Quickbooks Desktop 2024 Basic to Advance Training Course

1. Quickbooks Desktop Course Introduction: Hello, everyone, and welcome to QuickBooks Desktop 2024 training. My name is Sad and IPO guide throughout this course. So this course covers all the aspects of Quick books from basic to advanced. First of all, we will understand the key differences between QuickBooks Desktop and Quick Books online. And then I will teach you the complete Quick books with all the features by using the practical company assignments. We will be working on trading company. We will be working on manufacturing Company, and we will also cover all the advanced areas such as cost centers Reporting, bank reconciliations, and each and every aspect. During the training, if you want to recommend some additional topics that you want to learn, you can comment down below and I'll try to include that as soon as possible. By the end of the course, we will completely navigate through the QuickBooks desktop with confidence. We will cover all the tools that is required to efficiently work on Quickbooks. With this said, let's move to our first topic, and that is difference between QuickBooks desktop and QuickBooks online. 2. Difference between Quickbooks Desktop and Quickbooks Online: Now, before actually starting the training, we can see the comparison of both of the versions of software. That is QuickBooks testo version versus online version. We will compare it and see the key differences, the advantages, and disadvantages of both of the version, and in which situations, one version is suitable over the other. There are different situations where the user might prefer different things, let's see the comparison. First, we will talk about the QuickBooks test of version and some of the key advantages of it. The first one is that it is a one time subscription. Now, the one time subscription doesn't mean that you will pay for a lifetime subscription. It means that you can use it for a complete year in a single one time subscription, and that comes with the multiple users and even with the option to use it on multiple companies. Let's say that you are a business owner and you own more than two companies, more than one company. You can use the same software with the same user licenses for multiple companies. But for QuickBooks online, you might need the different license to open a separate company. So this is the benefit of it, and in some cases, you can buy it for multiple years of subscription as well, and you will definitely get some discount on any kind of live s subscription, five year subscription plan. So that all can be availed in QuickBooks test of version. Second point is one for multiple. That means one software come with multiple licenses, and you can buy anywhere between one user license up to 300 user licenses. So obviously, when the user licenses increase, you might get some benefit on the overall cost because it's a yearly subscription, and it also has the option to open many companies. So in that case, it will be beneficial as compared to the costing of Qi Books online. But again, it depends because if the company size is good, then only it is cost effective for the company. But if the company is very small and has the basic functionality, then, according to the costing, QuickBooks online might be suitable, even if you are paying the monthly subscription, it is still cost effective. So that all depends on the situation. Now, let's see the next point, and that is the advanced features of Quik books. Now Quik Books Testop offers some tremendous features that is very advanced. If you talk about the advanced inventory features, if you talk about the job costing, class wise accounting, and even adding custom fields to different parts of Qi books like if you want to add a custom field in an invoice in a receipt, and then you want to filter the reports according to that custom field. For example, if you are selling the items by color as well or by size as well, large size, medium size, and small size, then you can add that field if it does not exist by default, and then you can customize and see the profit and loss account according to that particular field only. This is very good analysis, and it has by default many reporting options, and you can also customize some more, which is much better than you have in Q Book's online version. Again, the fourth point is related to the third point and that is about advanced reporting. It by default has many advanced reporting options, but you can also add some more by customizing the existing reports. These are some of the key advantages of Quickbooks Testop. Now let's see some of the disadvantages of the software. Now one of the key disadvantage is that the bank sync option is not very effective, and even if it is effective in the latest versions, it's not very cost effective because apart from the normal subscription, you have to buy the Bank sync separately. While in QuickBooks online, it offers it by default, so you just have to connect with your bank and it automatically transfer the transactions into the software. So that's make it very easy to, you know, analyze and reconcile the transactions, which is not the case in QuickBooks desktop. If you want to use this features, you have to buy the addition subscription for it. The next point is, which is a disadvantage that you have to wait for the new releases. That if you want some new features and you've discussed with QuickBooks or they have announced that they will introduce some new features, you have to still wait for the new versions, which is released annually. They make some changes, but it's not immediately updated in the software. It's available in the latest version, and even for that, you might have to pay some subscription or, you know, additional cost. But this is a minor disadvantage, not a major one. The major one could be this one, and that is the backup location. Now, we all know that if you're using QuickBooks Desktop, either you will be working on a local company environment, You have all the users on a single location and they are connected to an Internet and a land version of it. Only then you will be able to use QuickBooks desktop on a multiple users bases. Otherwise, you need to set up a wide area network server, and then you can access that or even with the remote desktop connection. But the problem is whatever you do, the files are stored on your particular server, whatever you call it a server, and you might have your security protocols. You have installed the ND virus, you have installed the firewalls, but still it is your server. So if the PC is damaged, or let's say there is fire or theft in your premises, or even there is a virus or, you know, a hacker who deletes that files, then you completely lost that files, and you won't be able to access your accounts. Even though you can counter that by taking the regular backups and uploading on your Google Drive or your e mails, but still this could happen and which makes the huge loss for the company if they're unable to access their accounts, right. So this is a very big disadvantage. The other disadvantage is, if you're using the software on the go, and you need to connect to your accountant and see the reports by yourself as well. So whenever you want the accountant to do something, you have to transfer the file, take the backup, send them to the e mail, they restore it. And then after working, the accountant will take the backup again and send you the updated file, then you restore and check it. So this is all the hassle in Quickbooks test of version, whereas in QuickBooks online, you just use it on a browser, and just you allot a user name and password. And you can use the software on the go while your accountant can work for you as well. So just you open the browser, enter the website, or enter your login password, and you can work on the software. So let's see some of the key advantages of QuickBooks online. One of the key advantages, like I just said that it can be used online on a browser system. You don't need to install any software on your local system. You access it just like you access Facebook and Twitter or any other website. So it works totally on that, but the problem is that you need internet access to use QuickBooks online where the QuickBooks desktop be used even without the Internet access. But the benefit of it is wherever you have the Internet access, you can use it from anywhere in the world. Let's see one by one some of the key advantage and one of the most effective key advantage is what I believe is Online sync is more strong and is automatic bank fet and reconcilation options. That is great. By default Quickbooks online, direct syncing with the bank feeds, and the bank fet system means that you can directly connect to your local bank account and just transfer that particular transactions, whatever is reflecting in your bank account directly into the quick box. Basically, you can import the bank transactions from the bank directly into your software. You don't need to enter that manually. You might have to make some adjustments. And in some cases, QI Books online reads some of the banks so quickly and so good, make sure that that particular bank version is supported by the QI Books online functionality, but this functionality is quite impressive and it's automatic, and it can help you with the reconciliation process and entering process much more easier and faster. There is no additional subscription cost for that, whereas in Qi Books testo, you might need to pay some subscription. Second advantage is you have the access to the latest version all the time and automatically available. Whenever QuickBooks online team decides to make some adjustments, you immediately have the access to it apart from some of the features that are still in the development stages. You will have access to the latest features. Whenever team introduces it, you don't have to wait for an annual update. The third one is the most important. It's not only important for QuickBooks online, but for all the cloud based accounting softwares, why they are used. They can be accessed from anywhere in the world. So let's say that you and the accountant are sitting on different locations. Now, you don't need a server or an advanced wide area network connection to connect with both. Both of you can access the Data. On the browser, simply. Now, let's see some of the Quik books online disadvantages, and the disadvantages, one is, cost is more over time. Like I said, that Qui books online comes with a monthly subscription, you have to pay monthly. So over the period of some years, the cost might slightly increase than QI Books testo. And it especially increases if you are using Multiple users even more than ten on the QI books online version. Then it might be costly. But if you're a small business owner, Qi Books online is used. Like in most of the cases, the Qi Books online version is used for or by the business owners who have small nature of business or the service kind of nature of business. So in that case, they are not using multiple users and, you know, a lot of users in that version. So in that case, it might not increase. But in other case where you are using the software with the maximum functionality, the most advanced version of it, and with many users, then the cost might slightly increase then what you pay for QIPos Testop. The second thing is, if you are a business owner and own more than one company, then you might need to buy a separate subscription with separate user licenses for that other company. While in QI Books Testop you have this option available by default that you can open the multiple companies as well once you download and install the software. The third one is that again, this QuickBooks online version is good for the service business. Even though if it handles the inventory, it offers the very basic features to handle the inventory. If you're using any advanced features of inventory, then QuickBooks online might not be suitable for you. It doesn't have some features that are available in QuickBooks Testop and the most important one is handling the inventory. Especially for the manufacturing companies, QuickBooks online is totally not recommended because it cannot convert the raw materials into finished good by using the bill of material that functionality is not available in the online version. And for the trading business, it depends on if the company is using the basic inventory function, just buying, selling and keeping the records, then fine. But if they are using any advanced functionalities like cost centers like job costing, like, you know, handling at multiple locations, multiple stores, go downs, features, then QuickBooks online might not be suitable for you. And some other features like job costing, handling the class wise accounting, and many advanced kind of reportings, customer discounts handling the advanced taxation, that all versions are not meant for the QOEBos online. It is for the very simple and easy business. For all the advanced businesses, QBos desktop is much preferable. It also connects with the multiple softwares as well, the Qi Books test of version. It connects with the point of sale. It connects with the bank feeds by using the advanced functionality. It also adds an advanced inventory add on that you can attach to your QI books test of version. From the next video, we will start the training, and in next video, I'll completely guide you how you can download, install and use the latest version of QQ books that we will work on. That is the version 24, 2024. And the version is QuickBooks Enterprise version. Without wasting any time, let's get started, and let's download and 3. Understanding the Scenario: So let's talk about Zen raters. Basically, it's a company who buys and sells the car parts. Now, in this situation, let's imagine that the company was working for ten years. They started ten years back, and now they are planning to shift all of their accounts in quick books and ask you to transfer all the transactions of ten years to the new version. You will do as an implementation team. Let's say that you are providing the Quik Books consultancy, what you will explain your client in this situation. In this situation, you will advise them to close their accounts of, let's say, 2023 on December 2023, they should close their account and find the closing trial balance. And that closing trial balance is transferred as an opening trial balance in QuickBooks desktop version. So this is very simple. Just apply the cutoff procedure. Cut off means at a specific date, they need to finalize their accounts, tell you the balances, and from that point onwards, you will work on the new software. You cannot transfer all the transactions into the new software like this. So firstly, you will explain this. This is the first rule of software implementation. Just keep that in mind. Whenever you are implementing any particular software or an implementation team is working on that software, regardless of whatever software they're using, this is the rule that they will follow. At this point, I want to explain you that if you're not understanding this terminologies like the cut off the trial balance balance sheet. This is the basic terminologies that we use in accounting. If you have some confusion, you can just make a note of it, whatever terminology I used, and just Google it, you will find the explanations regarding that. So it will be very helpful for you to move forward. Although the software is not very complex, even if you have the basic knowledge of accounting, you can still work on the software. So this is the complete scenario of our first assignment where the company is trying to implement a new software, and they were working before manually. So they have to extract the closing trial balance of the last year on 31st January 2023, finalize all the balances, and then they will enter this one as opening balances in new quick books. So to download this assignment, you have the resources section with this video. Click on that and click on the assignment. It will automatically be downloaded. And then we will follow along in the next video. We will create this company from scratch and then enter the opening trial balance and create all the ledges in their balances. So let's move to the next video. 4. Creating New Company in Quickbooks: Right now that we have installed and downloaded the Quick book software. Let's open it, and let's create a new company. It will take some time to load. Meanwhile, let's see our assignment, and that is this centas. I hope that you have already downloaded the assignment. If not, I have attached with the link of this video as well. Go to the resources section of this video clip, and you will find this assignment. When you install and launch Quickbooks for the first time, you will see a complete blank screen here. Even if I want to hide this company, I can do this easily. I'll go to edit list and hide this company. You will see something like this. We have a couple of options. If you have the list of companies, you can simply open it. You can create a new company. Or you can open or restore an existing company as well. And this option is used when there's a backup copy and you want to restore it, right? And you can also use some sample companies. So basically, this opener sample company option is because whenever you want to analyze the functionality of the QoI box, obviously, you need some data for it. You need to enter customers, you need to enter suppliers and inventory items and different transactions so that you can see different reports. If you just quickly want to see the reports to see if it is suitable for your company or not, you can just try assemble company and it will be automatically entered with the data and you can directly see the reports. So let's create a new company. The first question and answer is, what does creating the company require? So this is all about what QuickBooks is providing. The second one is, who are you creating the company file for? If you're creating for yourself, I'm the Admin, select this, or otherwise, you can select for someone else. I'm creating the file on behalf of Edman. We are the admin for this company. I'll select the first option, and the other options are the same that we have seen in the starting. Let's click on Start setup. So it's asking you to sign in somewhere. I'll click on sign in later. So this screen will appear, and this is the express start area in the earlier versions of the QuickBooks. If you have used QuickBooks 2016, 2018, all of them show a express start button. After that, you will move to the screen. So this is exactly the same area. I'll just copy the company name. This is Zradis. Let's copy this. And paste it right here, and the industry, I can click on Help me choose. Now, what industry does is it will automatically create the chart of accounts according to that particular industry. So for example, I have the advertising business, so it will automatically create these accounts. So this is some of the suggestions that this accounts will automatically be created if you select this nature of business. So if you are sure about your business and it matches the category here, just choose that category and move forward. It will help you a lot to create the chart of accounts. If you're not sure, you can just scroll down to the bottom and click General Product based business, or if you are a service, then click on service based business. So let's click on General Product based business, because we are a trading company, selling and buying car parts. So let's click Okay. Business type, we will select sole proprietorship, but you can choose whatever is suitable for you. Admins email. This one field is also required before it was not required. So let's mention something. You can mention the employer identification number, phone number. Rest all is pretty basic. You can fill it by yourself, and let's create the company. So then it will ask you to participate in the UI and analytic study, click Cancel. So now it shows you this message with the main screen that your QuickBooks is now up to date, and you are good to go. So our first company is created in QuickBooks, and this is the main interface of the software. So that's how you create the company in QuickBooks. Let me quickly show you one thing more, and then we will move to the next video. I'll just go to the file, and whenever you want to close the company, just click here. Now, I wanted to show you something, then that where this working files or QuickBooks live files are coming from. Obviously, we have just created the company, we haven't take any backup right. This is running in the real time. Where are this QuickBooks working files placed. You can see the location here. Whenever you want to see the particular location of the company files, you can just choose the company and see the location here. What you can do is you can go to the exact path to find the company files. But as we can see that, I am trying to find it here, but if you can't find it in documents, then you have to follow the complete path. That is S users, and it's under public. I've created a user of Sa Nadim So that's why it's showing nothing in the documents. So I have to go to the public and public documents, and here I can see the into it folder, then QuickBooks, then company files. And here is my company file that I just recently created. So that's how you can locate this Whenever you want to place it somewhere else, besides C drive, you can move it from here and then run it again. Let me show you how that is done. For example, you don't want to keep all of your working files or main files in C Drive, rather you want to keep it in Drive. I only have one drive here, so we will only see an example of it. I'll paste it right here. Now, what I can do is I can just hide it from here, so it will be cleared completely, and now I can allocate it to a new location. Whenever I want to access it, I'll just go to that particular location, where the life files are, and just load it directly from here. And this is a one time process. Once it's loaded in Qui books, then the destination or path will change automatically. I'll show you. So we can see that the company file is open. But let's close this and see the new location. Now we can see the altered location. It's coming from the D drive under the Qui Books Live files folder. That's how you can change the destination, and that's very important to keep your file safe, and that's the number one priority if you're using the testo base version. Practice it one by one, check out and explore all the options and then move to the next video. This is the exact sequence that you will follow. You will just see the video, practice it, and then move to the next video. Only then you will get the real time learning experience. 5. Creating Ledgers and Opening Balances: After creating the company, the next step is we will understand about the interface of the Qui book, and at the same time, we will enter some ledgers. So here we are on the home screen. QuickBooks has the simplest interface which a layman can even understand. You don't need to be an accountant to understand the Quickbooks interface. It's that simple. So on the top, you have the vendor section, although we can't see all of the options right now because we need to enable some of the features, that I'll show you in future. So we have the vendor section on the top. We have the customer section here. We have the employee section, company section, and banking section. So there are five different sections, and it's the same for all the versions. So even if you're not using QI Books 2024, in your organizations, the QI Books 2016, 2018, all have the same options. And what these lines are indicating, that indicates the flow of the company operations. For example, first you enter bills and then pay for bills. Also, when you purchase the item from the vendors, only then you can sell it to customers, and then you receive the payment and then you record the deposits in the bank account. So it's showing the order flow of the accounting. So this is all about the home page. Right now, we don't need to make any changes or enable anything. Because to make things crystal clear, we will just follow our assignment. Whatever is in assignment, we will follow that flow only, because this is the practical example. Let's suppose that this company has implemented or is planning to implement QuickBooks. And like I said, it's not possible to transfer all of the records from last ten years to QuickBooks. Rather, you will close the account manually. As a closing trial balance, and then make an opening trial balance or make an opening balances of each ledger and then place it in QuickBooks. So our client has done the same. It has compiled for us the opening balances as of January 1, 2024. So these are all of the ledges. So let's enter, and we will start entering not from here. We will directly started from here. Now you might be asking why? Because receivable is also an account and it's 150,000. Sure. But all the receivable vendors and inventory is the total balances of all the customers. So whenever we enter the customers like we enter here, we have three customers right. So the balances, if we compile all of these or enter the individual balances of customers, it will automatically update the control accounts. So this balance will automatically be updated right. Same goes for vendors and stock. So let's enter from here, landed buildings. This is fixed asset. Now, it says landed building here, but now the rules have changed. You cannot enter the land and buildings together because each of them has separate depreciation rules. So just for the sake of example, let's copy this. And I'll go to the chart of accounts. And like I said, we have created a product based business right. That's why we have a lot of accounts here, and that's good for us. We can simply change the name of any. So, for example, if we don't want furniture, let's say we have furniture or not. No, we don't have furniture. So what we can do is either use this one, just simply right click and click on edit account, and then you can just simply change the name and put the balances. But if you want to create a new account, you have to go to the bottom area where it says account. Click on this dropdown, and it will show you these options. Do you want to create a new account, edit account, delete account, and you also can see the short keys here. So let's say I want to use it on short keys. So I'll press Control N here, and here is the area for the account creation or ledger creation. So here we have different categories and Quickbooks guides you very well in these categories. For example, I want to create a fixed asset account, but I don't know what we can enter in fixed asset. Whenever I click on fixed asset, it will show you the complete description of it. That what is fixed asset drags the value of significant items that have a useful life of more than one year, such as building land, machinery and equipment and vehicles. Even though if a person is not an accountant and he is asked to create a ledger, he can easily do that. Same goes for all the other things, what we can create in bank, what we can create in other current assets, especially the people have confusion in other current assets and other assets. So I will show you what can be entered in the current assets and what can be entered in the other assets. So it's very cool. Okay, let's continue. Let's select the first ledger and continue. And here is the name of our asset, and this is and end Buildings. Let's copy and paste this. You can write the detailed description about it, and you can also create some categories. We will see that in future. So let's say and end buildings at cost at cost or whatever. You can put additional notes. You can map the text line mapping. We will see this options later. The taxation options, we will explore it later. So I'll click on the enter opening balances. And the first balance is of 850000. I'll just copy and paste it from here. And let's write first of January 2024. Now, it's very easy. I'll write here 0101, and it will automatically pick 2024 if you are in 2024. Otherwise, you can put it 0101, 24 or 25, whatever. So press tab, click Okay. Then save and new. Now it says this transaction is more than 90 days in the past. Obviously, right now we are in the 24th, May 2024. So it's a balance of the past. It's just indicating that is it a mistake or you are intentionally doing it. If we are intentionally doing it, we will click yes, but we can also disable this option so that it won't disturb us in future. Let's click yes, and let's see how you can disable this. I'll go to the edit end preferences, and I'll go to accounting and click on Company preferences. And here you can disable this date warnings. On if the transitions are 90 days in the past, no. On if transitions are 30 days in the past, no. 30 days in the future. All right. Now let's continue our working. Our first asset is entered. Now, the second one is the accumulated depreciation of land and buildings. Now the accumulated depreciation of land and building is a negative asset. It's a reduction in asset. You might be thinking that depreciation is an expense. Obviously, it is an expense, but the entry of depreciation is, according to the international accounting standards is depreciation, you charge as an expense, and in return, you reduce the asset. Before it was used to be the same account with which you will credit the asset, but now you will record a fixed asset nature, but with the negative balance. If you have some confusion about these rules, what you can do is just write the standard treatment of accumulated depreciation of land in buildings, and you will get the complete article on it. So this is a contra asset. Okay. Let's copy this, and let's again create a new account, Control N, fixed asset, continue, and here we will paste this. And since it is a negative balance, entering opening balance. I'll click on entering opening balance. And since by default, the asset nature is positive, but we have to record it on the credit side, on the other side. So that's why we need to not only put the balance, but also put a minus sign with it because it's opposite in nature. And it's off first of January 2024, first of January 2024. Everything looks good, Save and close, or we can click on Save and New because we have to create some more ledgers. Similarly, motor vehicles, let's copy and paste here. You can put the description and entering opening balances. Let's copy and paste this balance. First of January 2024 and click Okay, Save and new and accumulate deption of motor vehicles. Let's copy and paste. But if you're not able to copy and paste, you can write it manually here, and it's also of First of Gener. 