Professional Documents
Culture Documents
Copyright
Copyright © 2005 Intuit Inc.
All Rights Reserved. Unauthorized duplication is a violation of applicable law.
First printing, November 2005
Trademarks
Intuit, the Intuit logo, QuickBooks, QuickBase, TurboTax, ProSeries, Lacerte, EasyStep, and QuickZoom,
among others, are registered trademarks and/or registered service marks of Intuit Inc. in the United States
and other countries. Mac, the Mac logo, and the "Built for Mac OS X" logo are registered trademarks of Apple
Computer, Inc., used under license. PayCycle is a registered service mark of PayCycle, Inc. Aatrix is a
registered trademark of Aatrix Software, Inc. Adobe and Acrobat are registered trademarks of Adobe
Systems Incorporated in the United States and/or other countries. American Express is a registered
trademark of the American Express Company. Other parties' marks are the property of their respective
owners and should be treated as such.
Other Acknowledgements
This program uses the Excelsior! class library created by Jim Rankin. For more information about Excelsior,
email jimbokun@mac.com.
This program also uses the following open source components under their respective licenses: Blast, Boost,
and SQLite. Portions of these components are the copyrighted material of their respective authors.
Other Notices
All features, services, and any terms and conditions are subject to change without notice. Some names,
company names, and data used in examples and help content are fictitious and are used for illustration
purposes only. Any resemblance of fictitious data to a real person or company is purely coincidental.
4 Lists 33
Types of lists, 33
Editing and deleting list items, 47
Speeding up data entry with lists, 48
Adding customized fields to lists, 49
Keeping your lists organized, 50
Printing, saving, or emailing a list, 54
Synchronizing your contacts with Address Book, 55
• 3
5 Your chart of accounts 59
Chart of accounts overview, 59
Adding new accounts, 62
Entering opening balances for accounts in use, 64
Editing opening balances, 64
Editing account information, 65
Deleting an account, 65
Using account numbers, 66
Keeping your chart of accounts organized, 66
Changing an account’s color, 66
Merging existing accounts, 66
Printing your chart of accounts, 66
7 Tracking sales 87
Types of sales forms, 87
Entering a sales transaction, 89
Working with sales transactions, 92
Customizing your sales form, 95
Printing, saving, or emailing a sale form, 103
Charging for actual time and costs, 103
Creating a daily sales summary, 108
Assessing finance charges, 109
Using billing statements, 110
Using estimates, 114
Questions and answers about sales forms, 119
4 •
9 Inventory 137
Inventory overview, 137
Viewing items on order, 139
Receiving inventory items, 140
Using the inventory register, 143
Viewing the average cost of inventory items, 143
Adjusting value and quantity on hand, 143
Returning items to a vendor, 144
Inventory reports, 145
12 Bills 165
Bills overview, 165
Entering a bill, 166
Paying bills, 170
Viewing a bill payment, 171
Editing bills and payments, 172
Deleting bills and payments, 172
Having QuickBooks remind you to pay your bills, 172
Entering credit from a vendor, 173
Questions and answers about bills, 173
• 5
13 Accounts payable management 177
Viewing the accounts payable register, 177
Editing a transaction in the A/P register, 178
Viewing an A/P transaction history, 178
Viewing a QuickReport about a vendor, 179
Working with A/P reports and graphs, 180
6 •
18 Assets, liabilities, and equity 211
Assets overview, 211
Adding fixed asset and depreciation accounts, 214
Selling fixed assets, 215
Recording thefts or losses of fixed assets, 218
Purchasing assets, 218
Liabilities overview, 219
Borrowing money, 219
Adding a loan to your chart of accounts, 220
Tracking loan payments, 221
Equity overview, 222
Distributing yearly profits to partners, 229
Creating equity accounts, 229
Transferring money out of Opening Bal Equity, 230
Recording an owner’s draw, 230
Recording an owner’s capital investment, 231
• 7
21 Reports, graphs, and budgets 251
Setting your report preferences, 251
Creating a report, 253
Customizing a report, 254
Filtering report data, 259
Using QuickZoom for report details, 261
Printing, saving, or emailing a report, 261
Exporting a report to Microsoft Excel, 262
Memorizing and recalling reports, 263
QuickReports, 264
Questions and answers about reports, 266
Graphs, 270
Budgets, 272
8 •
23 Maintaining your data 291
Data maintenance overview, 291
Changing your company information, 292
Changing to a different company file, 292
Keeping an audit trail, 292
Backing up your company file, 293
Restoring company data, 295
Transferring lists between company files, 295
Selecting names for mail merge, 296
Condensing data, 296
Periodic tasks, 299
Index 327
• 9
10 •
1 Installing QuickBooks
System requirements 11
1
Feature requirements 11
Installing and starting QuickBooks 12
Upgrading from an older version of QuickBooks for Mac 13
Converting data from other Intuit products 14
Using QuickBooks on a network or shared computer 14
What’s new in this version of QuickBooks 14
Welcome to QuickBooks® 2006 for Mac! This guide applies to both QuickBooks New User
Edition and QuickBooks Pro; features found only in QuickBooks Pro are indicated in the
text. To upgrade to QuickBooks Pro, contact Intuit (see page 326).
System requirements
• Computer: Macintosh with G3, G4, or G5 processor.
• Operating system: Mac OS X, version 10.3.9 or 10.4.2.
• Memory: 128 MB installed RAM.
• Hard disk space: At least 100 MB of free disk space.
• Display: Color monitor with at least 1024 x 768 resolution and millions of colors.
Feature requirements
• Printing requires a Mac-compatible printer; printing checks also requires Intuit checks.
• Exporting reports to Excel (page 262) requires Microsoft® Excel X or 2004 for Mac.
• Email requires Internet access, and Apple Mail® 1.3.1 or 2.0.2, Microsoft® Entourage®
X or 2004 for Mac, or Eudora® 6.2.3.
• Backing up to .Mac (page 294) requires Internet access and a paid .Mac account
available separately from Apple Computer, Inc.
• Contact synchronization with Address Book (page 55) requires Mac OS 10.4.2 (Tiger).
• Online banking (page 191) requires Internet access and an online account with a
participating financial institution.
• QuickBooks Payroll for Mac powered by PayCycle, Inc. (page 248) requires Internet
access, a paid QuickBooks Payroll for Mac account, and Adobe Reader to print checks
and forms.
• PayCycle and Aatrix® Top Pay® requirements may differ from those of QuickBooks.
For details, visit their websites at www.paycycle.com and www.aatrix.com.
Installing QuickBooks • 11
Installing and starting QuickBooks
To install QuickBooks:
1 Insert the QuickBooks CD in your CD–ROM drive.
2 Drag the QuickBooks application icon from the QuickBooks CD to your computer’s
Applications folder.
3 Go to the folder where you installed QuickBooks and double-click the QuickBooks icon.
4 Read the Software License Agreement, and if you agree to the license terms, click Agree.
5 Click an option on the QuickBooks welcome screen.
• To open an existing company file (including either of the sample files), select it and
click Open Selected Company.
We’ve included sample company files from a fictional company. Use a sample file to
enter data, create reports, and explore other QuickBooks features.
• If you don’t see your file listed, click Open Company.
• To create a new file, click New Company. See Chapter 2, Setting up your company file,
starting on page 15 for more information.
When you open QuickBooks for the first time, a QuickBooks folder is automatically created
in your Documents folder. The QuickBooks folder is the default location for new company
files, backup files, sample company files, and any other needed files.
Getting help
To search for information in
help, enter a keyword here,
and then press Enter.
12 • Installing QuickBooks
Entering data quickly
QuickBooks has several features to make data entry quick and easy.
Toolbar
The toolbar has icons you can click as shortcuts to forms and activities. To customize the
toolbar, see “Toolbar preferences” on page 289.
Keyboard shortcuts
For a list of shortcuts, see page 352.
Shortcut menus
Hold the Control key while clicking on any window (or click your right mouse button if
you have one) to display a shortcut menu. From the shortcut menu, you can get Help, the
Chart of Accounts, the current Print command, the Save as PDF command, the E-Mail as
PDF command (QuickBooks Pro only), the Save as Text command, and the Go To
command (in registers).
QuickMath
Use QuickMath™ to make simple calculations in a transaction.
For help on QuickMath, choose Help > QuickBooks Help, click “Customers and jobs” in
the left column, and then click “Using the QuickMath calculator.”
Installing QuickBooks • 13
Converting data from other Intuit products
• To convert a QuickBooks for Windows file to QuickBooks 2006 for Mac, see page 312.
• To convert a Quicken for Mac file to QuickBooks 2006 for Mac, see page 317.
To register QuickBooks:
1 Choose QuickBooks > Register QuickBooks.
2 Enter the Installation Key Code included with your QuickBooks software, and then click
OK.
A window appears that shows your serial number.
3 Call the phone number on the screen, OR click the Register Online button.
4 Provide your serial number and any other information that is requested.
You will then be given your QuickBooks registration number.
5 Enter the number in the Registration number field, and then click OK.
Keep your serial number handy in case you need to call Intuit’s Technical Support group
in the future. See “QuickBooks contact information” on page 326.
14 • Installing QuickBooks
2 Setting up your company file
Value of assets, including inventory on hand as of your start date Balance sheet
How much each customer owes you as of your start date Balance sheet
Accuracy of your accounts receivable records
How much you owe each vendor as of your start date Balance sheet
Accuracy of your accounts payable records
How much sales tax you owe as of your start date Balance sheet
Accuracy of your sales tax records
Income and expenses (profit and loss statement) for the current Accurate profit and loss statement for entire fiscal year
fiscal year through the start date (for midyear setup)
Names, addresses, and other information about regular vendors Vendor list
Information prefilled on checks, bills, and purchase orders
Description, price or rate, taxability of goods and services you Item list
sell Information prefilled on sales forms or purchase forms
Rate and tax agency for every sales tax you collect Item list
Ability to track sales tax owed
Do you track sales tax for multiple tax districts or at multiple rates?
QuickBooks lets you assign sales tax information to a customer. If you charge sales tax and
have not already set up your sales tax information, it’s best to do it before you add
customers. (However, you can go back later and edit your customer information.) To set up
your sales tax information, see “Understanding your tax rates and agencies” on page 148.
Adding names
If some customers owed you money as of your QuickBooks start date, add each of these
customers and their open balances as of your start date to the list now. This will ensure that
your accounts receivable will be accurate as of your start date.
Note: If you added all open invoices for customers, you will not need to enter an opening
balance on the Customer:Job window.
See “Customers and jobs” on page 34 for more information.
Employee list
Use the Employee list for:
• Fast entry of name and address on checks
• Tracking time on timesheets
• Tracking sales income by employee
See also “Employees” on page 41 for more information.
Chart of accounts
Your chart of accounts is your most important list. Use it to track how much money your
company has, how much money it owes, how much money is coming in, and how much
money is being spent.
Even if you chose a preset chart of accounts, you’ll probably want to add a few accounts,
delete a few accounts, or maybe just edit some accounts. If you didn’t choose a preset chart
of accounts, you’ll need to add all your accounts.
For more information, see Chapter 5, Your chart of accounts, starting on page 59.
Bank The opening balance for a QuickBooks bank account is the dollar amount you have in the bank on
your start date. You can determine this amount in two ways:
Examples:
Checking • Use your bank statement
Savings You can use the ending balance on the last bank statement before your start date. At some point,
Money fund you will need to enter into QuickBooks any transactions that occurred before your start date and
that do not appear on the statement you’re using or on any statement before that.
• Use a balance sheet
You can also use your bank account balance from a financial statement (ordinarily a balance sheet)
prepared by your accountant. Ideally, this would be a balance sheet prepared as of the end of a
fiscal period, when your start date is that same date. (For example, if your start date is March 31, a
balance sheet dated March 31 would be best.)
Accounts Receivable After you enter the unpaid balance for each customer (or job) as of your start date (see page 18), the
(A/R) opening balance of your QuickBooks A/R account equals the sum of the customer balances.
Other Current Asset For an asset account, the opening balance is the worth of the asset as of your start date.
Fixed Asset For an asset account that tracks inventory of items you purchase for resale, the opening balance of the
account equals the sum of the values of each inventory item you have added to your Item list (see
Other Asset
page 20).
If you track depreciation, create two subaccounts called Cost and Accumulated Depreciation for each
fixed asset account. The opening balance of the Cost account is the purchase price of the asset; the
opening balance of the Accumulated Depreciation account is the total depreciation taken (a negative
number), as of your start date.
Accounts Payable After you enter the unpaid balance for each vendor as of your start date (see page 19), the opening
(A/P) balance of your QuickBooks A/P account equals the sum of the vendor balances.
Credit Card The opening balance for a credit card account is the dollar amount you owed on the card as of your
start date.
Use the ending balance on the last statement before your start date. Then enter any transactions that
occurred before your start date and that do not appear on the statement you’re using or on any
statement before that.
Other Current Do not enter a minus sign when you enter opening balances for liabilities. QuickBooks automatically
Liability recognizes that the balance represents money owed.
Long Term Liability For a sales tax payable account, the opening balance is the amount you owed as of your start date.
For a long-term or short-term loan, the opening balance is the loan balance as of your QuickBooks
start date.
Equity The equity in your business includes money you put into the company (your capital investment) plus
the sum of the retained earnings (the net profit or loss) for each year the company has been in
business.
When you enter your first opening balance, QuickBooks creates an equity account called “Opening
Bal Equity.” This account is a device to ensure that you can get a balanced balance sheet even before
you have entered all of your company’s assets and liabilities.
We recommend that most people regard the Opening Bal Equity account as a tool that QuickBooks
uses to get you started. It’s best to add one or more additional equity accounts to track your owner’s
investment and draws. (QuickBooks creates a retained earnings account automatically.)
Distribute earnings (or loss) from before your QuickBooks start date to the retained earnings account
QuickBooks set up for your company. See Chapter 18, Assets, liabilities, and equity, starting on
page 211.
4 Click OK.
4 If you are changing your start date, change the date of the transaction to your new start
date.
5 Change the amount to the correct opening balance.
• In a bank account, change the amount in the Deposit column.
• In an asset, liability, or equity account, change the amount in the Increase column or
other appropriate column.
• In a credit card account, change the amount in the Charge column.
6 Click Record.
QuickBooks adjusts the account balance from the start date forward.
7 Click Record.
3 In the first line of the Account field, enter Opening Bal Equity. In the Debit field, enter
your net year-to-date profit from the statement.
Important: If the amount is a loss, enter it in the Credit field instead. Do not enter a
minus sign. Your net year-to-date profit equals the sum of all your
year-to-date income minus the sum of all your year-to-date expenses.
4 For each income account on the statement, enter a new line.
• In the Account field, enter the name of the QuickBooks income account.
• In the Credit field, enter the year-to-date amount for that income account.
5 For each expense account on the statement, enter a new line.
• In the Account field, enter the name of the QuickBooks expense account.
• In the Debit field, enter the year-to-date amount for that expense account.
6 Click OK to record.
Next steps
If your start date is earlier than today, you need to enter all the transactions that have
occurred after your start date. Your balances in QuickBooks will not be up to date until you
enter them. See Chapter 3, Entering historical transactions, starting on page 27, for more
information.
If your start date is today and you don’t plan to use payroll, you have finished setting up
your company!
When you’ve entered your opening balances as of your start date, you’re ready to record
regular transactions such as invoices, bills, and payments as they occur.
We encourage you to run reports often, to make sure your chart of accounts is set up in a
useful way and that you’re classifying transactions (using job tracking, class tracking, or
both) in a way that is helpful to your company. Of course, you can edit the chart of accounts
(or any other list) any time, but it’s easier to make changes when you’ve recorded only a
few transactions.
Types of lists 33
4
Types of lists
Chart of accounts
Your company’s chart of accounts tracks who owes you money, how much money you owe
(and to whom), what you’ve earned, and what you’ve spent.
You selected a preset chart of accounts (or set up your own) when you set up your
QuickBooks company. As you work with QuickBooks, you may discover that you need to
add accounts to the chart, or edit accounts on the chart. For more information, see
Chapter 5, Your chart of accounts, starting on page 59.
Items
Your list of items contains the services or items you buy and sell as well as the following
information about each item:
• description
• cost per unit or rate per hour, if applicable
• the income or expense account to which you want to assign income from the sale of the
item or the expense of purchases of the item
• quantity on hand for inventory items (if you have the inventory feature turned on)
Your Item list also contains special calculating items that calculate subtotals and discounts,
and that apply specific sales tax rates.
For more information, see Chapter 6, Items—your products and services, starting on page 67.
Lists • 33
Classes
Use classes to track your income and expenses — by department, business office, or
separate properties you own. For example, a contractor might classify income and
expenses as either “home” or “business” work. The contractor could then create subclasses
of “remodels,” “repairs,” and “new construction” under each of the two main classes.
At the end of a period, you can create a class report to show all income and expenses for
each of your classes.
You can also use jobs to track income and expenses; see the next section.
Important: For more information about using classes in your business, choose Help >
QuickBooks and Your Industry.
• On a customized sales form or purchase order, assign classes to individual line items.
See “Customizing your sales form” on page 95 or “Customizing purchase orders” on
page 198 for details.
To add a class:
1 Choose Lists > Classes, and then choose New from the Actions pop-down menu.
2 Enter the class name in the Class Name field.
3 If this is a subclass of another class, select the “Subclass of” checkbox and choose the
higher-level, or parent, class from the pop-up menu.
4 Click Next to enter another new class, or click OK.
34 • Lists
Customer:Job list (an invoice would be used instead). However, a contractor who builds
several houses for a customer may wish to track each house as a job. If you don’t need to
track jobs, your Customer:Job list will contain customers only.
Lists • 35
4 Complete the Additional Info tab.
For more
information
about
custom
fields, see
page 49.
5 (QuickBooks Pro only) Complete the Job Info tab if you do not plan to set up separate
jobs for this customer.
To customize job For more
status names, see information
“Job preferences” on about
page 285. adding
notes to a
Enter a new job type customer
if the one you want is and/or job,
not in the list. see
Type a colon after a page 37.
job type name to set
up a subtype for that
job type.
To add a job:
1 Choose Lists > Customer:Jobs.
2 Select the customer whom the job is for, and then choose Add Job from the
Actions pop-down menu.
3 Enter the job name in the Job Name field.
4 Edit the Address Info tab if the information for this particular job is different from the
information for the customer.
5 Click the Additional Info tab, and edit the information for this particular job if it is
different from the information for the customer.
6 (QuickBooks Pro only) Fill in the Job Info tab.
7 Click Next to enter another new job, or click OK.
36 • Lists
Editing customers and jobs
To edit information about a customer or job:
1 Choose Lists > Customer:Jobs.
2 Double-click the customer and/or job you want to edit.
3 Make any desired changes, and then click OK.
QuickBooks doesn’t automatically update the job status (for example, from In Progress
to Completed). You must change it yourself.
Lists • 37
4 From the Add filters pop-up menu, choose Name.
5 In the Name pop-up menu, choose the customer or job name.
6 Click Apply.
QuickBooks displays a report of all transactions associated with the customer or job.
Customer types
The New Customer and Edit Customer windows have a Type field on the Additional Info
tab. Use this field to categorize each customer in a way that is meaningful and useful for
your business. Then you can create reports about the different types of customers you
serve.
For example, you could keep track of the industries your company serves, so you could
send special mailings to customers with special interests. Or perhaps you’d like to keep
your customer base diversified. This field can help you see what kind of customer does the
most business with you.
A doctor, dentist, or other health professional might use this field to record a patient’s
insurance company.
Note: For information about using customer types in your business, choose Help >
QuickBooks and Your Industry.
You can print mailing labels and statements sorted by customer type. For example, you
could send advertisements (or statements) to all high schools for whom you took
graduation pictures.
You can further classify your customers by adding “subtypes.” For example, if you
currently use the Type field to record what industry your customers represent, you could
add a subtype indicating their geographical location.
38 • Lists
To add a job type:
1 Choose Lists > Customer & Vendor Profile > Job Type, and then choose New from the
Actions pop-down menu.
2 Enter the name for the new type, and then click OK.
Vendors
Use the Vendor list to record information about people or companies from whom you buy
goods and services. You select a vendor from the list when you create purchase orders,
enter bills you’ve received, pay bills, or record purchases you’ve made using a credit card.
When you write a check, the payee list also includes these vendors.
The Vendor list shows the current balance you owe each vendor.
If a vendor’s balance is higher than you expect, remember that item
receipt amounts are included in a vendor’s balance, even if you haven’t
received a bill for the items.
Lists • 39
4 Complete the Additional Info tab.
See
Put your account page 49
number here to print for details
it in the Memo field about
on checks to this custom
vendor. fields.
Enter this vendor’s
payment terms so
QuickBooks can tell
you when you earn a
discount for early
payment.
40 • Lists
Deleting a vendor
QuickBooks does not allow you to delete a vendor if there are any transactions associated
with the vendor. You must first remove the vendor from every associated transaction.
Vendor types
The New Vendor window and Edit Vendor window have a Type field. Use this field to
classify your vendors by the type of service they perform or items they sell.
For instance, if you own a construction company, you might want to keep track of where
your subcontractors are located, so that you can use the closest ones to each job. You could
create a report for each geographical area. You can further classify your vendors by adding
subtypes.
You can also print mailing labels sorted by vendor type.
Employees
Use the employee list to store information about your employees, including each
employee’s name, social security number, address, and phone number.
Note: If you use QuickBooks Payroll for Mac, be sure the employee name is spelled exactly
the same (first name, middle initial, and last name) in both places. Employee names
in paycheck data imported from QuickBooks Payroll for Mac must match your
QuickBooks employee list. For more information about QuickBooks Payroll for Mac,
see page 248.
To add an employee:
1 Choose Lists > Employees, and then choose New from the Actions pop-down menu.
2 Complete the Address Info tab.
Press x ? to display more information about this window.
The information you enter in these fields can be exported for mail merge. See “Selecting
names for mail merge” on page 296.
Lists • 41
3 Complete the Additional Info tab.
4 Click Next to enter another employee, or click OK.
Other names
When you enter a name in a field like the Received From field of the Make Deposits
window or the Purchased From field of the Enter Credit Card Charges window,
QuickBooks requires that the name be on a list. You’ll probably want to reserve the
Customer:Job list for customers you invoice; the Vendor list for vendors you track in A/P;
and the Employee list for company employees. Use the Other Names list for any other
names or names you rarely use.
Terms
Payment terms indicate when you expect to receive payment from a customer or when
your vendors expect payment from you. Terms also indicate whether you or your vendors
give a discount for early payment.
