the SQ square and you got the number correct. But note that if I type down here an SQ square, then the sales price is 244. So this, it does everything else properly. It looks like meaning it's, it's applying it out. Not usually when I use that billable item, whenever you use the billable item, it, it will on like a utilities expense type of thing. And you want it to go to an income account. It'll, it'll charge it to its own income account like we saw before. This one still seems to, this still seems to work to charge to the income account that the item is going to. And it seems to properly do the inventory and decreasing the inventory and the cost of goods sold. But it doesn't seem to pull in the rate correctly. It pulls in the cost, even though we want the sales price. So that's what I'm going to change here. I'm going to say 244 and then I'm going to delete it. So I got to remember to do that little tweak or else it's going to be a problem. All right. So there we have it. All right. So then down below, I'm going to make the change down here for the rate. You could change it. I'm going to make it a generic 5%. You can do it here or I'm going to hit the drop down and I made this 5% just to make it generic and not like a California problem, but just sales tax in general being calculated. And so there we have it. So what's this going to do? It's an invoice. It's going to increase the accounts receivable 5,124 for the full amount plus the sales packs. The other side is going to go to sales, which is driven by this item. It shouldn't be going to just the billable revenue line, which is so, and I think that will happen even though we use the billable thing to pull it in. The other side is going to go to sales tax, sales tax for the 244. And then inventory will be going down, which is driven by this item by the cost. And I believe this item will still work even though we did the billable thing to do that. And the cost of goods sold will go up. Net income impact will be revenue minus the cost of goods sold. And the inventory and units for the sub ledger will also be going down for the 20 units, which again should work well. I believe even though we pulled this over with the billable item thing. All right. So let's save and close it and double check that save it and close it. Tap to the right, tab to the right, skip to the Lou tab to the right. And then we're going to go down and say accounts receivable and go into the accounts receivable. And there it is. Let's check it out. That's for the full amount, including the sales tax looks good. Let's close that out. Let's go back to the balance sheet back to balance and go to the tab to the right. Let's run it again. And so notice that most billable items as we saw before, if it, if it wasn't assigned an item, it had to put it into this 200 billable expense. The items are what's driving it to this one here. So even though I use that billable thing to pull it over and it didn't really populate the amount correctly, it did populate the proper income account, which is driven by the items. So if I go into here and I check out this invoice, the item here did drive it to the proper income account, which we told it to do by item. Otherwise it would have gone into that billable thing if it was doing it by the billable thing. So I'm going to close that out. So I don't know why they can't get the cost, the sales price instead of the cost. I wish they can fix that little quirk, which I'm hoping that they will at some point, but it's been a while now. And the other side is going to go into the sales tax. So there's the sales tax. And then we also have inventory going down. Here's the inventory. And then tour E is decreasing by by actually by this amount, the 3,360 here and then scrolling up. We also have going to the tab to the right. We've got the cost of goods sold being impacted. It going up the cost of goods sold. There it is. And then the impact on net income is the income increased minus the cost of goods sold. And then on the balance sheet, the accounts receivable, we should also have a sub ledger. So if I go to the tab to the right, right click on it, duplicate it. Looking at that by who owes us the money. We can open up a report like that. Going to the reports to the left hand side, closing up the hand boogie, scrolling down to who owes you. Let's take a look at the accounts receivable summary report. Change that range to 022823. Run it. Running. And so here we have it. So here's our customers adds up to the 1988 1150. Does that tie out to the balance sheet? There it does. We also, of course, if I go to the tab to the left, we now have, if I go to the, to the sale side, the customer center. And if I open up my customers, then I can sort my customers by who owes us money. So open invoices. And so there is that. And then here's the new music stuff. So new music stuff. And I think that's the one. And then I can go into this one. There's, I believe, the invoice. We can send the invoice. We can send a statement on it if we so choose. And the next step, of course, is we expect to be receiving a payment on it. And so if I was in the other view, by the way, which is the business view, then you can find that in the get paid and paid area. It's in the vendor section. And then actually, no, it's not in the vendor section. It's in the customers. We're looking at customers now run the customer side of things. And then you can also find that by opening up the hamburger sale side. And I could go into the sales transactions and sort the transactions by invoice. I could do it up here. Open invoices. And here's open down here too. So I can look at it that way. Where's that in the business view? You may ask or you may not, you may not care, but I'm going to show you anyway because it's a little bit different. It's down here in the bookkeeping transactions and then sales items. So there's that. And then if I go to the end, go to the balance sheet, we also have the inventory that needs a sub ledger by units. So if I go to the tab to the right, open up the hand boogie, scroll down to the reports. Let's go in and check out the inventory valuation summary just to make sure that everything's in order 022823 with that report. Close up the boogie. So that now lines up to 6266. I still have a negative unit of a GSB, which is kind of unusual, but because I messed up, we messed up. Sorry, but we're still okay. So 6266. So if I go over here, then we've got the 6266 that ties out. That looks good. So everything looks like it ties out. And therefore the world is okay for now. So let's go and open the hand. Let's go to the tab. Let's open up our trial balance and try being trustee trial balance as long as stuff ties out. Then the world will be fine on your QuickBooks file. So it's going to go from 010123 to 022823. You could run it on a side-by-side month-by-month situation too. We're looking at February, but you might want to look at those beginning balances. Why not? And so if your numbers tie out to these numbers, great. If not, try expanding the range. And if there's a difference, you can drill down, make the changes to the difference. If not, at the end of the month of data input, we will do a transaction detail report, which might help drill down on any differences.