2004. Now, I'll just fast forward the process and enter two more machinery, 290001st of January. Okay, Save and new. Accumulated depreciation of machinery, enter opening balances, 58001st of January 2024. Now, we need to put a minus sign, right? Click, and save and new. Now, I'll also show you if you made any mistake, how you can correct this, but that you can find in the next video. In this video, we will just quickly enter all the ledges and their balances. The next one, we have cash. Now, where we can enter cash. We will enter it in the bank because the nature of cash and bank is the same, and that is liquid asset. If you're not sure about it, you can again go to new area and you can select the bank. It will tell you here that bank account nature is used for petty cash, checking account, saving account, money markets, and more. So let's click here. Continue. And I'll write here cash. Put the balance, and the balance is this and first of Gener, 2024, click Okay, and save in New. Now, the next one is standard Tarded bank. So this is the balance. Enter opening balances. Put it here. First of Gener, click Okay, save in New. Next one is an other bank. Let's quickly enter this. And we are done, click, Sven new. Now the next one is the capital invested, but we will not enter this balances. This is not actually the capital invested only. This is the net owner's equity. So this is 4,800,000, but we will not enter this balances. Why? Because there is an accounting equation with says, asset is equal to capital plus liabilities. That means if you turn the equation to the other way, should mean that equity is equal to asset minus liabilities. That means if we enter the asset and we minus it from the liabilities, it should automatically calculate the net owner's equity. And that's exactly what we are doing here. When you enter the opening balances, you don't enter the income and expenses because that's already finalized in the profit and loss account and included in the balance sheet as a capital or retained earnings, right. So only the opening balance consist of asset liabilities and capital. Capital is equal to asset minus liabilities, this should be the net balance automatically. When we enter all of this, it should come automatically. So let's leave it right here. Now the next one we have is accrued expenses, and it says it's expenses, but this accrued expenses is actually a liability. Now, what is the accrued expenses, if you don't know? Accrued expenses is basically if the company has incurred any expense, that is due in this particular month, but haven't been paid yet. So for example, your salaries, if you're in the month of, let's say March. So company hasn't paid you salary yet, but they have to record the expense in that particular month. So how they will record it. Obviously, they will record it as a salary expense debit. And since they haven't paid anything yet, but it's due. So they will credit the liabilities or accrued expenses. And whenever on the next month, say you get the salary by fifth of next month. So on the next month, they will debit or reverse the accrued expenses with the same amount and then credit cash. So the accrued expense area is used when you want to record the expense or income. In that particular month, even if you haven't paid or received the cash. If you want to research more on it, you can search for some articles, and you will get the complete understanding of it. So I'll choose the other current liabilities from here. Actually, let's see what category is suitable for us. So let's choose the other current liabilities first. So it says sales tax security deposits. These are other current liabilities. No, it's not suitable. Now let's see the suitable category for it. Accounts payable, just consider that accounts payable is only used for vendors. Which you are buying goods that you sell. So it's not suitable. Other current liabilities, that could be suitable because this is a current liability. It will be cleared immediately in the next month. It's not a long term liability, so this is perfect. Other current liabilities. Let's write copy and paste accrued expenses. Put the balances here, 68539. Now, the ideal way of selecting the balance, if you're using the PDF form, I'm using it by default on edge browser. So what you will do is just double click here, and it will only select the balance like this. Just double click once. If you try to select like this, it will not select it properly. Just double click anywhere you want to copy. So the balances of First of January 2024, let's click Okay, and click on Save and Close. As we are done with all of these balances, Save and close. Now, only these balances are remaining one like 50,000 for debtors, three like 50,004 creditors, and 900,000 for stock. And at the end, this balance should automatically be updated. That's it, guys. Now, I recommend you to stop at this point T and follow the assignment, and follow each single step, enter all the balances one by one. Just take the printout of this and follow it one by one. Only then you can gain the complete understanding of the software. So enter all the balances up to this point, and then I'll see you in the next one. 6. How to Edit and Delete Ledgers In Quickbooks: Now let's go to chart of accounts again, and let's see one example. Let's say that you have entered an account by mistake. And then you want to delete it. For example, I told you that you don't need to enter the receivables. If you have entered it by mistake like this. Let's say I have created an account, and I categorize it as other current asset. And then I have entered accounts receivable. And I have accidentally post the balance as well. As of first of January 2024, and save and close. So after that, I realized that oh, this should work as a control account. That means that if I entered the individual customer details, it will automatically update. I don't need to enter that. So now that I have realized that I need to delete it, right? So how will we delete the ledger in QuickBooks? If we try to right click now and click on Delete account, won't allow us to download, I will show you the problem that Qibooks cannot download in this account because it has a balance in it. So it's a security feature because every single chart of accounts is associated with a lot of transactions and ultimately affects the financial reports. It will not allow you to delete like this. It will ask you for the second confirmation that you are not doing it by mistake. You genuinely needs to delete it. So if you want still delete it, what I'll do is, I'll just open the account, double click on the account and open the individual entry. For example, this one, I'll just double click on the type or anywhere, and then I want to delete it, right? Now, I cannot see a delete option in front of the screen. So what I'll do is just right click and click on delete deposit, and click Okay. That's how you delete it. Now close. Now since the ledger is blank now, there is no transaction. Now it will allow you to delete the account. Click, Okay. So this is how you delete the account. Let's see an other example. Let's say that you have entered the land and buildings balance. And then later on you realize that I should enter Landen property, for example. So if I want to edit the name, if I want to edit the date or the amount. What you can do is just right click here and click on Edit account. And I can change the name from here. Let's say anden property. I can change the balance from here. I need to change it to. For example, I've entered 850000. Let's say if I wanted to enter 85,000, I can change it from here, I can change the date from here, and then save the changes. Let's see. It will again show you the prompt t QuickBooks, let you delete this, but it's not a good idea. You should not change the transactions according to accounting right. You should pass the reversal entries and all. So if you want to ignore this, click yes, and that's how you make the changes. Let's say yes. And now the legend name and the amount has changed. Now let's change it back, right click added since it was landed building by default. I'll change it back to the original one, and let's increase the value again and record and click yes. Guys, this is how you can delete the ledger and edit the ledger in QuickBooks. 7. Entering Customer Balances: Now we have entered most of the balances, but we have these balances remaining debtors, creditors, and stock. So as I told you that this is updated as a control account, if you want to update the receivables automatically, you need to enter the customers. So the next step is entering the customers and the balances of it. So to enter the customers, I'll just directly click from here on the customers tab. Will take you to this customer section. And from here on the top corner, I can enter the new customers, or I can add multiple customers if I have hundreds of customers, right? So but that's scenario I'll explain to you later where we will import the data from Excel sheets. Right now, we will just see how you can enter a new customer. So I'll click here, and I'll go to the new customers. Also, we do have a short key here and it is highlighted, so Control N will be the short key. So let's try it as well. So this is the new customer area. I'll enter the customer name, enter the opening balances, and put the opening date here. And then you can enter the rest of the info here in the address info. So first customer is Bashir. Opening balance is 50,000. Let's copy and paste that. This is as of first of January 2024. Now, this address info, it's pretty basic information. You can do it by yourself. You just have to enter some further details about the customer. Their company name full name, job title, any primary or secondary phone number, e mail ID. And you can also specify the address details if you want to invoice to a specific address and then ship to a specific address. You can do that. You can enter the payment details, the credit limits price level list, but this is what we will see later on. First of all, in this customer, we have just entered the customer name, balance, and the date. Click. Okay. Now let's enter the new customer again, and the new customer is Abu Baker, 60,000 as of first of January 2024. Okay. Then new customer again, this one is Mbac Copy and paste here. Copy and paste the balances, and the opening date is first of January 2024. Let's click, Okay, this is how you enter the customers. In the next video, I'll show you that if you've made a mistake in the balances of the customers, how you will edit that, just enter these customers and their balances and I'll see you in the next one. 8. Making Corrections in Customer Details and Balances: Now we are going to see a scenario where we will create a sample customer, and we will put some transactions, in fact, with the wrong balance, and then we will try to edit it or delete it. And you will understand the whole procedure behind it, that if you've made any mistake in the customer or you want to delete the customer altogether, how can we do that? So I'll go to this area, new customers in job and click on the new customer. And here, let's say sample customer. And let's say that instead of 20,000, I have put 200,000 as a balance. And also the date is wrong. So I accidentally entered it. Now if I want to delete it, I rightly can delete, but can we delete it like this? No. Because it will show you the message that QuickBooks cannot delete this because it has a balance in it. So Same case, you can make it inactive, but you cannot delete it directly. Now, what if I want to delete it? Can see on the right hand side, you have all the transactions associated with this customer here, so you can see the transactions, you can edit or delete the transaction, and only then you can delete the customer altogether. So if you cannot see on the right hand side, maybe a transaction is set to something else. You need to change it from, let's say estimates or sales order to all transactions. And also, you can adjust the date to all dates if you are still unable to see that. Now, let's say I want to delete it. So I'll just double click here to open this invoice. If you want to just adjust the balance, you can simply adjust the balance like this. And let's say I want to put it first of January 2024. I only wanted to correct the date and the balance. That's it. So I can save and close this way, and yes. So the balances are fine. But let's say that I have entered the wrong customer altogether. So I want to get rid of it. What I'll do is just open the invoice again, delete the invoice first, and then you can delete the customer and click Okay. This is how you can edit the details of the customer, make some corrections or delete the customer altogether. 9. Entering Vendor Balances: The last video, we have entered the customers and their balances, but I haven't shown you the control account total balance, so I'll just head over to the home tab from here and click on the Chart of Accounts. So click here. Now, let's type A on the keyboard. You will directly go to this account receivable. And if you check the balance, it's 150,000. So if we double click on it, you will notice that it's coming from the opening balances of the individual customers. That's great. So this is how it's automatically updated. Now, let's do the same for vendors, and we only have two vendors, and the procedure is exactly the same. I'll go to the vendors, and let's quickly enter the vendors. First vendor is Daniel and the balance is 100,000 as of first of January 2024. Let's click. Okay. We have shy there and the balances, 250,000 as of first of January 2024. Now, don't worry about the payment details tax settings and all. We will see it in the later parts in the frequently asked question section, where we will cover all the other scenarios of the Qi books. Right now we are just following our assignment. Also, I just want to keep it super simple. Even the people who have no previous knowledge of Q books can easily grasp this. We will see all the advanced features later. Let's click. This is how you can enter the vendor balances. Now, the corrections method is the same as we did for the customers. I'll just go to the home tab and check the accounts payable balance now. Let's write A here. Let's type A again, and we should be able to locate accounts payable. This is it. 350000 is the balance, which is the total of Danial and Shaheed individual balances. Guys, this is how you can enter the customers and the vendor balances. Now are both the debtors and creditors are updated in the trial balance. Now we just need to enter the stock, which we will see in the next one. But For now, you need to complete all of this before we move forward and I'll see you in the next one. 10. Entering Opening Inventory Balances in Quickbooks: All right. Now that we have entered all the details of the debtors and creditors, let's see how we can enter the stock details in QuickBooks. We have the opening stock of 900,000, which is equivalent to this four items. We have the Croll windscreen in stock, we have civic head lights, Suzuki wheel cups, and rear lights. This is the quantity at the opening, and this is the rate which makes the role of 900,000. How do we enter this opening inventory in QuickBooks? Let's see. So to enter the opening inventory, I'll head over to this section which says item in services, click on that. And at the bottom, you will see this item area where you can create the new item. You can also use the short key of control n. So if we press the control n key, we will see this area where we can create the inventory item. But I want the inventory part type here, which is not available at the moment. We have the service item, non inventory part and all. We cannot see the inventory part. That's because when we started the company, it automatically start it as an express start, and at that time, it doesn't enable the inventory by default, so we have to manually enable it. But that's very simple. I'll just head over to edit and click on preferences. And from preferences, I'll go to items and inventory, go to company preferences, and here I'll click on inventory and purchase orders are active. That's very simple. I'll go to edit preferences, then simply select the item inventory, and then straight away, go to company preferences and select this. Once you select this, click. Okay. Now, if you see the error at that time, maybe that you have opened the item screen. So you have to first close that. Let me show you this. Let's say that you have opened this and you haven't closed it. If I now try to go to item services and enable this, you can see this error, which means that you cancel this preferences, and first, you need to close this green. Only then it should work. And that's not only for the inventory configuration that goes same for all the areas of QuickBooks. So I'll go back to edit and preferences, go to company preferences, and then click on. Inventory and purchase orders are active. Click Okay. And it will say that QuickBooks must close all the open windows to make the changes, click Okay. And then we will manually open the home tab again. Now we can see that we have some further options right here. So let's go to itemin services again and create the new item, and now we can see the inventory part here. So Corrola windscreen is our first part. I'll just copy and paste the name. I can define the subcategory and manufacturer's part number, whatever. And we can also choose the category here. So let's say the category is car parts. We can define the subcategories, but let's keep it simple. Corrola windscreen. Okay, now we have to define the unit of Myer. So let's enable it, and it's asking you if it is a single unit of Myer or multiple unit of Myer. I'll select single because we are buying and selling in the same mere mean. Multiple is used where you buy in, let's say KGs, and you sell in grams, or you buy in pack of 12, but you sell it in each or pieces. But in this case, we have a bigger size of inventory item, so we buy in single pieces, and we sell in single pieces. So pieces or each will be the single unit of Myer that we will create. Single unit of Myer per item. Let's click next, and it says count. Is your inventory is in count length, weight, volume area. I'll select count. Count is all used for each boxes, case, and all. So click next, we will choose each as our unit ofer year and click Finish. Now here you can describe the purchase description. This will be shown in the purchase invoices. Whenever you create the purchase invoices, this will show up. So it's better to copy and paste the same item name here. And same goes for sales information. Now, the cost, we have the cost here, let's copy and paste that. Deposit goes to cost of good sold account and the sales price. We don't know the sales price at this point, so we will keep it blank, but the income account will be sales. So let's choose sales here, and asset account is already selected to inventory asset. Everything looks good, but we just have to enter the on hand quantity, which is 40. So this makes the total value 2480000 as of first of January 2024. We can also set the reorder points and also create the custom fields, but that is the part for the advanced level. Firstly, we will just learn the basics. Click next. Now let's move to the next item, which is civic headlights. Copy and paste that, select the category. Now we have already created the category, so it makes it easier for us the next time. So Unit of Mayer, as you can see that we have already created the Unit of Mayer, we don't have to create it again. Now, let's copy and paste the sales information. Sales account is already selected. Inventory asset and cost of goods sold is selected. Just we have to mention the rate here. And we will mention the quantity here, which is ten. This makes up the total 2350000. So 350,000 is the total. All good. Just change the date to first of January 2024. Okay, let's say that I have made a mistake and I haven't changed the date. So what I can do now. Let's say I've already entered this. So if you've made any mistake, you will just select the item, right click and click on the quick report. Quick report. Here you can see a mini report here. If you can't see your transitions, just change the dates to all, and then you will be able to see the transction. Now, it says here 27th May. So let's change this, double click, and from here, you can change the details. Save and Close. So this is how you make the changes if you have made any mistake. Now, let's continue to our next item. And that is Suzuki heel cups. We already do have a category. Unit of my year will be each. Let's copy and paste the same for all. Cost price is 250. Sales price is zero. We don't know now. In the income account, I'll choose sales, and let's just only select the quantity, and we are good to go. So first of January 2024. So total value is 10,000. That's good. Click next. And if it asks you to check the spelling and says that this is not in the dictionary, you can add it or ignore it, whatever you want. This is the next blank screen, the final entry of inventory, car parts e. Let's copy and paste this in purchase and sales description. St is 600, sales price will be null. Income is already selected. Just we have to mention the quantity, and that is 100. This makes the total to 60,000, which exactly matches this one. So let's just change the date now. First of January 2024 and click Okay. So guys, this is how we enter the inventory. Now, if I want to see the trial balance until this point, how can we see that? Because we have already entered all of the ledges now? We have entered the receivables that is indirectly linked to customers. So we have updated the customers, which is indirectly linked to customers. So we updated the customers and update their balances, and it automatically updates this balance. Goes for the vendors, and now we have also updated the stock. So this trial balance should show the same total. So I'll go to the reports and go to accounts and taxes and see the trial balance from here. Now you can change it to all. Now we will check all of these balances, but as we can see that everything looks good apart from this area, which says uncategorized income and expenses. Actually, let's change the font size because it's look so small. So customize the report font and numbers. I'll click on change font, and let's change it to, let's say 14. Yes. Okay. Now we can see it properly. So we only need to change this one. Ncategorized income, uncategorized expenses. That is what we need to sort out. Otherwise, rest, all of the balances are good. So in the next video, I'll show you how to adjust this trial balance. 11. Trial Balance Adjustment: All right. Now that we have entered all the balances, we need to check the control account of inventory asset account, because we have entered all the inventory, but we haven't checked the balance yet. Although we can see here, inventory asset is 900,000. So if we click on that, we can see and drill down the total balances and see the individual details of it. It's very easy to do in QuickBooks. Just double click on that particular amount or the letter. So you can drill down it, and you can see all the individual transactions, and where it is coming from, it's coming from the opening balance. Also, we can check it from the home tab. I'll go to C chart of accounts, and we can see the inventory asset balances is updated here. So now let's go back to accounts in Texas and click on trial balance. Let's change the states to all, and let's actually change the font as well. Right now, this balance shouldn't be there. All of the ledges are okay, but this balances, uncategorized income and uncategorized expenses. These are extra ledgers. And if you notice that uncategorized income amount matches with account receivable amount, and uncategorized expenses matches with the accounts payable amount. Means that when we have entered the opening balance of accounts payable, by default, it entered a double entry because we all know that in accounting, every thing exists in the double entry form. So if we credited the accounts payable, there should be a debit as well. So instead of directly entering it as an opening balance equity, as a debit, it debited it in a special category that is uncategorized expenses, and same goes for uncategorized income. L et's suppose that you make the sale. What will you enter as a double entry, receivable to sales. You made a credit sales, right. So receivable will be debit, and sales will be credit. So it entered the receiv as a debit, but it entered an uncategorized income as a credit. It identified it as an uncategorized income because the account receivable was entered without any sales made. It was entered as an opening balances. So in Qi books, we have to manually adjust. Seems weird, why we need to manually adjust it. But this is how it is in all the QI Books test of base software, so let's enter the adjustment. Adjustment will be very simple. I need to remove this balances from credit. So I'll pass the entry in a debit and to reduce this entry from the debit, I'll pass the reversal entry in a credit, and the remaining balance, I'll transfer it to opening balance equity. Simple. Let me show you how. I'll go to the company and click on May Journal Journal entries. And from here on 1 January 2024, I'll enter the uncategorized income. Income was credit, so I'll make it debit to reverse it from that account, 150,000, and I'll write here opening balance adjustment. All right. And same goes for uncategorized expenses. It was 350,000 on the debit side. I'll make it credit to reverse that amount, and the remaining is 200,000, because as we all know that debit and credit should be equal in the general entries. So uncategorized income is was 150,000. Uncategorized expenses was 50,000. So the balance of that is 200,000, which should go in the opening balance equity. As of first of January 2024, let's save this and let's see the effect of it in our trial balance. Now this looks great. We can see all the ledges are now updated with the same balances as we have in the assignment, which is 547 8539. Exactly the same balance is here. The only problem is still the uncategorized income and expenses are shown here. What we can do is I can just customize the report, and I'll click on advanced settings and the display roles in columns should be to non zero only. Let's click. Okay, and now it looks great. So guys, this is how you can enter the adjusting entry, only on the opening point where you need to adjust it in the trial balance and the opening balance equity will be adjusted like this. So if you want to see the details of opening balance equity, let's double click here, and you can see all the details of the ledgers here. So now, as we have said in the starting that 4800 as a capital invested or the net owner's equity should automatically update. So this is automatically updated in the ledgers, and that's how we enter the complete opening balances of QoI Box. Now, the scenario and method will be same if you're implementing the software for any company. The basics will be same. Only the quantity of the data will be more. So just follow the same procedures and you can easily implement the software in any company. From the next video, we will start the D two date transactions because we have successfully implemented the software, and that is the basic part in the software implementation, we have to enter the chart of accounts, enter their balances. We can customize the chart of accounts, enter the vendors, customers and their balances, configure the inventory items, make all the settings, and reconcile it up to the opening trial balance. This is the complete implementation procedure. From next video, we will start the d two date transactions of the company. 