QuickBooks accepts two types of terms:
• Standard terms, which are defined by the number of days until discount is earned and
payment is due. For example, if you expect payment from a customer within 30 days,
and you give a discount of 2% if you receive the payment within 10 days, the terms are
2% 10 Net 30.
• Date-driven terms, which are defined by payments due on a specific day of the month,
with a discount if paid by a certain date. For example, you can set up payments to be
due by the 15th day of the month, with a discount if you are paid by the 1st.
42 • Lists
Select terms from the pop-up menu when you are creating an invoice or entering a bill. If
your customer has earned a discount, or you’ve earned a discount from your vendor,
QuickBooks calculates the discount based on the terms of the bill or invoice. When you
receive payments or pay bills, you can click the Discount Info button to see and apply any
discounts earned.
To further speed up invoicing and bill entering, specify the payment terms for each
customer in the New/Edit Customer window and each vendor in the New/Edit Vendor
window. Then QuickBooks automatically enters terms for you in invoices and bills.
To add terms:
1 Choose Lists > Customer & Vendor Profile > Terms, and then choose New from the
Actions pop-down menu.
2 Choose whether the terms are standard or date driven, and enter all the appropriate
information in the New Terms window.
If you choose date-driven terms, enter a number of days in the Due the next month...of
due date field. If the date of the invoice or bill and its due date are within the number
of days you enter, the invoice or bill is due the following month.
3 Click Next to enter more terms, or click OK.
Payment methods
The Payment Method list contains preset items such as Cash, Check, American Express,
MasterCard, and Visa.
When you receive a payment from a customer, you can select a payment method from the
pop-up menu. You can use payment method information later to sort deposits by payment
method to match the way your bank sorts deposits on its statements. When your
QuickBooks deposits match the deposits on your bank statement exactly, reconciling your
bank account with your statement is much easier. See “Separating deposits” on page 129
for more information.
If you do not separate deposits, you probably do not need to use payment items.
Ship Via
The Ship Via list contains shipping methods such as Federal Express, UPS, US mail, DHL,
and Airborne Express. Select a shipping method from this list when you are entering a sale.
Lists • 43
Customer messages
Use the customer messages on this list to inform or remind your customers. Select a
message from the Customer Message pop-up menu at the bottom of an invoice, cash sale
receipt, or credit memo that you print for a customer.
Purchase orders
The Purchase Orders list shows all purchase orders you’ve created in chronological order,
including the vendor, date of the PO, and the PO number.
Memorized transactions
You can memorize many QuickBooks transactions that reoccur, such as a monthly lease
payment or a quarterly tax deposit.
Note: You cannot memorize the following transactions: receipt or deposit of payments, bill
payments, time records, and sales tax payments.
Once you memorize a transaction, you can recall it from the Memorized Transaction list,
which contains the name you’ve given the transaction, the type of transaction (for example,
check, invoice, or bill), the amount, and how often you want to be reminded to use the
transaction (if at all). You can even have QuickBooks automatically enter the transaction for
you at intervals you specify.
To memorize a transaction:
1 Create a transaction, such as a check, bill, invoice, statement charge, or credit card
charge.
If you create a check, bill, invoice, or credit card charge, do not click OK. If you create
a statement charge, click Record.
2 Choose Edit > Memorize.
QuickBooks names the transaction in the Memorize Transaction window, but you can
change the name.
3 Choose how you want QuickBooks to treat the transaction.
• Click Remind Me to have QuickBooks remind you about this transaction. Select how
often you want to be reminded, and enter the next date on which you want
QuickBooks to remind you.
• Click Don’t Remind Me if you don’t want QuickBooks to remind you of this
transaction.
44 • Lists
• Click Automatically Enter to have QuickBooks automatically enter this transaction
for you. Indicate how often you want the transaction to be entered, the next date on
which you want QuickBooks to enter the transaction, the number of transactions
that are remaining to be entered, and how many days in advance of the next date you
want QuickBooks to enter the transaction.
• Click With Transactions in Group to have QuickBooks remind you of this transaction
with others in the group that you specify.
4 Select the Add to iCal checkbox to add a reminder to iCal (see page 92 for more
information).
5 Click OK.
QuickBooks adds the transaction to the Memorized Transaction list.
Note: QuickBooks does not memorize the date or printing status.
Example 1
You memorize your rent payment check, your vehicle insurance payment check, and an
invoice for a monthly standing order from a customer. Each of these transactions occurs
monthly just a couple of days before the end of the month. You could group them together
in a group called “End of month,” and have QuickBooks remind you to recall the
memorized transactions on the same day each month, or have QuickBooks enter the
transactions automatically.
Lists • 45
Example 2
You own a health club. Twice a year, you send a billing statement to every member of your
club for membership dues. You could memorize each person’s billing statement; then
group them all together on your Memorized Transaction list, and have QuickBooks remind
you when it’s time to recall and print all the membership billing statements.
To Do notes
You can enter notes to remind yourself of tasks to complete by a certain date, or about
upcoming events, such as a lease expiration. View the To Do list at any time, or use the
Reminders list to see which notes are currently due when you start QuickBooks.
46 • Lists
To add a note to the To Do list:
1 Choose Company > To Do List, and then choose New from the Actions pop-down
menu.
2 Enter the note and the reminder date in the New To Do window.
3 Select the Add to iCal checkbox to add a reminder to iCal (see page 92 for more
information).
4 Click Next to enter another To Do note, or click OK.
QuickBooks sorts the current and past due To Do notes by date, and sorts completed To
Do notes at the bottom of the list.
Reminders
QuickBooks can remind you when it's time to pay bills, print invoices, print checks, deposit
money in the bank, enter memorized transactions, act on overdue invoices, or act on To Do
notes you've created.
For more information, choose Help > QuickBooks Help, click “Company lists” in the left
column, and then click “Reminders.”
Lists • 47
Maximum number of items
Each list in QuickBooks has a maximum number of items it can contain.
Classes 10,000
Terms 10,000
QuickFill
When you click in a field where you’ll use a list item (for example, the Vendor field in the
Enter Bills window), start typing the item’s name. QuickFill™ completes the entire item as
you type the beginning letters.
Pop-up menus
Every field that can be filled with a list item has an Arrow button next to it. Click the Arrow
(or press Ctrl-Down Arrow) to see the list, and then click the item you want to fill in the
field.
You can also start typing letters in the field to filter the list:
This example shows the Customer:Job field in the Create Invoices
window. First, click the Arrow button (or press Ctrl-Down Arrow)
to see the complete list of items available.
If you then type the letter ‘e’, the list gets shorter
still, showing only those items starting with the
letters ‘ce’.
To re-display the original list of items, press the
Delete key to empty the field.
48 • Lists
Using keystrokes to display lists
At any field that can be filled with a list item, press x L to display the appropriate list.
Select the item you want to use in the list (by using the arrow keys, the mouse, or by typing
the first letters of the item), and then choose Use from the Actions pop-down menu.
Lists • 49
To add customized fields for items:
1 Choose Lists > Items, and double-click an item.
2 Click Custom Fields.
3 Click Define Fields.
4 For each field you want to add, select the “Use” checkbox, and enter a name in the Label
field.
You can add up to five customized fields for all the service, inventory part,
non-inventory part, and other charge items on your Item list.
5 Click OK.
QuickBooks adds the field(s) to the Custom Fields window.
50 • Lists
Arranging lists manually
To manually arrange a list:
1 Move your cursor over the small blue dot in front of the list item you wish to move.
The cursor changes to a two-way arrow.
A manually- If you see a gray dot instead of a
arranged list blue one to the left of the item,
deselect Show Sorted List from
This example shows the Actions pop-down menu.
‘the blue dot to the
left of Union Dues”
being dragged to the
left, to make it at the
same level as “Dues
and Subscriptions.”
2 Drag the item up, down, left or right to its new location.
You can move subitems independently; that is, you can move a subitem up or down
from one main item to a different main item.
• To move a list item and its subitems, drag the main item.
• To make a subitem a main item, drag it to the left.
• To make a main item a subitem, drag it to the right.
• To make a subitem of a subitem, drag the item further to the right.
When you manually arrange a list, the list appears in that custom order in any window that
uses it; for example, if you manually arrange the Customer:Job list, the Customer:Job
pop-up menu on the Create Invoices menu will appear in the same order.
Lists • 51
To display a list in flat or hierarchical view:
1 From the Lists, Customers, or Vendors menu, choose the list you’d like to change.
2 Choose either Flat View or Hierarchical View from the Actions pop-down menu.
A column-sorted list
in flat view
This shows the same
list from the previous
section, with Flat
View chosen from
the Actions
pop-down menu.
52 • Lists
Hiding inactive list items (QuickBooks Pro only)
You can “hide” inactive items so they do not appear in lists. This can make it easier to scroll
through, and select from, very long lists.
OR
Control-click the item from the list, and then choose Make Inactive.
Notes:
• When you mark a list item as inactive, it is hidden in any windows that use that list. For
example, an inactive item from the Items list will be hidden in the Item pop-up menu
in the Create Invoices window (Customers > Create Invoices).
• Inactive list items still appear in reports and transactions.
• When you mark an item as inactive, its subitems are also marked inactive.
• To make an inactive item active again, select the Include inactive checkbox from its list,
Control-click the item from the list, and then choose Make Active.
If you mark this
kitchen job as
inactive, it is shown
in gray on the
Customer:Job list if
the Include inactive
checkbox is
selected...
...or completely
hidden if the Include
inactive checkbox is
not selected.
Lists • 53
Summary of list organization features
Mark item
Arrange Sort by Levels of Merge
List type as inactive
manually column subitems items
(Pro only)
Lists > Chart of Accounts Yes Yes Yes 4 Yes
Lists > Items Yes Yes Yes 4 Yes
Lists > Classes Yes Yes Yes 4 No
Lists > Customer:Jobs Yes Yes Yes 4 Yes
List > Vendors No Yes Yes 0 Yes
Lists > Employees No Yes Yes 0 Yes
Lists > Other Names No Yes Yes 0 Yes
Lists > Customer & Vendor Profile > Customer Types Yes Yes Yes 4 No
Lists > Customer & Vendor Profile > Vendor Types Yes Yes Yes 4 No
Lists > Customer & Vendor Profile > Job Types Yes Yes Yes 4 No
Lists > Customer & Vendor Profile > Terms No Yes Yes 0 No
Lists > Customer & Vendor Profile > Customer Messages No Yes Yes 0 No
Lists > Customer & Vendor Profile > Payment Methods No Yes Yes 0 No
Lists > Customer & Vendor Profile > Ship Via No Yes Yes 0 No
Lists > Memorized Transactions Yes Yes No 1 No
Company > To Do List No Yes Yes 0 No
Company > Reminders No No No 0 No
Vendors > Purchase Orders No Yes No 0 No
54 • Lists
Synchronizing your contacts with Address Book
Carry your QuickBooks contact lists (customers, vendors, employees, and other names)
with you wherever you go, by synchronizing your QuickBooks contacts with your Mac OS
X Address Book.
Note: Contact sync works with Mac OS 10.4 (Tiger) only.
3 In the Sync Alert dialog that appears, leave the “Delete all contacts from QuickBooks
before syncing” checkbox blank, and then click Allow.
Lists • 55
Which QuickBooks fields are synchronized
To see which QuickBooks fields are synchronized:
1 Choose Lists > Customers:Jobs, Vendors, Employees, or Other Names.
2 Double-click any item in the list.
Any field shaded yellow is synchronized. If you don’t see any shaded fields, make sure
that contact sync is turned on, as explained in the previous section.
All fields shaded
yellow are
synchronized. In the
Vendor Address Info
tab, all fields except
the Contact, Fax,
Alternate Phone,
Alternate Contact, and
Print on check as fields
are synchronized.
A reminder on which
fields are
synchronized.
56 • Lists
Synchronizing existing Address Book contacts with QuickBooks
1 Follow the instructions in “Turning on contact sync” on page 55 to create QuickBooks
groups in your Mac Address Book.
2 In Address Book, drag the contacts you want to synchronize into a QuickBooks group.
For example, from the illustration on the previous page, you can drag contacts into the
group Vendors:Rock Castle. This ensures that your personal contacts don’t get entered
in QuickBooks unintentionally.
Lists • 57
58 • Lists
5 Your chart of accounts
QuickBooks
Use to track
account type
Bank Transactions in checking, savings, and money market accounts. Add one bank account for each
account your business has at a bank or other financial institution. You can also use this type of
account for petty cash.
Accounts Receivable Transactions between you and your customers, including invoices, statement charges, payments from
(A/R) customers, deposits of customer payments, refunds, and credit memos. QuickBooks automatically
creates an A/R account when you first create an invoice or statement charge.
Other Current Asset Assets that are likely to be converted to cash or used up within one year, such as petty cash, the value
of your inventory on hand, notes receivable due within a year, prepaid expenses, and security
deposits.
Fixed Asset Depreciable assets your business owns that aren’t liquid (not likely to be converted into cash within a
year), such as equipment, furniture, or a building.
Other Asset Any asset that is neither a current asset nor a fixed asset, such as long-term notes receivable.
Accounts Payable Your business’s outstanding bills. When you first enter a bill, QuickBooks automatically creates an
(A/P) A/P account.
Other Current Liabilities that are scheduled to be paid within one year, such as sales tax, payroll taxes, accrued or
Liability deferred salaries, and short-term loans. Some businesses include the current portion of long-term
liabilities in this kind of account.
Long Term Liability Liabilities such as loans or mortgages scheduled to be paid over periods longer than one year.
Equity Owner’s equity, including capital investment, draws, and retained earnings. When you create a new
company, QuickBooks creates a retained earnings account. When you enter balance sheet accounts,
QuickBooks adds an equity account called Opening Bal Equity to help balance your books as you set
up. You’ll probably want to add your own equity accounts.
• Select the income or expense account in the Chart of Accounts window, and then choose
QuickReport from the Actions pop-down menu.
Sales Tax Other Current You create a new company and answer “Yes” to the question about charging
Payable Liability sales tax. If you answer “No”, QuickBooks creates this account later if you
ever use sales tax on an invoice.
Undeposited Funds Other Current Asset You first receive an invoice payment or cash from a cash sale. Undeposited
Funds holds money you’ve collected until you deposit it in a bank account.
Accounts Receivable Accounts You create an invoice for the first time.
Receivable
Purchase Orders Non-Posting You first create a purchase order or estimate. These accounts do not affect your
balance sheet or income statement.
Estimates
Opening Bal Equity Equity You first enter balance sheet account opening balances. This account is used
by QuickBooks to help set up your accounts correctly.
Inventory Asset Other Current Asset You first add an inventory item.
Cost of Goods Sold Cost of Goods Sold You first add an inventory item.
Deleting an account
You can delete only unused accounts. You cannot delete an account if it:
• Has subaccounts
• Has items assigned to it
• Is used in transactions
• Is included in memorized transactions
To delete an account you’ve used, you’ll need to go to each transaction where you’ve used
the account and associate it with a different account, until the account you want to delete
is unused.
Items overview 67
6
Creating items 70
Tips for businesses that invoice for costs 79
Using subitems 83
Reports about items 83
Editing item information 85
Deleting items 85
Changing prices 85
Items overview
Items are primarily services or products that you buy, sell, or resell in your business.
However, in QuickBooks, you can also create items that represent a discount, calculate a
subtotal, or represent a sales tax.
Whether you record a sale or a purchase, use items from your Item list to fill out the form
quickly. When you choose an item in the Item field on the form, QuickBooks fills in the
description, rate, or price and then calculates the amount.
QuickBooks uses information you’ve recorded about each item to assign the sale or
purchase to the right income or expense accounts. Reports and graphs can then give you
valuable information, such as your greatest sources of income and which items you sell
most.
Important: For more information about using items in your business, choose Help >
QuickBooks and Your Industry.
Each item on the Item list can contain all the information you need to fill in one line. You
can always change any information, such as the description and rate, as you’re filling in a
sales form. When you enter a quantity, QuickBooks calculates the amount for you.
You’ll have separate items not only for each service rendered and each product sold, but
also for discounts, markups, sales taxes, and subtotals. If the customer makes a partial
payment at the time of the sale, you can add a line item for the payment.
Types of items
There are ten different types of QuickBooks items.
Inventory Part Items you purchase, track as inventory, and then resell
EXAMPLES: Electrical outlets, T-shirts
Non-inventory Part Items you purchase but do not resell; items you sell but do not purchase; items you purchase and
resell but do not track as inventory
EXAMPLES: Custom-made slipcovers, pizza
Other Charge Other charges on a sale or a purchase, such as freight or finance charges
EXAMPLES: Shipping charge, delivery charge
Payment Payment received at the time of invoicing so that amount owed on invoice is reduced
Sales Tax Group Calculating two or more sales taxes grouped together and applied to the same sale
Creating items
Create items to represent things that you buy, sell, or resell in your course of business. You
can also create items that represent a discount, calculate a subtotal, or represent a sales tax
on a form. When you enter a sale or purchase, you select items from your Item list to
quickly and accurately fill in the form.
Service items
Service items represent services you charge for or buy (or both). These services can be
professional fees or labor. They can also be subcontracted services you purchase for a
specific job.
After you have set up a service item, you cannot change its type to another item type.
Group items
The Group item type allows you to enter several items all at once on a sales form, purchase
order, estimate, check, or bill. If you often sell the same group of items together, using a
group item saves you the trouble of entering the same set of line items again and again.
When you use a group item on a sales form, you can enter quantities for the group or each
item in the group, and edit descriptions and rates. When you specify a quantity for the
group, it affects the quantity and amount of each item in the group.
Discount items
A discount can be either a fixed amount or a percentage of the line above.
You do not need a discount item for discounts you give for early payment. See “Applying
a discount for early payment” on page 123.
If you give discounts of different percentages at the time of sale, and you want QuickBooks
to calculate the amount, you need a separate discount item for each percentage. If you give
discounts of stated amounts, on the other hand, you can easily edit the amount right on the
sales form.
To discount one particular item you’ve sold and not the entire sale, add a discount item
directly beneath the one discounted item. You won’t need a subtotal item.
This discount applies This discount is not included in the sales
to a subtotal of tax calculation for this sale.
multiple labor items.
This discount applies
only to one item. This discount is applied before sales tax is
calculated, so it lowers the tax amount on
the sale.
Payment items
You’ll need a payment item if you receive a partial payment toward the amount of an
invoice or statement at the time you create the invoice or statement.
The Payment item tells QuickBooks to subtract the amount of the payment from the total
invoice or statement amount. To record the payment on the invoice or statement, enter a
payment item for the amount you’ve received after you’ve entered all the items you’ve
sold. You can tell QuickBooks to automatically put any payment amount you record with
a payment item into your Undeposited Funds account until you make a deposit, or to
deposit the payment directly to a checking or other account. See “Depositing payments”
on page 128.
Use a payment item QuickBooks subtracts a payment item
when you receive a amount from the invoice or statement
partial payment at or total.
before the time you
create the invoice or
statement.
Note: If you receive payment in full at the time of the sale, use the Enter Sales Receipt
window. If you receive payment after the sale, use the Receive Payments window.
You also use a payment item to record a down payment in the Create Credit Memos/
Refunds window. Note that while a positive payment item subtracts from the total of an
invoice or statement, a positive payment item adds to the total of a credit memo in the
Create Credit Memos/Refunds window.
Sales Tax Item A single tax with a specified rate, payable to a specified agency, that you collect from customers
Sales Tax Group A group of two or more single taxes collected for the same sale and shown on the sales form as one
tax item
On invoices, cash sales receipts, and credit memos, you specify which sales tax applies to
the taxable items. QuickBooks calculates the correct tax and prints it on the sales form after
all the other line items.
To create subitems:
1 Choose Lists > Items, and then choose New from the Actions pop-down menu.
2 Select the same item type as the parent item.
3 Enter information in all the appropriate item fields.
4 Select the “Subitem of” checkbox and choose the name of the parent item.
5 Click Next to enter another subitem, or click OK.
Sales Description
Sales by Item Summarizes your unit and dollar sales and returns for this month, subtotaled by item type and item.
Summary
Sales by Item Like the sales by item summary report, but with invoices, cash sales receipts, and credit memos listed
Detail for each item.
Purchases Description
Purchases by Item Summarizes your unit and dollar purchases and returns for this month, subtotaled by item type and
Summary item.
Purchases by Item Like the purchases by item summary report, but with bills, checks, and credit card receipts listed for
Detail each item.
Job Profitability Actual cost, actual revenue, and difference for one customer or job, subtotaled by item type and item.
Detail
Job Estimates vs. Estimated cost, actual cost, and difference; estimated revenue, actual revenue, and difference; report
Actuals Detail is for one customer or job and is subtotaled by item type and item.
Item Profitability Shows actual cost, actual revenue, and difference, subtotaled by item type and item.
Item Estimates vs. Shows estimated cost, actual cost, and difference; estimated revenue, actual revenue, and difference;
Actuals report is subtotaled by item type and item.
Time by Job Shows hours worked subtotaled first by customer and job and then by service item.
Summary
Time by Item Shows hours worked subtotaled first by service item and then by customer and job.
To edit an item:
• Choose Lists > Items, and then double-click the item you wish to change.
Deleting items
You can delete an item only if it is not used in any transaction or group item. To locate all
transactions that use a given item, create a QuickReport for the item for all dates. See
“Creating a QuickReport” on page 265 for instructions.
Changing prices
You can change the prices of many items at one time through the Change Prices window.
You can manually change item prices, or have QuickBooks calculate new prices based on
a dollar amount or percentage.
To change prices:
• Choose Lists > Items, and then choose Change Prices from the Actions pop-down
menu.
For more information, choose Help > QuickBooks Help, click “Items” in the left column,
and then click “Changing the prices of items.”
Sales receipts
Choose Customers > Enter Sales Receipts to record point-of-sale payments (that is,
payment on the spot), or to summarize your day’s sales if you don’t want to record each
cash sale separately. (See “Creating a daily sales summary” on page 108.) Cash sales
include payments by cash, credit card, or check. Sales receipts do not involve accounts
receivable. Instead, they are treated in one of two ways:
• QuickBooks puts the money in an account called Undeposited Funds until you record
a deposit to a bank account.
• QuickBooks deposits the money directly into the account you specify.
Invoices
Choose Customers > Create Invoices to bill a customer or client who has purchased goods
or services from you, and to record transactions that affect your accounts receivable
account; that is, transactions that result in a customer or client owing you money.
