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Monthly Archives: November 2010

How to Track and Apply Customer Deposits in QuickBooks

Hi. Thanks for all your help. I sell used cars. Customers come in and ask me to go to auction and buy them used car. But, I ask them to pay 30% of the price of the car they say can afford. I am asking you to tell me how I can record the deposit and how can I make deposit show on the invoice I am going to give the customer when he comes to pick the car.  In other words I want it to show on the invoice as an item so that when I bill a customer he/she can see it there on the invoice. The other method I know of customer>receive payments> does not show deposit on invoice. I appreciate in advance for the help.
Start by creating an Other Charge item mapped to a Current Liability account.  Call the item and account something like “Customer Deposits”.  Use the item on the invoice or sales receipt when you receive the deposit.  To apply the deposit, enter an invoice or sales receipt for the full amount of the sale and then add a line using the customer deposits item with the amount of the deposit as a negative. This will bring the amount due down to what’s still unpaid and show the customer deposit on the sales transaction.

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This article is provided for informational purposes and is not intended to be construed as legal, accounting, or other professional advice. For further information, please consult appropriate professional advice from your attorney and certified public accountant.

Ruth Perryman - QuickBooks Specialist Written by +Ruth Perryman

Ruth is the an Intuit Premier Reseller that offers great deals on QuickBooks POS and QuickBooks Enterprise. She has provided expert QuickBooks help to thousands of businesses all over the world since 1996.

Visit our webstore for great deals on QuickBooks and QuickBooks POS!

How to Email a Memorized Invoice in QuickBooks

When I do memorized invoices, and I want them to be emailed out, and I set it to generate the invoice 3 days before the first of the month… Is that when it is going to be emailed, or will it be emailed on the date posted, which is the first of the month?
It won’t be sent until you go to File > Send Forms and send it.  Just make sure the box next to To be e-mailed is checked or it won't show up on the list.

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This article is provided for informational purposes and is not intended to be construed as legal, accounting, or other professional advice. For further information, please consult appropriate professional advice from your attorney and certified public accountant.

Ruth Perryman - QuickBooks Specialist Written by +Ruth Perryman

Ruth is the an Intuit Premier Reseller that offers great deals on QuickBooks POS and QuickBooks Enterprise. She has provided expert QuickBooks help to thousands of businesses all over the world since 1996.

Visit our webstore for great deals on QuickBooks and QuickBooks POS!

Why Not Fix it wth a Journal Entry in QuickBooks

Re: this question:

“Hope you can help me with the problem I am having with QuickBooks.  I started working for this company before 3 weeks as a Bookkeeper/Accountant who uses QuickBooks Pro 2010 and have Cash Basis Accounting. I am new to QuickBooks, when I saw their balance sheet they had a big A/R negative balance, the reason being they don't create invoices in QuickBooks, they have another system where they generate invoices. What they do in QuickBooks is charge Credit cards. So when they are charging credit cards (Receive Payments) Undeposited Fund is debited and A/R is credited. And when the deposit is cleared it goes Bank DR. and Undeposited Fund CR, so there is a big chunk in A/R that is accumulating which now needs to be cleared. Please can you advice how about can I clear the A/R. The bank reconciliation is up-to-date till October 31, 2010.”

Why can't the person simply make a journal entry debiting A/R and crediting the appropriate revenue account? From the info in the question, there has been no revenue booked yet… Or, am I missing something?

A journal entry is not the answer for several reasons.  The proper flow for invoicing is to Create Invoices and then Receive Payments.  This user skipped the Create Invoices part and went straight to Receive Payments, creating a negative A/R balance for each customer because there was no invoice to apply it to.

Fixing it with a single journal entry isn't possible because QuickBooks only allows one A/R or A/P account per journal entry.  So you'll have to enter separate journal entries for each customer.  Worse, using journal entries will actually cause more work because you’ll have to go back into each payment to apply it to the journal entry you created.  Since you have to do them one at a time anyway, it’s much easier to just create the invoice and apply the credit right on the invoice. 

But more importantly, QuickBooks works much better with transactions.  For instance, journal entries aren’t going to show up on your sales reports because they’re based on sales items and you can’t enter items on journal entries.  Of course, you can modify your reports to include them but now you've introduced unnecessary complexity to the fiie.   

For this reason, I recommend avoiding journal entries unless absolutely necessary and never ever using them to replace a transaction.  They should be limited only to non-transactional entries, like depreciation or prepaid expenses, and even then if you are doing job costing you’ll need to do a $0 transaction instead because most of the job costing reports are based on items.


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This article is provided for informational purposes and is not intended to be construed as legal, accounting, or other professional advice. For further information, please consult appropriate professional advice from your attorney and certified public accountant.

Ruth Perryman - QuickBooks Specialist Written by +Ruth Perryman

Ruth is the an Intuit Premier Reseller that offers great deals on QuickBooks POS and QuickBooks Enterprise. She has provided expert QuickBooks help to thousands of businesses all over the world since 1996.

Visit our webstore for great deals on QuickBooks and QuickBooks POS!

How to Merge Duplicate Vendors in QuickBooks Point of Sale

These emails have been very helpful!! Thank you. In regards to the last email you sent regarding the vendors, I now have duplicate vendors in the QuickBooks Point of Sale system. Should they be merged before merging vendors in QuickBooks, or does it matter.
It’s usually easier to do it from QuickBooks Point of Sale.  Go to I want to…, select Merge Vendor, and when asked to remove the vendor in QuickBooks select Yes.  Try to do any future vendor changes in one program or the other, but not both.

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This article is provided for informational purposes and is not intended to be construed as legal, accounting, or other professional advice. For further information, please consult appropriate professional advice from your attorney and certified public accountant.

Ruth Perryman - QuickBooks Specialist Written by +Ruth Perryman

Ruth is the an Intuit Premier Reseller that offers great deals on QuickBooks POS and QuickBooks Enterprise. She has provided expert QuickBooks help to thousands of businesses all over the world since 1996.

Visit our webstore for great deals on QuickBooks and QuickBooks POS!