12. Entering Non Trading Transaction: Now let's enter the day two day transactions of the company. And in the day two day transactions, we have two kind of transactions. One is trading activity, and the other one is the non trading activity. So the differentiation is very simple. The trading activity is anything which is connected to the main course of business is the trading activity. For example, buying the inventory item, selling this inventory item, or packaging of this inventory item, all are connected to the trading activities. Now, what is non trading activity? Paying for the office furniture? Because this is not connected to the main course of business, right? So purchasing for office furniture, the advance for rent, the security deposit for the shop, the paint and innovation expenses, all the other expenses, which is not connected to the direct trade of the business is the non trading activity. Now, just remember that trading activities are all handled in the customer supplier sections. We have the proper area to enter the invoice, sales order, purchase order, purchase, receive payment, sale receipts, enter bills, while for the non trading activities, since it is one time transactions, we are not buying the furniture every day. These kind of transactions might be entered by either journal entry, or we can even use these areas, but that depends or varies from business to business. In that case, you want to enter it by these sections. You can only enter the vendor of it if you are purchasing from that particular vendor regularly. There are different stutions, but just remember that there is difference between trading and non trading activity. Now the first transaction is purchase of furniture by giving cash. Now this furniture might be a one time transaction. We are not buying furniture for our office every day, so it's a non trading activity. What we have, we have two options here in QuickBooks. Either what we can do is some people enter it through write checks. They just enter the cash here, under the bank account, we enter cash, and under the expenses category, they will write furniture here. You can also choose the asset accounts here. Although it's mentioned expenses, but you can enter any account here. Some people prefer it this way, but some people avoid this and directly enter it through journal entry. So both of the methods are fine. It depends on your company, whatever they are following, you can follow that. Because at the back end, the effect will be the same. So let's enter this. As of third of January, the transaction is furniture by giving cash. So let's write furniture here, and the amount is 200,000. And in the description, I'll just directly copy and paste this description here. Now, to move to the second line just press tab, it will automatically show the other entry on the credit side. We just have to mention cash, and that's it. Journal entry is done. Let's click on Save and New, because the next one is also the non trading activity. Which is advance rent paid for six months by giving cash. Now, I don't know if you know the prepayments concept or not, but the prepayment it's actually an expense, but it's not expensed out yet. For example, if you have paid the advance rent for six months at the rate of 5,000 per month. Although the rent is an expense, but right now, this is an advance that is kept by your building owner. It's not expensed out yet. Only the portion of that particular month will be considered as an expense, and that's also after the month completion, not at the starting. At this point, when we are paying for six months, it will be considered as a prepaid asset. And later on when we consume that part, so only the portion will be converted to debit as an expense, and credit will be the prepaid rent. If you want to gain more information on prepayments, just search for it online and you will definitely get more description about it. This one is for fourth of January 2024, and let's mention the prepayments here. Let's write prepaid. We cannot find this one. Uh, so what we can do is just scroll down and search for an other appropriate area if we already have a ledger. No, we don't, so I'll click on Add New, and under the other types, I'll choose other current asset. And here we can also see that prepaid expenses especially mentioned here that we can categorize it in other current assets. That's perfect. Continue. Let's write here prepaid expenses, or you can simply write prepayments. Since this is not an opening balance, we are in the middle of the day to day transactions now. There is no opening balance once you have finalized the trial balance. Just remember that. So Save and close, and the amount will be 30,000 debit, and let's copy and paste the description here, press tab, and it's also done by cash, so let's mention cash here. We're done. Let's save and new. Next one we have is security deposit paid by shop taken on rent. Security deposit is what Current asset or non current asset. It's the other asset. It's not the fixed asset. It's not the current asset, it's other asset. Because the fixed asset nature is what is bought for a long term and it's not going to be exchanged in cash. So security deposit will be returned in future, right? It's in a liquid form, so it cannot be the fixed asset. Because the fixed assets are furniture and equipment and machinery, you can say, motor vehicles, It should not be the inventory part, but it should be the other supporting assets of the company. What our current assets current assets are whose nature is by default, less than one year and which is in very liquid form. Like account receivable, you need to take these balances back from the customers, but it will surely and nearly be converted into cash, and same goes for inventory. You have this inventory right now, but soon it will be converted to cash, right, so it's current asset. It's current in nature, it's less than one year. For the security deposit, it will be kept with the building owner for a couple of years, and it's only be returned when you leave the shop. So let's write here, security deposit. We don't have the ledger, so we can directly click on Adnue, and from here, I'll choose the other asset. Here it says here that security deposit paid will be considered as an other asset here. So that's perfect. Continue. And let's create a new ledger security deposit. Can we enter any opening balances here? No. It will be a one time job when we create the opening trial balance, only at that point we will enter the opening balances. Save and close, and let's now put the balances. Copy and paste the description and put cash here. So debit, security deposit, and credit cash. Save and new. And the next one we have is paint and renovation expenses for shop taken on dnt. Now it's not mentioned here, either it's paid by cash or not, but since it is a small job, it's considered as it is paid by cash. Otherwise, it would have mentioned the vended details from which we took that services. So let's consider it as cash. So sixth of January, and let's mention paint and innovation. We surely wouldn't have that. So let's choose another category. Repair and maintenance. It can be categorized as repair and maintenance. Now, remember, you don't need to create a separate account for every single expense or every single asset. If it can be categorized in a major category, then you can put it in that. Debit this. Now, let's copy and paste the description here, for tab, cash. This is also done. Let's see in new, and we have entered all of our non trading activities up til this point. From the next video, I'll show you how you can receive the payment from customers and enter all the trading activities afterwards. So just practice it by yourself til this point and I'll see you in the next one. 13. Entering the Transactions through Write Checks: In this video, we are going to see how you can use the right checks area to enter your transactions. So let's suppose that the company decides that, ok, we will enter the furniture and advance rent and all from the journal entries. But for all petty expenses, we will use the right checks area for that. Now we have already entered it in the journal entry, right. So we can easily delete that. We can remove that entry. I'll go to the company and make the journal enteral entries go to this area. L, Okay, and from the previous area, you can go back and then delete it. Let's say that this entry was entered long ago, and it cannot be fined easily like the simple back. In that case, you can just use the fine function. Just find it and write the entry number if you know it or otherwise, you can write the amount number also. Let's write the 5,000 amount. I only have one transaction. Otherwise, it would have shown the list. So afterwards, I can just simply delete it or void it. In this case, I'll just delete it. Click Okay. You can also reverse the entry if your company policy is against deletion of the entries. L et's enter it by write checks. So under the write checks, I'll select bank account as cash, and we don't have any particular supplier for this. And the expenses is comes under repair and maintenance. The amount is 5,000, and I can mention the memo here and here as well. This memo is for the overall document, and this memo is particularly for each expense. Let's say that the company policy is to enter all the petty cash expenses on a single date together in one entry. You can easily do that, and you can mention the description here in the memo. So many companies follows this method that they enter one transaction for all the petty cash on a single day from write checks. So afterwards, we will just change the date of six January 2024, every click loss code. Just click on Save and New. Now, why I click Save and New? Because by default, journal entry is already in debit and credit form, right? But if you enter it from the right ex option, you obviously need a printout to file it. So in that case, you will go to the reports. Open the transaction again, go to the reports and click on transaction Journal report. Under the transaction journal, you will see this report in the debit and credit form, and this is what you take print off. But we have the extra columns here as well. It's very easy to remove. Either you can customize the report and hide each and every single one of them, or you can quickly just drag it and meet to the other side of the column, and it will remove it. You can increase the size of the ledger you want. For example, I don't want the name. It's blank, so I'll just do it this way. So this is how you can increase and decrease the size according to your particular requirement, and after that, you can simply take the print of it and file it in your records. So guys, this is how you can use the right text features in QuickBooks. 14. Receive Payments From Customers In Cash: Now, our next transaction is of seven GR, and it says that Mr. Mobak paid all previous balance by giving us cash, and he has paid us 40,000 in cash. Now who is Mr. Mobak? He is our customer. And if you check the customer details, we have the Mback balance of 40,000. So he's clearing all of this balance. Now, since it is our customer, this kind of transaction is a trading transaction because we are receiving the payment against the inventory that we have sold, right? So under the customer section, I'll go to the received payment option. Just click on that, and I'm receiving the amount from bark. As soon as you select the customer, you will see all the pending invoices from that customer. For this one, we only have one, and that is the opening balance. If we check directly here, it will be considered that he's paying all the amount by default. So under the payment, it will automatically put 40,000. If you are receiving the partial settlement, we will enter the amount manually here, and we will make the adjustment on how under payment will be treated. So in this case, he's clearing all the balance, so just uncheck and check again to see the 40,000 here. Transaction is of seven gen, right. Let's put seven GV here. The reference number, you can write anything. Here, and we are receiving the payment in cash. So let's click on Save and New for now because I have to show you the journal entry effect at the back end. The general entry should be cash debit and account receivable credit. Let's enter, and let's go back to check the entry. Go back from here, I'll click on the reports and click on the transaction journal to see the back end effect. Now, just hide the unnecessary fields. And now it's showing undeposited funds as debit and account receivable credit. This should be cash right, but by default, Quickbooks takes all the ledges from the receive payments to undeposited funds. And that's very beneficial when you are accumulating all the checks from the customer, let's say, and you directly deposit in bank after a day or after a week. So in that case, you can easily count on that. You will see all the checks here, just directly check and deposit it as a single amount in bank. So it will be very helpful even for the final reconcilation. It's very manageable. So after that, let's say, if this is a check, you can just check it. Here, click, and deposit it in the specific bank. But in this case, I'm receiving it by cash. I want to keep it in cash, so undeposited funds to cash will be transferred, saven new. Now if we go to the previous transaction, I can see this is settled, and if we check the general entry directly from here, it will be cash debit and undeposited funds credit. That's perfect. But this option is mainly used where you have the check based transaction and you want to deposit it in bank after some days. So it's useful for reconsideration. But let's say that you own a very small business in which you mostly do all the transactions by cash, and you want to keep it in cash, you don't want the banking transactions. So in that case, I don't want it to first go in undeposit funds and then settle it separately. I just want it to directly go in cash account. You can also do that. And that's very simple to do. First of all, let's delete both of these transactions. If you cannot see the delete option on the top of any area, either right click to see the option, or you can go to the edit menu to delete it. You can also use the Control D shortcut. So let's use Control D, click Okay. This transaction is removed. We also have to remove the receive payments from here. Press Control D here, click Okay. And I'll show you the other method from scratch. So I'll go to the edit and preferences because we want to enable the option so that it will ask you to receive the payment in which account directly on the main tab. I'll go to the payments and under the company preferences, this option is checked. The use deposit fund as a default deposit to account. That means it will not ask you, it will directly put it in undeposited fund. I don't want that, I want him to ask me. Uncheck this and click. Make sure that all the open windows are closed. Otherwise, this option won't change, like I told you before in the earlier videos. Click, to make the changes, refresh the reports, no yes, Let's say, and go to the home tab again. Now, if you remember, we have completely removed that entry, so we have to enter it again. Mr. Moback paid all previous balance by cash. That's great. I'll go to receive payments, and I'll choose Mobak here, and he's settling our cash in seven January 2024, and I want it to be deposited directly into the cash. I want to deposit to cash. So now we can see a separate tab here, which will ask you to deposit to which area. So this is great. I'll choose cash here, deposit to cash and just check the amount. Now, it's showing me that we have a credit amount. I think we have deleted all the transactions. Let's choose mobi again. Sometimes you need to mention 40,000 here as well. Deposit to cash, and let's mention 102. Maybe it's conflicting it with the entry number. Once one entry number is used, you cannot reuse it, sometimes. Save it close, and now we are able to enter it. So 40,000 is settled, right. We will also take the mobaric ledger to make sure that there is no mistake in it. Let's go to the reports and transaction journal now. Now it will show you the entry we want, and that is cash debit and receivable credit. Go to the reports and click on transaction journal, and we are able to see this entry. The straightforward entry, which is cash debit and account receivable credit. If you want to print it and put it in records, you can use this one, and we are good to go. The only thing that we need now is to check the overall transactions of the customer. So just go to the customer section from here. Make sure that the Mbaric balance is zero here. Show it by all transactions, all filters, and all dates. So you should be able to see only two entries. That is one is payment, and one is invoice. So everything looks good, and this is how you can receive the customer payments in QuickBooks. 15. Entering Purchase Invoice On Credit: All right. Now our next transaction is of purchase, and it says purchase following items from Mr. Danial. That means we have a credit purchase invoice. How I know it because when it's mentioned that purchase following items on account of Mr. Danyal, that obviously means that we are purchasing on credit, and for most of the businesses by default, the purchase invoice is on credit. So to enter this, it's very simple, and Mr. Daniel is in our existing vendor. So I'll just click on enter bills from the vendor section. Just choose the enter bills. And since it is an existing vendor, just write Danyal directly here. Let's choose the date of eighth of January 2024, but make sure that the date is selected correctly, because sometimes the windows is set to month date and year format instead of date month and year. So if the date format is incorrect, it will choose the wrong date, as you can see here. I have written eighth of January 2024. But because my windows format is in month, date, and years sequence, it picks up the date of first August, which is wrong. So let's correct this. I'll just go to the bottom area, right click here and click on adjust date in time. Now, I'm using Windows 11 for it, but your option might be different, so it's more or less same. So from here, I'll go to the additional clocks, date and time, change date and time, change calendar settings, and go to additional settings. From here, I'll go to date, and we can see the date format as month date and year. I'll make it DD, M, y Y. Apply. Apply. Okay, and ok. So now let's close this. Don't save, and now let's enter bill again. Now we can see that the format is updated. Let's choose the vendor again. And now let's select eight of January 2024 and just confirm the date. Now it's spiking it correctly. So this is how you do it. Again, we don't have the reference. So for the sake of example, we will mention any reference number. By Default due days is ten days after the invoice date, and we also have some additional options. If the invoice is due in 15 days, you can choose this. If it's due in 30 days, 60 days, or the vendor is offering some discount of early settlement, like if the invoice is due to be paid in 30 days, but if we pay in ten days, we will get 1% discount. Can also be due one receipt. Eight Gener is the invoice date, and eight Gener is the payment date as well. So let's keep it net 15 days, let's say, and now we will choose the items. If you see in this area, we have the expenses tab, and we have the item tab. If you're purchasing some kind of a service, you can mention it directly in expense tab. Otherwise, if we're purchasing the inventory items, like we are doing right now, we're purchasing for our business, our core business. We're purchasing inventory for that. We will go to the items tab and start mentioning the items. First one, we have Carroll windscreen, we are purchasing Carroll windscreen, and the quantity is 20 rate is 12,000. The quantity is 20 and rate is 12,000. Now it comes by default because when we set the inventory item initially, we mentioned the cost at that point. So 240000 is the total. Next one, we have civic headlights. Let's do civic headlights, and the quantity is 20, rate is 35,000. Quantity is 20, rate is 35,000. This makes the total 2700000. Let's press tab, come to the other line, and let's mention Suzuki Wheel cups. Now, Suzuki wheel cups. Quantity is 50, rate is 250. Just don't blindly trust on the cost rates because in assignment, I'll give you some other rates as well. So just confirm the rate before entering it. This makes the total 212500, and the last item is a new item that is Suzuki filters. It's also mentioned here. So press tab. Now what we can do is we can directly write Suzuki filters here. And when we press tab, it will automatically tell you that item is not found. It is not in the list. Do you want to create it? We will click yes. And from here, I'll choose the inventory part, and the rest of the process is same. I'll choose the unit of my here. And let's mention Suzuki filters, both in the purchase description and in the sales transaction. Let's mention the cost here, which is 250. Cost of goods sold is already selected. I'll choose the income account now. Inventory as it is already selected. Now, should we mention the quantity on hand? No. This area is only for the opening point. Let's ignore this click. Okay. Now our new item is created directly from the invoice, and I'll just put the quantity and rate here. 70 is the quantity and rate since we have entered it when we configured, so it's automatically picked. Now this makes the rule 2240000 for first one, 70000012000517500. Just confirm once that everything looks fine before entering and save an new. If you have changed some terms and conditions, it will show you this prompt, L yes. And we are good to go. Guys, this is how you enter the purchase invoices on credit from an existing vendor. In the next video, I'll show you how you can enter the purchase invoices that's on credit with the new vendor. 16. Entering Purchase Invoice the Quick Way: Now, our next transaction is of nine January 2024, and it says purchase following items from Mr. Marge, and this Mr. Marge is a new vendor. So let me show you a quick method of how you can immediately enter the vendor directly from the purchase invoice. So here we are in the bills. Click on enter bill. And let's say the Marge is vendor. So if you want to quickly add it, you will just press tab, and it will show you that it's not in the list, you can click on Quick Add, but if you want even quicker, just enter it two times and it will be entered. Obviously, if you need to settle some more details or feed some more details in the records, you can close it and go to the vendor manually, and from here you will just open the vendor and mention all the details. But for quickly adding it, this is the procedure. Now, Majid entries of ninth of January 2024, 102, let's say is the reference, and build DU is after 15 days by default. Yes. It was set to ten days. I set it now to 15 days. And now let's quickly enter the items. First one, we have Carol in screen. 50 is the quantity. Rate is 12,000. This makes the rule to 600,000. That's perfect. Let's go to second line, Civic headlights, 30 and 35,000, 30 and 35,000. And the last one we have Suzuki filters. So Suzuki filters, 100 is the rate and rate is 250. So 102 50, and this makes the rule two to 25,000. Just confirm all the amounts before saving. First one is 600,000. Second one is 1050000, and third one is 25,000. A. That's perfect. Let's click on Save and Close this time. If you have changed some terms, it will ask you for the confirmation, Let's click Yes, and we are good to go. 17. Dealing With Cash Sales in QuickBooks: Now the next transaction is of 11 u 2024, and it says cash sales of Carla Wind Screen. Now, in our business, we see to the credit customers and to the cash customer as well. Whoever comes to our shop, we will sell the items in cash as well. But that's the walking customer sale. It's not the repeated customer, so we will not record it as a customer name in our records because this is one time sale, right? How we will record the cash sales in quick books. It's very easy. It has a special area. We will not record it from create invoice because create invoice is by default for the credit customers only. Because we are receiving the cash at the same time while making the sale, so we have a special area for it, and that is create sale receipts. I'll go to this option in here, I'll mention the walk in customer or cash customer as the customer name. We will not specify the customer name. We will write the customer name in memo only. Let's write walk in customer. Press tab and Quick Add. We are receiving cash, and we are depositing that in cash also. As you can see that we have the option to customize here. We edited it from edit and preferences. That's why we can see the option here. And this is of 11 January 2024, 11th of January 2024. You can mention any sale number for now because it's not mentioned here. So let's keep it one, and the item we're selling is Carla windscreen, and we're selling one item right. Yes, one item we're selling for 15,000. We can see here that we cannot see the rate. That's because when we created the inventory, we only mentioned the cost at that time, we didn't know the sales price. So that's why we didn't enter at that time, so it's not recommending. So let's enter it 15,000, but it will ask you that you haven't entered it. Do you want to add it in your price level list? So for now, let's click, Okay, but I'll explain you what price levels are and how effective these are in QuickBooks. We will see in the frequently asked questions, which is a special section where we will cover all the advanced topics of Quik books. But right now let's stick to this assignment. Can also greet the customer with some messages. By default, we have some messages. We can add new as well. Let's enter. We appreciate your prompt payment here, or thank you for your business. Let's see. Let's say the customer name is Mr. Smith. I can mention Mr. Smith here. It will help us to trace the invoice in future as well. So we have to mention it somewhere. We can create the custom fields as well, but that we will see later on. Let's click on Save and New. Why save in new because I have to show you the journal entry effect of it. So let's go back and I'll go to the reports and click on transaction journal to see the effect. Now, as far as we think, when we make the cash sales, on the credit sales, we have receivable to sales entry, receivable debit and sales credit. In cash sales, we have cash debit and sales credit. But is that it? No. Because the inventory is also affected at the same time. The complete entry will be, the complete entry will be this debit cash credit sales. This is one entry. Also in the same entry, it should debit it as cost of goods sold in the profit and loss account with the cost of that item, and credit inventory with the cost of that item. These four will be the complete journal entry. Let's go to the transaction journal and let's check whether it's the case or not. Cash to sales is first entry and inventory asset is credit. Cost of goods sold is Dabit. So this is it. If you want to print it, you can print this one, or if you want to issue the receipt to the customer. What you can do is go to the main area and click on Print and print preview. This is the sales receipt default format. It's very simple, but we can customize it to some great layouts. I'll show you the techniques in the frequently asked questions how to customize the templates. So you can just directly print this and we are good to go. Let's save and close. Guys, this is how you can enter the cash sales in QuickPox. 18. Dealing With Customer Advances: Now let's see this transaction right here, Wiss, 012 u 2024, we have received the cash in advance from Abu Baker. Now, who is Abu Baker? Abu Baker is our customer? Now, we are receiving 378,000 in advance. So why the customer will pay us in advance? Let's think that. Because we have to supply it something in future. So that's why he's paying us in advance. And that consignment must be bigger than the advance right. So in the very next transaction, we can see that he have also given us the sales order of this items. So 12 Cola wind screens, civic headlights, and filters, which makes the total to 652,000, which is almost double of what we're receiving in advance. So how do we receive the payments in advance? Let's see. Before seeing the advance entry, let's consider it according to the accounting standards. Some people receive it as a credit in QuickBooks, but that's not recorded as a liability. According to the proper accounting treatment, whatever you are receiving in advance from customer is a liability on us. We have received the cash, but against what, we haven't provided anything to the customer yet. Either in future, we will deliver the inventory or we have to return that cash. That's why it's a liability for us, and I'll show you the proper treatment of it. What we have to do is I'll open the chart of accounts, and from here, I'll create a new chart of account under the other current liabilities. As we can see here as well, that it says retainers from customers. Retainers from customers can be recorded in other current liability. That means this is the right treatment. Let's mention the customer advances here. We will not enter any opening balances, save and close, and let's go back to the home tab. What we will do is we will create a sales receipt for it. Now you might be thinking that it's for cash sales right. So let me tell you that there is no direct treatment in QuickBooks. So we have to play other way around because we have to be right in the accounting treatment. The other method I'll also show you how the people ender it. So enter the sales receipt. I'm receiving the cash from Abu Baker, and I'm depositing it in cash as well because I want to directly keep it in cash. So let's put cash here, and the transaction is of 12th of Gen 2024. So 12th of Gen, and we are receiving the customer advance. So Right now here, we have the items area. So what we need to do is we will create a new item, and that could be a service item. And we will write here customer advances here in uncategorized, and I'll link it to the customer advances section, and that's it. You can also mention the customer advances here as well. Let's click Okay. Now, let's mention the total amount directly here. That is 378,000. So let's save and new, let's go back to check the journal entry effect. Now, like I said, debit should be cash and credit should be customer advances as a liability. So I'll go to the report section and click on transaction journals. So Exactly we can see here that cash is debit and customer advances is credit as a liability. So this is how you can deal with the customer advances with the proper treatment. Now, let me show you how usually people do it in QuickBooks. What they do is just receive payment directly from customer. They consider that they are receiving the payment. So all right, let's create a new customer. Let's say ABC. And we are receiving the amount, let's say 85,000 in advance. So it will show you that this customer didn't have any pending invoices. So we are receiving the payment So how I want it to be used. You can refund the amount to the customer, or you can leave the credit to be used later. So what they do is reave the credit to be used later and save when new. So payment credit will be created. Click Okay. And now when they create the invoice, they can settle this credit. It's very easy. But if you go back and this is our entry, so I'll go to the reports and click on transaction Journal. Now it's showing you cash is debit, but why account receivable is credit. We don't have any account receivable here. So when it reduces the account receivable, it will affect the total amount in the balance sheet. It will deduct it as account receivable amount, which is wrong because that is a customer liability to us, not the reduction in receivable. So that's the main problem. Okay, let's see the next step. After that, if you are let's say creating the invoice for that customer. Let's say for ABC, we are selling him some item, and this makes the total to, let's say 85,000. If I save and close, it will ask you that we have the credit available. Do you want to settle it? Yes, and we can check it and done. So ultimately the problem will solve. But for the short term, if you're talking about the correct treatment, this is the correct treatment, like I showed you before. But if your company is following this procedure, you can also do the same. It won't harm you in long term, but in the short term, the entry would not be correct. So let's be careful to delete these entries. Make sure that you have the right customer selected, otherwise, you will accidentally delete some other entry. L et's delete this one, and let's go to the create sale receipt as well, and let's find for the appropriate entry. I think it's deleted. Let's check in the customers. No, we haven't deleted it. So in the ABC, we have 85,000, and we can see all the transactions here. So let's select the payment from here and delete it. Only then we will be able to delete the customer altogether. So guys, this is how you can deal with customer advances with both the methods. 