Most businesses use invoices. An invoice lists what you sold on one date. It also shows the
quantity and cost of each item. Use invoices if you:
• sell goods or services and need to keep a detailed record of each sale with multiple line
descriptions
• use sales tax, finance charges, discounts, or any other item that is calculated as a percent
of charges
• bill at the time of a sale or the completion of a job, rather than on a regular interval
Tracking sales • 87
• group and total certain types of billings together, for example, all services or all
reimbursable expenses
Examples of businesses that could use invoices include general contractors, consultants,
and mail order firms.
An example of an
invoice
Billing statements
To send statements instead of invoices, you can use billing statements. A billing statement
lists the charges a customer has accumulated over a period of time. Enter the charges when
they occur, then send a statement at your regular billing time. You can use statements to bill
customers periodically, such as once a month. See page 110 for more information.
Important: Use invoices instead of statements if you charge sales tax, use group items, or
apply percentage-based discounts.
Examples of businesses that could use billing statements include medical and dental
practices, and property management companies.
Credit memos
Choose Customers > Create Credit Memos/Refunds to record returned items and/or
canceled orders for which you’ve already sent an invoice or billing statement and received
a payment. See “Recording a return” on page 131 for more information.
88 • Tracking sales
Entering a sales transaction
2 In the Customer:Job field, choose from the pop-up menu or enter a new customer or job.
To learn about adding jobs, see “Customers and jobs” on page 34.
For sales receipts, you do not have to enter a name in the Customer:Job field unless you
want this customer’s name added to your customer list. To display the customer’s
name on the printed receipt, enter the name in the Sold To field.
3 If you create an invoice or sales receipt, QuickBooks will automatically alert you if you
choose a customer:job that has outstanding billable time and/or costs.
For more
information on
charging for actual
time and costs, see
page 103.
To turn off future alerts, select the Do not show this dialog again checkbox, and then
click OK. If you change your mind and want to turn on future alerts, choose
QuickBooks > Preferences, and then select the Turn on all one-time messages checkbox.
4 (Invoices and credit memos) Choose which accounts receivable account to use.
This field appears only if you have more than one A/R account. The field does not
appear on a cash sale.
5 (Optional) Assign a class to the sales form.
The Class field appears only if class tracking is turned on in Transaction Preferences. See
“Classes” on page 34 for more information.
Note: You can also assign classes to individual line items by adding a Class column
when you customize a sales form. See “Customizing your sales form” on page 95
for details.
6 Enter the date.
Press + or - to increase or decrease the date by one day.
7 Enter the invoice or sale number.
You can use letters, numbers, and hyphens. Press + or - (when the entire field is
selected) to increase or decrease the number by one.
Tracking sales • 89
8 Enter your customer’s name and address in the Bill To (invoices) or Sold To (cash sales)
field.
If you entered the customer’s name in the Customer:Job field, the Bill To or Sold To field
also contains the customer’s name, along with an address. You can add a title, such as
Dr. or Mr. and Mrs., a company name, or “Attn:”, to print with the customer’s name
and address.
9 (Optional) Enter your customer’s purchase order number (service and product formats)
and payment terms.
QuickBooks enters terms if you assigned any when you set up this customer.
QuickBooks uses the terms to determine the due date of the invoice and whether you
owe your customer a discount for early payment. For more information, see “Terms”
on page 42.
You create a list of items that fit your sales and purchasing needs; then choose from the list
as you fill out sales forms.
It’s important to understand items thoroughly so that you get accurate sales and income
reports. Read Chapter 6, Items—your products and services, starting on page 67 for more
information.
90 • Tracking sales
Account information relating to items
Each item is associated with an account that you assign to it (usually an income account).
When you enter an item in the ITEM field of a sales form, QuickBooks records the income
from the item in the assigned account. Then you can see the income on profit and loss
statements.
1 In the Customer Message field, choose a message from the pop-up menu or enter a new
message to your customer.
The message you enter here is saved on a list of customer messages.
2 Enter the preset sales tax information.
QuickBooks automatically selects the Customer is taxable checkbox if you marked this
customer as taxable when you added the customer to your Customer:Job list.
QuickBooks uses the tax item you assigned to this customer when you added the
customer to your Customer:Job list. To change the tax item for this sale, choose a
different tax from the Tax list.
For more information, see Chapter 10, Tracking and paying sales tax, starting on page 147.
3 Enter a memo.
This memo does not print on an invoice or cash sales receipt. It does print on a reminder
statement as a description of an invoice. If you send reminder statements to your
customers, you might want to use this memo field for an invoice summary. The memo
also appears in the Accounts Receivable and customer registers.
Tracking sales • 91
4 Select the “To be printed” checkbox.
Select this checkbox to add this sale to a list of receipts or invoices you can print all at
the same time. See “Printing, saving, or emailing a sale form” on page 103.
5 Select the Add to iCal checkbox to add a reminder to iCal (see page 93).
6 To customize the format of your invoices, click Format.
7 To change a title of a sales form for a single use, click Change Title.
The current sales form has the title you entered. The next blank sales form will have the
preset title.
8 Click OK.
If the sale is an invoice, QuickBooks records the invoice in your Accounts Receivable
register. If the sale is a cash sale, QuickBooks records the sale in your Undeposited
Funds register or deposits funds directly into a checking or other account. See
“Depositing payments” on page 128.
Editing a sale
You can edit an invoice, cash sales receipt, or credit memo in the same window where you
created it. This is useful when you forget a line item or discover an error when you see the
printed form.
Voiding a sale
Void a sales form instead of deleting it to retain complete records of all sales.
To void a sale:
• Display the sale you want to void, or select it in the appropriate register, and then choose
Edit > Void Invoice.
QuickBooks changes the amounts on the sale to zero and enters “Void” in the Memo
field. (Your memo remains; QuickBooks enters “Void” before it.)
92 • Tracking sales
Deleting a sale
Important: Don’t delete an invoice or receipt if you made an error on the invoice. Just
correct the error on the original form and reprint it. Likewise, don’t delete an
invoice if you’ve already applied a payment to it. If a customer cancels an order
on which you have received some payment, your records will be clearer if you
use the Credit Memo/Refund window. See “Recording a return” on page 131.
To delete a sale:
• Display the invoice or receipt you want to delete, and then choose Edit > Delete Invoice.
If iCal is already open, QuickBooks adds the transaction. If iCal isn’t already open,
QuickBooks opens iCal, adds the transaction, and then closes iCal.
To see the details of a transaction, select the transaction and then click the ‘i’ button.
Tracking sales • 93
Other areas of QuickBooks from where you can add a transaction to iCal
• Customers > Enter Sales Receipts
• Customers > Create Credit Memos/Refunds
• Customers > Receive Payments
• Vendors > Enter Bills
• Vendors > Receive Items
• Vendors > Create Purchase Orders
• Company > To Do List (New or Edit)
• Edit > Memorize Transaction
For more information, choose Help > QuickBooks Help, click “Invoices” in the left column,
and then click “Adding a transaction to iCal.”
Note: You cannot mark a transaction that already has payments against it as pending.
2 Click OK.
QuickBooks does not record the sale until you mark it as final, so the sale does not affect
account balances and reports.
94 • Tracking sales
To mark a sale as final:
1 Create the Pending Sales Report.
Choose Reports > Sales > Pending Sales.
2 Use QuickZoom to locate the sale you want to mark as final.
3 Choose Edit > Mark As Final.
4 Click OK to record the sale.
If the sale is an invoice, QuickBooks records the invoice in your Accounts Receivable
register. If the sale is a cash sale, QuickBooks records the sale in your Undeposited
Funds register or deposits funds directly into a checking or other account. See
“Depositing payments” on page 128.
Tracking sales • 95
Product format
Use this format if your business sells and ships parts or products.
Besides the fields The Product sales form includes fields
shown here, the relevant only to product sales, such as
printed version of SHIP TO, SHIP DATE, SHIP VIA, and
this form includes a FOB.
PROJECT field,
where QuickBooks
prints the job you
specified in the
Customer:Job field.
The printed Product invoice has the narrowest description column of the preset formats.
On a Product invoice, you can track the salesperson in the REP field, and then create reports
broken down by salesperson.
Professional format
Use this format if your business sells services and you require a lot of room for descriptions.
.
The printed version
of this form omits the
ITEM, QTY, and
RATE fields.
Only an AMOUNT
and DESCRIPTION
print in the line-item
area.
The non-printing fields are for bookkeeping purposes and fast data entry. For example, you
can multiply the hours worked by the rate, but the client sees only the amount. The printed
Professional invoice has the widest description column.
Service format
Use this format if your business primarily sells services, but may sell some goods.
The printed version
of this form includes
a PROJECT field,
which contains the
job you specified in
the Customer:Job The Tax field appears only when sales
field. tax is turned on (choose Company >
It omits the ITEM Company Settings), and then choose
field, leaving room Sales Tax from the Show pop-up
for a wider menu).
DESCRIPTION field.
96 • Tracking sales
Custom format
You can customize the names of fields on any sales form, and decide which fields to view
onscreen and which fields to print. If you enter information into a field and then later
eliminate that field, the information remains in your data file even though the field is gone.
However, you must specify to view or print the field again to see that information.
Tracking sales • 97
6 Complete the Columns tab.
If you select the
Service Date column
to display on your
screen or print on the
sales form,
QuickBooks enters
the date of each bill,
check, or credit card
charge in that
column.
7 Complete the Footer tab to change the Message or Total fields at the bottom of the sales
form.
8 Click Apply.
9 To preview your changes, choose Customers > Create Invoices, Enter Sales Receipts, or
Create Credit Memos/Refunds, press x P, and then click Preview.
4 From the Set font for pop-up menu, select the area of the form for which you want to
change fonts.
You can change the font for the form data, address, form title, column headers and field
labels, and footer labels.
5 Click Show Fonts to select the fonts you want to use from the Mac Font panel.
You can change the typeface, style, size, and color of the font you select.
98 • Tracking sales
6 Click Apply.
Note: Font changes are reflected on the printed form only.
Tracking sales • 99
To print the logo on an invoice:
1 Choose File > Print Setup > Invoice.
2 Select the Print logo checkbox, and then click OK.
3 Choose File > Print Invoice or File > Print Forms > Invoices.
Part of a sample
invoice printed with
a company logo
Time billable to this Record hours spent on this job, using either a weekly “Entering single activities” on
job timesheet or a single activity record. Be sure to mark the page 245
hours as billable. “Filling in a weekly timesheet” on
Assign the hours to the same job for which you plan to write page 242
the invoice.
To show the service date for each time entry on the invoice, “Customizing your sales form” on
customize the invoice to add a Service Date column. page 95
Items, subcontracted Record a bill, check, or credit card charge, using the Items “Tips for businesses that invoice for
services, and other tab to identify items and services purchased for this job. costs” on page 79
charges purchased
Assign the items to the same job for which you plan to write “Filling in the detail area” on page 167
for this job
the invoice. (bills), page 182 (checks), and
page 187 (credit card charges)
Other costs incurred Record a bill, check, or credit card charge, using the “Filling in the detail area” on page 167
for this job Expenses tab to identify other costs incurred for this job. (bills), page 182 (checks), and
page 187 (credit card charges)
Assign the expenses to the same job for which you plan to
write the invoice.
In this window and on the sales form, QuickBooks uses the hourly rate for the service
item you assigned to the activity, not the payroll rate of the employee. If the service item
has the subcontractor checkbox marked, QuickBooks uses the sales price. You can
change the rate on the sales form.
To change how QuickBooks groups and describes time activities on the sales form, click
Change.
7 Click OK to add the marked costs to the sales form.
8 To group costs into two or more groups, click Time/Costs again to repeat the process.
The invoice symbol
in the Use field
indicates that the
item has already
been added to the
invoice.
9 Before recording the sales form, preview the printed sales form.
Press x P, and then click Preview.
To remove a job cost, click it on the sales form before recording. Then choose Edit >
Delete Line.
To pass through expenses from a vendor or supplier, enter the bill or payment
before creating the invoice.
If the vendor submits a bill, enter the bill in the Enter Bills window. If you bought
something by check or credit card, enter the check or credit card charge. You can pass
through expenses from either the Items tab or the Expenses tab, as long as you assign a
customer or job.
Use the Items tab, not the Time tab, when invoicing for subcontracted work.
Subcontracted work is on the Items tab of the Choose Billable Time and Costs window, if
you recorded it on the Items tab of the subcontractor’s bill as a subcontracted service item.
Even if you also track time for the subcontractor, do not look for the work on the Time tab.
(Time for a vendor is never billable.)
If you enter costs on the Expenses tab, associate an income account with the
expense account.
QuickBooks assigns income for reimbursed expenses to the original expense account
unless you associate an income account with the expense account. To learn how to do this,
see Step 4 under “Sales and invoicing preferences” on page 280.
If you invoice for time, consider combining time activities for the same service
item before transferring them from the Time tab to the sales form.
To combine time activities for the same service item on the sales form, click Change on the
Time tab. Then select Combine activities with the same service item and click OK. When
you transfer time to the sales form, QuickBooks enters only one line for each service item,
with the total hours for that service item.
If you select Do not combine activities, QuickBooks enters each time activity on a separate
line of the sales form. Select Transfer notes for each activity if you want the notes in the
Description field of the sales form. Otherwise, select Transfer service item descriptions.
To transfer the date of each cost or time activity to the sales form, add a Service
Date column.
Customize the sales form by adding a Service Date column. (See “Customizing your sales
form” on page 95.) Then for items and expenses, QuickBooks enters the date of each bill,
check, or credit card charge in that column. For time, it enters the activity date (or the
earliest activity date, if you are combining several activities for one service item).
You can invoice for only 90% of time and costs at the completion of a job.
Construction contractors may invoice for 90% at the completion of a job and the final 10%
later. Here are two ways to accomplish this.
To customize statements:
1 Choose Company > Company Settings, and then choose Statements from the Show
pop-up menu.
On the Columns tab, the Item, Quantity, and Rate fields apply only to billing statements
(not reminder statements) that you send to customers.
3 Click the Font tab to change the font for any section of text on the statement.
See page 98 for more information.
4 Click the Artwork tab to print a logo or PDF background on the statement.
See page 99 for more information.
5 Click Apply.
Billing customers
When you send a billing statement to a customer, QuickBooks does the following:
• It enters the statement date in the Billed Date field of the customer register for each item
on the statement.
• It calculates when the payment is due on the basis of the terms for that customer, and
fills in the Due Date field of the customer register with the appropriate due date.
When you are ready to bill your customers, print out the statements by choosing File >
Print Forms > Statements.
Note: If you send invoices and reminder statements, use this procedure to print the
reminder statements for your customers that summarize their accounts during a
specified time period or assess finance charges.
For more information, choose Help > QuickBooks Help, click “Printing” in the left column,
and then click “Statements.”
Customizing an estimate
1 Choose Company > Company Settings, and then choose Estimate Format from the Show
pop-up menu.
2 Customize your estimate’s content in the Header, Fields, Columns, and Footer tabs.
• Header tab: in the Title field, you may change the name to use for the heading (for
example, Proposal, Bid, or Grant).
• Columns tab: if you use a markup onscreen but do not print the Markup column,
QuickBooks Pro recalculates the unit cost on the printed estimate so that it equals the
Total divided by the Quantity and calls it the “Rate” on the printed form.
3 Click the Font tab to change the font for any section of text on the estimate.
See page 98 for more information.
4 Click the Artwork tab to print a logo or PDF background on the estimate.
See page 99 for more information.
5 Click Apply.
The Tax field and the Customer is taxable checkbox appear only if sales tax tracking is turned on
(see page 284).
Markup of items
QuickBooks Pro allows you to add a markup to your basic costs when you write an
estimate.
QuickBooks Pro hides markups from the customer by printing only the price or rate after
markup; however, you can customize your estimates to print the original cost and markup
if you want customers to have this information. (See “Customizing an estimate” on
page 114.)
When you set up items on your Items list, you can have separate amounts for the cost and
for the sales price for all the types of items you are likely to sell:
• Service items (when the checkbox for subcontractors is marked)
• Inventory parts
• Non-inventory parts (when the checkbox for a specific customer:job is marked)
• Other charge items (when the checkbox for reimbursable charges is marked)
The onscreen markup here is hidden when the estimate prints (below).
10 23.00 230.00
Printing an estimate
To print an estimate:
1 Choose Customers > Create Estimates.
2 Display the estimate you want to print, and then choose File > Print Estimate.
For more information on printing estimates, choose Help > QuickBooks Help, click
“Printing” in the left column, and then click “Estimates.”
• Add a note about other estimate options for this job. To add a note, display the
Customer:Job list, double-click the job, and then click Notes.
Deleting an estimate
For more information, choose Help > QuickBooks Help, click “Estimates” in the left
column, and then click “Deleting an estimate.”
Invoices, on the other hand, don’t have a Markup column. The Amount on the invoice
equals the Total on the estimate. The Rate (or Price) on the invoice is the sales price (the
estimate Total divided by the Qty).
I changed the price (or rate or description) of an item on my Item list, but QuickBooks didn’t
update the invoice I was writing. How can I get the change on the invoice without having
to retype it?
Delete the item from the Item field of the invoice. Click outside the field. Then choose the
item again. Now it will have the updated information.
When you receive payments from customers for invoices or billing statements you’ve sent,
you’ll discover additional benefits of using QuickBooks’ accounts receivable:
• As you start to record a payment, you immediately see the customer’s current balance,
including any credits, and a complete list of outstanding invoices (or statement
charges). You can assign the payment to any of the invoices or statement charges.
• You can indicate which payments to group in a deposit in the same way your bank
groups them on its statements, according to type (check, cash, or credit card), and print
a deposit summary you can take to your bank.
• You can record a cash sale, create a credit memo, or create a refund check.
2 Enter the Customer:Job name. If the payment is for a particular job, make sure you
choose the job as well as the customer’s name.
The bottom half of the window displays any unpaid invoices (or statement charges) for
this customer or job.
If a customer pays for two jobs with one payment, use the Receive Payments window
twice and split the amount of the payment as though it were two payments.
• Choose the first job in the Customer:Job field, and enter only the amount the
customer is paying for that particular job in the Amount field.
• Apply the amount to the correct invoice or invoices by clicking the invoice in the ✓
(check mark) column.
• Repeat the process for the other job.
3 Enter the Amount, Pmt. Method, and Check No. (if the payment method is by check).
The payment is automatically applied to the oldest invoices or statement charges first.
See “Sales and invoicing preferences” on page 280 to change this setting.
If the customer sends more money than he or she owes, the extra amount is treated as
unapplied credit. See “Overpayments, down payments, and prepayments” on
page 124 for more information.
4 (Optional) To change the way the payment is applied, click Clear Payments to clear the
Payment column, and then enter the amounts you want to apply the payment to.
5 Click Next to record this payment and enter another one, or click OK.
To apply a discount:
1 Fill in the top of the Receive Payments window.
If the Disc. Date column shows a date the same as or earlier than the payment date,
there is a discount available to this customer based on the terms on the original invoice.
You can apply a discount even if you did not set up discount terms prior to receiving
payments.
2 Click in the Payment column of the appropriate line, and then click the Discount Info
button.
If the Disc. Date
column shows a date
on or before the
payment date, click
the invoice in the list
that you want to
discount; then click
Discount Info to
apply the discount
amount you owe
your customer.
Existing Credits
The Existing Credits for a customer consist of any amounts from transactions that resulted
in credit to the customer, such as an overpayment, down payment, return for which you
recorded a credit memo, or cancellation of an order after paying. QuickBooks displays this
amount automatically as soon as you enter the customer’s name. To apply existing credits
to invoices (or statement charges), select the Apply Existing Credits? checkbox.
Total to Apply
The Total to Apply is the sum of the current payment amount and the customer’s existing
credits (if the checkbox is marked). It is the total amount available to apply to invoices (or
statement charges). QuickBooks calculates this amount automatically after you fill in the
amount of the current payment or mark the checkbox to apply credits. If the total includes
both existing credits and a payment, QuickBooks applies the existing credits to open
invoices or statement charges first. It then applies the current payment amount.
Unapplied Amount
If you have “Automatically Apply Payments” turned off in Sales/Invoicing Preferences,
QuickBooks recalculates the Unapplied Amount each time you apply part of the payment
to an invoice. Initially, the figure displayed is the same as the Total to Apply amount. As you
apply the payment to invoices, the Unapplied Amount field shows the difference between
the Total to Apply amount and the totals shown in the Payment column. When the Total to
Apply amount is applied completely, the Unapplied Amount becomes 0.00.
If the customer has sent more than he or she owes, the overpayment is in the Unapplied
Amount field after you have applied the payment to all open invoices (or statement
charges). The next time you use the Receive Payments window for this customer, this new
credit will be part of the customer’s Existing Credits.
Retainers
When you receive income in advance of performing a service (a retainer), this money
creates a liability because you owe the service to the customer. As you work off the liability,
you may want to know how much remains. For example, property owners may receive
prepaid rent.
Note: If your company is a legal firm, do not use this procedure to track retainers. Instead,
choose Help > QuickBooks and Your Industry for detailed instructions for your
industry.
To use retainers in QuickBooks, you need to set up the following:
• An Other Current Liability account for tracking retainers. Retainers are liabilities
because in return for them, you owe clients a certain amount of work.
- Name this account “Retainers,” and type unearned retainers in the description field.
- Set up the account with a zero opening balance unless you want to track retainers
existing as of your start date.
• An item of the Other Charge type to use for showing the retainer on invoices.
- Name this item “Retainer,” and type retainer applied in the Description field.
- In the Account field, enter the name of your account for tracking retainers.
• An item of the Payment type to use for showing the original payment received.
- Name this item “Payment,” and type Payment by check received in the Description
field.
- Choose Check in the Payment Method field. If you accept advance payments by other
methods, set up separate items for each method.
To add a new balance sheet account, see “Adding new accounts” on page 62. To add a new
item, see “Creating items” on page 70.
Note: If you use invoices to bill your customers, and you deposit payments directly to
several different accounts, create a separate payment item for each account.
If you choose Deposit To and select an account from the pop-up menu, QuickBooks
automatically records a deposit for the amount of the payment in the account you selected
on the date you received the payment.
If you choose Group with other undeposited funds, QuickBooks holds your undeposited
funds in an asset account called Undeposited Funds until you record a deposit.
To record a deposit:
1 Choose Banking > Make Deposits.
If you have received payments that you have not yet deposited into a bank account,
QuickBooks displays them in the Payments to Deposit window.
2 In the Payments to Deposit window, click on the payments you want to deposit; then
click OK.