19. Handling Sales Order in QuickBooks Desktop: All right. The next entry is of 12 of January 2024, and it says, receive sales order from Mr. Abu Baker. Order number is 55. So let's see how we can enter the sales order in Qi book. To enter the sales order under the customers section, we have the sales order option here. And let's select Abu Baker, because Abu Baker is our existing customer. We can easily choose him. And the date is 12 January 2024, all set. Order number is 55. So let's mention the order number here. And you can mention the office address and the shipping address if you're delivering the items to a separate address. For example, the customer has go down. You want to deliver directly to it. So here you can mention. Now, I need to choose these items. Carroll windscreen, Civic headlights, and Suzuki filters. What we can do is just click on drop down, and if you have multiple items to select, you can quickly select it by fine and select items. Here we have the complete screen, and here we can add windscreen, headlights, filters. Wind screen, headlights, and filters. Let's click on, add selected items. And here just we have to mention the quantity and rate now. So the first quantity is 12 and 15,000. So I've mentioned 12 15,000 pre tab. Next one, we have ten and 47,000, ten and 47,000. This makes the total two. If you can't see the field property, you can just adjust the size of it. So 470000. Next one is Suzuki filters. So Suzuki filters is five in quantity and 400 is the rate. So five and 400. This makes the Total 22000. So 180000470002 thousand. This makes the total to 652,000. Now, at this point, the sales order is a non financial entry. That means it will not affect the financial accounts. It will not affect the trial balance balance sheet and profit loss. So when we physically deliver that items, only then we will convert sales order to sales invoice, and at that point, it should affect the accounts. But at this point, we already receive some advance from the customer. Although it will not affect the accounts, but in future we might forget to reduce the customer advances which we have already received from this amount. From 652,000, we have already received hundred 78,000. So for R reminder, that's not compulsion, but just for R reminder, what I do is, I'll select the customer advances here and mention that in -378,000, so that whenever it converted to invoice, I immediately remember that, I need to reduce this amount. So this will be better for us. Let's click on Save and Close. That's how we entered the seals order, and at the same time, we can also mention the customer advances in that. 20. Entering Direct Sales in Quickbooks : In this video, we're going to see how you can enter the direct sales in quick books. So normally in QuickBooks, what the customer follows is the normal route. That is, they give you sales order, and against that sale order, you convert it to the invoice or you physically deliver the items to create the invoice. But that's not the case every time. If the customer have fixed amount to be delivered every single week, they might not order you for this, and you just have an informal process that the customer just calls you for the items, and you just create the invoice. You're not following the sales order route. In that case, you have to enter the sales invoices directly. This is the case here with Mr. Bashir. He called you over the phone and ask you to deliver him these items. Let's create this invoice for them. I'll go to the create invoice and let's enter Bashir here. He's our existing customer. And let's put the date of 14th of January 2024. Bill to address can be mentioned. Let's select the multiple items. First one is Carroll windscreen. Quantity is five and rate is 16,000. Let's mention the quantity and the rate is 16,000. This makes the rule to 80,000. Let's press tab, and the next one we have is civic headlights. Let's mention civic headlights here ten items. Rate is 46,000. This makes the rule 246040060000 here as well. Next one we have is Suzuki filters, four is the quantity and 450 is sight. Suzuki Filters, four quantity, 450 is the rate. This makes the rule 21800. So all of this, just check it by yourself. Each and everything is fine, and let's click on Sven New. Why Save in new because I have to show you the entry at the pack end. But first, let's understand it manually. So basically, when we entered the sales invoice, this should be the back end entry. We know that we are making the credit sale and add the credit sale, receivable is debit and sale is credit. But at the same time, you have to debit the cost of goods sold in profit loss. And that's not what you have to do. It's automatically done by QuickBooks, and it will also less the inventory from the stock. So this is the combined entry for the single item. And QuickBooks makes the entry for each single item separately. Let me show you how. Let's go back and click on reports, and click on transaction Journal. As you can see that this entry looks too large, but it's basically the same. Account receivable is debit. Let me just hide this. Account receivable is debit and sale is credit. And for separate inventory asset, each separate inventory asset, it's making a separate entry, same for cost of goods sold in the sales amount. So that's why it's showing it in a couple of lines. Otherwise, the entry is this one. This is the logic. And if you want to print this, this is the default review, but we will later on learn how we can customize this. Now, here it says past due. That's because we are in the date of future. Let's say we are in March and April or May, and we are entering the data for the GenR. That's why it's showing this past due. But when you enter it practically in your company, it will be current dates only. So this is why it's showing this. Let's close. Guys, this is how you can enter the seals invoices in Quickbooks directly. 21. Dealing With Purchase Orders: Now, the next transaction is of 17 January 2024, and it says, as purchase order to Mr. Shahid Order number is 49. So we have placed a purchase order with our vendor. So let's enter. I'll go to the vendor section and click on purchase orders. Now, you will notice that all of the templates exactly look the same, so it's very easy to use. So let's enter in vendor. We will enter Shah. And if you are shipping to some customer directly, you can click on Drop Ship two. And this vendor will deliver directly to that customer. That is of 17 January 2024, 17 January. I'll write here the items, Carroll windscreen, 25 Rate is 12,000, which makes the total 2300000. And we also have to change the purchase order number that is 49 press tab. The next item is Civic headlights, 30 and 54,000. Now, you will notice that the cost have been changed for some of the items. Let's select civic headlights. The quantity is 30. And the suggested rate here is 35,000, but now the prices have changed. So I have to take care of this, and I'll change it to 54,000. So it will ask you do you want to update the new cost in the records? So if you want to update, click yes, or if it is a one time price, click no. So I'll click yes in this scenario. Suzuki Wheel cups is 504. Suzuki Wheel cups, and 20 is the quantity, 504 is the rate. So this is also changed. So click yes, click. Okay. So this makes the Total 21930080 300,016 20,010 thousand. All code. Now let's enter Save and Close. Now, since this is a purchase order, it will not affect our accounts. It will not have any impact on the financial entries. So let's click Save close. So, guys, this is how you enter the purchase order in QuickBooks. 22. Bad Debts Treatment in Quickbooks: Now the next entry is an adjustment entry, and it says, Mr. Bash didn't pay the due amount thus treated as bad debts. This transaction is of 17 January 2024, and the total amount is 591800. Let's see how we can do this in quick box. Now, our aim is not only that we have to settle this total customer balance against the bad deeds, but also we have to close this pending invoices so that when we settle the bad dates, it should not show that these invoices are still open or pending. So this is the main purpose. That's why we have to find a way around because there is no direct area where we can treat the bad ads. The perfect area is receive payment. Now you might be thinking that we are not receiving any payment. We have to pass the bad dates, right. So this is a way round. Just choose the customer here. Now you will see the pending invoices. Don't enter anything in the payment amount. Just directly, click on one invoice and apply the discount. So I'll go to discount. So when we issue discount, it's showing the amount due of 50,000. So we are saying that we are settling that 50,000. But against what? Against the bad debts? So you will write bad debts here. If you don't have the account, you will click on Ad NU, select Expense, and write bad debts and save close. So you can attach it to the bad debts account. Now let's click Done. And same goes for the second invoice. Here you can see the discount date and the amount, and the total payment amount is Nil or total du amount is Nell. So similarly, for the next one, just select that invoice and go to the discount and credits and do the same. Here the total amount is showing 541, 800. We will settle it against the bad dates and click t. There is no amount pending now, and all of this information is showing zero, zero, so we will directly click Save. The catch here is you don't have to enter anything in payment amount. Otherwise, it will disturb the entry. So let's click on Save and New and go back to check back our entry. Now, this mobiic entry is showing before this last entry. That means the date is incorrect. So it's the opening balance as of First of Genery. So we might have made some mistake. Let's change the date to First of Gener. Let's click on Svene, and it will show you this prompt that this payment has been used to pay invoices. Changing it will alter how it applies to the invoices. Do you want to change it anyway? Click yes? We will see it later on, what impact does it have? So go to the previous, and here we can see the pending amount is zero. So now let's click on reports and transaction journal to see the real impact of it. So bad debts is debit and account receivable credit? This is the perfect entry. So guys, this is how you can treat the bad debts in QuickBooks. 23. Dealing With Purchase Invoices Against Services: Now the next transaction is of packing charges invoice received from Mr. Ali. What kind of packing packing of these inventory items? Now, this is extremely fragile items, and it needs special care and handling and packing. So that's why we are purchasing the services from a professional. Let's see how we will enter this. To enter the Pachas invoice of packing, I'll go to the vendor section under Enter Bills. And here I'll enter a new vendor, Ali, it Enter and click Quick ad. Now, the transaction is of 18th of January 2024. Reference number, let's mention any reference number here. And we have two tabs here, but I'll create service item. I'll go to the item and click on Add New and from here, I'll select the service item. Now, any kind of purchases like specialized labor, consulting Rs, or professional fees is handled in the service items. That's the perfect area for packing charges. You can define any category, but I'll leave it as it is for now, and click on each. You can set the description of the same packing charges. Now, since this packing is directly done on the inventory items that we're selling, this all cost will be created as cost of good sold. Let's click, and the total amount is 45,000. Let's write 45,000 here. All good, click on Save and New. Go back in the history, and click on reports and transaction journal to see the entry effect. It says cost of good sold is debit. Let's hide this extra columns. It says, cost of good sold is debit and accounts payable is credit. Perfect. This cost of good sold is under the packing charges, and it's affecting the accounts payable. Guys, this is how you enter the purchase of services or the packing charges invoice in QuickBook. 24. How to Find Existing Transactions: Now, before moving forward to our next entry, we have very important thing to discuss, and that is that if you have made any mistake in any document, and you want to locate it. But the problem is that you have already entered a lot of documents, and you cannot just simply go and locate it by going to previous one. It will take a lot of time if there are many orders in between. So let's say I want to locate the order number 55. So right now we only have one order, but what if we have 100 orders and we want to go on the tenth order number ten? So in that case, I'll use the find function. What find function does is you can locate it by customer, if you remember the customer name perfect, but if you don't, you can search it by date. If you don't remember anything, but do you remember the time period? You can locate by invoice or the amount number. So in this case, I want to locate order number 55. So let's enter 55 here and click Enter. We are in invoice. I'll go to the sales order and go to the Find and order number is 55. As you can see that I can directly locate it from here. We can also use some advanced options, and under the advance, I can mention any particular criteria to find the documents. You need to explore it by yourself, so we have a lot of options here. You can check. The other way of doing this is this search option. This is an amazing area where you can locate the document. For example, if you are not sure from which area you entered the particular entry. For example, in the write checks, we have this repair and maintenance expense of 5,000. Now, I just remember 5,000, but I don't remember the accurate area. What I can do is just write 5,000 here, and any entry of 5,000 will appear from here, I can choose. We have a bill of some amount. We have this check option, so let's check this open, and this is the entry. And right now it's showing many other details, but we can specify that. I can open, and I can filter it by these records. We can also locate the order numbers, for example, 55, Let's right here, and it will locate the sales order for us. So guys, this is how you can find and edit the transactions in QuickBooks. 25. Payment of Bills: Right. Next transaction is also of 18 NV, and it says, paid Mr. Ali by check of Strandard Chartered Bank. So we are settling the partial amount. His total invoice was of 45,000 out of which we are settling 30,000. So let's see how we can do this in QuickBooks. So I'll open the pay bills, and from here, I can see the invoice of Mr. Ali. So let's select Mr. Ali. His total invoice amount was 45,000 out of which we are settling 30,000. So that's about it, and the transaction of 18 N by check. So just choose check here and choose Stndard Chartered bank. Click Okay. Now let's click pay selected bills and done. Now, if I want to check the journal entry, how can I check that? In that case, I'll go to the vendi section, and I'll choose A here. Here, I can see this transaction, which is bill payment and check. So just double click on it, and from here, I'll go to reports and click on transaction Journal reports. So the entry is Standard Chartered credit and accounts payable debit. So we are settling the accounts py. So that's it. This is how you can make the payment of the bills in QuickBooks. 26. Convert Sales Order to Sales Invoice: Now, let's see how we can convert the sales order to sales invoice in QuickBooks. So here in this entry, it says, send all items to Mr. Abubaker against previous sales order. So if you remember, we entered a sales order order number 55, and against that, we have received an advance. So you might remember that at the point of sales order, we have also mentioned the customer advances so that we don't forget it in future. So let's see how we can do this entry. It's very simple to convert sales order to sales invoice. What you have to do is just start entering the invoice, and it will automatically suggest that an order is behind that. Let me show you how. So I'll click on Create invoice and just directly select Abo Bucker as if you don't remember anything. So let's select, and it will show you that a pending sales order is available to you and to convert it. Yes. Click. Okay. And specify what you want to include in the invoice. You want to convert all the sales order, you want to create invoice for selected items. In this case, we are converting the complete sales order, click Okay, and you can see that the customer advance is automatically transferred here, that's best for us. The date of transaction is 19 Gener. Let's make it 19 Gener and click on Save and Neu. Let's see the transaction journal report. I'll go back, go to the reports and transaction Journal. At this point, it looks quite lengthy entry, but it's very simple. Account receivable to sales, and cost of goods sold to inventory is the basic entry. But we have also asisted customer advances. So let me show you in word how this entry actually looks. So this is how the actual entry is. The sale amount total was 652,000, out of which we have received advance. So the total receivable is 652 minus 378. Receivable is debit with 274,000. Debit customer advances. Why debit because that customer advances was liability. Now we are settling it against the total dec. That's why debit the reversal of customer advances. 378000 then comes the sale amount of 652,000 and then comes our cost of good sold to inventory that the regular entry. This is how the actual entry is. Let's close this, and this is how we convert the sales order to sales invoice in Quickbox. 27. Dealing With Purchase Returns in Quickbooks: In this video, we are going to see how we can enter the purchase returns in QuickBooks. It's very simple. From the vend section, I'll go to Enter Bills, under the Enter Bills, there is this radio buttons. This one is four purchase invoice or the bill, and this one is for purchase returns. That's it. Now the method is same. Let's read our example transction. It says, return ten Carla windscreen to Mr. Mage atropis 12,000. We will select Mage here. Transaction is of 22nd of January. Mention any reference number, and let's copy and paste this in memo here. Let's select the item, which is ten Carroll windscreens. Mention ten here. Now, what this black box indicates is, you can check the status directly from here. You can check the quantity available on hand, how much is on sales order, how much is reserved in assemblies. All the information you can get directly from here of this particular details. You can show the details and you will get details of about all the sales order pending bills, whatever. It's very cool. So since we have purchase at 12,000, we are returning it at the same cost, and that's it, Save and New. Let's go back and go to reports and transaction journal. Now, it's exactly the opposite of purchase invoice. When we enter purchase invoice, we enter inventory debit and payable credit, and now it's payable debit and inventory credit. Simple. Guys, this is how you can enter the purchase returns in QuickBooks Desktop. 28. Dealing With Sales Returns: Let's see how we can enter the sales returns in quick books. We have a special area for that in Quik books, and that is under the customers, I can see this refunds and credits. For purchase returns, there is no specific area defined, so it's hidden in the enter bills, but for the sales returns, I can click on refunds and credits. The transaction is returns five civic headlights by Mr. Abu Baker at the rate of 47,000 per unit. So let's select Abu Baker here, and I'll choose the item, which is Civic Headlights five at the rate of 47,000. Click, Okay, let's change the tet 24th of January. And let's click on Save and Neu. Now, when I click on Sven New, it will tell you that we have returned the item for this particular customer, but there is an available credit. Means, what do you want to do with this credit? Either you want to refund him the amount, or you want to retain it as available credit. That means we have the available credit of the customer with us. Whenever he want to purchase from us in future, we can settle that credit. Or we can apply to an invoice. If the customer has existing pending invoice, what we can do is just reduce this amount from that particular invoice. So he only has to pay the remaining. That's also nice. We will use this option. Click Okay. As I can see that there are two pending invoices, and I have to settle 274000. Out of this first one, we will settle 60,000, and out of the second, we will settle the remaining amount. So click, and out of the second, we are settling 175000 out of 274000. So click done. And now if you want to see the journal entry effect, go to reports and transaction journal, this is the Journal entry effect. At the time of seal, it's receivable to sales. Now it's sales to receivables. Sales is debit and receivable is credit, and inventory is debit and cost of goods sold is credit. This is the journal entry effect, and also the customer has only the pending balance remaining. I'll go to the receive payments and select Abu backer. We only have this amount. It was 274,000 minus 175000. Total pending was 99,000. Guys, this is how you can enter the sales returns in QuickBooks. 29. How to Resolve Intuit Form: So in the middle of working, you might get this message, and let's see how we can respond to it. You can select anything like you're the admin who owns or manages the company file proceed. You can mention any e mail, Lick proceed. And if this ask you for the Intuit account, do you have one, set to sign in later. So it says that intuit account set for Standard is pending, so we will remind you again, like, Okay, and our company files are still working. So nothing to worry about. This is how we can resolve this. 30. How to Convert Purchase Order to Purchase Invoice: This video, we are going to see how you can convert the purchase order to purchase invoice in QuickBooks with just a few steps. The method is very simple, and you just have to consider that as if you don't remember that any purchase order is pending. Just start entering the bill for that vendor. Let's suppose that we are directly creating an invoice, and we don't remember there is any purchase order. So just select ****. It will automatically recommend you that an open purchase order exist. Do you want to convert it? So yes, select that purchase order. Click Okay. And now let's mention the date. 26 ener, mention any reference number. We have the reference number of the invoice, and the purchase order reference is 49. Build due date is, let's make it du on receipt or something like net 15 days. Actually, let's make it du on receipt. Let's copy and paste this memo here, and that's it. Let's see in new. It says you have changed the terms, yes, continue with it and go back. Now I'll go to the reports because when we convert purchase order to purchase invoice, it will affect the accounts. What is the entry for it? It will be debit inventory and credit payable. Let's go to Reports and click on transaction Journal Report. So Exactly this inventory is debit, although it's making a separate entry for each single item, so debit inventory and credit accounts payable. Guys, this is how you can convert the purchase orders to purchase invoice in QuickBooks. 31. Dealing With Inventory Losses: Video, we're going to see how you can deal with the losses of inventory in QuickBooks. So when we talk about loss, there are two types of losses. One is normal loss and one is abnormal loss. Now, what is normal loss? If you're dealing in manufacturing sector, and there is a production loss, which is natural, which is the normal wastage in the production process, That is considered as cost of goods sold and not the indirect expenses. But when the abnormal loss happens due to anything, any mishandling or fire or theft, that is considered as an indirect expense. This transaction sees one corolla windscreen damaged during loading and unloading. It clearly says that this is the mistake of our labor, and that should be considered as an indirect expense. Let's see how we can make these adjustments and quick works. From the bottom area, I'll click on the activities, and click on adjust quantity air value on hand. Let's change the date. It's 27th of January. Now for the adjustment account, I need to enter a new account named loss of inventory. Press tab, and if the account is not found, we can set up and choose the expense area for it and save in close. You can mention any reference number, and let's select the item, which is this Carroll windscreen. Now, I'll just mention new quantity, or I can mention the quantity difference. If I want to minus one, it will automatically choose the quantity. Or if I choose the new quantity, it will automatically calculate the quantity difference. So one Cola in scene was for 12,000, so this makes the total to this amount. If I want to see the amount as well, you can change these values to total value, quantity, and total value like this. So let's keep it to quantity. And now let's put the memo, which is this one. Let's copy and paste this, and we are done. Let's save in new. Now, since this entry affects the accounts, and it should be debit as a loss of inventory, expense, and credit inventory. So I need to see the transaction journal, but here on the top, I cannot see any reports area from where I can click on transaction Journal, as we used to do. So I'll go back, and instead of that, I'll go directly from the reports in the menu section. And from here, I'll click on transaction journal. So this should show the entry. Let's hide the extra columns. Let me show you the entry. Loss of inventory is debit and inventory asset is credit, perfect. And this is how we can deal with loss of inventory in OI books. 32. Converting Prepayments to Expenses: In this video, we are going to see how you can convert the rent expense against Advanced rent or we can book it against the advanced rent. So this transaction says that rent expense for January, adjusted from Advanced rent account for an amount of 5,000. So in this assignment we have seen in the starting, if we scroll up, we can see that we have paid the rent in advance for six months by giving cash 5,000 per month. So at that time, we have paid 30,000 as of fourth of January. And now the month is complete, only that portion of one month should be converted to an expense from the prepayments. So this is the whole scenario. Now, how will we do this? Because at the time of entry, this entry is now non cash transaction. We're not paying anything in cash from here. So the ideal area is journal entry and it's non trading and non cash. There are two conditions for journal entry. This is not a hard and fast rule, but it's preferred. And that is anything which is entered from journal entry should be non cash and non trading. To make the adjustment, I'll go to the company and click on Ma Journal Journal entries. I'll put the date here. It's 31st of January 2024, and entre is rent expense debit, 5,000. I can just directly copy and paste this transaction, and prepaid rent is credit. Prepayments, I'll enter it here and we are done, save and new, or in fact, we can save and close because it's already a journal entry, so we don't need to check anything. As we go to the previous entry, it's showing us this entry before the earlier one. That's because it might have been entered on the wrong date. So if anything like this happens, just change it to date. And this date mistake happens because of the wrong date format that you have in Windows. So for example, you are considering the entries as date first, then month, then year, but the date format in Windows is month first date and then year. So it will make some mistakes, so you can correct it this way. So guys, this is how you can convert the rent expense from the prepayments in QuickBooks. 