QuickBooks puts the payments in the Make Deposits window.
3 In the Make Deposits window, select the account you’d like to deposit into.
Separating deposits
To make it easier to reconcile your bank accounts, separate deposits if your bank statement
separates them. For example, your bank may separate credit card deposits and checks. You
should treat payment methods the same way your bank does, so that your QuickBooks
check register matches your bank statement.
To edit or delete a payment that has been deposited through the Make Deposits window:
1 From the Undeposited Funds register, select the deposit containing the payment you
want to edit or delete.
2 Choose Edit > Edit Deposit.
3 Select the line containing the payment you want to delete.
4 Choose Edit > Delete Line, or press x B.
QuickBooks deletes this payment from this deposit. The payment still exists in your
records; it is just undeposited. QuickBooks puts the money back in Undeposited Funds.
5 Click OK in the Make Deposits window to record the deposit without the payment
you’ve deleted.
6 Edit or delete the original payment transaction.
7 After editing a payment, you can re-deposit it using the Make Deposits window.
Recording a return
Use the Create Credit Memos/Refunds window to record a return in either of these
situations:
• A customer brings back items for which you have already recorded a payment for an
invoice or a cash sale.
• A customer cancels an order for items for which you have already recorded a payment
for an invoice.
Note: If you use billing statements, you can enter a negative statement charge to record a
return. See “Entering statement charges” on page 111 for details.
To record a return:
1 Choose Customers > Create Credit Memos/Refunds.
2 Fill in the window, entering the returned items in the line-item area.
QuickBooks decreases the income accounts of the invoice items by the amount of the
return.
3 If you plan to print the credit memo for your customer, you can enter a customer
message.
4 Click OK.
QuickBooks enters a negative amount in your A/R register, indicating that you owe
this customer this amount.
My customer has an unapplied credit because of overpaying for one job. How can I apply
the credit to a second job for that customer?
• In your A/R register or the register for that customer, select the overpayment.
• Choose Edit > Transaction History. If there is a deposit, select it and click Go To.
• At the Make Deposits window, choose Edit > Delete Deposit and click OK.
• In the A/R register or customer register, select the same payment and click Edit.
• Edit the Amount field of the payment to be the correct amount for the first job (the
Unapplied Amount should become zero), and click OK.
• Enter a new payment in the Receive Payments window for the second job and for the
amount of the credit.
• Now deposit the two payments (and anything else that was part of the deleted deposit).
If you had previously reconciled the deposit, click in the ✓ field of this deposit in your
check register, and click Record.
A customer overpaid. I clicked Print Credit Memo in the Receive Payments window. Why
isn’t the credit memo showing up in my A/R register?
The only credit memos that appear in the A/R register are those you write in the Create
Credit Memos/Refunds window. QuickBooks continues to display the credit in the Existing
Credits field of the Receive Payments window. You can apply the credit to any invoices (or
statement charges) in this window, now or later.
Inventory overview
If your business purchases items, keeps them in inventory, and then sells them, you can
track the current number in stock and the value of your inventory after every purchase and
sale.
After you enter the information about each item, you can:
• Fill in ordering information on purchase orders
• Track changes in the value of your inventory when you receive and sell items
• Fill in sales information on invoices or cash sales receipts
• Track income when you sell items
• Track cost of goods sold when you buy and sell items
• View the value of your inventory at any time
• View your average cost for any of your inventory items
• Set a warning when you enter a sale for more items than you have in stock (although
QuickBooks still allows you to enter the sale)
Inventory • 137
Accounts used to track inventory
To track inventory, you need at least one each of the following types of accounts on your
chart of accounts:
Other Current Asset The current value of your (Optional) Set up subaccounts to track the value of different types of
account named inventory inventory.
Inventory Value
Income account The income from the (Optional) Set up subaccounts to track income for different types of
named Sales resale of inventory items inventory.
Cost of Goods Sold The cost to you of the QuickBooks automatically creates this account for you the first time you
items you have sold add an inventory item.
On a profit and loss report, QuickBooks subtracts the total cost of goods
sold from your total income to provide a gross profit before expenses.
(Optional) Set up subaccounts to track costs for different types of
inventory sold.
The cost of your old stock = 10 shirts X $5 per shirt = $50 cost
The cost of the new inventory = 100 shirts X $6 per shirt = $600 cost
The cost of the old and new inventory combined = $50 + $600 = $650
You now have 110 shirts total, so the (total cost) / (total number) =
average cost = ($650) / 110 = $5.91
If your quantity on hand of an item goes below zero, that is, you enter an invoice for items
you don’t have yet, QuickBooks uses your last average cost as the average cost of the item.
When you actually purchase the items, QuickBooks adjusts the average cost if necessary.
138 • Inventory
Selling inventory
When you sell items from inventory, QuickBooks not only helps you fill in the sales form
quickly but also keeps track of how many items remain in stock after the sale. As you sell
items, QuickBooks assumes that you are reducing the value of your inventory by the
number of items sold times the average cost per item. Thus, a sale does not affect the
average cost.
For information about how to record the sale of inventory items, see “Entering a sales
transaction” on page 89.
After you enter a sale, QuickBooks does the following:
• It increases your sales income by the amount of each line item.
• It adjusts your cost of goods sold by the result of (qty sold x avg cost each item).
• It enters a transaction in your inventory register for each item sold.
List of purchase Purchase Order list. List displays vendor, date, and PO number.
orders • Choose Vendors > Purchase Orders List.
A particular Purchase Order list. When you view a purchase order recorded
purchase order • Double-click the purchase order on the list. earlier, it displays information about which
items have been received to date.
Quantity on order for Inventory stock status by item report. QuickBooks calculates the quantity on order
all inventory items • Choose Reports > Inventory > Stock Status by Item. for each item from all open purchase orders.
List of open purchase QuickReport for that item. To view a particular purchase order listed on
orders for one item • Choose Lists > Items. the QuickReport, double-click it.
• Select the item, and then choose QuickReport from
the Actions pop-down menu.
Inventory • 139
Receiving inventory items
Whether or not you use purchase orders, there are three ways to record the inventory items
you receive, depending on how you pay for the items:
• You buy inventory over-the-counter.
• You receive items, and the bill comes later.
• You receive items with the bill included.
140 • Inventory
5 Click Next to enter another item receipt, or click OK to record this item receipt.
QuickBooks increases your accounts payable by the amount shown on the item receipt.
You can see the increase in the Accounts Payable register.
For each inventory item on the receipt, QuickBooks adjusts the quantity in stock and
recalculates your average cost for each item.
Inventory • 141
Step 2: Enter the bill when you receive it
QuickBooks changes the item receipt into a bill. You can add any expenses that weren’t on
the item receipt.
142 • Inventory
Using the inventory register
You can view a register for your inventory asset account just as you can for any Other
Current Asset account. The inventory register has one entry for each item bought, sold, or
adjusted in a transaction.
These two
transactions are from
the same invoice.
There is one entry for
each inventory item
on the invoice. The ending balance is
the current value of
your inventory.
Inventory • 143
To adjust the quantity on hand:
1 Choose Vendors > Inventory Activities > Adjust Quantity/Value on Hand.
2 In the Adjustment Account field, enter the expense account for the expense of the
shortage or loss of inventory. If you need to assign the expense to more than one
account, enter a separate adjustment for each account.
The Total Value of Adjustment field in the lower right corner of the window displays the
amount QuickBooks assigns to this expense account, that is, the difference in the value
of your inventory.
3 Enter either the new quantity in the New Qty column or the quantity difference in the
Qty Difference column.
Note: QuickBooks calculates the other amount automatically. To enter a difference that
reduces the quantity, type a minus sign (-) before the number (for example, -4) in
the Qty Difference column.
4 Edit the value of the inventory after adjusting the quantity by selecting the “Value
Adjustment” checkbox.
For example, if you sell clothing and have extra swimsuits from summer that you have
to sell in December, they’re likely to be worth less than they were when you bought
them in spring. You’d enter a value adjustment after the summer season to show that
the swimsuits have lost value.
QuickBooks displays Current Value and New Value columns in the Adjust Quantity/
Value on Hand window.
5 In the New Value column, enter a new value for any of the items.
Note: If you edit the value, you’ll change the average cost of the items in stock. Edit the
value only if you know that the value of items has changed, even if the quantity
has remained the same.
6 Click OK.
QuickBooks enters the adjustment in your inventory register. See “Using the inventory
register” on page 143.
144 • Inventory
To record a return to a vendor after you’ve entered a bill:
1 Choose Vendors > Enter Bills.
2 Select “Credit” at the top of the Enter Bills window.
3 Enter the vendor to whom you’re returning items.
4 Click the Item tab.
5 Enter the items.
QuickBooks decreases your quantity on hand of the items you enter and creates a credit
with this vendor that you can apply to your next bill. See “Applying credit from a
vendor to pay bills” on page 173.
Inventory reports
Inventory reports
For descriptions of the inventory reports that QuickBooks offers, choose Help >
QuickBooks Help, click “Reports” in the left column, click “Types of reports,” and then
click “Inventory.”
Inventory • 145
146 • Inventory
10 Tracking and paying sales tax
Tax is calculated only on the item above the tax line item (appliance). Installation is not
included in non-taxable sales for the tax line item.
Tax is calculated on the taxable portion of the subtotal. All of the taxable items are included
in the tax. The non-taxable item (installation) is also included in non-taxable sales for this
tax item.
For more information about setting up subtotal items, see “Subtotal items” on page 76.
Non-taxable sales
If you never tax a customer, clear the Taxable checkbox on the customer’s record. See
“Assigning taxes to customers” on page 152.
Sale to out-of-state Choose the Out of State sales tax item for the sale QuickBooks records the sale as non-
customer (QuickBooks creates this item). taxable and out of state, so you can report
it when you pay taxes.
Some items on a • List items taxed at the same rate together. QuickBooks includes the taxable items
sale are taxed at one • Add a subtotal item below each set of items. subtotaled above each tax line item in
rate, some at that tax line item’s gross sales and taxable
• Add a tax line item below each set of taxable items.
another rate. sales. Non-taxable items included in the
• Create a placeholder 0.00% tax item to put in the subtotal above each tax line item are
Tax field, since you can’t record a sale with the Tax included in that tax item’s gross sales and
field empty. non-taxable sales.
All taxable items on • List all items taxable at the additional rate together. All taxable items are included in taxable
a sale are taxable at • Add a subtotal item below the set of items. sales for the tax item in the Tax field.
one rate; some items • Add a tax line item for the additional rate below the Items with the additional tax are included
are taxable at an subtotal line. in taxable sales for the tax line item.
additional rate.
• In the Tax field, enter the tax item for all taxable
items.
QuickBooks cannot • Create a tax item for the tax. QuickBooks reports the amount you type
calculate tax the • Enter the tax as a line item on a sale, then select and in as the amount of tax you owe your tax
way you need it type over the amount of the tax using an amount you agency for the sale.
calculated (for calculate yourself. Taxable sales and non-taxable sales
example, for tiered amounts are based on the taxable and
taxes). non-taxable amounts included in the item
(usually a subtotal) above the tax line.
Shipping and Set up another charge item called “shipping and QuickBooks calculates tax on shipping
handling are taxable handling” that is taxable. and handling, since you’ve marked it as
in your state. taxable.
A sales tax credit or Enter it directly in the register of your Sales Tax Payable After you record your entry, QuickBooks
discount from the account: makes the transaction type GENJRNL
tax agency. • Put the tax agency name in the Vendor field and the (general journal). Next time you pay your
amount in the Paid column. sales tax, the credit or discount will be a
negative amount in the Pay Sales Tax
• Enter your income account for tax credits or dis-
window. Mark the Pay column next to the
counts in the Account field.
credit or discount, so that the payment
check is reduced by its amount.
As you enter A/R transactions, QuickBooks tracks information about your customers and
the money you’re owed. You can easily find out:
• which customers owe you money and how much
• whether a particular invoice or billing statement has been paid
• a customer’s buying history
• which invoices or billing statements have payments that are more than a month
overdue
You can get answers to these and many other questions by using the tools QuickBooks
provides for viewing your accounts receivable.
The following table describes the transaction history QuickBooks shows for different types
of transactions.
Transaction history
for this type of Shows these related transactions, in chronological order
transaction
Bills overview
Using QuickBooks’ accounts payable includes two easy steps:
• Enter bills when you receive them.
• Check off the bills you want to pay. QuickBooks writes and records the checks, which
you can then print.
QuickBooks can remind you when your payments are due, and calculate and apply any
discounts you earn for paying bills early.
At any time, you can see reports about your purchasing and the vendors you buy from, as
well as cash flow reports, which help you learn about and plan your spending.
Bills • 165
Memorizing bills you receive regularly
If the preference for automatically recalling transactions is off, you may want to use the
memorize transaction feature to memorize bills you enter regularly.
• To automatically recall transactions, see “Data entry preferences” on page 274.
• To memorize transactions, see “Memorized transactions” on page 44.
Entering a bill
To get the most benefit from tracking accounts payable, enter bills as soon as you receive
them. That way, your cash flow reports will be up to date, and you won’t run the risk of
setting bills aside and forgetting about them.
166 • Bills
Filling in the detail area
You can assign a bill amount to expenses, items, or both.
Bills • 167
To record a bill for items:
1 Click the Items tab.
When you enter a
bill for inventory,
QuickBooks
automatically
updates your
inventory quantity
on hand and adjusts
your average cost if Click here to add this bill to
necessary. If you iCal (see page 92 for more
already created an information).
item receipt for these
items, QuickBooks
does not adjust your Click a line item and then
quantity on hand. click Show PO to see
information about the
purchase order associated
To enter a bill for
with that item.
items you have on a
purchase order,
select the PO to
enter the items in the
detail area. If the quantity or cost of items you’re receiving is different from the quantity or cost on the PO, edit
them here to reflect what you really received.
2 If there is no purchase order for the items, enter the items in the detail area.
If you enter inventory items, QuickBooks adjusts your inventory to show that you have
received the items. QuickBooks uses the cost you enter here to adjust the average cost.
3 If you are receiving against a purchase order for these items, make any necessary
changes to the items listed in the detail area.
• If you didn’t receive all the items on the PO, you can edit the quantity (or cost) of any
item, or delete an item completely from the detail area of the bill. Edit the detail area
until it reflects the actual items you received and are being charged for on this bill. If
you make a mistake, click Clear Qtys and then Receive All to return all quantities to
their original values.
• If you make a mistake editing the detail area, or you delete a line you later decide
you want to have on the bill, click Select PO; then click the PO containing the items
you want to re-add to the bill. QuickBooks remembers the edits you’ve made to
other lines, but replaces any lines you deleted. Letting QuickBooks enter the items
(instead of typing them in) ensures that your quantity on order for the items is
reduced.
4 On each line, assign a Customer:Job if the items are for a specific customer or job.
5 If you enter a customer or job in the Customer:Job field, indicate in the billable column
whether the item is billable to that customer.
The billable column is the one with a small drawing of an invoice.
If the item is billable to that customer, leave the invoice icon next to the customer’s
name as it is.
If the item is not billable to that customer, click the invoice icon next to the customer’s
name to mark an “X” through it. (Clicking the invoice icon again removes the “X.”)
After you record the invoice that includes the item, the invoice icon for that item is
grayed, indicating that you’ve billed the customer for that item.
6 If you received additional items not on any purchase order, enter them directly on the
next available line.
168 • Bills
7 To enter shipping charges or tax not associated with any one item, click the Expenses tab
and add the charges and their expense accounts.
See the previous procedure, “To record a bill for expenses:” on page 167 for details.
Note: For inventory item purchases, you may want to associate expenses like tax or
freight charges with your cost of goods sold account (COGS) instead of an
expense account.
8 Click Next to record this bill and enter another, or click OK to record the bill and close
the window.
QuickBooks tells you if the amounts in the detail area do not add up to the total of the
bill.
9 (Optional) Click Recalc to recalculate the amounts in the detail area and put the total in
the Amount Due field.
QuickBooks enters the transaction into your accounts payable register.
3 Enter your new bill information in the blank transaction at the bottom of the register.
4 To enter more detail than is possible in the register, click Splits or double-click the
transaction to edit it.
You can enter multiple expense accounts or customer and job names in the detail area.
Note: If you click Splits, you cannot enter detail about items. See “Entering split
transactions” on page 205.
5 Click Record.
Bills • 169
Paying bills
In the Pay Bills window, you can list all unpaid bills or all bills due as of a date you enter.
You mark the bills you want to pay, and QuickBooks writes and records the checks or credit
card charges. If you pay by check, you can then print (or write) the checks.
You don’t have to print (or even use) checks to use the Pay Bills window. Use the Pay Bills
window to automatically calculate what you owe each vendor and record the checks (or
credit card charges). QuickBooks enters the checks in your check (or credit card) register.
Important: Don’t enter checks to your vendors after using the Pay Bills window.
QuickBooks writes and records checks to pay the bills you marked in the Pay
Bills window. If you also enter bill payments in the Write Checks window, you’ll
have two checks recorded to each vendor.
To pay bills:
1 Choose Vendors > Pay Bills.
If you don’t see all the bills you expect in the Pay Bills window, check that the date in
the Show bills due on or before field is correct, or select Show all bills.
Choose to display all
unpaid bills or just
the bills due as of a
certain date.
A checkmark shows
you want to pay this Amt. Due may be less than
bill. the Bill Amt if you’ve made
a partial payment or earned
Bill Amt. is the total a discount.
of the original bill.
2 Select your payment method (check or credit card) and the appropriate account.
If you select check as your payment method, select To be printed to print the check or
checks.
Note: If you pay by cash and your petty cash account is a bank account type, select
Check in the Pay By area; then choose your cash account from the pop-up menu.
3 To list only your bills due as of a certain date, enter that date in the Show bills due on or
before field.
Click Show all bills to see all bills that are due.
4 Choose to sort the bills by due date, discount date, vendor, or amount due.
5 Mark the bills you want to pay now, or click Pay All Bills to mark them all.
Mark bills to pay by clicking on them, or select a bill with the arrow keys and press the
spacebar to mark it.
The Pay All Bills button changes to Clear Payments, so you can unmark bills and start
over.
6 To pay only part of a bill now, enter the amount you’d like to pay in the Amt. Paid
column.
170 • Bills
7 To review or update discount information for a bill, select the bill and click Discount
Info.
• In the Discount Information window, review the discount information. Make
changes as necessary.
• Click OK to record the discount.
QuickBooks reduces the Amount Due for this bill in the Pay Bills window. If you pay
the lowered amount, QuickBooks puts the amount of the discount into the account
you specified in the Discount Information window.
8 Click Next to pay this bill and keep the window open, or click OK to record your
payments and close the window.
QuickBooks prepares one check for each vendor and records the checks in the check
register with BILLPMT in the Type field. If you pay with a credit card, QuickBooks
records a charge for each vendor in your credit card register.
QuickBooks records the payment to each vendor in the accounts payable register. The
amount you paid appears in the Paid column.
To print checks:
• Choose File > Print Forms > Checks.
If your checks are not listed, go to the check register. Enter “T” in the Num field to QuickFill
“To be printed” and click Record for each check. Next time you pay bills, be sure to select
To be printed in the Pay Bills window.
• For a credit card charge bill payment, double-click the charge in your credit card
register or the A/P register.
QuickBooks displays the payment. The detail area of the check or credit card charge
itemizes which bills were paid with the payment.
Bills • 171
Editing bills and payments
You can edit any bill or payment transaction. Even if you’ve already paid a bill, you can
edit its amount. If you reduce the bill amount, QuickBooks creates a credit with the vendor
you overpaid. If you increase the bill amount, QuickBooks considers the bill not fully paid
until you pay the additional amount.
172 • Bills
4 Click Apply.
For more information, see “Reminder preferences” on page 275.
Bills • 173
I just received some new bills. When I choose Vendors > Pay Bills, how do I enter
the bills I want to pay?
The Pay Bills window displays bills you have already entered in the Enter Bills window.
I just entered several bills, but when I try to pay them, I can’t find them in the Pay
Bills window. Why aren’t they there?
The due date on the “missing” bills is probably later than the date in the Show bills due on
or before field in the Pay Bills window. Change the date in that field to one after the due
date for all the bills, or click Show All bills.
How should I record a finance charge from a vendor for late payment of a bill?
Enter a new bill for the finance charge alone.
How should I record a discount from a vendor for early payment of a bill?
If you are paying less than the full amount of the bill, you can apply the discount in the Pay
Bills window. For details, see “Paying bills” on page 170.
If you have paid the bill in full and now have credit from the vendor, enter a credit for the
overpayment. See “Entering credit from a vendor” on page 173.
When I look at my A/P register, it doesn’t show any amounts for bills I’ve already
paid or their payments. Why are the amounts missing?
At the bottom of the register, you have a check mark in the Show open balance checkbox.
When you select this option, the register shows only the remaining balances on unpaid bills
and unapplied credits. Click the checkbox to clear it. You will see original amounts for all
bills, payments, and credits.
Last month I paid several bills from one vendor with a single check. Is there some
way I can print the details of which bills I paid with that check?
Be ready to print on plain paper (not checks).
174 • Bills
I have a vendor who is also a customer. How can I show a bill as being paid by my
services, and an invoice as being paid by the vendor’s services?
You will need to have slightly different names on your Customer:Job and Vendor lists to be
able to track the vendor as a customer also. One way is to add “_v” after the name for the
Vendor list, but specify that checks should print with the regular name.
After you’ve entered both the bill and the invoice, write two general journal transactions.
Bills • 175
176 • Bills
13 Accounts payable management
Once you’ve recorded some bills and payments in your accounts payable account,
QuickBooks can give you important information about your vendors and the money you
owe now and in the near future. You can easily find out:
• which vendors you owe and how much
• whether you’ve paid a certain bill
• whether any of your payments are overdue, which ones, and by how much
• how much you spent with each vendor last quarter
You can get answers to these and many other questions by using the tools QuickBooks
provides for viewing your accounts payable.
The following table describes the transaction history QuickBooks shows for different types
of transactions.
Checks overview
QuickBooks’ Write Checks window looks just like the paper checks you’re used to. Use the
Write Checks window to do the following:
• Write checks
• Record any bank account or petty cash withdrawals
• Because the Write Checks window works for any QuickBooks bank account, you can
use it to record withdrawals from any account you have classified as a bank account
type
• Review and edit checks and withdrawals
• Print checks
You can also write checks and other withdrawals directly into the check register. See
“Entering transactions in a register” on page 204.
Important: If you use the Enter Bills and Pay Bills windows to enter and pay your bills,
respectively, QuickBooks writes the checks to your vendors for you. Do not
write checks with the Write Checks window or check register for these bills.
2 If there is no purchase order for the items, enter the items in the detail area.
If you enter inventory items, QuickBooks adjusts your inventory to show that you have
received the items. QuickBooks uses the cost you enter here to adjust the average cost.
If the quantity or cost of items you’re receiving is different from the quantity or cost on the PO, edit
them here to reflect what you really received.
2 If there is no purchase order for the items, enter the items in the detail area.
If you enter inventory items, QuickBooks adjusts your inventory to show that you have
received the items. QuickBooks uses the cost you enter here to adjust the average cost.
Click on each
transaction that
appears on your
statement.
Overview 191
Importing transactions 192
Updating your register 194
Customizing the Downloaded Transactions window toolbar 196
Overview
Note: Importing online transactions is a feature in QuickBooks Pro only. To upgrade to
QuickBooks Pro, contact Intuit (see page 326.)
QuickBooks lets you import bank and credit card transactions from your financial
institution’s website via Web Connect. You can then add and/or match the imported
transactions to transactions in your QuickBooks account register.
Importing online transactions helps you:
• Save time, since you no longer need to manually enter these transactions
• Reduce potential data entry errors
You can import transactions from the following types of accounts:
• Checking
• Savings
• Money market
• Credit card
• Line of credit
System requirements
To import online transactions, you need:
• Internet access (additional fees may apply)
• Access at a participating financial institution’s website (may be subject to application
approval, additional terms, conditions, and fees; services may vary).
Click Align
Windows to
display the
Downloaded
Transactions
window and its
corresponding
account register
(see the illustration
on page 194).
8 (Optional) Click Align Windows to display the Downloaded Transactions window and
its corresponding account register.
You can also display the windows side-by-side; see “Customizing the Downloaded
Transactions window toolbar” on page 196.
9 Proceed to the section “Updating your register” on page 194.
The next time you open the Downloaded Transactions window, only unmatched
transactions will appear.
Pay for and receive items at the same Check or credit card
time, as in an over-the-counter purchase. See “Entering a check” on page 182, or “Entering a credit
card transaction” on page 187.
2 Customize your purchase order’s content in the Header, Fields, Columns, and Footer
tabs.
See “Customizing the content on a sales form” on page 97 for more information.
3 Click the Font tab to change the font for any section of text on the PO.
See “Customizing the fonts printed on a sales form” on page 98 for more information.
4 Click the Artwork tab to print a logo or PDF background on the purchase order.
See “Customizing the artwork on a sales form” on page 99 for more information.
5 Click Apply.
6 To preview your changes, choose Vendors > Create Purchase Orders, press x P, and then
click Preview.
For information on printing the “Closed” status stamp, see “Printing a status stamp”
on page 100.
Opening a register
To open a register for the balance sheet account you’re working with:
• From the window you’re working in, choose Edit > Use Register, or click the Register
icon on the toolbar.
To review a register:
• Drag the scroll box on the right side of the window up and down.
OR
Account colors
To use different colors within an account type so that you can easily and quickly
distinguish one register from another, see “Changing an account’s color” on page 66.
Adding a transaction
1 Choose Lists > Chart of Accounts.
2 Double-click the appropriate account.
3 Click the blank entry at the end of the register.
4 Fill in the register fields for the new transaction.
5 Click Record.
If you enter a transaction dated earlier than today, it may disappear from view because
the transaction moves to its correct chronological position in the register when you
record it.
If you enter a transaction dated after today, QuickBooks places it below a thick line in
the register.
Editing a transaction
1 Choose Lists > Chart of Accounts.
2 Double-click the appropriate account.
3 Double-click the transaction you want to edit.
4 Enter your corrections.
5 Click Record from the register or OK from the transaction form.
Note: If you begin making changes and decide you would rather go back to the transaction
as it was before you started editing (before you record your changes), choose Edit >
Revert.
To void a transaction:
• Click the transaction, and then choose Edit > Void.
QuickBooks attaches the word “Void” to the transaction’s memo and changes the
transaction amount to zero, so that it no longer affects your account balance.
Dates Date
The type of transaction (checks, deposits, invoices, bills, purchase orders, etc.) Type
The transaction number that appears in the register or on the entry form Number
The account to which the amount of the transaction was distributed Account
Memos Memo
Amounts Amount
Assets overview
Your assets are the things your company owns, such as:
• Cash you have on hand
• Money in your checking and savings accounts
• Money you are owed for services you’ve provided or items you’ve sold (accounts
receivable)
• Money you have loaned
• Furniture and fixtures
• Property
• Equipment
You’ll probably want to use expense accounts, rather than asset accounts, for ordinary
supplies, such as stationery, light bulbs, and disks. Also, if you don’t report on inventory,
but purchase items for resale, you can use expense accounts for such items. For example, a
caterer can use expense accounts for the food purchased.
Bank accounts
You’ll need to set up a bank type account to track each bank account your company has.
You can also use a bank account for petty cash.
Accounts receivable
Your accounts receivable account tracks amounts owed to your business for the goods and
services you’ve sold to your customers. When you create an invoice, QuickBooks records
the amount of the invoice in your accounts receivable account.
Fixed assets
A fixed asset is something tangible you own and use in your business that is not converted
into cash during one year of normal operations. A fixed asset is usually something
necessary for the operation of your business, like a truck, cash register, computer, or
photocopier.
Understanding depreciation
Fixed assets include equipment or property that your business owns that are not for sale.
Since fixed assets last a long time, their cost is not completely charged to the year in which
they were bought. Instead, their cost is spread over several years. However, because fixed
assets wear out or become obsolete, their value declines constantly from the day they are
purchased. The amount of this decline in value is called depreciation.
Example
Say you bought a company truck in December 2001 for $20,000. By December 2003, the
truck may have depreciated by $4,000. Therefore, the value of the truck in December 2003
is:
$20,000 -$4,000 = $16,000
original cost - accumulated depreciation = current value
Usually, you’ll want your balance sheet to show the original cost of an asset on one line,
with the accumulated depreciation subtracted from the original cost on a second line, and
the current value on a third line.
The current value of
a fixed asset is its
original cost minus
its depreciation.
7 Click Next.
3 In the Credit field, enter the cost (or starting value) if you track depreciation in a
separate asset subaccount. Otherwise, enter the current value of the asset (which you
obtained from the QuickReport).
4 (Optional) In the Name field, choose the name of the asset.
5 If you track accumulated depreciation in a separate subaccount, fill in a second line.
• In the Account field, choose the fixed asset subaccount where you track the
accumulated depreciation of the asset.
• In the Debit field, enter the total accumulated depreciation of the asset (which you
obtained from the QuickReport).
• In the Name field, choose the name of the asset.
6 Enter the selling price on the next line.
• In the Account field, choose the bank account in which you deposited the money
from the sale.
• In the Debit field, enter the actual amount you deposited. This amount may be
higher or lower than the current value.
• In the Name field, choose the name of the asset.
• Press Tab so that QuickBooks fills in the difference in the Debit or Credit field of the
next line.
7 Enter the net gain or loss on the last line.
• In the Account field, choose the other income account for capital gains and losses.
• In the Name field, choose the name of the asset.
8 Click OK.
If you run the same QuickReports for this asset again, the totals should now be zero.
To make a loan:
1 Enter the sale as described in “To enter the sale of a fixed asset:” on page 216.
2 Enter the loan you’ve made on the next line.
The sales price of
$9000 is divided into
a down payment
deposited in the
bank (third line) and
a loan given to the
buyer (last line).
• In the Account field, enter the other asset account for the loan.
• In the Debit field, enter the loan amount.
3 Click OK.
When the buyer sends you a payment, enter the payment in the Make Deposits window.
• Enter the person you are receiving the payment from in the Received From field.
• Enter the amount.
• Enter the asset account for this loan in the From Account field.
3 On the next line, enter the part of the payment that goes to interest.
• Enter the person you are receiving the payment from in the Received From field.
• Enter the amount.
• Enter the other income account used to track interest income in the From Account
field.
The total should equal the payment amount.
4 Click OK.
Purchasing assets
When you enter the purchase of an asset, use the usual check or credit card window you
would use for any company purchase, except assign the purchase to your asset account,
instead of an expense account.
Liabilities overview
Liabilities are your company’s debts. Liabilities also represent the credit extended to your
business. They include your payables, money you owe on credit cards, sales tax you owe
the government, withholdings from employee earnings you owe the government, and
short-term and long-term debts.
If you indicate that you charge sales tax when you set up a new company, QuickBooks
automatically sets up a liability account called Sales Tax Payable. You can add as many
other liability accounts as you need to track your debts.
Current liabilities
A current liability is a debt your company expects to pay within a year, such as a short-term
loan or a bill.
QuickBooks provides three types of current liability accounts:
Accounts payable Accounts payable is the amount you owe to suppliers or vendors for services or items you’ve bought
from them. Your accounts payable balance is the total of the unpaid bills that you entered in the Enter
Bills window.
Credit card accounts With QuickBooks you can easily track expenses you charge to your credit cards. Just set up a credit
card account for each card you have.
Other current Use an other current liability account to track any other liability that is scheduled to be paid off within
liabilities one year of regular operations.
Examples of other current liabilities are accrued sales tax, lines of credit, and short-term loans.
To add a current liability account, see “To add a new account:” on page 63.
Long-term liabilities
The most common long-term liabilities are loans that you expect to pay off in more than
one year.
Borrowing money
QuickBooks makes it easy to pull together the financial information a lender asks for. After
you receive the loan, track it as a company liability.
QuickBooks adds the amount to the bank account and also creates a loan balance of that
amount.
4 Click OK.
4 Click OK.
If you don’t know how much of your payment goes toward interest, ask your bank (or
other lender) for an amortization schedule for your fixed-rate loans. The schedule shows
the amount of each payment that is for interest and the amount applied to the principal.
Equity overview
Equity or capital is the difference between what you owe (your liabilities) and what you
have (your assets). If you sold all your assets today, and you paid off your liabilities using
the money received from the sale of your assets, the money you would have left would be
equity.
This chapter teaches you how to set up equity accounts, how to move money from the
QuickBooks Opening Bal Equity account to your own equity accounts, and how to record
an owner’s draw.
Discuss how your business handles equity with your accountant to determine the best
setup and procedures for your situation.
The Net Income line is the only amount on the balance sheet that is neither the balance of
an account nor a subtotal of account balances. Instead, it comes from the company’s
activities for the current fiscal year. It is the same amount as the bottom line on a profit and
loss statement for the current fiscal year.
Net
Income 12,000.00
Total Total
Equity Net
5000.00 Equity 17,000.00
Income 12,000.00
Notice the amount of This is the company profit Notice how the Total Equity
Total Equity. for the year. amount has increased
because of the company’s
net income.
The balance sheet at the This profit and loss This balance sheet is
beginning of the fiscal statement shows income another snapshot of your
year (January 1) is a minus expenses for the finances, taken at the end of
snapshot of your whole fiscal year. It the fiscal year (December
finances on that date. summarizes the activity that 31).
has occurred over 12
months.
After the end of the first fiscal year, QuickBooks automatically makes an end-of-year
adjustment to net income. It makes the net income return to zero, and transfers the net
income earned in the previous year into the equity account called Retained Earnings.
For example, if the net income for the year was $12,000, QuickBooks puts the $12,000 in the
Retained Earnings account and makes net income zero.
After the end of the second fiscal year, QuickBooks makes a similar adjustment, increasing
Retained Earnings by the amount of net income for the second fiscal year.
Thus, at any time, the Net Income line of the balance sheet shows net income for the current
fiscal year. The Retained Earnings line shows net income for previous fiscal years tracked
in QuickBooks.
After one fiscal year has passed, the company has Two and a half years after the start date, the
generated a net income of $12,000 and has company has generated a total net income of
$17,000 in the bank. QuickBooks tracks the net $30,000: $24,000 in the first two fiscal years and
income for the first fiscal year in an equity account $6,000 in the current fiscal year.
called Retained Earnings.
The Retained Earnings line on the balance sheet is
Note that the amount in Opening Bal Equity is the for the two completed fiscal years (2002 and
same as on the start date. Total assets still equal 2003). The Net Income line is for the current fiscal
total liabilities plus equity. year (2004).
Your equity reflects the health of your business, since it is the amount of money left after
all your debts are satisfied. Equity comes from two sources:
• Money invested in your company
• Profits of your business
Of course, the owner can also take money out of the company. Such withdrawals, called
owner’s draws, reduce the company equity.
Some people like to track owner investments, owner’s draws, and retained earnings prior
to the QuickBooks start date by putting them in separate equity accounts. If you decide to
add additional equity accounts, QuickBooks still adds the Retained Earnings and Net
Income lines on your balance sheet.
Sole proprietorships
A sole proprietorship is an unincorporated company owned by one person.
Since all the equity belongs to one person, tracking equity can be very simple. All the equity
is initially in the Opening Bal Equity account QuickBooks creates when you set up a new
QuickBooks company. QuickBooks creates a second equity account, called Retained
Earnings, which initially has a zero balance.
You may want to take one additional step after setting up to move the balance of Opening
Bal Equity into Retained Earnings. See “Transferring money out of Opening Bal Equity” on
page 230.
To separate the different types of equity in your business, you can use separate equity
accounts:
Eduardo’s Equity 5,000.00
Eduardo’s Investment 10,000.00
Eduardo’s Draws -5,000.00
New businesses
If the business itself is new as of your QuickBooks start date, your initial assets in
QuickBooks, including your business bank account, come from the owner’s investment.
The business has no prior earnings.
• Transfer the balance from Opening Bal Equity to a new equity account called “Owner
Investments.” Record any additional investments in the business in this account.
• Add a third equity account called “Owner Withdrawals.” It should have a zero opening
balance.
Partnerships
A partnership is an unincorporated business owned by two or more persons. In a
partnership, each partner owns a share of all assets and liabilities. Each partner may have
invested in the partnership, and each receives a specified share of profits. Partners do not
receive salaries, but they may withdraw money against their share of profits. QuickBooks
makes it easy to track these partnership transactions.
There are many possible ways to handle partnership equity.
• Set up separate equity accounts for each partner.
If you don’t want to see further detail, record each partner’s capital investment, draws,
and share of profits in the partner’s single equity account. If you use this approach, each
partner’s equity will always appear as one amount, as in the following example:
Marilyn’s equity +20,000; Peggy’s equity + 25,000.
• (Optional) Add subaccounts to provide the level of detail you’d like to see on the chart
of accounts and on the balance sheet. For example, add subaccounts for each partner’s
capital investment, share of profits, and draws. On the chart of accounts and on the
balance sheet, QuickBooks shows amounts for each subaccount as well as subtotals for
each partner’s equity, as in the following example.
Marilyn’s Equity 20,000.00
Marilyn’s Investment 10,000.00
Marilyn’s Profit 35,000.00
Marilyn’s Draws -25,000.00
Peggy’s Equity 25,000.00
Peggy’s Investment 10,000.00
Peggy’s Profit 35,000.00
Peggy’s Draws -20,000.00
In this example, each partner has one main equity account that includes subaccounts for
tracking investment, share of profits, and draws.
Corporations
A corporation is owned by its stockholders. Unlike a sole proprietorship or a partnership,
a corporation can pay a working owner a salary.
In a corporation, you’ll usually want to separate the stockholders’ investment of capital
from the stockholders’ share of earnings.
To track paid-in capital or investments of stockholders, add an equity account with a name
such as “Capital Stock.” Although you do need to have records of the names and
investments of each stockholder, you probably won’t want to show this detail on your chart
of accounts. For the opening balance, enter the total paid-in capital as of your QuickBooks
start date.
After you have set up all your accounts, the amount remaining in Opening Bal Equity
represents retained earnings prior to the start date. You can rename this account with a
name such as “Prior Earnings” or “Pre-2002 Earnings.”
QuickBooks automatically tracks the corporation’s retained earnings for completed fiscal
years in an equity account called Retained Earnings. After the end of the year, you may
distribute some or all of the retained earnings of the corporation to stockholders as
dividends.
8 Click OK.
2 Select the account you want to reconcile from the Account To Reconcile pop-up menu.
3 Compare the opening balance amount shown on your bank statement with the amount
shown in the Opening Balance field in the Reconcile window. If the opening balances
match, go to Step 5.
QuickBooks Opening Balance is the sum of all previously cleared items (those marked
with a ✓ in the register.)
Note: If this is first time you’ve reconciled, or if you’ve skipped reconciling for several
months, the amounts may differ. See “Updating your previously reconciled
balance” on page 237.
4 (Optional) If the amount in the Opening Balance field doesn’t match the opening
balance shown on your bank statement, enter the opening balance from the statement.
Entering the amount from your bank statement is for your reference only. QuickBooks
does not use the number you enter to calculate any balance.
5 Find the ending balance on your bank statement and enter it in the Ending Balance field.
6 Enter any service charge listed on your bank statement that you haven’t already entered
in your QuickBooks register.
Specify the date of the service charge and an expense account for tracking service
charges (such as Bank Charges). The Checks and Payments total includes any service
charge you enter. When you’ve finished reconciling, QuickBooks enters a cleared
transaction for the charge in your register.
7 Enter the interest you’ve earned.
If this account earned interest that you haven’t recorded in your register, enter the
amount in the Interest Earned field. Enter the date you earned the interest and the
income account you use to track interest income. The Deposits and Other Credits total
includes any interest you enter. When you’ve finished reconciling, QuickBooks records
the cleared interest transaction for you in the register.
8 Continue your reconciliation by completing the steps listed below.
Completing reconciliation
After you complete your reconciliation, the balance in your QuickBooks check register is
accurate as of your latest bank statement. The next time you look at the check register,
you’ll see a ✓ in the cleared column next to each reconciled transaction.
Correcting differences
If your account doesn’t balance (the Difference amount is not zero), you can record an
adjustment transaction that modifies your QuickBooks balance so that it agrees with your
bank statement. Or, you can find the difference between your check register and the bank
statement and correct it.
Bank errors
If you still can’t locate the problem, the bank may have made a mistake by processing a
transaction for a different amount than you wrote it for. If this is the case, let QuickBooks
make an adjustment transaction; then contact your bank. The bank will make an
adjustment that appears on your next statement. Because QuickBooks’ adjustment appears
as a cleared item in the check register, your account will be off by the same amount at the
end of the next reconciliation. Delete QuickBooks’ balance adjustment transaction when
you reconcile the next statement.
Weekly Timesheet • You can enter all jobs for one day (or even • The weekly timesheet has many fields and looks
one week) for one person at one time. more complex than an Enter Single Activity window.
• You can see the work already entered for • There is little room to enter a note about an activity.
a person for the week.
Enter Single Activity You can concentrate on the details of one You cannot enter more than one day, one job, or one
day’s work (or part of a day’s work) on one activity in an Enter Single Activity window.
job.
Both a Weekly Timesheet window and an Enter Single Activity window are for a single
person. You cannot enter time for two people in the same Weekly Timesheet or Enter Single
Activity window.
When you fill in and record an Enter Single Activity window, you can later view the
information on a weekly timesheet. Conversely, when you fill in and save a weekly
timesheet, you can view Enter Single Activity windows that each show the work on one job
on one day. The two are simply different views of the same data.
Click the Billable field (the small drawing of the invoice) to place an X over the invoice
symbol (or to remove an X that is already over it). An X indicates that the time is not
billable.
If there is a white invoice in the field, you can charge the customer for the time spent
doing this job and to track whether you have invoiced it yet. The Customer:Job and
Service Item fields must be filled in. (After you invoice for this time, QuickBooks Pro
replaces the white invoice with a gray invoice.)
If a vendor name is in the Name field, you cannot remove the X. (Instead, you can
invoice the customer for vendor expenses recorded on the Items or Expenses tab of
bills, checks, or credit card charges.)
9 Continue on additional lines, if necessary, to record time spent on other jobs or doing
other services.
10 Record the weekly timesheet.
• To record and close the window, click OK.
• To record and display a weekly timesheet for a different person for the same week,
enter that person’s name in the Name field.
• To record and display a new, blank weekly timesheet for the same week, click New
Sheet.
• To record and display a weekly timesheet for this person for next (or last) week, click
Next Week (or Prev Week).
3 In the Name field, enter the name of the person who performed the work, and press Tab.
You can choose an existing name from the list or enter a new name to set up as an
employee, vendor, or other name. On the list, vendors are above employees, and other
names are below employees. (Subcontractors are usually vendors, because they submit
bills you have to pay; owners and partners are usually other names, since they are
neither employees nor vendors.)
6 If you need help, click the Help tab for complete information about performing
QuickBooks Payroll tasks, including how to:
• set up pay items and schedules
• print paychecks and paystubs
• import data into QuickBooks
For more
information
about
transferring
payroll data into
QuickBooks,
Select the click the Help
transactions you tab.
want to copy here.
5 When QuickBooks tells you it’s done copying transactions, click OK.
Reporting preferences
To report by accrual or cash basis:
1 Choose Company > Company Settings, and then choose Reporting from the Show
pop-up menu.
2 Select whether reports and graphs should show income and expenses on an accrual or
cash basis.
• Select Accrual to display income on reports and graphs as of the invoice date, and
expenses as of the bill or check date.
• Select Cash to display income on reports and graphs as of the date you receive
payment; it displays expenses as of the date you pay for them.
This preference affects summary reports (reports that summarize amounts and do not
list transactions). This preference has no effect on transaction or transaction detail
reports.
Important: This preference does not affect the 1099 reports (which are always
cash-based) and the sales tax report. (To change the report basis on the sales
tax report, use the Sales Tax Preferences window. See “Sales tax
preferences” on page 284.)
Creating a report
For descriptions on what each report shows, choose Help > QuickBooks Help, click
“Reports,” and then click “Types of reports.”
To create a report:
• From the Reports menu, choose the report you want.
Customizing a report
Customize Change several report elements at once. See “Using the Customize button” on page 256.
Filters Restrict the report to selected names, accounts, types of transactions, and so on. See “Filtering report
data” on page 259.
Format Change fonts and adjust how numbers display. See “Formatting numbers, fonts, and the header and
footer” on page 256.
Header/Footer Change the information in, and the positions of, the header or footer. See the Format Header/Footer
window in “Formatting numbers, fonts, and the header and footer” on page 256.
Hide Header Hide the report title and header to show more of the report. You can show the header again by clicking
the Show Header button. This button does not affect the printed report.
Show Header
Collapse Summarize details and combine subaccounts or subitems on the report. You can expand accounts and
items by clicking the Expand button.