33. Extracting and Reconciling Trial Balance: Now that we have completed our all entries, let's move on to the first report, and that is the trial balance that we need to check for this company. So to extract the trial balance report, I'll head over to reports and click on account in Texas and go to trial balance. And it's by default set to last month, but I'll change it to all dates. So in case we have made any date mistakes, it will still show all the balances here. The balance for it is 109 t249. That is what I remember. So we can check here that this is the same. And if you want to remove these ledgers which have the zero balances, I can just customize the report and go to advance area and click on non zero. Select non zero for both and click Okay. This is the finalized report, guys. I'll attach this one with the link of this video. So you can check yours with it. Just check ledger by ledger if you have made any mistake or your balances are different. Now, if you want to save this one as PDF, I'll go to the print area and click on Save as PDF and write here the name and click Save. We can also export it as the Excel sheet. Now, how will you audit this balances? For example, if you have made any mistake. Start checking from the entries which have one time entries. Like Landed buildings, we only entered it for one time. We don't have frequent transaction in that ledges. Whatever leverages have frequent transactions, only check that one. For example, you will check account receivable, accounts payable, inventory, and banks. If that becomes correct, then every other entry will automatically correct itself. For example, if you want to see the balance of a particular legend, you want to see all the entries just double click, and you have to manually confirm that each entry is showing fine according to the accounting agreement. Steck the relevant transactions from the assignment and then match it according to the entries. For example, if you have made any mistakes somewhere, you have settled it like instead of 40,000, you have settled 20,000 or so, so you can double click again and you can make the corrections to it. The main key areas to check is account recei, account payable, inventories, and cash in banks. This should solve the problem. You can also check the sales and purchase or sales or cost of goods sold. So just complete all of this assignment and extract all of these reports. So after the trial balance come the profit and loss account. So if I want to extract that, I can change it to all dates, and this is the profit and loss account, and similarly, I can check the company and financials and the balance sheets stranded. So this is our balance sheet. That's how you can extract the final reports in Quik book. 34. Introduction to Manufacturing Project: All right. Now we are going to start our new assignment, and that is a manufacturing company assignment, where we will learn how you can produce the items from raw material and convert it into finished goods. That is the main difference of manufacturing sector. Otherwise, the normal day to day activities are same for all the companies, whether it's trading company, whether it's service company, the activities are same, but only this manufacturing part is different, and that's exactly what we are going to learn here. And I'm using this Empire textile assignment that you can download with the link of this video. So just click on the resources section and you will get this assignment. So the scenario is that we want to implement a complete system from scratch as if the company is using some other software and now they are planning to shift on quick books. So we have this opening chart of accounts with the balances. We have the customers, suppliers, inventory details. In inventory, we have the raw materials, right, not the finished codes. So we have the raw materials, and we have the bill of material section, where we will set up a recipe to create shirts and pints. Basically, this is a textile manufacturing company which manufactures shirts and pins. So cloth, book rum, thread, zips, buttons are their raw materials. So at the opening point, we don't have any finished coats. We only have the raw materials, and we will feed the bill of material or recipe to manufacture a single shirt. So on the basis of that recipe, the whole system works. So it's very interesting. Let's get started, and let's quickly create the company. First of all, lets me show you that if you have an existing company open, you can go to the File and simply close the company from here. And then let's click on Create Company. Now, let's select for myself, start the setup. And if it ask you for sign in, you can click on Sign in later to continue. Let's copy and paste the company name from here. Industry, I can directly write manufacturing here. I don't need to choose this. But if you want to see the chart of accounts separately, then you can click on Help me Choos. Otherwise, it's not required. So Manufacturing is the industry. So Business type is sole proprietorship Edmunds e mail. Now, this is a compulsory field, so let's quickly enter it. And the rest of details are pretty basic. You can enter it by yourself, and we will click on Creator Company. So guys, this is creating a new company, and by the way, if your setup got stuck, then you can go to the task manager and the Task and just open QuickBooks again to create the company, and that should work. So let's click Cancel. And here is our main screen. So our company is created. Now from the next video, we will start working on this project. 35. Entering Chart of Accounts and Opening Balances: So guys, now that our company is created, let's quickly enter these chart of accounts. And since we have selected the industry as manufacturing, it will automatically create some of the chart of accounts, as we can see here if we go in the company. We can see a lot of chart of accounts here. Actually, there are not many, so we need to figure out what chart of accounts we need to create separately and what is already being created. So let's get started with this first one, and that is City Bank. So I'll go to the account, as you can see here that in the type, we cannot see any bank account here. So you can go from the bottom and click on new or otherwise, press Control and to create a new one. Let's select the nature, and that is bank. So let's enter the name and the balance. And it says statement ending date, but actually it's an opening date of the trial balance. So I'll put first of January 2024 and click Okay, and Save A New. It says this transaction is 90 days in the past because we are in the mid of the year. Let's click yes, and you can make the corrections. Always close the window first when you are making the edit preferences corrections. So now that window is closed, I'll go to the edit end preferences, and from here, I'll click on accounting and company preferences. And just put off these date warnings and click Okay. Now let's continue, press Control N. And the next one we have is Bank of America. Let's continue with the bank nature, past it right here, and let's put the balance, which is 2500001st of January 2024. Let's click and Save N New. When we have a loan account. Now, this is a special account open with the bank. It's only created to receive the loan and will be used to repay the loan. So it will not be considered as a bank nature. I'll create a new account. And in this kind of loan account is not a current liability. It's a long term liability. So let's continue and paste it right here. If you cannot enter the complete name, what you can do is write a short form a CB loan account. And here in the details or description, you can put the full name. Now let's enter the balance. And since it is a liability and it is with the nature, we don't need to enter any minus sign with it. Let's put the opening rate. Click and save and new. The next one we have is cash, and the cash and nature of bank is the same. So let's click bank here and put cash. Enter the opening balance, which is 4,400,000. Let's copy and paste this first of January 2024. Let's click, and again click Save and New. Guys, after the completion of these projects, I'll also show you how we can import all of these balances, if you have a lot of lengthy chart of accounts and the balances. Also, we might have thousands of customers in reality. So we can also import that, but that's the part for later on advanced level. First, we will focus on getting expertise with all the functions of QOE books. So the next one we have is debtors or recis and the balance is si hundred 50,000. So what do you think? Should we enter this? No, that's right. Why? Because individual customers needs to be updated in order to update this balance. When we enter customers and their personal balances, this balance should automatically update and same goes for inventory and payables. All right. Now, the next transaction just after the cache is rent security. I'll copy this and rent security. Let's see from the starting, I'll press Control let's see the suitable category. Because the security deposit is kept with the owner for a long period of time, so it might not be suitable for other current asset. It is more appropriate to enter it in other assets. As you can see here, that security deposits are kept here. So let's continue and paste it right here. Let's put the balance now, which is 300,000. Of first of January 2004. Next one is machinery. It's very obvious that it's a fixed asset. And as you can see that it's very convenient to copy the data directly from Excel instead of a PDF. So first of January 2024, click, and save AN. The next one is accumulated depreciation of machinery. So let's copy this. Now, since this is a contra asset, this is opposite in nature. We have to select a fixed asset, but it's a negative fixed asset. So that's why I'll put a minus sign with it, only for the accumulated depreciation kind of thing. So minus 250000 here. Can just copy and paste the balance, and then put the minus sign if you want to just paste it directly from Excel. Let's put the date and click on Save and New. Next one is creditors, which will automatically be updated when we enter the individual suppliers and their balances. Let's ignore this and let's move to the next one and which is accrued expenses. So F accrued expenses, I'll choose other current liabilities here. Let's copy and paste the accrued expenses, and let's paste the balance, first of January 2024 and click and save in new. Next one, we have sales text pable, copy and paste, and the balance is this as of first of January. Click and save and new. Next one, we have the general reserves, which is a kind of capital in nature or equity in nature, so let's put it in equity. And the balance we have is 1 million, and first of January is the date. Click and save and new. Last one, is net owners equity. Should we enter net owners equity? No, because the accounting equation is asset is equal to capital plus liability. If we want to extract the capital, it's asset minus liabilities. So it's very obvious that when we enter all the assets here and all the liabilities, capital should automatically be updated, and that's exactly what we do in QuickBooks. But remember that it's not the same for every software. Some software requires to separately enter the equity. It will not update according to the accounting equation. So it varies from software to software right. But in QuickBooks, it will automatically update, so we don't need to worry. And this is all of our chart of accounts entered. Only some of the balances are remaining. From the next video, we will enter the customer supplier details and the inventory details to update the complete balance. So just complete all of this task until this point and I'll see you in the next one. 36. Entering Multiple Customers Easily: This video, we are going to see how we can enter the customer details with their balances in this Empire textiles assignment so that it can update the overall balance of the dators. So from here, I'll click on customers, and from customers, I'll select the new customer. Now, I can enter the customers from here if you have a couple of customers, but let's say that you have hundreds or thousands of customers in here. So how will we enter that? If we enter it one by one, it will take a lot of time. Instead, what we will do is, I'll just open this drop down and click on multiple customers in jobs. As you can see that we have an Excel kind of template here, and on the top, it says that select a list list means what kind of data you want to import. You want to enter the customers, vendors or inventory parts, non inventory parts, whatever. Customize columns to display. That means that if you have data on Excel, you can customize according to that sequence. For example, I have here the customer details first, means customer name and then balances, and maybe then we have the opening dates. So I have to arrange the columns in the same sequence. And the third step is paste from Excel or type to add or modify to your list. So it's very convenient to directly just copy all the data from Excel and just paste it right here. What we will do is we will customize all of these columns according to our Excel data, but I need to enter the opening dates here. So let's enter first of January 2024, and just I'll drag and drop to all. And if we see some other dates, you can just click on Auto fail Options and click on Copy cells. So now we have the details of all columns. Now, I will customize these columns according to the Excel. So for first column, I need the customer names, then the balances, then the date. So I can click on this customized columns from here, and we have two fields available here. One is available columns, one is chosen columns. So these all columns which are showing on the front end are the chosen columns. So these are quite a lot. What I'll do is just go to the bottom and simply start clicking to remove it all. This field cannot be removed. Now all of them have moved to available columns. Now I can add according to my choice. So we have the customer balance in available columns. I'll just add this one and opening balance as of date. I need this one as well. I need in the same sequence, but by the way, if you want to change the sequence, you can just select any chosen column and move up or down according to your requirement. Let's click, and let's adjust the size of the fields, and now I can directly copy the data from here. Let's copy and paste. The data perfectly fit in the columns. Just confirm the balance one by one to see everything looks good, and then you can save the changes close and close. This is how we quickly entered the customer balances, Let's confirm the account receivable total with this one. I'll go to Home and click on Chart of Accounts, and let's search for account receivable. As you can see that 16 50,000 is updated perfectly with this method. Guys, this is how you can enter multiple customers in QuickBooks. 37. Entering Multiple Vendor Balances: Let's enter the supplier details in QuickBooks, and we will follow the method where we can enter the multiple suppliers in a single click. So I'll just have to put the opening dates and let's drag and drop and select copy cells. Now, I'll go to Home tab, and in order to just copy and page directly from Excel to enter multiple vendors, I'll just click on the vendor section and click on new vendor and add multiple vendors. Now, let's customize these columns according to these. So I'll go to the customized columns and go to the bottom and remove all of these chosen columns because we don't want all of these. All of them have moved to available columns. Let's choose according to the fields here. First, we have name. We have name here in the chosen columns, then we have the vendor balance vendor balance, and then we have the opening balance as of date. You can move up and down from these options, these buttons, and click. Now after the data or columns are customized according to our Excel sheet, just copy and paste directly data from here to QuickBooks. And let's click on Save and Close. Now all of the vendors are entered. Now let's go to the Home tab to check the balances of the accounts payable. It's 104250, which matches this exactly. So let me just unmark this. And now on this assignment, we only have to enter the inventory balances, and we are good to go. 38. Desktop View Adjustment: Now, before we start entering the opening balances of inventory. Let me show you one scenario. And as we can see that multiple windows are remained open in QuickBooks, and this can take a lot of time in loading. And whenever you want to close it, you want to close all of these manually. So if I don't want to keep all of these windows open by default, I'll go to edit and preferences. From here, I'll go to the desktop view and select. Instead of multiple windows, I'll keep it to one window, and you can also keep it. Don't save the desktop. In that case, it will not save all the current windows at the current position. Click, and now it should fine and load quickly. 39. Entering Raw Material Inventory: Right now, in this video, we're going to see how you can enter the raw materials in QuickBooks. And here we have the inventory opening balances of all the raw materials. So let's quickly see how we can enter this. I'll go to the company section and click on items and services, and I'll go to item and click on new item. But when we click on new item, it will show you the type of service and non inventory part only. It's not showing the inventory part, but we want the inventory part right. So click cancel, and go to the edit and preferences. Guys make sure to close the window first and then go to the edit and preferences. From here, I'll click on items and inventory, go to company preferences and turn on this option which says inventory and purchase orders are active. Just check this and click. Now, it will show you this message that QuickBooks must close all of its open windows to change this preference, click. Then let's go to the Home tab again. And now if I go to items and services and click on the new item, now we have the inventory part here. So let's start entering the inventory. But if you have lots of inventory, we can also use this option right, which says add or edit multiple items. Now, although you can add all the items, but if we go to customized columns, we can see that there is cost, but there is no opening balance field or on hand quantity field. So still if you are entering the opening balances of inventory, you still need to enter it that manually. So that's why we are using the single item based method. So select the type. First item is cloth A, and you can categorize it as raw material. Let's click. Okay, and enable unit of Myer. Now, in this one, we can select single unit of Myer, but the cloth unit of Mayer is meter. It's in length. If you're not sure about the unit of Myer of a particular item, you can check it from here. In the bill of material section, which we will see later on, it's mentioned Unit of Mayer with each particular item. Let's click next and select Meter and click Finish. Now, let's copy and paste cloth A here. I'll also paste it to seals description, and the cost is 100. So let's place 100 here. Cost of goods sold is already selected. Sales account. Let's select the sales here. Sales price. We do not know sales price at this moment, so we will ignore this, and on hand quantity is 8,000 units. So let's copy and paste this. So this makes the role to 800,000 as of first of January. All looks good, 800,000 here, exactly entered, and click next. Now, the next item is cloth B. So let's copy and paste this. Category is raw Medial already created meter. Let's copy and paste the same name in the purchase description and the sales description. Cost is 150. Cost of good sold account is selected. Sales or income account is sales. O hand quantity. We have the on hand quantity here. Let's copy and paste this. So this is 1 million, 1,050,000. So it matches with the assignment, and the opening gate is as of first of January. Click next. Next is Book Ram. Category is raw material. Unit of Myer is meter. Copy and paste this in the sales description and the purchase description. All selected just enter the on hand quantity and the cost ten. So 150000 is the total as of first of Genary, click next and add. Next, we have thread four thread, the unit of Myer is cone. Thread raw materials meters. Copy and paste in the sales and purchase description. Cost is ten. All accounts selected just enter the on hand quantity, which is 10,000. This makes the rule 200,000. As of first of January, click next. Now you can stop at this point and do it by yourself because this is just a repetition and all will be entered in the same way. So let's just quickly go through it. Zips. Next one is raw material and Zips unit of my year is each. Count. I'll select each, finish, and copy and paste here. Cost is 15, our on hand quantity is 7,500. This makes the le 21125 do zero. This is as of first of January 2024. Click next. Next, we have button shirts. Category raw material, item is each. Let's select Unitu each, paste it in this fields. Quantity is 30,000, and rate is one. Total value is 30,000 here, 30,000 here and first of January 2024. Let's click next. And the last one we have is butt in pens, raw material, it's each copy and paste here. Cost is five and units is 5,000. This makes the Total 225000 as of first of January 2024. So let's click next and click Okay. So all of these inventory items are now entered. But if I want to customize these fields, you can see that we can only see the total quantity here. If you want to see the cost as well or other fields, just right click on any column and click on customized columns. Now here, you can remove all the fields you don't want. For example, price. This is sales price. Unit of my year, I want unit of my year on sales order. Let's say I don't want this total quantity, I want that and type. Okay? And let's add the cost here. And let's actually move that up just after the quantity on hand. So, and now I can see the total quantity and the cost here. So guys, this is how you can enter the raw materials in the manufacturing company assignment, and also you can customize the fields in this way. So just enter all the data until this point and I'll see you in the next one. 40. How to Enter Bill of Materials: Okay, let's understand about the most important area in the manufacturing company assignment, and that is bill of material or the recipe management system or BOM. So these are all the terms used for it. Basically, this is the recipe to make the finished good. We are in the manufacturing business, right. So we purchase the raw material from the market and we manufacture it in R factory. And then we produce finished goods. So the finished good have some recipe. For one shirt, the recipe is 2 meters cloth will be used. One book gram will be used, 1 meter. On cone of thread will be used, and eight buttons will be used in manufacturing a single shirt. Just remember that mostly for bigger items, bill of materials or recipe is defined for one single item. If one recipe is defined according to a single unit, that means the same will be followed for 5,000 shirts. Same will be followed for 10,000 shirts. Similarly, for pens, this is the recipe. Cloth B is used, book. On thread is used, one zip is used, and button pants is one. Basically, this will make a connection between the ramatls and the finished goats. This is called inventory assembly. We are assembling from the ramatals and then producing the finished goats. Whenever the finished good is produced, it will consume the rhamatals and take it out from the ramatals stock and then produce the finished goods. Now, let me show you how we can enter this in Quickbooks. I'll open the new item, and this time, I'll not select inventory part. I'll select inventory assembly. And our first inventory assembly is shirts. So this is categorized as finished irts. Click. Okay. The unit of Myer, since we are selling them in pieces, so I'll select the unit of Myer of each. Now let's copy and paste the description. You can mention shirts or whatever detail you want to mention. Now, what is the cost? I'll mention here, use total bill of material cost because I don't know at this point what will be the total cost. The cost will be according to the raw metals. I will automatically pick up the cost here. Cost of good sold account is selected, sales. I'll select the sales account. Sales price we don't know at this point, and this is the most important section, that is bill of material. Here we will enter the complete recipe. That for one shirt, what we need? We need cloth A. Cost is 100. How much do we want? 2 meters. Booker ram is this item, this is ten rupees, and quantity is one. Thread is one cone. Now I have made a mistake in the unit of my year of thread. We will correct this, but first, let me enter this recipe. And button shirts. Button shirts is in pieces or each, I'll enter eight. So we have the quantity of 2 meters cloth, 1 meter bok ram, 1 meter or one cone thread, and eight buttons. Confirm it once, and the total cost of material is 228, and that is the same cost of our shirt. So click, It says, Bill of medial cost exceeds the sale price. Obviously that we haven't mentioned any sales price, so it's zero and cost is more than that. But let's just ignore this message because when we enter the first sale, we will ask him to update in the records. Click yes, and click. Just don't display this message again and click yes. Now that's entered. Let's now edit the unit of my year for thread. I'll right click and click on Edit item. Instead of meter, I'll add new and let's go to other and mention cone here and sees the abbreviation. It's showing the warning that now you are changing the unit of my hear. Let's click yes. C C is the unit of Mar. Now, if we check the shirts again, rightly and check shirts, this is automatically converted to cone now. Now let's enter the new one inventory assembly. Now we'll enter pins here. Category will be finished goods and unit of my year is each. Let's enter the same here. Pens. Choose the cost as use total below material cost. Income account will be sales, and let's start entering the items. So the pen recipe is cloth B is used of 2 meters. We use cloth B, 2 meters. Book ram is 1 meter. T thread is one cone, Zips is one. One zip and button pins is one. So just confirm the recipe one, two, one, one, one, and one. First is two, and all the others are one. So this total bill of medial cost is 340. So this is good. Now, should we enter on hand quantity or something like that? No. Because at the point of opening inventory, we considered that we only have the raw materials, and we don't have any finished goods at the opening point. We will simply make the recipe like this and click Okay, and this is done. Guys, this is how you can enter the bill of materials or the recipe management system in QuickBooks, and this is the most important part in the manufacturing sector. Now, most of the transaction will be same. Only this manufacturing part is different. Just enter all of this recipe and I'll see you in the next one. 41. Opening Trial Balance Reconciled: All right. Now that we have ended all the ledgers and their opening balances, this balance total should match with the trial balance in QuickBooks. Let's see. I'll go to reports and go to accounts and texts and click trial balance. And from here, maybe we have made any date mistake. So for the confirmation, I'll change the dates to all. I can see a balanced difference here. It's not the same as this one. That's because the opening balance equity doesn't match and why it's not matching? Because we need to get rid of this uncategorized income and expenses and shift both of these balances to opening balance equity. Let me just zoom it a little bit so that you can see it clearly. Let's make the font a little larger. This one. Need to make this adjustment. So let's quickly see how we can make this adjustment. What I need to do is I need to reduce this balance from the uncategorized income and shift it to opening balance equity. That means I have to pass the journal entry on the opposite side of the ledger. If it is credit, I'll put debit in the journal entry, and same goes for this one. If it's debit, I'll put credit, and the remaining balance difference should be shifted to opening balance equity. Let's go to Company and make Journal journal entries. I'll enter this on First of General and uncategorized income. Now since we have changed it to single window, that's why we don't have an option to minimize and see the trial balance. But what Q can do is, I'll go to the open windows from here and click on trial balance directly from here. 16 50,000. Let's go to the M journal Genal entries. I'll make it debit, 16 50,000, and let's put the memo opening balance adjustment, something like that. Now, let's go to trial balance again, and the uncategorized expenses is 104250, 10425 do zero. I'll put it in credit, and the difference is on the credit side. I'll put that difference to opening balance equity, and let's save in new and then close it and go to the trial balance, and let's see the balance now. Now, if you want to hide this, go to customized report advance, and display rows will be non zeros only. Let's click, and now I think the balance is exactly the same. Yes, it is. This is how you can make this adjustment in the trial balance and your balances should match. In the next video, we will start working on our assignment as if the system is implemented and now just we are entering the day to day transactions. 