Expand
Memorize Memorize the current report settings. See “Memorizing and recalling reports” on page 263.
Date range list Change the date range covered by the report. See “Changing report date ranges” on page 257.
From and To fields Enter the start and end dates of a date range, instead of choosing a preset date range.
Columns or Total Change how the data is grouped or subtotaled. See “Grouping and subtotaling data” on page 257.
By lists
Export to Excel Export the data to a Microsoft Excel spreadsheet. See “Exporting a report to Microsoft Excel” on
page 262.
Make column wider Move your mouse between two columns until you see the double-arrow cursor. Drag the cursor to the
or narrower right or left.
This example shows the Name column being widened. The double-arrow
cursor shows the column’s new width.
This example shows the Date column being moved to the right of
the Num column. The red arrow shows where the moved column
will go.
Sort data by a Click any column header to sort on it; click the header again to sort in the opposite direction. The
particular column arrow next to the column header shows whether the column is sorted in ascending or descending
order.
This example shows the report sorted by Name. The arrow shows it is
sorted by descending order. Click the column header again to sort it in
ascending order.
Eliminate a column Click Customize, then click the column you want to eliminate to remove the check mark.
(on reports that list OR
transactions)
Drag the small diamond at the right of the column header all the way to the small diamond at the left
of it.
Display a column not Click Customize, then click the column you want to display.
currently displayed
(on reports that list
transactions)
Advanced options
You can choose which rows and columns to display in the report, and which reporting
calendar to use for the report. These options are available only for reports that summarize
data.
4 To save your changes, click Accept, or to return to the original filter settings, click Reset.
To use QuickZoom:
• When the mouse pointer changes from an arrow to a magnifying glass with a Z inside,
double-click the amount or transaction you want to investigate.
When you use QuickZoom on an amount, QuickBooks displays a transaction detail report
that shows the transactions contributing to that amount. The transaction detail report is on
the same basis (accrual or cash) as the original report.
When you use QuickZoom on a transaction, QuickBooks displays the invoice, bill, or other
form for the requested transaction. If you make a change to the form, QuickBooks
automatically updates the displayed report.
To memorize a report:
1 After you have customized a report, click Memorize.
2 In the Memorize Report window, type a unique name for the report.
3 Click OK.
QuickBooks adds the report to the Memorized Reports list on the Reports menu.
Chart of Accounts Year-to-date transactions for the income or expense account you have selected
(income/expense
accounts)
Class Year-to-date income and expense transactions for the class you have selected
Customer:Job All unpaid invoices, statement charges, and unapplied payments or credits for the customer or job
you have selected; the open balance and original amount of each transaction; total equals balance on
Customer:Job
Vendor All unpaid bills and unapplied credits in your accounts payable (or all sales tax transactions) for the
vendor you have selected; the open balance and original amount of each transaction; total equals
balance on Vendor list
Other Name Year-to-date transactions in balance sheet accounts for the name you have selected
Customer Type Year-to-date income and expense transactions for customers of the type you have selected
Vendor Type Year-to-date income and expense transactions for vendors of the type you have selected
Ship Via Year-to-date invoices, cash sales, and credit memos containing the shipping method you have
selected
Creating a QuickReport
To create a QuickReport from a list:
1 On the list, select the name of the item or person for whom you want to create a
QuickReport.
2 Choose Reports > QuickReport.
Examples of QuickReports
Customer or job QuickReport
A QuickReport for a customer shows all unpaid invoices and unapplied payments and
credits for that customer. If there are unpaid items for jobs for that customer, the report has
subtotals by job.
Some of the columns on my reports are not wide enough, and others are
completely blank. How can I make some columns wider and delete ones I don’t
need?
Drag the diamonds to the left or right. For details, see “Adjusting columns” on page 255.
What does “Other” mean after the name of an account, customer, or class on a
report?
When you have subaccounts of a main account, and you have some transactions for the
subaccounts and others for the main account alone, QuickBooks groups the data for the
main account alone in a row or column with the name of the main account followed by a
hyphen and “Other.” For example, if you assign some bills to Utilities and others to
Utilities:Electric, then the bills for Utilities alone are with “Utilities - Other” on reports.
QuickBooks follows the same procedure for customers not used with their own jobs and
for classes not used with their own subclasses.
How can I get a list of all transactions for one balance sheet account?
Filter a transaction detail by account report:
• Click Filters and choose the balance sheet account from the Account pop-up menu.
• (Optional) Change the date range.
If you have classes, they may not appear on this filtered report for some balance sheet
accounts.
How can I get a list of all transactions for one class and for one balance sheet
account?
Filter a transaction detail by date report:
• Click Filters, choose Source Account from the Add filter pop-up menu, and then from
the Source Account pop-up menu, choose the balance sheet account.
• Choose Class from the Add filter pop-up menu, and choose the class from the Class
pop-up menu.
• (Optional) Change the date range.
Does an aging report measure aging from the date on the invoice (or bill) or from
the date it’s due?
Normally, the report measures aging from the due date. On an invoice, QuickBooks
calculates the due date from the terms. If there are no terms, the invoice is due immediately.
If I create an aging report as of the end of last month, will it include items that were
unpaid at the time but have since been paid?
Normally, the report includes all items that were unpaid as of the report date.
To exclude items that have been paid since the report date:
• Click Customize and then click Current (under Open Balance/Aging).
I see there’s a missing check report. Is there anything similar for invoices?
You can use the missing check report to find missing invoices.
Why are there different expense amounts for the same job on a profit and loss by
job report and a job profitability summary report? (The date range and report basis
are the same.)
The profit and loss by job report shows net expense for anything, as long as (1) it is assigned
to the customer or job, and (2) it is assigned to an expense account.
• It includes items on bills, checks, and so on if the items are assigned to an expense
account.
• It ignores item receipts if the bill has not been received.
• It includes the original cost of reimbursed expenses from a sales form or statement
charge only if the expense account for the original expense has an income account
associated with it.
• It excludes expenses assigned to a balance sheet account instead of an expense account.
• (Cash basis only) If the expenses are from a bill, the bill must be paid prior to the report
end date.
The costs for the job on a job profitability summary report differ from the expenses on a
profit and loss by job report in two ways:
• Costs may be associated with either an expense account or a balance sheet account.
• The original cost of reimbursed expenses from a sales form or statement charge is
always included.
Creating graphs
To create a graph:
1 Choose one of the following:
• Reports > Company & Financial > Income & Expense Graph
• Reports > Company & Financial > Net Worth Graph
• Reports > Customers & Receivables > Accounts Receivable Graph
• Reports > Sales > Sales Graph
• Reports > Vendors & Payables > Accounts Payable Graph
• Reports > Budgets > Budget vs. Actual Graph
QuickBooks displays the title and date range above the graph. Legends identify the
meaning of each bar, line, or pie slice. In bar graphs, QuickBooks displays dollar
amounts on the y-axis and months, accounts, or other factors on the x-axis.
2 (Optional) Click Dates on the graph buttonbar to change the date range for the report.
Choose another date range from the pop-up menu or enter dates in the From and To
fields.
3 (Optional) Click a button on the graph buttonbar to group the data in a different way.
For example, a sales graph usually displays sales by item, but you can change it to
display sales by customer or by rep.
Using QuickZoom
If you need more detailed information about an item in a graph, you can go to it quickly
using QuickZoom.
To use QuickZoom:
1 When the mouse pointer changes from an arrow to a magnifying glass with a Z inside,
double-click the item you want to investigate.
QuickBooks displays another graph showing the details of one bar, one pie slice, or one
data point.
2 Double-click the new graph to display the related report.
3 Double-click a transaction in the report to see the form for that transaction (invoice,
check, etc.).
If you make changes in the form and save them, QuickBooks automatically updates the
graphs and reports affected by the changes.
Budgets
For information on creating budgets and budget reports, choose Help > QuickBooks Help
and then click “Budgets.”
Preferences overview
View preferences
To change view preferences:
1 Choose QuickBooks > Preferences, and then choose Views from the Show pop-up menu.
2 Click Automatically when closing company to save the desktop settings when you close
a company file.
When you return to the file, the same windows are open in the same position as when
you closed the file.
3 To save your current desktop settings, click Manually by clicking the Save Desktop Now
button, and then click Save Desktop Now.
4 Select “Turn on all one-time messages” to let QuickBooks show you helpful messages
that you can turn off at any time.
5 Click Apply.
Reminder preferences
To change reminder preferences:
1 Choose QuickBooks > Preferences, and then choose Reminders from the Show pop-up
menu.
2 Choose Show Summary, Show List, or Don’t Remind Me for each reminder:
• Checks to Print, Paychecks to Print, Invoices/Credit Memos to Print, Overdue
Invoices, Sales Receipts to Print, Inventory to Reorder, Bills to Pay, Memorized
Transactions Due, Money to Deposit, Purchase Orders to Print, and To Do Notes.
Clear this checkbox to display the Reminders window only when you click the
reminders icon or choose Lists > Reminders.
4 Click Apply.
Graph preferences
To change graph preferences:
1 Choose QuickBooks > Preferences, and then choose Graphs from the Show pop-up
menu.
2 Make any desired changes, and then click Apply.
Whether you choose to automatically schedule backups, you can manually back up your
company file at any time by choosing File > Back Up > To a Disk or To .Mac (see page 293).
Transaction preferences
With Transaction preferences, you can customize how you track accounts when you enter
transactions and whether you track classes on any transactions. You can also specify
whether you want to be warned of duplicate bill numbers, how QuickBooks should
calculate the due date on bills, and whether you want QuickBooks to maintain an audit
trail (a list of all changes made to transactions).
If you select this checkbox, QuickBooks displays only the lowest level subaccount on
forms and registers when you choose a subaccount in the Account field of a transaction.
For example, if you choose the 6410•Liability Insurance subaccount, QuickBooks
displays 6410•Liability Insurance in the field.
If you clear this checkbox, QuickBooks displays the main account and all subaccounts
(for example, 6380•Insurance:6410•Liability Insurance: 6420•Worker’s Comp) up to the
maximum character count allowed in the field.
This preference also affects the Account and Split columns of transaction reports.
4 (Optional) Select “Require accounts.”
If you select this checkbox, you cannot record a transaction until you assign it to an
account on your chart of accounts.
If you clear this checkbox, you can record a transaction that is not assigned to an
account on your chart of accounts. It automatically assigns the transaction to
Uncategorized Income or Uncategorized Expense.
Customizing estimates
See “Estimating preferences” on page 171.
2 (Optional) Specify your usual FOB location and your usual shipping method when you
enter a new sale.
3 (Optional) Enter your Default Markup Percentage.
QuickBooks automatically uses the specified markup percentage if you invoice for
reimbursable expenses at a markup. You can change the markup percentage before
using it.
QuickBooks also uses the default markup to suggest a sales price when you set up any
item that has a separate cost and sales price, for example, inventory items or service
items for work performed by subcontractors.
4 (Optional) Select “Track reimbursed expenses as income.”
With the Track reimbursed expenses as income preference, you can track an expense
and your customer’s reimbursement for the expense in separate accounts.
For example, an interior designer may want to track both the reimbursement for the
cost of delivering a client’s furniture and the markup as income, especially if the
designer collects sales tax on both.
If you simply want to make sure you invoice a client for expenses you incurred, don’t
bother tracking the reimbursement as income. When you invoice the client, the income
offsets the amount assigned to the account of the original expense. If the expenses are
substantial and you don’t want them to be on your profit and loss statement before you
invoice the client, consider assigning the expenses themselves to an other current asset
account.
You may want to ask your accountant for advice on tracking reimbursed expenses.
If you select this checkbox, QuickBooks puts an additional checkbox and Income
Account pop-up menu in the New Account and Edit Account windows for expense
accounts.
Statement preferences
To change statement preferences:
1 Choose Company > Company Settings, and then choose Statements from the Show
pop-up menu.
2 Choose Customized from the Statement Format pop-up menu.
3 (Optional) Make the desired changes in the Headers, Fields, Columns, Footer, Font, and
Artwork tabs.
For information about creating customized statements, see “Customizing a billing
statement” on page 112.
4 Click Apply.
Check preferences
To change check preferences:
1 Choose Company > Company Settings, and then choose Checks from the Show pop-up
menu.
2 (Optional) Select “Print account names on voucher.”
This preference affects only voucher checks (not standard or wallet) created in the Write
Checks window.
Select this checkbox to print the name of the account to which you assigned the expense
on the voucher portion of the check.
2 Enter the annual interest rate that you want QuickBooks to use to calculate how much
your customers owe in finance charges.
For example, if you enter 12%, QuickBooks charges 1% per month. To charge a flat rate
instead of a percentage, enter 0 in the Annual Interest Rate field, and your flat rate in the
Minimum Finance Charge field. You can change your rate at any time.
3 (Optional) Enter a dollar amount in the Minimum Finance Charge field.
QuickBooks will use this as the lowest possible finance charge. For example, if you
enter $10, and a customer has accrued $7.50 in finance charges, QuickBooks fills in $10
for that customer in the Assess Finance Charges window.
4 In the Grace Period field, enter the number of days after a payment is due that you will
allow a customer to send payment without incurring a finance charge.
5 Select your Finance Charge Account from the pop-up menu.
Enter the account (usually an income account) you’ll use to record finance charge
amounts you receive from customers. To create a new account, for example one called
“Finance charges,” choose New from the Finance Charge Account pop-up menu and
complete the New Account window.
6 (Optional) Enter a different finance charge title if you want a name other than the
default to appear on finance charge invoices.
7 (Optional) Select “Assess finance charges on overdue finance charges” to include
overdue finance charges in its calculation of current finance charges.
Important: Laws vary as to whether you can assess finance charges on finance charges.
Please confirm with the appropriate jurisdiction that you are in compliance
with that jurisdiction’s lending laws.
8 Choose to calculate charges from either the due date or the invoice date.
9 (Optional) Select “Mark finance charge invoices “To be printed.”
QuickBooks creates an invoice for each customer for whom you assessed finance
charges. Selecting this checkbox causes QuickBooks to mark each finance charge
invoice it creates “To be printed,” and adds the invoice to a list of invoices you can print
all at once.
10 Click Apply.
Job preferences
Note: Job preferences are available in QuickBooks Pro only. For details on upgrading to
QuickBooks Pro, contact Intuit (see page 326).
Enter a password
here to restrict
changes to data for
earlier fiscal periods.
This password
allows you to “close”
earlier periods.
2 If you file 1099s, click the 1099-MISC forms are filed checkbox.
QuickBooks adds menu options for printing and creating reports of 1099s.
3 Choose an account or accounts to associate with the 1099 categories for which you
report amounts to the IRS.
• Click in the Account column and choose an account from the pop-up menu.
OR
• To associate more than one account with a 1099 category, choose Selected accounts
from the pop-up menu and select the accounts from the Select Accounts window;
then click OK.
The accounts you select should be accounts you use to track expenses related to Form
1099-MISC. Typically, the accounts are expense accounts. If you need to, you can also
associate liability or asset accounts with 1099 categories.
4 Click in the Threshold column to change threshold amounts for the categories.
QuickBooks uses the thresholds set by the federal government. These amounts may
become outdated as the government enacts changes.
Important: To make sure that you have the latest threshold information, ask your
accountant or call the IRS (or contact http://www.irs.org).
5 Click Apply.
When you shorten the toolbar, you can click here to access
any buttons that are hidden.
System requirements:
• An active Apple .Mac account with available space on your iDisk
• An Internet connection
Backing up a Makes a compressed More data fits on one CD. Backup QuickBooks must restore backed-
company file copy of everything in allows you to divide very large files up copy before it can open the
original company file among multiple CDs. file.
Saving as text Makes a copy in a format You can use the file in a spreadsheet Only lists and reports can be
common to other or word-processing program. saved as text.
software programs QuickBooks cannot read files
saved as text.
Exporting Puts lists into a file in IIF You can share lists with another copy QuickBooks can export only lists,
format, with one record of QuickBooks or use a list in a not transactions or reports.
per line and one column database or spreadsheet program.
for each field You can add to the list and then
import it back into QuickBooks.
To export lists:
1 Choose File > Export > Lists to IIF File.
2 Select the lists you want to export.
3 Click OK.
4 Enter a filename and choose a location for the export file, and then click OK.
Condensing data
If your company file has grown too large, you can reduce its size by having QuickBooks
condense the transactions for a period of time that you designate. QuickBooks
accomplishes this in two ways:
• QuickBooks deletes transactions you no longer need to keep your records current.
• QuickBooks adds new transactions that provide monthly summaries of the
transactions it deleted.
Important: QuickBooks does not condense any transactions that include inventory items.
Condense time
The amount of time QuickBooks requires to condense your data depends on your
computer’s speed, your computer’s amount of memory, the size of your company file, and
other factors. The process could take anywhere from a few minutes to a few hours. During
the process, QuickBooks scans your data three times. Because of this, the completion level
may remain the same for a long time, but if your hard disk shows activity, the process is
continuing.
Retained transactions
The following table gives examples of when QuickBooks retains transactions dated on or
before your specified ending date:
A transaction has an Unpaid, partially paid, or pending invoices, undeposited customer payments, unpaid bills, unused
open balance. credit memos.
A transaction is An undeposited customer payment that you applied to an invoice. Even though the invoice is paid,
linked to another QuickBooks retains the invoice because it has a link to an open transaction (the undeposited
transaction that has payment).
an open balance.
A transaction is Any invoice, credit memo, sales receipt, or check that has a check mark in its “To be printed”
marked as “To be checkbox.
printed.”
Summary transactions
The summary transactions that QuickBooks creates appear in the registers of your balance
sheet accounts (Bank, Accounts Receivable, Accounts Payable, and so on). When you open
a register, you can spot the summary transactions by looking for GENJRNL in the Type
field.
Note: You cannot edit or delete a summary transaction.
Each balance sheet account has one GENJRNL summary transaction for each month in
which QuickBooks deleted transactions. The transaction amount is the total of the
transactions that QuickBooks deleted for the month.
Account balances
After you condense your data, you can still create reports that summarize financial activity
for the period of time you condensed. For example, if you condense last fiscal year’s data,
you can still create profit and loss reports that compare last year’s results to this year’s. This
is because QuickBooks adds summary transactions to your company file to preserve
monthly account balances.
Transaction detail
After you condense your data, you won’t be able to create reports that show daily detail for
the period of time you condensed. This is because QuickBooks has deleted the individual
transactions that would have provided the detail. In addition, you won’t be able to create
reports that show balances for individual customers or vendors over that period of time.
As a result, the totals for sales revenue on sales tax liability reports will be incorrect. As a
precaution, QuickBooks creates a backup file in case you need access to the deleted
transactions later.
Periodic tasks
Certain tasks fall neatly into weekly, monthly, quarterly, and yearly time frames. With
QuickBooks, you’ll spend far less time on periodic tasks because QuickBooks pulls
information together for you.
Weekly tasks
• Make a backup copy of each of your QuickBooks companies.
See “Backing up your company file” on page 293.
• Use QuickBooks Payroll for Mac powered by PayCycle, Inc. to write your weekly
paychecks.
For more information, see page 248.
• Pay bills due the following week.
See “Paying bills” on page 170.
• Print unprinted sales forms and checks.
For more information, choose Help > QuickBooks Help and click “Printing” in the left
column.
• Create a cash flow forecast report to review your anticipated cash flow for the next few
weeks.
Quarterly tasks
• Make a backup copy of each of your QuickBooks companies.
See “Backing up your company file” on page 293.
• Pay sales tax due quarterly.
See “Paying sales tax” on page 157.
• Use QuickBooks Payroll for Mac to file Form 941, Employer’s Quarterly Tax Return,
and state withholding tax forms.
• Create a profit and loss statement and a balance sheet, to review how your business is
doing.
Year-end tasks
Year-end tasks include making any year-end entries, archiving last year’s data, and
gathering information for your tax forms. The great news for year-end is that QuickBooks
does not require you to close your books!
There are two major advantages to not closing your books:
• Detail: you always have easy access to last year’s data, including all the detail of every
transaction
• Reporting: you can create comparison reports to compare this year with last year.
You can protect the prior year’s transactions from accidental change by using a password.
Balance sheets
A balance sheet represents a financial snapshot of your company on one date. It shows the
following:
• What you have
• What people owe you
• What your company owes to other people
• The net worth of your company
The following figure shows an example of a balance sheet. (For more information about the
QuickBooks balance sheet, see “Equity and your balance sheet” on page 222.
ASSETS:
What you have
What people owe
you
EQUITY:
The net worth of
your company
The money that people owe you is called your accounts receivable, or
A/R for short. (Even though the word accounts is plural, QuickBooks uses a single account
to track all the money that different people owe you.)
The rest of your company’s assets may include checking accounts; savings accounts; petty
cash; equipment, trucks, and other fixed assets; inventory; and even money you’ve already
received from your customers but have not yet deposited in the bank.
Liabilities
Liabilities are what your company owes to other people.
A liability can be a formal loan, an unpaid bill, or sales and payroll taxes you owe to the
government.
The money you owe for unpaid bills is your accounts payable, or A/P for short. (Again,
even though the word accounts is plural, QuickBooks uses a single account to track all the
money you owe different people for bills.)
Equity
Equity is the net worth of your company. Equity equals the company’s total assets minus
the total liabilities:
equity = assets − liabilities
A company builds equity from three sources:
• Investment of capital in the business by the owners
• Net profit from operating the business during the current accounting period
• Retained earnings, or net profits from earlier periods that have not been distributed to
the owners
All the equity belongs to the owners. In a sense, it is the money that the company owes the
owners, so it is a liability from the company’s point of view. A balance sheet adds equity
and liabilities to show that they equal the total assets:
assets = liabilities + equity
Income accounts
Income accounts are accounts that track the source of your company’s income. (You can
think of income as money that comes into the company.)
There is no single “right” way to organize accounts for any given business.
Income accounts appear on a profit and loss statement, also called an income statement.
This statement shows your income, expenses, and net profit or loss (equal to income minus
expenses). When deciding what income accounts to use, think about how much detail
you’d like to see on a profit and loss statement for your business. Also think about what
you need to list on the tax returns you file.
QuickBooks has two types of income accounts:
Other Income Income not directly related to business activities (such as interest)
QuickBooks places all income type accounts at the top of the profit and loss statement.
QuickBooks places all “other income” type accounts at the bottom, after ordinary income
and expenses.
Expense accounts
Expense accounts are accounts that track what your company is spending. (You can think
of expenses as money that leaves the company.)