42. Entering Day Transactions Part 1: That our opening trial balance is matched. We will start off with our day to day transactions, and the transaction number one is, as of first of January 2024, accrued expenses paid by cash. So what is accrued expenses? This is the liability from the last month. So how can I see that liability? I can move to my first sheet. And here I can see accrued expenses was payable. And now we are clearing this, so I'll debit accrued expenses means liability is being reduced, and against that, we will pay cash. So I'll go to Company and click on M Journal Journal entries. From here, as of first of January 2024, I'll put accrued expenses here, 200,000, and we can put a memo, copy and paste from here, and credit cash. We're paying it by cash. That's it. Save and close. Now next transaction is purchase order placed off cloth B to star textiles. We have ordered to our supplier. Quantities 40,000. Rate is 150. This makes the role to 6 million. So let's enter this. I'll go to purchase orders, and from here, I'll select star textiles. You can also set the location if you want this supplier to deliver to a specific address, which is separate from your office. So you can specify it here. So order number is 124, and it's off second January. So let's put second of January 2024, and order number is 124. Vender name, you can place the vender name here as well. Now let's start entering the order. Item is, we have placed the order of cloth B. We need cloth B. Cloth B, quantity we need is 40,000 ratus 150. Quantity is 40,000 ratus 150 is equal to 6 million. Save and close. Next transaction is of third generar, and we've received cloth B. Very next day from star textils against order number 124, that is perfect, but we haven't received full quantity yet. We have received only 25,000 out of this order. We will partially convert the purchase order to purchase invoice. That's what we are that's what we are going to learn now. The method to convert purchase order to purchase invoice is super simple, as if you don't remember anything, just go to enter bills, and let's write star textil here. It will automatically recommend you that open POs exist. Do you want to convert it? Yes. So I'll choose this. Click. Okay, but it has converted the complete PO. So what I'll do is I'll manually change this quantity. Rate is 150. This makes the rule 237500. Okay. The quantity is 25,000 here. So let's put 25,000 and rate is 150. This makes the rule 23750 triple zero. The reference number we don't have any purchase invoice number here. What we'll do is we will put any reference for now. Let's say 101. Let's click on Sven New, and if you want to go to reports, I'll go back, click on reports, and click on transaction Journal report. This will show you the journal entry, which is inventory debit, when we purchase the asset, and we have received the items. Just remember that purchase order do not have any impact. When we convert that purchase order to purchase invoice, only then it will affect the accounts. At this point, inventory is debit. Accounts payable is credit. This is our entry, so let's close this. These three transactions are done. From the next video, we will continue with our further transactions. Just complete all of these tasks until this point and I'll see you in the next one. 43. Dealing With Discounts on Purchase Invoice: In this video, we are going to see how we can enter the purchase invoices, but with a condition. Here in this transaction, it says purchase following items from Franklin textiles. That means we are purchasing from this vendor on credit, which is a purchase invoice we will enter, but the vendor offers 2% discount policy of the payment within ten days. So let's see how we can set this. So first of all, I need to set up a discount received account in the chart of accounts, and discount receive, most of the people treat it as an income as other income. But what I suggest is you can reduce the overall cost of goods sold or your overall cost from this. So that should be an expense account, a negative expense account. So for example, you purchase an item for 100 rupees, and you get a 2% discount, so you have to pay 98. So that means your cost is 98, right? So it should reduce the overall cost, and it should not be entered as a income in my perspective. Anyways, let's go to the chart of accounts and set up an account. Click on new account, and I'll choose it as cost of goods sold, and let's continue. And let's mention it as discount received, and I'll hit Save and Close. And now let's go to the Home tab, and let's enter the bill. So we have purchased the items from Franklin textiles. So let's enter Franklin. This is a new vendor. Franklin textiles, we don't have any opening balance with this vendor, so let's click. Okay. Date is third January 2024, and the reference number, we can enter 1,200 here. And now we will set the terms here, 2% 1030, which says that by default, this invoice is due to be paid in 30 days, but if we pay within ten days, we will get a 2% discount from this vendor. So the last day to avail this discount offer is 13th of January 2024. So let's put this memo completely right here. And now let's start entering the items. Is. Quantity is 8,000. Cost is 15. This makes the rule two, 1,000. Let's press tab, go on the second line. Next one we have is cloth A 40,000 Rate is 100, which makes the rule 4 million. Next one, we have book. 25,000 is the quantity and ten is rate. Book 25,010 is the rate, which makes the rule two to 50,000 exactly matching this one and thread. 20,010 is the rate, which makes the rule to 200,000 press tab. Next one we have is button shirts. We need a lot of material to manufacture goods, right. So as you can see here that we are purchasing in large quantities. So 90,000 is button shirts, button pens, We have 10,005 is the rate which makes the rule to 1050000. If we put a sum here, 47 10t0 is the sum. Here we can see the sum here 4710 rep zero. That means the entry is correct. Now let's save and close because at this point, we will not be entering any discount within the invoice. That's because we will avail the discount only when we pay within the time frame. So let's save and close. You've changed the terms Yes. So guys, this is how we enter the simple purchase invoice, but we have just created the discount received chart of accounts. So when we pay, I'll show you the further treatment. 44. Handling Sales Order of Finished Goods with Zero Stock: In this video, we are going to see how we can enter the sales order of the finished goods that we haven't yet produced. So let's see. This transaction says sales order received from Scott Anderson, sales order number is 24, and we have received the orders of shirts and pens. But in this assignment, we are considering that we only had opening balance of raw materials, and until now, we haven't manufactured anything. So what we can do in this situation because this is a very practical situation. In manufacturing companies, you normally receive the order of finished goods even before producing it. So let's see how we can deal with it. Now, I'll go to the sales order and let's enter Scott Anderson. The date of order is fifth of January. Order number is 24. Now let's start entering the order. We have the order of shirts and pens. When we select shirts, it will show you this caution that you don't have sufficient quantity available to sell at this point. So not enough quantity error shows up. But let's ignore this and click Okay, because we are not selling at this point. We are just entering the order. We will only deliver or convert sales order to sales invic only when we manufacture the items, right. So we will take the order, we will not miss any single order. 3,000 is ordered, 400 is the rate, and let's enter pens now. Again, let's ignore this, and 2000 is In the quantity, Rate. Rate is 500. Now why it's not suggesting the rate? That's because when we created the items, we didn't know about the sale prices. Only that's why it's not showing here. This is all of fifth of January. Okay. Let's click on SVN New. Let's also see that if I select Scott Anderson now and select the item here. Will it suggest the rate? No, it's not suggesting the rate because it's not updated in the back end system. I'll show you in the price list how we can customize that. Follow all of the videos up till the end. And guys, this is how you can receive the sales order even if you don't have the stock of finished goods in quick books. 45. Transferring Funds Between Accounts: This video, we are going to see how we can withdraw the money from the bank and keep it in petty cash, we have a direct function in QuickBooks for that purpose. So let's see how we can do this. Here in this example, we have six NR entry, and it says cash taken out of Citibank for office use. So the amount is true 25,000. So as far as journal entry is concerned, because we are taking the money out from Citibank, City Bank will be credit, and the petty cash reserve will increase, so it's debit. So debit Petty cash credit City Bank. In QuickBooks, we have a dedicated area for that, and that is go to banking and click on transfer funds. I'll just put the date here, which is sixth of January, and I'm transferring funds from Citi Bank. We have a lot of funds here, and we are transferring it to Petty cash. Now it's your choice if you want to create a separate account for cash in hand and separate for petty cash. Otherwise, you can consider it the same account. It only depends on the company policies. I'm transferring funds from City Bank and transferring funds to Now let's mention the transfer amount, which is this. Let's copy and paste that, and let's copy and paste the memo as well and save and close. So guys, this area is used to transfer money from one account to another. It's not only used to transfer petty cash from bank account, it can also be used to make interbank transactions. So this is how you do it. Just practice this by yourself, and I'll see you in the next one. 46. Receiving Partial Payments From Customers: In this video, we are going to learn how we can receive the partial payment from the customers against the total payment due on that customer. So in this transaction, on seven January 2024, it says, cash received from H K Brooks and Company. So we have received this payment from our customer, and the total amount is 120,000. Now, we haven't sold anything to this customer during this year. But if we check the opening balances, we have the balance of 550,000 here, out of which he is paying us which amount, he's paying us 120,000. So let's see how we can enter this in QuickBooks. Now, from the main screen, I'll go to the receive payment section, and from here, let's select the customer, which is HK Brooks and Company. Now, it's showing the total balance as of first of January 2024, which is our opening balance transaction. So I'll just check this and click yes to calculate automatically. Now calculating automatically means that if I check this particular payment, it is considered that I'm paying the full amount and hence it is written here that I'm paying 550000. But that's not the case I'm paying 1,000, so let's mention it manually, and let's change the date, and date is seventh of January. So let's change seventh of January. You can put any reference number. And we can leave this as an underpayment. But even if we mark this as cash, because we are received in cash right, but still we are not depositing that directly into the cash account, rather we are depositing it by default in undeposited funds. So if you don't want that, I can go to edit preferences and change that. Now, this is from the main menu on the top. I'll go to edit preferences and click on payments and company preferences. From here, you can uncheck this option. Use undeposited fund as a default deposit to account. Let's uncheck this and click Okay. Now, let's click Okay. You have not recorded this transaction. Do you want to record now? We will click no for now, because we directly want to enter the correct transaction. Now we have to manually click on the Home tab again to see all of this flow chart. And now let's go to receive payments again and let's select our customer, which is this one. Let's select the payment. Yes, calculate automatically, but we will change that manually. The amount is 100,000, which will be treated as underpayment, and we are paying on seventh of January. Let's put any reference number. And here the default deposit two account will be cash. So it directly goes in cash. Let's click on Save and NU, and let's go back quickly to check the journal entry of it. So this one was the entry. I'll go to the reports and click on transaction Journal. So this is the entry. Cash is debit and against cash, credit is account receivable. So this is how you can receive the partial payment against the customer. Now, when I click and select the customer again to receive further payment, it will show you the pending balance. Out of original amount of 550000 amount due is 430,000 now because we have received 120,000. Guys, this is how you can deal with the partial payment from customer received in Quick Box. 47. Receiving Payments From Customers Part 2: Next transaction is of nine January 2024, and it says cash received from Archer and Sons. So similar to this one, we are receiving the payment from another customer. I recommend you to try it by yourself and then see the solution, posit at this point and try it by yourself, and then compare. I'm sure that you have entered it correctly, but let me just show you how we will enter this one. I'll again go to receive payments from Archer and Sons And the total balance due was 200,000 against which we are receiving 175. So let's write here, 175,000, and it will automatically put this same amount in the payment. And the transaction date is nine January 2024. So let's enter nine Gener. Let's mention any reference number, and we are receiving this payment in cash as well. Leave this as an underpayment, and we are good to go save and close. And this is it. Let's move to the next transaction, which is very interesting because we have agreed with the vendor that we will get some, some 2% discount if we settle within ten days. So here we have purchased some items on third Gener and we are paying on ten Gener. That means we are within ten days. So we should avail this discount. So we will see the complete procedure of it. 48. How to Record Vendor Discounts in Quickbooks: In this video, we are going to see how you can record the vendor discounts in QuickBooks. So we have a transaction on ten January 2024, and it sees that payment made to Franklin Textiles against the credit invoice number 1,200 in full, and we have paid the supplier within ten days to obtain the 2% discount within ten days. So in this particular scenario, let's go up and let's see the earlier transaction. On third Genery, we have actually purchased from this vendor, and this is the same invoice number, and the vendor policy is that it offers 2% discount policy of payment within ten days. So we have paid in ten days, right? So we have settled in full within the ten days. So what will be the process of recording this? Now, let me just recap what we did earlier. First of all, you need to create a chart of accounts of discount received, but under the cost of goods sold. High cost of goods sold because we have received the invoice discount. That means if you have purchased something for 100 rupees and you got a 2% discount at the spot or at the time of payment. That means it is actually costing you 98 rupes, right? So you got the 2% discount. That's why we will reduce it from the cost directly rather than recording it as other income. What I believe this is the right treatment, Yes, but some people according to accounting standards, treat any kind of discount received as income. That's also fine, but this is more appropriate, I believe. So anyways, at the time of entering bill, let's see the bill, we have entered this Franklin Textiles bill, and we haven't mentioned anything in the discount, we only mentioned the term that if we settle within the ten days, we will get a 2% discount. That's it, and we have saved it. Because we cannot record any discount until now, because we don't know ourselves that whether we will settle within the ten days to obtain this offer or not. So once we have settled that, at the time of payment, we will adjust that discount. You can do is you can go from payblls and select the invoice, or you can find the earlier bill and click pay bills directly from here. If we go to paybills, we can see a lot of bills here. If we go from enter bills from here, I'll click on paybills, so it will automatically be filtered for you, and you will see only this payment. So actually, it's better to go from pay bills because we will have flexibility then. I'll choose this Franklin textiles. I can change the schedule online payment to check. I'm paying by check, let's say, and now I can change the date tenth of January. And let's say that we are paying it by City Bank. From City Bank. In form of check. Let's mention this is the check number, let's say. So we are paying from City Bank, and let's click on set discounts. So from here, I'll choose that discount account that I created discount received. Now, let's click Done, and you will clearly see here that the amount due was 47100, against which we got 2% discount, which is 94,200, and we have to pay this amount now. So now the transaction is complete and let's click on pay selected bills. As we can see that we have completely mentioned everything and settled the amount in full against the discount. Now, click done, and this is how you do it. Now, let's say that we have received an informal discount. Means at the time of payment, vendor just randomly offers us a discount, and let's say for 495000, we just have to pay 490000 now. We haven't entered anything in enter bills. Should we go to enter bills and adjust all of this according to the terms? No. Because at the time of payment, we just received an overall discount of 5,000. What we can do in this situation, let's say we are paying this, and we have to pay just 490000 now. So you can see that set discount area is still available. It's not removed from here, so I can set discount. I can manually mention the amount, and I can set it in the same area that is discount account. Click D, you can pay for the bill against anything cash or bank, and we are good to go. You just have to pay 490000. In this way, also, you can adjust the discount, as you can see that amount due was 495000 out of which we got a discount. Now we have to pay only this amount. Guys, this is how you can record the vended discounts in QuickBooks. Let's quickly see the reports as well to show you how it looks in the profit and loss. I'll go to dates and change it to all. At this point, we can see the discount received showing right here. But why everything is blank? That's because we haven't earned anything yet. Remember, it is a manufacturing company and we are here to buy the raw materials and produce the finished goods and then sell it. We have received some sales order, but we haven't produced anything yet. That's why profit and loss is showing like this. Guys, this is how you can enter this all. Just practice this by yourself and I'll see you in the next one. 49. Purchase of Services On Credit and Cash: This video, we are going to see how you can enter the purchase of services in QuickBooks. We have two types of purchases in this example. On Wealth of Gener, we have purchased dying services from Shelby dying mills on credit. Now since we are shirts and pens manufacturing factory. That's why we purchased the raw material from the market, just dye it in the required colors, and then we start stitching the shirts and pens to see that. We have purchased dying services from Shelby dying on credit. Now, since this could be our regular vendor. That's why it's giving us on credit. But sometimes when demand increase, we might have to contact some other vendors as well to provide a services. But they will not obviously agree on credit because they are not our regular vendors. That's why we will pay them in cash. As you can see here that most of the dying services we purchase from Shelby Dyings, but some extra services we purchase from Anderson dying as well. Let's see how we can deal with both of these transactions in QuickBooks. So from the main screen, I'll go to Enter Bills. And let's see if we have this vendor or not. Let's right here, Shelby. No, we don't have this vendor. So it's better to copy this name directly from here. And let's be just paste it right here and press tab to click Quick ad. Is how you can quickly add Let's put the date here. Let's mention any reference number, for example, this one. Since we are purchasing the services, we have two options. Either we can enter it as an expense to hit the ledger directly. But the proper treatment is to go in item and create a service item. Item area is not only used to create the inventory part, we can also create some service items here. We will click on Add New and click on service because this dying services is they are charging for the dying service. Material will be theirs, and we will only receive the service. So let's write here, dying services. And let's not mention any gregore now. And the vendor is not charging it according to a unit. If it's charging according to unit, you can change it to each. If it's charging according to meter, you can change it to meter, but our vendor is charging overall. So you can mention anything like this, and let's make it part of cost of goods sold. Now, let's click Okay. Let's see the total cost. Total cost is 25,000, let's mention here 25,000. You can mention here directly in the amount. Since our vendor is not charging us according to the quantity, it's charging us overall, let's say. Let's click Save and New, and let's go back and see the transaction journal effect. I'll go to the reports to show you Journal dry. Go to the transaction journal, and here we can see that cost of Godsol is debit. Let's hide this one. And accounts payable is credit. This is how you deal with dying services. Why cost of goods sold? Because the dying services will be applied on cloth, and from cloth, you will manufacture the finished goods, and then you will sell it. The ultimate purpose of dying services is to manufacture the finished goods and then sell it in the market. Any kind of expenses which has the intention to sell it afterwards will be treated as cost of good sold. Now, let's click on Save and Close. Now, guys, this service is purchased on credit right. But what about cash? Because for cash vendors, we are purchasing one time services from them. So maybe in future we will not purchase from them again. So that's why we shouldn't create the vendor for it. So instead, what we will do is go to write checks from here, and we are paying them by cash so select cash. And I'll not mention or create a vendor name. What I'll do is, I'll just write it in a memo. So let's copy all of this and paste it in memo. And now I'll go to items and right here, dying services. We are just directly purchasing the service, and we are paying the cash immediately, and we're paying 5,000, right? So let's click on Sven New. Now, as you can see here, that number is by default, mentioned as to print. It will print according to the QuickBooks automatic system. If you want to mention the check number, what you can do is go to Print and click on check. It will automatically save and then ask you for the printed check number. Let's say instead of one, you want to mention 8754. Click Okay. You need to click on Print one time. Let's say, save it as XPS, and then you can apply this. Click Okay. Then you can see the updated number. I know it's a little complex, but by default, it moves according to its own sequence. But if you want to manually change it, for example, you're paying it by check and you just want to specify that check number here, so this is the way for it. Let's go to reports and click on transaction journal. As you can see here that we are just paying directly by cash, cash is credit, and the dying services we are purchasing comes in cost of goods sold, which is debit. Guys, this is how you can purchase the services both on cash and on credit in QuickBooks. 50. Receiving Customer Advances Against Sales Order: In this video, we are going to see how we can receive the customer advances from our customer against any sales order. In this example, there are two transaction from Mr. Samuel Burns. We have received a sales order of a bigger amount of nearly 720000. We have demanded from our customer to pay a some amount in advance, and they agreed on it, and they have given us 400,000 in advance in cash. Now, this customer advance is a liability on us because in future, either we have to deliver the goods, because we have just received the cash, and we haven't delivered any goods yet, right? So either in future, we have to deliver the goods or we have to return back that cash amount. So this amount is a liability to us. So let's see how we can enter this in QuickBooks. So first of all, I'll go to chart of accounts and create a new account. Under the other current liabilities. Let's continue, and I'll mention the name as customer advances and save and close. Now I'll link it to a service item. The next step is, I'll go to items and services and create a new item, which will be a service item, and let's name it the same, which is customer advances, and link it to the same account. That is customer advances. I paste the description here as well. Let's click. Okay. So now that we have set the customer advances, I'll go to the Home tab and click on Create sales receipt. Now you might be thinking that we are not selling anything. That's true, but there is no direct treatment to receive the customer advances in this way in QuickBooks, because we have to treat it as a liability, right? So we are receiving the payment from Mr. Samuel Burns, which is our new customer. So right here, what we can do is just copy and paste the name, click Okay, and we are receiving cash against customer advances. Now, just mention the total amount here, which is 400,000. And we are receiving the payment on Wealth of Gener and receiving it in cash. I have changed the undeposited fund as a default deposit to account. I've unchecked that option from edit and preferences. So if you can't see this option of deposit to directly cash, you need to close this window and then go to edit and preferences. Go to payments, company preferences, and you need to uncheck this option. Only then it will show you this option. So now let's save and new go back and click on reports to check the transaction journal. And the entry says cash is debit, and we have received that against customer advances, which is a liability on us. So cash is debit and customer advances credit. So this is how you can enter the customer advances in QuickBook. 