You’ll probably have many more expense accounts than income accounts. You may have
separate accounts for expenses such as advertising, bank charges, dues, interest on loans,
rent, and telephone.
If you enter bills in your accounts payable when you receive them, you tell QuickBooks
which expense account the bill is for. (You can divide the bill among several accounts.) On
the other hand, if you enter the bill directly in your checking account, you indicate on the
QuickBooks check form which expense account to use.
Similarly, if you charge company expenses to a credit card, you can indicate the expense
account when you enter the transaction in QuickBooks.
QuickBooks has three types of expense accounts:
Cost of Goods Sold Cost of goods and materials held in inventory and then sold
Other Expense Expenses not directly related to business activities (such as corporate income tax)
The essential difference among them is the order in which QuickBooks arranges them on a
profit and loss statement:
• QuickBooks puts cost of goods sold type accounts ahead of expense type accounts. It
subtracts cost of goods sold from income to show the company’s gross profit (before
expenses). For details about tracking cost of goods sold, see Chapter 9, Inventory,
starting on page 137.
• QuickBooks places other expense type accounts after ordinary income and expenses.
Similarly, on a QuickBooks chart of accounts, the expense accounts follow all the balance
sheet accounts, income accounts, and cost of goods sold type accounts. (You may have to
scroll down to see them.) QuickBooks doesn’t display balances for them. (To see the totals
for each expense account, create a profit and loss statement.) Other expense type accounts
are at the very end.
Cash basis
Many small businesses track income at the time they receive the money, and expenses
when they pay the bills. This method is known as bookkeeping on a cash basis. If you’ve
been recording deposits of your customers’ payments but have not been including the
money customers owe you as part of your income, you’ve been using cash basis. Similarly,
if you’ve been tracking expenses at the time you pay them, rather than at the time you first
receive the bills, you’ve been using cash basis.
If you do bookkeeping manually, cash basis is simpler. However, when you use
QuickBooks, it is equally easy to use either method, and accrual basis has some added
benefits.
4 Sent both the .qbb file and the Instruction PDF file to the Windows user via CD, USB
drive, Zip disk, or Flash drive (most Macs read and write data to and from PC-formatted
media).
5 In QuickBooks 2006 for Windows1, choose File > Restore, complete the information in
the Restore Company Backup window, and then click Restore.
1 QuickBooks Pro 2006 for Mac can share files (2-way) with U.S. versions of QuickBooks Pro, Premier,
and Premier Accountant 2006 for Windows; QuickBooks Pro 2006 for Mac can convert files (1-way)
from U.S. versions of QuickBooks Simple Start, Basic, Pro, Premier, and Premier Accountant 2004,
2005, and 2006 for Windows. For help on upgrading your file, go to
https://qbsupport.intuit.com/qb/free-phone-support.do.
Unsupported reports
The following preset reports are currently not supported by QuickBooks Pro 2006 for Mac.
You can, however, create many of these reports using the customization, filtering, and
memorization features in QuickBooks Pro 2006 for Mac.
• Profit & Loss Unclassified
• Job Progress Invoices vs. Estimates
• Open Purchase Orders by Job
• Sales Tax Revenue Summary
• Pending Builds
• Income Tax Preparation
• Profit & Loss Budget Performance
• Estimates by Job
• Reconciliation Discrepancy
• Previous Reconciliations
• Fixed Asset Listing
• Voided/Deleted Transactions (available only in Premier versions of QuickBooks for
Windows)
• Voided/Deleted Transactions History (available only in Premier versions of
QuickBooks for Windows)
• Closing Date Exception (available only in Premier versions of QuickBooks for
Windows)
• Open Sales Orders by Customers (available only in Premier versions of QuickBooks for
Windows)
• Open Sales Orders by Item (available only in Premier versions of QuickBooks for
Windows)
• Adjusted Trial Balance (available only in Premier versions of QuickBooks for Windows)
This chapter explains how to convert a Quicken for Mac data file into a QuickBooks Pro
2006 for Mac data file.
System requirements
To convert a Quicken for Mac file to QuickBooks for Mac, you need:
• A Quicken for Mac data file created with, or updated by, Quicken for Mac 2004, 2005,
or 2006
• QuickBooks Pro 2006 for Mac
After conversion, you will have two files: your original, unchanged Quicken data file, and
your new QuickBooks company file.
Terminology differences
Quicken uses terms familiar to anyone who has used a checkbook. QuickBooks uses terms
that are standard in business bookkeeping. The following table lists the most important
differences in terms.
File Company All records related to one bookkeeping entity—one set of books.
Account Balance sheet A grouping of records related to one kind of asset, liability, or equity.
account These accounts appear on a balance sheet.
Category and Chart of Accounts The QuickBooks Chart of Accounts is equal to the Quicken Account list
Transfer List (balance sheet accounts) plus the Quicken Category list (income and expense
accounts).
plus
You can add, edit, or delete any kind of account in QuickBooks.
Account List
Entering Enters most transactions in Enters most transactions in forms (check window, invoice
transactions registers. window, and so on).
In QuickBooks, you can copy and paste a transaction from one
register to another.
Write Checks Displays a check that looks like a Displays a business check with voucher area (so the “split” is
paper personal check. part of the check form).
Classes Uses a slash (/) to separate a Enters classes in separate fields. No need for a slash (/) as a
category from a class in separator.
transactions. In QuickBooks, jobs and projects can be associated with
customers as part of the Customer:Job list, so you can use
classes for different kinds of classification.
Transfers Uses brackets [] to indicate a No need to use brackets. QuickBooks handles transfers like
transfer to another balance sheet any other transaction.
account.
Passwords One password for entering and Three levels of password protection (including one for payroll).
viewing data.
Reports Offers reports for personal finance Omits personal finance reports and investment reports. Offers
and investments. Has only a few many pre-designed reports for businesses.
business reports.
Subaccounts Categories can have All accounts, even balance sheet accounts, can have
subcategories, but accounts subaccounts.
cannot have subaccounts.
Payroll accounts A separate liability account for You can continue using your old liability accounts. However,
each tax withheld and for every with the new system of tracking by using payroll items, you
other payroll liability. can put all payroll liabilities into a single liability account.
Bank Bank
• In a few cases, you may not want to continue using the account that QuickBooks
created automatically. To learn how to change or delete QuickBooks accounts, see
Chapter 5, Your chart of accounts, starting on page 59. For example, in Quicken, equity
type accounts are other liabilities. In QuickBooks, you can make them equity accounts.
• QuickBooks creates an Opening Bal Equity account. When you create new accounts
and enter their opening balances, QuickBooks automatically enters the amount in the
Opening Bal Equity account, so that your accounts balance. You can leave the Opening
Bal Equity amount, or you can distribute the amount to other equity accounts. To learn
about distributing the Opening Bal Equity amount, see Chapter 18, Assets, liabilities, and
equity, starting on page 211.
• QuickBooks does not convert memorized reports, because QuickBooks reports are too
different from Quicken reports.
• QuickBooks changes your Quicken categories and subcategories into income and
expense accounts with subaccounts.
This item in your Quicken A/R account... ...is converted to this in QuickBooks
Each category Both an item on your Item list and an income account
on your Chart of Accounts
Error messages
Occasionally, you may encounter a QuickBooks message that includes an error number
and instructions to call Technical Support. You cannot solve such a problem without help
from Intuit. If you see an error message, write down the error number and see “Using
QuickBooks” on page 326 for the phone number of our Technical Support group.
Index • 327
when created, 63 for payment items, 78
sales tax payable for service items, 71
tracking sales tax, 148 for vendors, 40
when created, 62 employees, 41
service items, assigning to, 71 jobs, 36
subaccounts lines in transaction detail area, 90
uses for, 63 loans, 220
using for fixed assets, 63 other names, 42
tracking payment methods, 43
inventory in, 138 payment terms, 43
Uncategorized Expense shipping methods, 43
when created, 63 to do notes, 47
Uncategorized Income, when created, 63 vendor types, 41
Undeposited Funds, when created, 62 vendors, 39
accounts payable, 177 Address Book synchronization, 55
historical transactions, enter, 29 Adjust Quantity/Value on Hand command, 144
opening balance, 21 adjusting inventory
paying bills, 170 quantity on hand, 143
register, 177 value, 144
editing transactions in, 178 viewing in inventory register, 143
entering bills in, 169 Advanced Options window for customizing reports,
tracking 259
benefits of, 165 aging
when created, 62 defined, 308
see also vendors graph, A/R, (illustration), 163
accounts receivable, 159 alert, under-billing, 89
account described, 60 American Express, depositing receipts, 129
converting from Quicken, 322 amortization of loans, available in Quicken only, 319
customer registers, 160 amounts
graph (illustration), 163 calculating, 13, 205
historical transactions, enter, 28 how defined on different reports, 269
opening balance, 21 Apple
QuickReport of customer, 163 Address Book synchronization, 55
receiving payments, 121 iCal, adding QuickBooks transactions to, 93
register, 159 iDisk, backing up to, 294
editing transactions in, 160 artwork, printing on sales form, 99
when created, 62 assessing finance charges, 109
see also customers assets, 211
accrual basis buying, 218
adjustment during setup, 23 current, 212
overview, 309 fixed, 212
reports, preference for, 251 using subaccounts for, 63
activities, single loans for, recording, 213
combining on invoice, 106 opening balance for accounts, 21
entering time for, 245 other current, 212
adding overview, 304
accounts, 62 selling, 215
classes, 34 audit trail
customer messages, 44 deleting changed transactions, 298
customer types, 38 preference (turning on feature), 279
customers, 35 automatic file backup, 276
customized fields, 49 automatic recall
for customers, 36 checks, 182
for discount items, 77 transactions preference, 275
for group items, 75 automatically created accounts, 62
for non-inventory part items, 72 average cost, inventory
for other charge items, 73 calculating, 138
328 • Index
not affected by sales, 139 due date, preference for, 279
viewing, 143 editing, 160, 172
entering, 166
B finding, 207
for inventory items, 168
backing up data
grouping for payment, 45
compared to other data maintenance, 294
memo, transferred to check, 166
preferences, 276
partial payments, 170
procedure, 293
paying, 170
bad debts, recording, 123
with credit card, 170
balance adjustment, while reconciling, 237
questions and answers about, 173
balance sheet accounts
receiving after inventory items, 142
defined, 60
receiving with inventory items, 142
overview, 305
reminder to pay, 172
viewing balances, 61
transaction history of, 178
balance sheets
borrowing money, 219
equity and, 222
bounced checks, 133
net income line on, 223
business logo, printing on sales form, 99
overview, 303
buttonbar, for reports, using, 254
retained earnings on, 224
buying items, recommendations, 69
balances
current for customers, 35
current for vendors, 39 C
opening, 20 calculating
viewing for balance sheet accounts, 61 average cost of an inventory item, 138
viewing for income and expense accounts, 62 transaction amounts, 13, 205
balancing calculator, 13, 205
accounts, 233 calendar year, on reports, 259
for the first time, 234 cancelled orders, 131
see also reconciling capital investments
bank accounts corporations, in, 228
described, 60 partnerships, in, 227
historical transactions, enter, 31 recording owner’s, 231
opening balances, 21 sole proprietorships, in, 227
bank transactions, importing, 191 cash back, on deposit, 130
banking, online, 191 cash basis
bar graphs, 270 and accounts payable, 165
bill credit transaction type, 173 overview, 308
bill payments report preferences for, 251
deleting, 172 cash sales, 87
editing, 160, 172 customizing form for, 95
history, 171 daily summary, 108
partial, 170 overages and shortages, 120
transaction type, 171 pending, 94
viewing, 171 register, 108
Bill To field on invoice, 90 Sold To field, 90
billing statements, 110 transaction history of, 162
billing status cash vs. accrual, 284
entering for single activity, 246 categories, equivalent of, 317
entering on timesheet, 244 changing
making time billable again, 247 account colors, 66
bills prices, 85
applying credit, 173 sales tax rates, 152
charges, 174 charges
creating after item receipt, 142 depositing American Express receipts, 129
deleting, 172 setting minimum finance, 283
discount for early payment, 171 statement, entering, 111
Index • 329
chart of accounts, 59 columns
account colors, 66 adjusting report, 255
account colors, changing, 66 customizing on sales forms, 98
combining accounts, 66 combining
deleting accounts from, 65 accounts, 66
printing, 66 list items, 52
purchase orders account, 197 names after Quicken or QuickBooks conversion,
rearranging, 66 322
setting up, 19 command keys, 352
using account numbers, 66 companies
checking accounts, joint, 63 backing up, 293
checks changing address, 292
accounts printed on voucher, preference, 281 changing fiscal year, 292
assigning to accounts, customers, classes, 182 changing income tax year, 292
automatically filled in by QuickBooks, 182 changing name, 292
bounced, 133 creating, procedure, 17
date printed, preference, 282 data files, 291
detail area, 182 locating, 292
duplicate numbers, warning, 282 preferences, 26
finding, 207 preferences for, 273
for items setting up, 15
sales tax on, 184 comparison reports, creating, 258
shipping charges on, 184 condensing data, 296
handwritten, 183 construction retainage, 106
insertion point, preference, 282 contact synchronization, 55
ordering from Intuit, 326 contextual menus, 13
payments for bills, 170 contra-income account, 77
preferences, 281 converting
printing, 185 from a spreadsheet or text file to QuickBooks, 295
marking to be printed, 185 QuickBooks file from Mac to Windows, 311
printing bill numbers on, 166 QuickBooks file from Windows to Mac, 311
refunds for returns, 131 Quicken file to QuickBooks, 317
returned, 133 copying transactions to other accounts, 207
withdrawals, recording on check, 181 corporations, 228
writing by hand, 183 cost of goods sold account
choosing income accounts for items, 69 described, 307
Class list, 34 in chart of accounts, 62
classes tracking inventory in, 138
adding, 34 when created, 63
assigning to line items costs
on a PO, 199 calculating the average of an inventory item, 138
on a sales form, 89 invoicing for, 103
assigning to sales, 89 setup tips, 79
tracking, turning on in preferences, 279 passing through, 106
uses for, 34 creating
using subclasses with, 34 discount items, 76
viewing from registers, 34 estimates, 115
cleared column in registers, 204 graphs, 270
cleared transactions, 236 group items, 74
closed purchase orders, 201 inventory part items, 74
closing items, 70
books or period, 287 non-inventory part items, 71
purchase orders, 201 parent items, 83
COGs, 62 payment items, 77
Collapse button, 254 sales tax items, 150
colon, (:) between customer and job, 34 subitems, 83
colors, changing account, 66 subtotal items, 76
330 • Index
credit non-taxable, 155
applying to bills, 173 not adding to list for cash sales, 89
applying to invoices, 133 out of state, selling to, 153
customer, in Receive Payments window, 124 payment terms, 42
printing a receipt, 125 register, 160
vendor, entering, 173 resale number, 153
credit card charges setting up, 18
for items tax rates, assigning to, 152
sales tax on, 189 viewing QuickReports, 163
shipping charges on, 189 Customize button, 254
credit card transactions, importing, 191 customized fields
credit cards adding, 49
account described, 61 for customers, 36
list of charges, 186 for discount items, 77
opening balance for accounts, 21 for group items, 75
paying bills with, 170 for non-inventory part items, 72
reconciling your statement, 190, 237 for other charge items, 73
register, 186 for payment items, 78
credit memos, 87 for service items, 71
customizing, 95 for vendors, 40
for returned items, 131 on statements, not supported, 113
invoices, applying to, 124 customizing
refunding amount, 132 columns, on sales forms, 98
transaction history of, 162 estimates, 114
current assets, 212 purchase orders, 198
current balances reports, 256
customers, 35 sales forms, 95
vendor, 39
current liabilities, 219 D
custom fields, see customized fields
daily cash sales, 108
custom format for sales forms, 97
data
Customer Message list, 44
backing up, 293
customer messages, adding, 44
condensing, 296
customer payments
hiding, 272
applying, preference for, 281
data entry
bounced checks, 133
fast, 48
correcting application to invoices, 127
password, 286
depositing, 128
preferences, 274
one check for 2 jobs, 122
data files
recording, 122
changing, 292
customer registers
opening, 292
browsing, 160
data labels, in graphs, 271
entering statement charges, 111
date driven payment terms, 42
Customer Type list, 38
date ranges, defined for reports, 257
customer types, adding, 38
date, start, 15
Customer:Job list, 34
dates, transferring to sales forms, 106
customers
decimal points, entering, 274
adding, 35
default markup, 280
current balance, 35
default sales tax rate, 284
Customer:Job list, 34
deleted transactions
customized fields, adding, 36, 49
including in audit trail report, 293
discounts for early payment, 123
deleting
editing, 37
accounts, 65
finance charges, 109
bill payments, 172
keeping notes about, 37
estimates, 118
merging on Customer:Job list, 52
item receipts, 144
name in list vs. printed name, 90
Index • 331
items, 85 account opening balances, 64
list items, 47 bill payments, 160, 172
memorized reports, 263 customers, 37
sales, 93 deposited customer payments, 131
transactions, 207 items, 85
lines in detail area, 90 jobs, 37
preference for warning, 275 sales forms, 92
vendors, 41 transactions, 206
deposit summary A/P register, 178
printing, 129 A/R register, 160
using as deposit slip, 129 preference for warning, 275
deposited payments, editing or deleting, 131 electronic bill payment, available in Quicken only, 319
deposits Employee list, 41
American Express charges, 129 sorting by first or last name, 275
cash back, 130 employees
customer payments, 128 adding, 41
deleting (to edit payments), 131 customized fields, adding, 49
finding, 207 merging on Employee list, 52
printing summary, 129 setting up, 19
transaction history of, 162 ending balance
depreciation bank statements, reconciling, 235
adding accounts, 214 end-of-year income transfer to retained earnings, 228
description, 212 Enter Bill for Received Items command, 142
detail area in checks, 182 Enter Credit Card Charges window, 187
discount expense account, 77 see also credit card charges
Discount Info button, 123 entering
discount items bills, 166
creating, 76 data, 48
customized fields for, 77 opening balances for accounts in use, 64
uses for, 68 orders in QuickBooks, 94
discounts envelopes
customer, for early payment, 123 ordering from Intuit, 326
transaction history of, 162 equity, 222
vendor, for early bill payment, 171 balance sheet and, 222
disk space required, 11 corporations, in, 228
displaying lists using keystrokes, 49 Opening Bal Equity, 21
dividends, stockholders, 228 opening balance for accounts, 21
down payments, 124 overview, 304
printing receipt, 125 partnerships, in, 227
using payment item in credit memo, 125 redistributing during setup, 25
Downloaded Transactions window, 196 sole proprietorships, in, 226
drafts, handling in QuickBooks, 94 stockholders, 228
due dates, preference for bills, 279 equity accounts
duplicate creating, 229
bill numbers, warning about, 279 described, 61
PO numbers, warning about, 279 error messages
duplicate names described, 325
Quicken conversion, after, 322 estimates
creating, 115
E customizing, 114
deleting, 118
early payment discounts
finding, 117
for customers, 123
invoices, turning into, 118
from vendors, 171
list of, 117
Edit button on registers, 206
markup on, 115
editing
memorizing and recalling, 118
account information, 65
preferences for, 279
332 • Index
printing, 116 finding
templates, creating, 118 estimates, 117
turning on or off, 279 transactions, 207
estimates account, when created, 62 fiscal year
Excel, Microsoft, 262 adjust for mid-year QuickBooks start date, 25
existing credits, 124 changing, 292
Expand button, 254 gather information for start date, 16
expense accounts on reports, 259
defined, 61 fiscal year-end, automatic adjustment to income, 224
opening balances, 25 fixed assets
overview, 307 account, 61
Uncategorized, 24 buying, 218
viewing balances, 62 description, 212
see also accounts losses of, 218
expenses selling, 215
account for discounts, 77 thefts of, 218
depreciation account, 215 using subaccounts for, 63
exporting flat list view, 51
data, 294 FOB, setting for all invoices, 280
reports to Microsoft Excel, 262 fonts, changing, 256
Format button, 254
F formats
purchase orders, changing, 198
features
sales forms, changing, 95
new in this version, 12
forms
turning on, 273
QuickReport, 265
Federal ID, changing, 292
tax, changing, 292
fields
customized
for customers, 36 G
for discount items, 77 glossary of accounting terms, 309
for group items, 75 graphic, printing on sales form, 99
for non-inventory part items, 72 graphs
for other charge items, 73 accounts receivable (illustration), 163
for payment items, 78 accrual vs. cash, preference, 251
for service items, 71 creating, 270
for vendors, 40 data labels, 271
customizing for sales forms, 97 hiding data in, 272
FIFO, not used by QuickBooks, 138 legends, 270
files preferences for, 276
backing up, 293 QuickZoom, 271
changing, 292 titles, 270
condensing, 296 group invoicing, 45
maintaining, 291 group items
opening, 292 creating, 74
Quicken, equivalent of, 317 customized fields for, 75
filtering reports, 259 on purchase orders, 69
Filters button, 254 uses for, 68
finance charges using to hide details, 74
account to record in, 283 grouping data in reports, 257
assessing, 109
for bills, 174 H
printing invoices for, 109
hardware requirements, 11
setting minimum, 283
Header/Footer button, 254
setting up rate, 283
help
Find command, 207
for sales problems, 119
Find results, printing, 209
online, using, 325
Index • 333
Hide Header button, 254 viewing, 143
hiding data, in graphs, 272 bills for items, 168
hiding details, using group items, 74 buying over-the-counter, 140
hiding inactive list items, 53 deleting purchase orders, 200
hiding toolbar, 290 editing purchase orders, 200
hierarchical list view, 51 LIFO, FIFO, not used by QuickBooks, 138
historical transactions receiving, 140
accounts payable, 178 against a purchase order, 200