51. Sales Orders Against Customer Advances: This video, we are going to see how we can receive or enter the sales order from the customer in QuickBooks. This transaction says on Wealth en, we have received the sales order of shirts from Mr. Samuel Burns. Now, just remember that we have a business of manufacturing shirts and pens, and until this point, we haven't produced anything. After some more transactions, we will start assembling. But at this point, we don't have anything in finished goods. But this customer has ordered us this shirts. What we will do is just we will manufacture that in future, but we will take this order at this point. So I'll click on sales order and sales orders received from Samuel Burns. On wealth of January, and order number is 27, and we have received the orders of shirts. As I selected shirts, it is showing me this question that not enough quantity, obviously, because we haven't manufactured anything yet, we are just taking orders from the market. So let's click and ignore this message. Lick. So we have received 1,800 units of order. And 400 will be the rate. This makes the role 2720000. And that's it. Let's save and close. So we have entered the sales order against the customer. Now at this point, let's say that I want to adjust the customer advances in the sales order document, because I don't want to overlook when we convert the sales order to sales invoice. I need to adjust that advance at that point, right. So to make sure that I don't forget, what I can do is I'll go to sales order and go back and write customer advances of the same amount. Here. I've already received -400,000 and let's save and close. This is how you can receive the sales order against the customer advances in Quick box. 52. Dealing With Indirect Expenses via Write Checks: In this video, we are going to see how we can deal with these kind of expenses, which is traveling expenses, repair expenses, and all the indirect expenses in Quick books. Basically, whatever is the non trading transaction has two choices to be dealt in QuickBooks, either we can do the general entry, or what we can do is you can do the right checks as well. As we've discussed it before as well, but let me just show you in the transactions, one is of 12 of GR, of traveling expenses paid by check, and one is of 14 GR, repair expenses paid by check. Since this is of two separate dates, that's why we cannot enter it in a single transaction, because the document will have a single date, that's why. Let's do this with write checks first. I'll go to the write checks and Bank of America is already set. We can check and let's copy and paste here. And this is an expense right. So let's check for traveling expenses. Now, I haven't created this account because we have selected a particular industry type at the starting when we created the company. Only that's why it's showing this travel expenses by default. Some of the ledges is already created. This is 5,000. You can paste this one in memo as well. Let's confirm the date. And if you want to change the check number, just for the reconciliation purposes, by default, it will give you any number, any number according to QuickBook sequence. But if you want to change, you can click on Print and click on check. So first of all, it will save the transaction, and then it will ask you for the check number. Which is 8800. Let's click. Okay, you can print an XPS document, save it anywhere, and let's save. Okay. So this is how we do the indirect expenses. Let's go to the reports and click on transaction Journal to see the effect. Travel expenses as an indirect expense is debit, and we have a credit of Bank of America. Now if we had both of these transactions on a single date, we can enter it on the second line. But since the date is different, we cannot do this. So I'll go to Save and new, and the next transaction is also entered from here. Otherwise, if you want to treat it from the company and make journal journal entries, you can do that as well. In that case, you will mention the entry number as the check number, like 801 here. So let's see, as of 14 January, we will mention the entry number of 8801. Or, in fact, what we can do is just keep the entry number as it is and write repair and maintenance expenses here. Amount will be 55,000. And instead of changing the entry number with the check number, we can paste it in the memo as well. Press tab, and we're paying it by Bank of America. Right? So this is the complete entry. We can do it this way as well. So because I have mentioned the check number in the memo, we can still trace it in the reconcilation. So let's see and close. Okay. And this is how we treat the indirect expenses in QuickBooks. We can do write checks, and we can do the journal entries as well. 53. Record Fixed Assets Entries Using Journal Entries: Now the next transaction is of 14 January 2024. It says Suzuki pickup or motor vehicles bought by paying check number, which is 8802 by Bank of America. Again, we have two choices, either we can do the right checks or we can do the journal entries. But most people prefer to enter the fixed asset from journal entries. So let's do this. Let's put the date here. It's mentioned here, Suzuki pickup and motor vehicles. That means the bigger category, the major category is motor vehicles. We will not create the ledges for every single asset. What we will do is we will categorize it in the major assets. For example, if we create the fixed asset ledger, then we will create motor vehicles for it. And all the vehicles, we can enter it in fixed assets. But again, this depends on company policy. If the company wishes to enter every single fixed asset separately, then you can do that. 50,000 debit, and let's copy and paste the memo paste here, and we are paying from Bank of America, which is credit 50,000, and let's save and close. You can also use the fixed asset tracking, but we will use that option later on. So this is how we can enter this in QIPox. 54. Manufacturing Finished Goods: In this video, we are going to see how we can produce the finished goods from the raw materials by using the assembly function in Quickbooks. And this is the most important part if you're dealing with the manufacturing company. One was creating the bill Metal, where we create the recipe of each individual finished goods, how much raw metal is consumed in what proportion for manufacturing that finished good. So we have already set that billow metal, and that is the first step in manufacturing. Remember that without entering the raw materials or bill of materials in the background, you cannot use the assembly function in quick box. In this example, until now we haven't manufactured anything. Just we are preparing for the manufacturing, we're purchasing the services we are purchasing the raw materials throughout all this time, and now we are ready for the production. Cause you know that production involves a lot of work. We have to make sure that we have the adequate quantity labor services and all before we are ready for production. Now let's start on 15th General, shirts are assembled. It's very simple. I'll just go to items and services, and from the activities, I'll click on Build Assemblies. Here it's asking you, what do you want to manufacture? We have two options. We can either manufacture shirt or pens. We have it mentioned in the inventory assembly, where we have configured the full recipe. So as we select the shirts, you will notice that it will show you the complete recipe that for one shirt, two meter cloth is needed, 1 meter book era is needed, one thread, and eight buttons are required. And also, according to our stock of each item, it's showing you the maximum quantity you can build with this stock is 15,000. So how cool is that? Let's change the date to 15 Gener when we are manufacturing the item. You can write the build reference number here, and I'll specify here that I want to manufacture. For now, just 4,000 shirts. As I press tab, you will notice something. Right now, just notice that quantity needed is zero. As I press tab, it will show you that if for one item, two meter cloth is needed, so for 4,000 shirts, 4,000 multiply by two is equal to 8,000 meters will be needed. Similarly, it took the proportion in the same way for all the other items as I just told that I want to produce 4,000 shirts. It will automatically take all of these raw materials from the back end and then produced and transfer it to the finished goods, and it will also allocate the cost. How cool is that? Now, we just have to mention the memo here, just paste and build and new because we have a lot of manufacturing here. Next is on 15 January. Same date. We are producing pens. It will show you the recipe, and we need 4,000 pens. Everything looks good. Just copy and paste the memo here. Let's click on Build and New. Now, the same procedure will be followed for all the assemblies. So what you can do is you can just pause at this point and just try it by yourself and then resume the video because I'm still going to show you anyway to complete the project. So let's move to the next transaction that is of tie January 2024, and we are producing the shirts again. Date is tie. And we can still build 11,000 more, right? So 3,000 shirts. Copy and piece the reference here and build in new. Next one we have is Pens assembled at 20 ener and the quantities 2000. Pens, as of 20 e ener, quantities 2000. So let's mention here 2000. Just make sure everything is good. Copy and paste the memo, and we are good to go. Let's click on Build and close. Now, if you want to see the build assemblies again, I'll go to the activities. Click on Build assemblies, and you can go to the previous transaction as well. And if you want to see the journal entry effect, you cannot obviously see on the top of it because we don't have any reports option. So what you can do is when you don't have the direct option of reports within the window, you can go from the top menu from reports, and I'll click on transaction Journal report. It's crediting all of the raw Medals and then transferring it to the finished good as Dabit. Finished good inventory is Dibit, and all the raw Matals inventory is credit. This will be the journal entry for it. Guys, this is how you can manufacture the finished goods from raw Matals in QuickBooks. 55. Recording Bad Debts Against Customer Pending Invoices: In this video, we are going to see how we can record the bad dates in QuickBooks. The method is very simple, but there is no direct treatment, we have to find a way around it. Let's get started. I'll go to QuickBooks, and we will use the receive payment option to record the bad dates. Now, you might be thinking that we are not receiving the payment. We are settling the bad dates as an expense. But because I want to settle the bad debts against the invoice, and also I want to close all the invoices against that bad debt, that's why we are going to receive the payment so that we can settle each individual invoice when the bad debt is made. So let's see the transaction, and transaction sees Ryan anden was unable to pay the stretd as bad debts. So let's check the receipt payments, and right here, Ryan and Sons, as we can see that it has an opening balance right. It's as of first of January 2024, and this is recorded as bad dates. So I'll check this invoice, and it will automatically consider that all of this is paid. If you want to change the amount manually, you can change it right here. And this full amount is settled against the bad date. Now, since we are in the receive payment option, and we are not receiving any kind of cash in return for the bad dates, so I will discount this complete invoice against the bad date. So I'll go to the top and click on this discounts and credits option. And here I'll just write down the amount which I want to discount, and that is 600,000. Let's enter 600,000 here. I want to settle that as a bad date. Now, just see that whether you have the existing chart of accounts or not, if you don't have any chart of account existing, just right here, bad date, and as you press tab, it will automatically recommend you that account is not found. You need to create a new account. I can click on Setup, and let's settle it as an expense because bad dates are indirect expenses. Let's select this and click on Save and Close and click Done. This is how you can settle it. Now let's press Seven Neu. Now if I want to select anon Sans, you can see that there is no pending invoice and that is exactly what we want. I'll just clear the customer from the bottom and let's go back to this specific entry to see the journal entry effect of it. Let's go to reports and click on transaction Journal. Now, as we can see here that the pad that is recorded as an expense, debit, against the account receivable, means account receivable is reduced. So not only this journal entry is affecting the accounts in a correct way, but it's also closing the individual invoice at the same time. So this is exactly what we want. The ultimate goal in any accounting software is to do a perfect journal entry at the back end. And however you do that treatment, it's up to you. So there are many ways of doing the same thing. You can use any one of them according to your company policy. So that's it, guys. This is how you can record the bad debts in QuickBooks against the customer pending invoices. 56. Converting Sales Order to Sales Invoices with Advances Settlement: In this video, we are going to see how we can convert the sales order to sales invoice, as we can see in this transaction that on 24 GR, sold pens to Mr. Samuel Burns. Now, this is what we are selling as a finish code because we have successfully manufactured the finished code items, that is shirts and pens, and now we are finally delivering the finished codes to our customers. So this is against the order number 25. Now, if we scroll up in this project, we can see the order number 25 right here. On 12th of January, sale order received off shirts from Mr. Samuel Burns. Against this amount, we have also receive some cash in advance. We will completely see not only how we can convert the sales order to sales invoice, but also how we can settle the advance when we convert that sale order to sales invoice. From this home tab, I'll click on Create invoices and just directly select the customer as if you don't remember anything. Just right here, Mr. Samuel Burns. As I select this customer, it will automatically prompt you for the available sales order. Now, let's just choose the sales order. Order number was 27. Now, this is a mistake. Let me just correct it. This is Order number 27, and click, Okay, and it will again ask you that specify what you want to include onto the invoice. You want to create the invoice for all the pending sales order, or you just want to create for selected items. Now, in this case, I want to convert the complete sales order. That's why I'll choose the first option. Let's choose this one. And at this point, you can see that we have already mentioned the customer advances right at the time when we entered the sales order right. And we did this because we don't have to remember every single time about the customer advances. So that's why we entered it at the sales order point. Now, let's change the date. It's off 24th of January. Mention any invoice number for now and the total invoice amount was 720000, which is this one, and we have also received some advance against it, which was the customer liability. Means a liability on us. Either we have to deliver the goods or either we have to return the cash back. In this case, we are delivering the goods and we are settling the customer advances at the same time. Customer only has to pay 720000 -400,000 is equal to 320,000 that customers needs to pay. You can specify any details in the memo, and then we will save and close. Let's go to the last transaction and see the journal entry effect. I'll go to the reports and click on transaction journal. Let me just hide the extra columns. Here we can see that total account receable is 320000. Although the total sales made was 720000, but we recorded account receivable only 320000 because we have already received customer advances, right. In this case, debit is customer advances. Why debit because the liability is reduced. Firstly, we recorded it as a liability, and now the liability is being reduced, so that's why we are recording it as debit. 400,000 debit and 320000 receivables is debit, which makes the total 2720000, which is exactly the sales amount, and at the same time, inventory will be reduced from the stock, and cost of goods sold will be charged for the goods we are selling. This is the complete entry that QIPoks automatically passes when you do this simple kind of activity. That's it, guys. This is how you can convert the sales order to sales invoice, and at the same time, settle the customer advances within the invoice. 57. Dealing With Direct Sales In QuickBooks: This video, we are going to see how we can enter the sales invoice for a new customer. As we can see here in this transaction on 25th, January, it says sold shirts to Mr. James Carter, which is our new customer, and this is a credit customer. Credit customer obviously means that it will be a regular customer, because otherwise, we wouldn't book it as a customer name. We will just consider it as a walk in customer or a cash customer and distributed directly from the create sales receipt. But in this case, since it is a regular customer, I will use the Create invoice option for this. Let's enter this. I'll go to create invoices and just enter the new customer. We can just copy and paste from here. Just copy here, paste here. And as I press tab, it will automatically ask you to create the customer because it couldn't find it in the list. So I'll click one quick ad. And now let's start entering the items, which is a single item, which is shirts or finished good. So we are selling this item. In 500 units at a rate of 400. So we are selling the quantity, 500 is the quantity and rate is 400. This makes the total to 200,000. Now, it will ask you for the price level list. You can specify each customer prices separately for the same item. That I'll explain to you in much detail later. It's a very interesting area of price levels. So right now, let's click Okay. And just make sure that the dates and everything is correct. As we can see here, that the date is 25th of January. And you can put any customer message here and memo here in the memo, let's copy and paste this details. Also mention it here, but it will not look very professional. Remember, you only have to mention the memo here at the bottom, because in the description, you cannot mention this because this will be printed and sent to customer directly. Let me just save and new, and let's go to the last record and let's see how it will look in the printable invoice. Let's see the print preview of it. This is a simple template. Again, we will learn how you can customize it in a much professional way, but this is the default template. Let's close this. If you want to see the journal entry, I'll go to reports and click on transaction Journal. Here it says account receivable to sales and cost of goods sold to inventory. Guys, this is how you can book the credit sales of the new customers in QuickBooks. 58. Dealing With Customer Invoices with Early Settlement Discounts: This video, we are going to see how we can make the sales invoice against the sales order, that means converting the sales order to sales invoice, and at the same time, we offer customer 2% discount for the early settlement. If they pay within the ten days, they will get the 2% offer. So let's see how we can do this in QuickBooks. First of all, you need to create an income account. Most of the people, what they do is they treat the discount given to the customers as an expense, and that's right according to accounting treatment up to some extent. But the problem is that if you're selling the customer for something like $100, and you offer them a 2% on spot discount, let's say. The customers ultimately paying you $98. That's why I prefer to reduce that discount amount directly from the income, but we will create a separate ledger for it. What I'll do is from the chart of accounts, I'll create a new ledger and categorize it as income. And let's write it as discount given or the customer discounts. And hit Save and Close. After that, I need to link it to a service item account. So I'll go to items and services, and from here, I'll click on new item, categorize it as service, and then again name it as customer discounts. You can assign the category if you have multiple discounts here, and we don't have any unit of M for the customer discounts. We will mention the same in the description. There is no rate. And now we will link it to the discount of customers customer discounts income. Let's click, Okay. Now what we will do is just create a simple invoice. We will start creating the invoice, but we want to convert the order to invoice right. So as soon as I write Scott Anderson here, it should recommend us a pending sales order that we need to convert. So let's choose this and click, and we want to convert and create invoice for all the sales order. So we have converted and both items are now invoiced. If we check the order first, it was of fifth January where it says 3,000 shirts was ordered by the customer, and 2000 of pens ordered by the customer. But what we have provided them for now is 2,800 shirts and 2000 pens. So make sure that you enter the correct amount. First one, 2,800 was the quantity, 400 is the rate which makes the total 21120000. On the second line, we have 2000 quantity, 500 rate, it makes the tal to 1 million, and now comes the customer discount. Now for this particular situation, it says that we have sold the garments to this customer, and we have offered them 2% discount on a condition, not on the sales invoice. The condition is we will offer them 2% discount for the early settlement within ten days. That means this discount will be avaled when the check is received by the customer within the time frame. Otherwise, we don't have to give the discount. In this case, if the on spot discount is not given, we will not mention it here. But let's say it was an on spot discount. In that case, I would have mentioned the customer discounts and you can apply the percentage s 2%, but it will be -2%, which will apply the total amount in the invoice and show you the pending amount after availing the discount. But in this case, I just right click and delete this line. It was just to explain you the situation. That this is related to the payment. When the payment is made and early settlement is made, then only we will avail this discount. In this case, we will enter this simple invoice, and you can also mention the terms of 2% 1030 so that it automatically recommends you the discount to be availed within the particular time frame. You can put the memo here and then save and close. So guys, this is how you enter the sales invoice, converting from sales order and with the condition that we will offer the customer 2% discount within ten days of settlement. In this case, we have just simply entered the invoice. That's it. We have only mentioned the terms, and when we receive the check, we will see the further treatment of it. So do it by yourself and I'll see you in the next one. 59. Dealing With Customer Payments With Early Settlement Discounts: All right, guys, in this video, we are going to see how we can receive the payment with the settlement of early settlement discount, which we have offered to the customers. So in the last transaction, we can see that we have sold the garments to this particular customer against the order number, and at that time, we offered them 2% discount for the early settlement. Means, let's say that the normal term was they need to settle the invoice within 30 days. But we have offered them 2% discount if they settle within the ten days. So this was the condition. Now, on the very next day, we have received the check from Scott Anderson, which will be deposited in the bank of America, and the customer wants to avail that 2% discount. So this is the amount that we should enter in the system after 2% discount. As you can see that, if we apply this invoice equal to this, divided by 98, multiply by 100, this will make the total 221200, which is the exact total of this invoice amount. But since the customer is settling early, he will only pay this amount. So let's see how we can deal with this in QuickBooks. So in order to receive the payment from customer and avail the discount, I'll click on receive payments, and from here, I'll choose the customer. And that is Scott Anderson. And he's paying us by check. So let's select the check of Bank of America. If you want to keep it as undeposited funds to be deposited later, we can also do this. But let's say we want directly to deposit in Bank, and just select the check here. Now, let's consider that only this invoice we need to avail the discount against because it also had an opening balance, which let's say that they have told us that this invoices, we will settle it later on, but for this, we want to avail that discount. So click yes, and mention the check number, put the date, which is 27th of January, and now we will apply the discount. I'll click on discounts and credits. And as you can see that it automatically mentioned that we are within the ten days out of 30 days, so we can avail this 2% discount, which amounts to 21 20t0. So let's actually check this if I write 21 20t0, and we multiply by 0.02, which is 2% or let's write 2% here, it under. It is the same amount, 42,400. So let's apply this, but not in bad debt. It will be applied in discount, and which is customer discounts. Now, again, I'm telling you that this depends on the company policy. You can either reduce it from the total balance as a negative income or the customer discounts. And otherwise, if the company says that the customer discount should be treated as cost of good sold or in fact, an indirect expense, you can also do that thing as well. So it completely depends on you and your company policy. Some people treat it as cost of good sold. Some people treat it as negative income, some people treat it as income. So people treat it as indirect expenses. So this varies according to company to company. Let's hit done, and we're receiving this same amount which is 20 do 76 do zero. So guys, this is how we avail this, let's click on seven new. Let's go back to check the reports, and I'll go to reports and click on transaction Journal. Here it entered customer discount debit as a negative income, and against that, our total account receivable amount will be reduced. That is perfect. And since we're receiving the less amount after the discount from the customer, same amount will be receivable and deposited to Bank. So this is the complete treatment of how you can deal with the customer discounts availed at the early settlement of their payment. 60. Payment of Purchase Invoices in Quickbooks: Video, we are going to see how we can deal with the payments of purchase invoices. So here in this example, we have a transaction of 28 R which says payment made to Vallas and Sons by C check of City Bank. Now, it is already considered that this vendor already has some balance, either in the form of purchase invoice or in the form of opening balance. So let's see. As we can see that at the opening point, we had some balance with Vallas and Sons. We are going to pay this balance. Let's go to QuickBooks and I'll click on pay bills in the vendor section, and here I can see the balance of Vallas and Sons, which is 277500, but out of which, if I select this, it will be considered that we are paying the full amount, but that's not the case. We are paying 175,000 out of the total balance by check. I'll settle the amount here. I'll write the new amount here and press tab, and you can select the date here. We are paying for the amount on 28th of January, let's change the date 28th of January, and we are paying this by Citibank. The check number is this. Let's copy this. Now, when we see the front interface of the payables option, we cannot see a direct area where we can enter the check number, but you just have to change the radio button from to be printed to assign check number. Here you can manually assign the check number. As soon as you click on pay selected bills, it will ask you to mention the check number, and we can copy and pay the same here. So let's click, and the payment is done. Now, if I want to see the journal entry effect of it, I need to go to the vendors and select the Valles and Sons to see it's all transactions, like this. And as I can see that this is entered as a bill payment, if you can't see that particular document, you need to change the tate to all, make sure you have selected all for each filter, and then you can see that. Select that bill payment just open by double clicking it, and then you can simply go to the reports and check the transaction journal. And since at the time of opening balance, we had the balance standing against that vendor. So it was credit. Means any kind of fable, when it increases its credit. So we are reducing that payable balance or a liability. When liability is reduced, it's debit. Account payable this debit, and City Bank is credit because this one is asset which is reduced. Guys, this is how you can deal with this kind of transactions. The next transaction is exactly the same, and we are making the payment to APX enterprise by check. So let's see this. I'll go to Payables again. Select this vendor, and we are paying out of total, we're paying 150,000. Let's change the amount here per tab. Right here, the date, which is 29th of January. Method is check. We are paying through City Bank and click on Pay selected bills. Here I can just specify the check number, and that's it. Page here, click, and we are done. Similarly, if you want to check the general entry of it, the method will be same. Guys, this is how you can deal with the payment of purchase invoices in QuickBooks. 61. Dealing with Fixed Assets: Now let's see how we can deal with the purchase of any kind of fixed assets in QuickBooks. It's very easy to deal. And in this transaction, it says on 30th January, computer purchase, which is an office equipment by giving cash, and the total amount is 18,000. Let's see. Now, I'll go to Company and click on Maged Journal Journal entries. We will simply pass a journal entry for it. The date is 30th of January. Let's try to enter office equipment here because the major category is not only computer, but it is office equipment. It's mentioned here. We will prefer the bigger category while creating the ledgers. As I write office equipment, we cannot find any particular fixed asset with this name. Let's press tab, and it will show you this prompt that account is not found. Do you want to set up? Yes. I'll choose the fixed assets category, and you can select the same name or write the same name, and you can also paste it in description or anything you would like to. Save and close, And now let's enter the amount, which is this one. And let's copy and paste the memo here, which is this, and we are paying by cash. And that's it. This is how you can book the purchase of fixed assets in Qui books. Now there are many other ways of doing this as well, as we can see the tracking of fixed assets in journal entries, but we will follow this later on in the frequently asked question section where we will discuss some other areas of Qui books. But right now, let's click on, and this is how you do it. 62. Handling Loan Repayments: Our next transaction is of 30th Gener, and it says loan of Strandard C chartered bank, that is a loan account, partly repaid by cash. So the total amount is 250,000. So let's see the original amount because it says partly repaid by cash. So if I go back, as we can see here that the Stndard C chartered bank loan account was separately open without any other transaction interference, it's only for the loan. The total pending amount was 500,000 loan, out of which we are paying partly in cash, which is 250,000. So for these kind of transition as well, we can do the journal entry. The procedure is very simple. I'll go to company and pick on make journal urnal entries. Since we have already entered the opening balance in this ledger, so we don't need to create the ledger, we need to put the date here, and let's start writing Strandard C chartered bank. It's basically SCB loan account, which we have entered. So SCB Stndard Chartered bank amount is 250,000. And let's copy and paste the description here in the memo, and we are paying by cash. 250,000 debit and 250,000 is credit. This is the simple journal entry that you will do for this. Save in close, and this is how you can enter the repayment of any kind of loan amount in QuickBooks. 