accounts receivable, 161 bill after items, 142
entering, 27 bill with items, 142
hours worked register, 143
entering for single activity, 246 returning to a vendor, 144
entering on timesheet, 244 setting up, 20, 139
invoicing for, 103 tracking accounts used, 138
hours, displaying portions of, 275 viewing on order, 139
viewing purchase orders, 200
I Inventory Asset account, when created, 63
inventory part items
iCal, adding QuickBooks transactions to, 93
creating, 74
identification number, federal, 292
uses for, 68
iDisk, backing up to, 294
see also items, inventory part
IIF files, 295
investment, recording owner’s, 231
image, printing on sales form, 99
investments, tracking, available in Quicken only, 319
inactive list items, 53
invoices, 87
income accounts
Bill To field, 90
choosing for items, 69
credit memo, applying, 124
defined, 61
customer messages on, 44
opening balances, 25
customizing, 95
overview, 305
estimates, creating from, 118
Uncategorized, 24
finding, 207
viewing balances, 62
for finance charges, printing, 109
see also accounts
formats, 95
income tax
grouping, 45
changing year, 292
memorizing, 95
form, 292
numbers, warning for duplicate, 281
inserting lines in transaction detail area, 90
ordering from Intuit, 326
installation, 12
payment items on, 77
installments
payments, recording, 121
invoicing in, from single estimate, 118
pending, 94
interest
preferences, 280
charging for late payments, 109
time and costs, charging for, 103
entering in bank account, 235
tips for invoicing for time and costs, 106
paying on a loan, 221
transaction history of, 162
Intuit
iSync, 57
Interchange Format, 295
Item list, 33
phone numbers, 326
item receipts
technical support, saving a call, 325
creating, 140
Web sites, 326
deleting, 144
inventory, 137
items
adjusting
adding customized fields, 50
quantity on hand, 143
buying, recommendations, 69
value, 144
creating, 70
adjustments
customized fields
viewing in inventory register, 143
adding, 49
average cost
deleting, 85
calculating, 138
discount
not affected by sales, 139
creating, 76
334 • Index
customized fields for, 77 uses for, 68
uses for, 68 setting up, 20
editing, 85 subitems, creating, 83
group subtotal
creating, 74 creating, 76
customized fields for, 75 uses for, 68
on purchase orders, 69 types
uses for, 68 defined, 68
hiding, 53 on purchase forms, 69
inactive, 53 restrictions on changing, 85
inventory
bills for, 168 J
ordering, 199
Job Type list, 38
receiving, 140
jobs
returning to a vendor, 144
adding, 36
viewing on order, 139
Customer:Job list, 34
inventory part
editing, 37
creating, 74
items ordered for, 81
uses for, 68
Job Type list, 38
jobs, ordered for, 81
keeping notes about, 37
line
materials used in, 81
defined, 67
merging on Customer:Job list, 52
sales tax, calculating with, 154
preferences, 285
marking as taxable, 153
receiving one check for two jobs, 122
markup on estimates, 115
sales, tracking by, 89
merging on Item list, 52
setting up, 18
non-inventory part
status
assigning to an account, 72
editing names for, 285
creating, 71
viewing for all jobs, 35
customized fields for, 72
joint checking accounts, 63
uses for, 68
non-taxable, 155
other charge K
assigning to an account, 73 keyboard shortcuts, 352
creating, 72 keystrokes to display lists, 49
customized fields for, 73
uses for, 68 L
parent, creating, 83
late payments, finance charges for, 109
payment
late-payment charges for bills, 174
creating, 77
legends, graphs, 270
customized fields for, 78
liabilities, 219
uses for, 68
current, 219
prices, changing, 85
long-term, 219
receiving against a purchase order, 200
opening balance for accounts, 21
reimbursable, 70
overview, 304
reports, 83, 84
Sales Tax Payable register, 157
sales tax
sales tax report, 156
described, 78
LIFO, not used by QuickBooks, 138
groups, creating, 151
limit to items, 48
single tax items, creating, 150
limits, 48
uses for, 68
line items
sales tax group, 68
assigning classes to, 89, 199
selling, recommendations, 69
defined, 67
service
tax, using subtotals with, 154
assigning to an account, 71
see also items
creating, 70
lines
customized fields for, 71
Index • 335
deleting in transaction detail area, 90 hardware and software requirements, 11
inserting in transaction detail area, 90 OS X system requirements, 11
lines of credit, 219 using on a network, 14
linked transactions, viewing, 161 mail merge, selecting names for, 296
list items maintaining data, 291
combining, 52 Make Deposits window
deleting, 47 cash back, 130
merging, 52 customer payments in, 128
renaming, 47 markup, on estimates, 115
lists markup, setting default for sales forms, 280
adding customized fields, 49 matched transactions, 195
Chart of accounts, 19 materials used in jobs, 81
Class, 34 maximum number of items, 48
Customer Message, 44 memo, non-printing on sales forms, 91
Customer Type, 38 Memorize button, 254
Customer:Job, 18, 34 memorized reports
deleting items, 47 deleting, 263
displaying using keystrokes, 49 modifying and re-memorizing, 263
Employee, 19, 41 name, changing, 263
sorting by first or last name, 275 recalling, 263
estimates, 117 Memorized Transaction list, 44
Item, 20, 33 memorized transactions
Job Type, 38 grouping, 45
Memorized Transaction, 44 modifying and re-memorizing, 45
merging items, 52 using, 45
Other Name, 42 memorizing
Payment Method, 43 estimates, 118
printing, 54 invoices, 95
Purchase Order, 44, 200 reports, 54, 103, 261
QuickReport, 264 statements, 95
Reminders, 47 transactions, 44
renaming items, 47 memos, transferred to check, 166
reorganizing, 50 menus
setting up, 17 contextual, 13
Ship Via, 43 merging
sorting alphabetically, 52 accounts, 66
Terms, 42 list items, 52
To Do, 46 mail, 296
Vendor, 19, 39 merging names after Quicken or QuickBooks conver-
Vendor Type, 41 sion, 322
loans messages, error, 325
adding, 220 Microsoft Excel, 262
amortization, available in Quicken only, 319 midyear setup, 25
applying for, 219 minimum finance charge, setting, 283
buying assets with, 213 money, transferring from Opening Bal Equity, 230
making to purchaser of assets, 217 mortgage, amortization in Quicken only, 319
payments, 221 most common sales tax, applying to sales, 154
logo, printing on sales form, 99 mouse, using to organize lists, 51
long term liability account, described, 61 moving
long-term liabilities, 219 accounts, in chart of accounts, 66
losses of fixed assets, 218 toolbar, 290
transactions to other accounts, 207
M
Macintosh N
converting Quicken to QuickBooks, 317 name type, changing, 42
disk space required for QuickBooks, 11 name, changing, 292
336 • Index
names ordering
account, changing, 65 checks, 326
customers and jobs, 18 envelopes, 326
employees, 19 invoices, 326
Other Name list, 42 statements, 326
Quicken conversion, after, 322 user’s guides, 326
selecting for mail merge, 296 other asset accounts, described, 61
net income other charge items
balance sheet, line on, 223 assigning to an account, 73
fiscal year-end adjustment, 224 creating, 72
profit and loss statement, on, 223 customized fields for, 73
transfer to retained earnings, 228 uses for, 68
network, using QuickBooks on, 14 using for taxable shipping and handling, 156
New Company Setup Assistant, 17 other current asset account, 61, 212
new company, procedure for creating, 17 other current liabilities, 61, 219
new features in this QuickBooks version, 12 other expense accounts, uses for, 307
non-inventory part items other income accounts, uses for, 305
assigning to an account, 72 other names
creating, 71 adding, 42
customized fields for, 72 changing to a different type, 42
uses for, 68 merging on Other Name list, 52
non-taxable Other Names list, 42
customers, 155 Quicken conversion, after, 322
items, 155 Other on reports, explanation, 266
sales, 155 Other, definition of in graphs, 271
not sufficient funds checks from customers, 133 out of state sales, tax item for, 153
notes overdue invoices reminder, 275
about customer or job, 37 owner password, 286
about vendors, 40 owner's equity
NSF checks from customers, 133 partnerships, in, 227
number display, changing in reports, 256 sole proprietorships, in, 226
number of items, maximum, 48 owner’s capital investment, recording, 231
numbering accounts, 66 owner’s draw, recording, 230
numerical accounts preference, 278 owners
services performed by, 81
O tracking costs of services performed by, 107
Office, Microsoft, 262
on order, viewing inventory items, 139 P
one-time customers, cash sales, 89 packing slips, 119
online paid-in capital, 228
banking, 191 parent items, creating, 83
payroll, 248 partial payment on invoice, 77
opening partners
account register, 203 services performed by, 81
files, 292 tracking costs of services performed by, 107
Opening Bal Equity account, 21, 222 partnerships, 227
adjusting balance during setup, 25 passing expenses through from a vendor, 106
transferring money from, 230 passwords, 286
when created, 62 .Mac backup, 294
opening balance in reconcile window, 235 changing, 286
opening balances, 20 closing books or period, 287
date for, 15 data entry, 286
editing, 22, 64 owner, 286
entering for accounts in use, 64 transaction, 287
entering for unused accounts, 22 past transactions, entering, 27
order entry, handling in QuickBooks, 94 Pay Sales Tax window, 157
Index • 337
payables, see accounts payable ordering software and other products, 326
PayCycle, 248 registering QuickBooks, 326
paying technical support, saving a call, 325
bills, 170 phone registration of QuickBooks, 326
applying credit, 173 pop-up menus, 48
reminder, 172 portions of hours, displaying, 275
sales tax, 157 postdated transactions, 160
payment items preferences, 273
creating, 77 1099, 288
customized fields for, 78 audit trail, 279
uses for, 68 checks, 281
using for down payments, 125 company, 273
Payment Method list, 43 data entry, 274
payment methods, adding, 43 estimating, 279
payment terms finance charge rate, 283
adding, 43 graphs, 276
date driven, 42 job, 285
overview, 308 passwords, 286
standard, 42 reminders, 275
payments sales tax, 284
applying, preference for, 281 sales/invoicing, 280
bill time tracking, 242, 285
deleting, 172 toolbar, 289
editing, 160, 172 transaction, 277
bounced checks, 133 prepayments, 124
correcting application to invoices, 127 preset chart of accounts
customer, 121 modifying, 19
depositing, customer, 128 prices, changing, 85
down payments, 124 printing
editing or deleting after depositing, 131 “T's” for taxable items on sales, 284
finding, 207 bill numbers
history, for bills, 171 on voucher checks, 166
in accounts payable, transaction history of, 178 billing statements, 113
loan, 221 chart of accounts, 19, 66
partial checks, 185
for bills, 170 deposit summary, 129
on invoice, 77 estimates, 116
prepayments, 124 Find results, 209
receiving, 121 invoices for finance charges, 109
receiving one check for two jobs, 122 lists, 54
to vendors, 170 purchase orders, 201
transaction history of, 162 QuickBooks Payroll reports, 250
viewing, 171 receipt for down payment, 125
payroll, 23, 248, 299 reminder statements, 113
PDF sales forms, 103
print background image, 101 setting checks to be printed, 185
save or email list as, 54 problems
save or email report as, 261 solving sales, 119
save or email sales form as, 103 troubleshooting, 325
pending sales, 94 producing reports, 253
percentages, calculating, 13, 205 product format for sales forms, 96
petty cash, 181 professional format for sales forms, 96
phases profit and loss statements, 223, 305
invoicing in, from single estimate, 118 profits, distributing to partners, 229
phone numbers projects, setting up, 18
Intuit, 326 Purchase Order list, 44
ordering checks and other supplies, 326 purchase orders
338 • Index
account created by QuickBooks, 197 R
closing, 201 rearranging chart of accounts, 66
customizing, 198 Recalc button, 206
finding, 207 recalculating split transactions, 206
formats, 198 recalling
list of, 200 memorized estimates, 118
ordering inventory, 199 transactions automatically, 275
printing, 201 receipts for down payments or overpayments, 125
QuickReport, 200 receivables, see accounts receivable
received in full, 201 Receive Items and Enter Bill command, 142
receiving items against, 200 Receive Items command, 140
title, changing, 199 Receive Payments window, 122
viewing, 200 correcting errors, 127
when to use, 197 refund checks in, 132
Purchase Orders account, when created, 62 received in full purchase orders, 201
receiving
Q inventory items, 140
quantity on hand, adjusting inventory, 143 items against purchase order, 200
QuickBooks payments described, 121
create new company, 17 receiving payments
disk space required, 11 one check for two jobs, 122
industry-specific documentation, 13 reconciliation report, 239
installing, 12 reconciling
network, 14 accounts, 233
setting up a company, 15 adding earlier transactions, 234
gather information needed for, 16 bank errors, 239
upgrading from 4.0M12a, 12 cancelling in the middle, 234
user’s guides, ordering from Intuit, 326 clearing transactions, 236
QuickBooks for Windows, working with, 311 correcting differences with statement, 237
QuickBooks Payroll, 248 credit card statement, 237
QuickBooks.com Web site, 326 ending balance, 235
Quicken, 317 interest earned, 235
accounts payable, converting, 323 opening balance, 235
accounts receivable, converting, 322 printing reconciliation report, 239
converted data, differences, 321 QuickBooks balance adjustment, 237
setting preferences, 321 skipping months, 233
QuickFill, 48 transaction report, using to research balance differ-
QuickInsight graph (illustration), 163 ence, 238
QuickMath calculator, 13, 205 recording
QuickReports owner’s capital investment, 231
creating, 265 owner’s draw, 230
customer, 163 refunds
estimates, 117 credit memos, creating from, 132
examples, 265 for returned items, 131
form, 265 in Receive Payments window, 132
list, 264 registering QuickBooks, 14, 326
purchase orders, 200 registers
register, 265 accounts payable, 177
Sales Tax Payable register, 157 editing transactions in, 178
vendor, 179 entering bills in, 169
QuickZoom accounts receivable, 159
graphs, 271 editing transactions in, 160
Pay Bills window, 170 cash sales, 108
Receive Payments window, 122 copying, pasting transactions in, 207
reports, 261 credit card, 186
customer, 160
entering statement charges, 111
Index • 339
defined, 60 producing, 253
entering transactions in, 204 QuickZoom, 261
opening, 203 recalling, memorized, 263
opening balance transaction reconciliation, 239
editing, 64 restricting to certain transactions, 259
entering, 64 row headings, changing, 258
QuickReport, 265 sales tax liability, 156
Sales Tax Payable, 157 selecting items to include, 259
QuickReport, 157 requirements, hardware and software, 11
scrolling in, 204 resale number, customer, 153
searching, 207 resetting checks to be printed, 185
transactions resizing toolbar, 290
deleting, 207 Re-sort List command, 52
editing, 206 restricting reports, 259
voiding, 207 retainage, 106
undeposited funds, cash sales in, 108 retained earnings
reimbursable expenses automatic transfer, 228
assigning check amounts to customers, 182 retained earnings account, 224
charging for, 103 adjusting for during setup, 25
preference for, 280 when created, 63
reimbursable items, 70 retainers, 126
reminder statements, 88, 110 Return key, behavior, preference, 274
reminders returned checks, 133
paying bills, 172 returns, recording, 131
setting up, 275 Revert command, 206
Reminders list, 47 round-trip conversion of a QuickBooks file, 316
renaming list items, 47 row headings, changing in reports, 258
reorganizing lists, 50
reporting S
cash basis
sales
and accounts payable, 165
cash, daily summary, 108
reports
classes, assigning to, 89
accounts receivable examples, 163
deleting, 93
accrual vs. cash, preference, 251
discounts account, 77
amounts, why they may differ, 269
entering, 89
audit trail, including deleted transactions in, 293
jobs, tracking by, 89
buttonbar, 254
non-taxable, 155
calendar year, 259
pending, 94
columns
preferences, 280
adding new, 255
sales tax, applying, 91
adjusting, 255
troubleshooting, 119
changing widths, 255
voiding, 92
eliminating, 255
sales forms
comparisons in, 258
custom format, 97
customizing, 256
customer messages on, 44, 91
advanced options, 259
customizing columns on, 98
date ranges, defined, 257
definitions, 87
deposit summary, 129
deleting lines in, 90
filtering, 259
editing, 92
fiscal year, 259
memo field, uses of, 91
fonts, changing, 256
printing, 103
grouping data, 257
product format, 96
item, 83
professional format, 96
memorizing, 54, 103, 261
service format, 96
number display, changing, 256
setting default markup for, 280
preset reports for items, 84
time and costs, charging for, 103
printing QuickBooks Payroll, 250
340 • Index
title, changing, 92 assigning to an account, 71
sales summary, 108 creating, 70
sales tax, 147 customized fields for, 71
“T's,” printing on sales forms, 284 specifying for subcontractor, 70
amount owed, 156 uses for, 68
applying, 91 setting up
applying to a sale, 154 chart of accounts, 19
applying to shipping and handling, 156 customers and jobs, 18
cash or accrual liability, 284 employees, 19
creating gather information needed for, 16
group items, 151 lists, 17
single tax items, 150 QuickBooks company, 15
credits or discounts from tax agency, 156 vendors, 19
customers Ship Via list, 43
assigning rates to, 152 shipping and handling, making taxable, 156
exempt from, 153 shipping methods
default rate, 284 adding, 43
group tax items, 151 setting for all invoices, 280
items, marking taxable, 153 shortcuts, keyboard, 352
liability report, 156 Show Header button, 254
line items, calculating with, 154 Show PO button
most common rate, 284 on a bill, 168
applying to sales, 154 on a check, 183
multiple taxes, 151 on credit card charge, 188
non-taxable single activities
customers, 155 entering time for, 245
items, 155 software requirements, 11
sales, 155 Sold To field for cash sales, 90
out of state sales, 153 sole proprietorships, 226
payable register, 157 sorting
paying, 157 chart of accounts, 66
preferences, 284 lists, 50
QuickReport, 157 report columns, 255
rates sounds, preference for, 275
changing, 152 speed keys, 352
setting up, 150 split transactions
reimbursable expenses, making taxable on invoice, checks, 182
104 entering, 205
turning on, 150 recalculating, 206
unusual situations, 155 standard payment terms, 42
sales tax group items, 68 start date
sales tax items changing, adjustment needed, 32
creating, 150 choosing, 15
described, 78 gather information needed for, 16
uses for, 68 statements
sales tax payable account, 62 entering charges, 111
Sales Tax Payable register, 157 memorizing, 95
search results, printing, 209 ordering from Intuit, 326
searching registers, 207 reminder, 88
Select PO button, 188 statements, billing and reminder, 110
selecting items to include in reports, 259 printing, 113
selling viewing, 113
items, recommendations, 69 stockholders equity, 228
to out of state customers, sales tax for, 153 subaccounts
service dates, transferring to sales forms, 106 depreciation, 214
service format for sales forms, 96 lowest only, display, 278
service items moving in chart of accounts, 66
Index • 341
uses for, 63 adding, 43
using for fixed assets, 63 applying discounts for early payment, 123
subclasses, 34 for payment, overview, 308
subcontractors Terms list, 42
invoicing for, 106 thefts of fixed assets, 218
services performed by, 79 thresholds, changing amounts for 1099s, 288
specifying service item for, 70 Tiger (Mac OS 10.4), 55
subitems time
creating, 83 combining activities on invoice, 106
using, 83 displaying in decimal or minute format, 275
subtotal items displaying portions of hours, 275
creating, 76 invoicing for, 103
uses for, 68 transferring service dates to sales forms, 106
subtotals time tracking
changing in reports, 257 activities, single, entering, 245
using with tax line items, 154 billing status, making time billable again, 247
synchronizing contacts, 55 preferences, 242, 285
single activities, entering, 245
T timesheets, filling in, 242
turning on or off, 242, 285
“T,” printing next to taxable items, 284
timesheets
tax
filling in, 242
changing year, 292
tips for businesses that invoice for costs, 79
exemption ID, 153
titles
sales, 147
customizing on sales forms, 92
amount owed, 156
graphs, 270
applying to a sale, 154
To Do list, 46
applying to shipping and handling, 156
to do notes, adding, 47
assigning to customers, 152
toggling list views, 52
credits or discounts from tax agency, 156
toolbar preferences, 196, 289
customers exempt from, 153
tracking
group items, creating, 151
inventory, 139
items, marking taxable, 153
retainers, 126
liability report, 156
sales tax, 147
line items, calculating with, 154
sales, by job, 89
non-taxable, 155
transaction history
out of state, 153
accounts payable, 178
payable register, 157
accounts receivable, 161
paying, 157
Transaction History command, 162, 179
QuickReport, 157
transaction password, 287
single tax items, creating, 150
transaction preferences, 277
turning on, 150
transactions
unusual situations, 155
audit trail, 298
tax forms
backing up, 293
1099
bill payment type, 171
categories, associating accounts with, 288
calculating amounts, 13, 205
preferences, 288
deleting
threshold amounts, changing, 288
in a register, 207
turning on, 288
warning when, 275
cash vs. accrual, 308
depreciation, 215
tax line items, using subtotals with, 154
earlier, adding, 234
taxable items, printing or hiding "T"s, 284
editing
technical support
in a register, 206
phone numbers and Web sites, 326
warning when, 275
saving a call, 325
entering in wrong account, 207
templates for estimates, 118
filtering on reports, 259
terms
historical, 27
342 • Index
importing, 191 deleting, 41
memorizing, 44 discounts for early payments, 171
recalling preference for, 275 keeping notes about, 40
split, see split transactions merging on Vendor list, 52
splitting, 205 payment terms, 42
voiding, 207 QuickReport, 179
transferring money from Opening Bal Equity, 230 setting up, 19
troubleshooting viewing
bills, 173 accounts receivable, 159
QuickBooks problems, 325 balances for balance sheet accounts, 61
sales, 119 balances for income and expense accounts, 62
turning on purchase orders, 200
estimating feature, 279 voiding
time tracking, 242, 285 sales, 92
types transactions, 207
customer, 38 voucher checks
job, 38 printing bill numbers on, 166
of items
defined, 68 W
on purchase forms, 69
warnings
restrictions on changing, 85
check numbers, duplicate, 282
transactions
invoice numbers, duplicate, 281
bill credit, 173
preferences for deleting transactions, 275
bill payment, 171
preferences for editing transactions, 275
vendor, 41
Web Connect, 191
what’s new in this QuickBooks version, 12
U Windows, QuickBooks for, 311
unapplied amount in Receive Payments window, 124 writing estimates, 115
Uncategorized Expense account
adjusting at setup, 24 Y
Uncategorized Expense account, when created, 63
year-end net income, adjustment to, 224
Uncategorized Income account
adjusting at setup, 24
when created, 63 Z
undeposited funds zero amounts on reports, 259
bypassing, 128
holding customer payments in, 128
Undeposited Funds account, when created, 62
under-billing alert, 89
unearned income, prepayments by customers, 124
unmatched transactions, 195
upgrading, 12
user’s guides, ordering from Intuit, 326
V
value, adjusting inventory, 144
vendor costs, passing through, 106
Vendor list, 39
Vendor Type list, 41
vendors
adding, 39
applying credit to pay bills, 173
credit with, 173
credit, transaction history of, 178
current balances, 39
customized fields, adding, 40, 49
Index • 343
344 • Index
QuickBooks Keyboard Shortcuts