63. Entering Purchase Returns: In this video, we are going to see how we can deal with the purchase returns in QuickBooks. Here in this transaction on 30th January, it says purchase returns to star textiles of cloth B. The return quantity is 500, rate is 150, which makes the roll 275000. Let's move to QuickBooks and let's see how we can deal with this. I'll simply go to Enter Bills, and you might be thinking that y enter bills if we are making the returns. It's because we have this credit option in the bill, and this is used for the purchase returns. First, I'll go to enter bills, then only change the radio button from bill to credit. This makes it purchase returns. And let's select the start textiles here. Change the date. Our date is 30th of January, 30th of January. Reference number, you can mention the reference number here. You can copy and paste the same memo that is used as a description in the document, which is this one. Let's copy and paste this. Now we can see the two tabs here. One is expenses, one is items. I'll go to items and select the item, which is cloth B. We are returning cloth B. Quantity was 500. Rate was 150, which makes the rule to 75,000. This is the simple entry of purchase returns in Quickbooks. Let's save in new and let me show you the journal entry. Let's go pack and click on reports to see the transaction journal. Now, when we purchase the entry is inventory debit because we are purchasing and inventory is increasing, right? So when asset increases, it's debit, and accounts payable as a liability is credit. In purchase returns, it's exactly the opposite. Accounts payable is debit, and inventory asset is credit. So guys, this is how you can deal with the purchase returns in QuickBooks. 64. Entering Sales Returns: Our next transaction is of 30th January and it says sales returns of shirts from Mr. James Carter. Now let's see how we can enter the sales return in QuickBooks. Now to enter the sales returns, we have a special area here in this customer section, which is refunds and credits. Let's click on it. And let's choose the customer, which is James Carter, date is 30 N. So I put the date. You can mention the credit number here, and let's mention the memo, and the transaction details can be mentioned here as well, and sales returns of shirts, it says. So the customer is returning shirts or finished goods to us, right? And how much it is returning, 200 is the quantity and 400 was the rate. So 200 and at the rate of 400, shirt was sold, so it is returned at the same price. This is the final entry. Let's click on Save and New. Now, as soon as I click on Save and New, it will show you that there is an available credit. Obviously, that customer has returned items to us. Now, it's up to us what we want to do with this credit. This credit memo or refund has a remaining balance, which you may use. What you would like to do with this credit. We can retain as an available credit so that customer can adjust it in future purchases. We will not return the cash by hand, and we will not settle it against any previous invoices. We will just hold it as an available credit so that they can avail it later on or settle in the later invoices. We can also give the refund. And we can also apply to an existing invoice so that it will settle the existing invoice with this balance, and then the remaining balance the customer has to pay. So I'll use this option. Click Okay. And as we can see here that we had this balance with the customer, the amount due was 200,000 out of which we can adjust this 80,000 here. So we just have to pay the remaining balance. Click done, and this is how we can settle this. And if we go back and check the reports and transaction journal, it will show you this entry. Now here, the entry is exactly the opposite of sales invoice. Sales invoice entry was receivable to sales. Now here it's sales to receivable, and same goes for inventory and cost of goods sold. This is the simplest method on how you can enter the sales returns in QuickBooks. 65. Purchase Of Direct Cost Services in Cash: An EX transaction is of 31st NV, and it says packing charges paid by giving cash. Now this is kind of a service that we are purchasing for the finished goods. Our business is to sell shirts and pens. So if the packing is done for that shirts and pens, it will be included as a cost of good sold and not as an other indirect expense. Because any kind of cost that is directly incurred on the product that you are planning to sell will be considered as cost of goods sold. Let's see how we can deal with this in Qi book. Now, if the services were purchased on credit, we could have entered it from enter bills. Just mentioned the vendor here. In the items, I could have created new service item of the services like this one, and just mention the amount here and save. But that would enter it as a credit. Means as an account payable. Here we are paying by cash, so I'll enter it through write checks. There is no vendor mentioned here, so we will also not enter any vendor. Let's put the date, and we are paying by cash. I'll go to items and select add new and select service here. Now, if the item is moving to the half window and you cannot move it directly. Sometimes this happens. In that case, just close all of these documents and go to edit and preferences and go to the test of view, and instead of one window, you can change it to multiple windows that should solve the problem. I'll go to write checks again, and let's put the date here, which is 31st of January. Let's copy and paste the memo directly from here. Under the items, I'll go to add new and select the service item. Now the service item we are going to name is packing charges. You can make the category of it as well, but I'll keep it as it is. I'll not even select the unit of my year for it. Let's copy and paste this one in description as well. And this one is the cost of goods sold because the packing is directly done for the finished goods. Click, Okay, and this is done. Let's just enter the amount of 60,000 paid by cash, make sure that the bank account is selected to cash. Otherwise, the transaction effect will not do correctly. Let's click on Sven New. From the main tab, I'll go back and let's check the reports and transaction journal. Cash is credit and the cost of goods sold for the packing charges is debit. This is how you can deal with the purchase of services, and especially the cost of goods sold services, which is directly implementable on the finished goods in cash. If you're purchasing this same service on credit, you can use the enter Bill service for this. 66. Dealing With Owner Drawings: Our next transaction is of cash drawn by director for personal use. This is a simple drawings and it will be entered through journal entry in QuickBooks, and the date is of 31st January. Let's see how you can enter this. I'll go to Company and click on Ma Journal entries, and here I'll simply put the date, which is 31st of January. Now let's check the drawings area. Let's write drawings here. I already have an account of owner's draw. So I'll use this one. You can also change the name if you want to. Just close it from here and you can go to chart of accounts. If you want to change this, just write here, and you will get to this point or otherwise, you can sort it by type, and if you want to edit the name, let's change drawings here like this. Save and close. Let's go back and continue with our journal entry. I'll go to Company and journal entries. Now let's write drawings here and you can see that the name is changed. Now let's copy and paste the amount. You can copy and paste the memo here, and under the credit side, I write cache here, and this completes our journal entry. This is simple our entry drawings debit and cash credit. Save and close, and this is how you can pass the drawings entry for cache by the owner in QuickBooks. 67. Offsetting Damaged Inventory: Annex transaction is of 31st Gen and it says 500 button shirts damaged, and that is an inventory loss. Now, it is clearly mentioned that it is damaged. That means this is not the part of normal production loss. This is the loss that caused by mishandling. So this is treated as indirect expense. Now let's see how we can enter this in quick books. I'll go to items and services, and from the bottom area, I'll click on activities and click on adj quantity or value on hand. Let's choose the date, which is 31st of GR, and let's create a new account that is loss of inventory. Right here, loss of inventory, but as you can see that it didn't choose any account. Press tab, it will show you this prompt that account is not found. We will click on setup and we will not treat it as cost of goods sold because, as I said, this is not the normal production loss. This is due to mishandling. This will be as an expense and save and close. Right here, button shirts, we'll show you this quantity. I'll write the quantity difference as -500, so I will show you the remaining new quantity. Now don't worry if you see some other quantity here, we will correct that later on. Maybe there is some issue with the dates. You can check that later on. But this is how you pass the entry. You can mention the memo here, save and new. Let's go to previous. If you want to check the journal entry of the loss of inventory, you can see that there is no reports tab. Instead, what we will do is go to the reports menu from the top and click on transaction journal. Now, it will show you this journal entry that loss of inventory is debit as an expense, and credit is inventory asset. Perfect. This is how you can enter the loss of inventory of the raw materials in QuickBooks. 68. Dealing With Payment of Income Tax: Our next transaction is of income tax payment, and it says on 31st income tax paid by issuance of check 8803 from the Bank of America. Now, the amount paid is 20,000, but before entering this, I need to check that at the opening point, do we have any liability of income tax already that we need to clear or we are just booking the expense directly in this month. Let's see. I'll go to the starting point. And here I cannot see any income tax payable. I can see only sales tax payable, but not the income tax. What I can do is just directly create the expense and book it as an expense. So I'll go to Company and click Make Journal Journal entries. Let's put the date, which is 31st of January, and right here, income tax. As we can see that there is no account already created here. So I'll write the name of the account and press tab, click setup and select as an expense. You can also choose the other expense to see what comes under the other expense. It is mentioned that corporation taxes, penalties and legal settlements and all kind of taxes comes under other expenses. So it's better if we configure it this way and save and close. Now, let's put the amount. And you can copy and paste the memo from the project and it is paid by Bank of America. Let's write here and hit, save and close. What you can also do is sometimes people prefer through write checks because they are settling the payment from the bank. In that case, you will do this thing. I'll write a Bank of America here, put the date here, and under the expense, I'll write income tax and 20,000. And copy and paste this. That's it. I'll click on Safe and New. Go back, check the reports and check the transition journal. Same effect, Income tax is debit as an expense, and credit is Bank of America. If you prefer this way, what you can do is keep the right check entry and go to the My Journal Journal entries, and you can remove that or wide that. This case, let's avoid this, let's save. Let's see what is the effect. I'll go to chart of accounts to see if there is any double entry in income tax, what is the net balance? I can see income tax here, just double click here, and we have the net balance of 20,000 only, which is charged as expense. We can also confirm it through reports, company and financials, and profit and loss standard. Change the date to all, and I can see income tax right here. This is how you can do the expense treatment. If it already had a liability, you will reduce that liability against the expense. Means debit will be expense and credit will be income tax payable account. Guys, this is all the options that you can use to do the treatment in QuickBooks. 69. Accruing Month End Expenses: This video, we are going to see how you can enter the month end expenses against the accrued expenses. So the last transaction says transfer of following utility bills to accrued expenses. Now, because in accounting, we have to record the expense in the particular month to which it relates, even if it is not paid yet. For example, you receive the electricity bill for the month of January.'s say by 31st January, and you are paying it in the next month. But if we enter that transaction in the next month, it will be recorded as the next month expense, and we don't want that. That's why what we do is when the liability occurs, when the expense is due for us in the particular month, we enter it on that dates. But the problem is we haven't paid anything yet. So in that case, we will debit the electricity bill, let's say, as an expense, and credit will be accrued expenses. Now accrued expenses is simply expenses payable, so it is a liability account which will be cleared in future. As you can see in the opening position, we had an opening balance of accrued expenses. That means expenses payable. And in the very next transaction, on first of January, we have paid all accrued expenses paid by cash. So we reduced the liability by debit and credit was cash. So similarly, this month, we will record all of these expenses because it relates to that specific month, but we haven't paid it yet. So that's why we will credit the accounts. It's up to you if you want to record each separate expense as debit and then credit as liability for each one separately, or what you can do is debit all of these and pass a single credit entry. Let me show you how. Now to enter this, I'll go to Company and click on Male Journal Journal entries. Click, Okay, let's put the date, which is 31st of January, and let's mention this expense. It's your choice if you want to set as indirect expense and you want to mention this as a bracket, you can mention that. Otherwise, you can just keep it the name to electricity bill. Let's press tab, and if the account is not found, we will set that up as an expense and continue. Let's save and close, and now I'll put the balance here. Let's put the memo. In the memo, you can keep the bracket as indirect. Now it's your choice if you want to credit it directly to accrued expenses, which is other current liability. This will be the complete entry. You can save and close and do the same for each separate expense and then credit each one as accrued expenses. But if you want to enter all of this, you can do this, also because the deed is same for all the expenses, because we are putting an accrued expense. Rent, let's write rent simply. Rent expenses already here, so let's put the debit let's copy and paste this rent here. Next one is salaries and wages. Now you have to check whether we have something closely related to that particular ledger. It's not compulsory that exactly that ledger name exists. It will be something different, especially if you have chosen the industry specific chart of accounts, it will automatically create some ledges and you can choose from them. Let's see here we can see the payroll expenses. What I can do is right now, I can just post it as a payroll expense, and then we will later on change the name of payroll expenses to salaries and wages. Let's put the debt here. Press tab. Next one, we have telephone bills. Again, we have to see what is relevant for us. Now here we have telephone expenses already, so we will use this press tab, paste here, and then press tab, and it will automatically calculate the totals of the debit and show it as a credit. Now all of this credit goes to accrued expenses. This is the simplest entry that you can do for accruing all expenses at the month end. Now let's save and close, guys, this is how you can enter the expenses for the particular month against the accrued expenses or expenses payable. 70. Closing Reports: Now that we have completed all of our transactions for this particular project, let's extract some important reports in QuickBooks. The most important reports in Quickbooks after the completion of all transaction, that means we want to extract some year end closing reports, right, and that is trial balance, balance sheet, and income statement or profit loss. Let's see how we can extract this. I will simply go to reports, and the first report I want to extract is the trial balance. I'll go to account and TexS and click on the trial balance report. Now, if you see it set to the last month, you can set it to all dates to make sure that all transactions are showing. S, especially because sometimes you make some date mistake, and in that case, some of the transaction might not show up if you set it to last month. So that's why we prefer it to set it to all dates. Now, reports basis is set to accrual by default, and this is what we want, but you can set the cash report as well. If you have a requirement, you also have the choice of cash as well. Normally, the accounting is done on accrual basis. This will be our report. Now, this is the closing report that I will attach with the link of this video so that you can match it to your report. And if there is any difference, what you can do is just simply double click on that particular ledger, and then you have to check each entry one by one to find out the mistake. Now, if you see some mistake, what you can do is just double click on that particular le and you will see the details of that ledger with all the transactions. If you cannot see all the transaction, you again have to set it on custom, and then you will be able to see that. So you can individually check to make sure each and every single transaction is correct. Now, a little hack is when you are trying to correct the balances or match with the required balance, what you can do is check the account receivable, accounts payable, inventory and bank, because this ledgers are related to nearly all of the transactions. So if these balances are correct, all of the remaining trial balance will automatically correct. So just note this. Account receivable, accounts payable, inventory. You can even leave inventory, account receivable payable and banks and cash. If you are able to reconcile this or make that balances correct, the trial balance will automatically correct itself. But I will attach all of this trial balance for your reference. One thing we can see here in the trial balance is we can see some zero amounts here like customer advances like uncategorized incomes. I don't want this. I will go to customize report and click on advance, and display rows will be only non zeros. We don't want to show the zeros, click Okay, and now we can see the refined version of it. If you want to save it or export it, I'll click on Excel, create a new worksheet and create new, and here we have the report in Excel. I'll just save this in the required folder, and we are good to go. Similarly, if I want to extract the report of the balance sheet and the profit and loss, I'll go to reports, and let's go to company and financials, and from here, I'll select the profit and loss standard. I will change the dates to all, and then I can see all of these ledgers. Now, by default, if you see that sales comes after the customer discounts, that's because it is set in alphabetical order. You can correct the order of it. I can sort it to z to A, and then it will show you the sales first and then the customer discounts. Similarly, cost of goods sold is shown here. Discount received is shown here, and this is all the profit and loss you have. And if I want to customize this, let's say I want to change the text size. I'll click on Customize Report and click on Fonts and numbers. Change the font, and let's make it size ten, click. And it says that it will change all the related fonts. Let's click yes, click, and this is the report. Now we can see it more clearly. So, let's see if I want to include another column. Let's say percentage of row, something like this, and I have made a couple of other changes. Now if I want to save this report as the customized report so that I don't have to do this every single time, what I can do is I can memorize the report because otherwise, you will just extract the report and make all the changes over and over again. That's why I prefer it to memorize it. I'll click on Memorize, and here I will set it as custom profit and loss. Now, I can choose the group here, save in the memorized report group, and I'll set it to accountant. You can also share this report template with others. Let's click. Okay. And now I want to see this customized template again. Let's say I have made some changes. I've entered some more transactions, and now I want to see that customized profit and loss report. I'll go to reports, but this time I'll not select company and financials and profit and loss standard. This time, I will access it from the memorized reports and then go to accountant, and here we have the custom profit and loss account. This is our customized report that we can easily use every single time without making any further adjustments. Let's save this one as well. Actually, let's make it simple, list, and now let's save it. This is our profit and loss report, save to the desired location, and we are good to go. Similarly, let's see our last report, and that is balance sheet. I'll go to reports and click on Companies and Financial, and from here, I can extract the balance sheet standard, and let's set it to all dates from here, and here is our balance sheet. I'll follow the same method to export this, and now let's save it to the desired location. One more thing, which is a very important report. Let's say I went to accounts in Texas and click on trial balance and let's set to all dates. Now, this is the trial balance report and we can see the total of each ledger right. If I want to see the details of any particular ledger, I have to drill down to it, and then we can see only this ledger report. But I want to see the complete ledger report with details for each ledger. How can we do this? I'll go to reports and go to accounts in Texas and from here, I'll click on transaction detail by account or the journal ledger. Let's see the difference of it. If I open the journal ledger, I have to set it to all dates to see the report. This is the report that we have with the Journal edger. Let's go to reports again and click on accounts and taxes, and now let's check the transaction detail by account. This looks almost the same. Not much of a difference. You can use any of them for your reference, and I'll attach this report as well so that you can check your balances with this. Let's save this one as well. I have saved this one as well. You can check all of these reports attached with the link of this video. And that's it, guys. This is how you can export the reports and check the closing reports in QuickBooks. Now that we have completely learned about the two projects that is one was trading company, one is manufacturing company. Let's move to our special section now, which is called frequently asked questions in which we will cover other important areas of Quickbooks. Just extract this report, practice all the assignments, complete that, and then I'll see you in the next one. 71. Opening the Sample Company in Quickbooks: Right now that we have completed our trading company and manufacturing company assignment. Let's move to the other areas of Quik books, and we will explore one by one all the important functions in QuickBooks. So for this, I will not disturb my main file. What I'll do is just close this company and open the sample company that Quick Book offers by Dvault. So in order to create a sample company or open the sample company, I'll click on file to close this company from here. And I'll click on Open a Sample company in this case, because we want to see many functions related to the product, so I'll select the product based business first. It might ask you to update the company. It says QuickBook desktop needs to update your company file if you plan to use a multi user mode, do you want to continue? Yes. We might have to wait a little while, and then the company will update. Now it shows you this message that you are opening a QuickBooks Desktop sample file. Click Okay, click Continue, and now our sample company is created. The name of the company is Sample Rock Castle Construction Company. And as you can see that on the home tab, we see many more options or many more areas than the normal company that we just worked on. That's because all of the functions are enabled in this company for you to explore. This is how you can open the sample company. In the next video, we are going to explore some functions using the data of the sample company. 72. How to Manage Price Level Lists: Next topic is dealing with price list in Qi books. Now, the price list is basically, let's suppose that you have different customers, and that different customers are of different type. For example, you have three types of customers, retail customer, wholesale customer, and export customers, and I want to sell the same product. For example, I have a product named AirPods. I want to sell this air pods to different type of customers at different prices. The standard price of that airpods is, let's suppose $100. But the same product I want to sell to retail customers for $100, which is the regular price. I want to sell some wholesale customers which buy from us in bulk, and I want to sell them to $80. I also want to export that products at $120. Although the product is same, but different prices will apply according to the type of customers. Let's see how we can do this in QuickBooks. Let me just create a product. I'll simply go to items and services, although we have a lot of products in the sample company, but still I'll create my own new one, which is the inventory part, and let's say it is ear pods. Category, you can select any category here and I sell in pieces. I already have these, but it is each two case. It is not a single unit of my ear. I'll select count here, and I'll select each. I sell in single each and click Finish. Now, let's see the cost of this product is $60, and my standard price is $100. It will go to the cost of goods sold and the income account, I'll set it to sales revenue, or otherwise, let's check the income account here. Since this is a construction company, I can create my own income account. Let's write sales revenue here because we are just taking some example right. And let's suppose we already have 1,000 units on hand. Otherwise, we might need to purchase the airpods separately to make the sales. So let's click. Okay, now comes the main part, and that is setting the price list. What I'll do is I'll simply go through the list and select the price level list. From the bottom, I'll select new, and my first prices are retail prices. Now you can set up by a fixed percentage or per item.'s say you want to charge 10% profit above the cost for all the tail items. What I can do in that situation is just apply the fixed percentage, and this price level will, let's say, increase the price by 10%. All the product will be up by 10% to set on retail prices. But as you can see that I cannot see any item here, so I'll change it instead to per item, and now I can see all the items that I have in my company. But my item is air pods right. Let's search for air pods. Here is my product, AirPods. Now the custom price is $100 because this is a retail price. If I want to set all the custom prices automatically, based on a certain criteria, let's say that you take 10% profit on each product, if the cost is 25, let's say, so you take 2.5% as a profit, which is 10%. That will determine the sales price. We can adjust all the prices at once by simply marking all here And in the field, adjust price of the mark items to be 10% higher than its standard price. Let's say that we have a standard price for each item. In this case, we haven't set standard price for most of the items. But if we have that, we can simply click on adjust, and you will notice that it will increase the custom prices by 10%. So this is also how you can do it, but most of the companies do not charge the same type of profit for each single item. So what they do is, let me just go again and set it again, retail prices. So what they do is they set the custom price for each single item separately because obviously, you know that on each product, margin is not the same, or profit is not the same. It depends on the products. On some products, we are taking the profit of 10% on some products, maybe 5%, maybe 3%, so it varies. That's why it's dal two, set the custom price. So this one is 100 because it is the same as the standard price, which is retail prices, and I'll ignore all of this and do not market at all. Just select the items, set the custom price. Click Okay. Now it says when adjusting prices, click adjust first, and then okay. All right. So we will click on adjust and now click. This is how we will set that, Let's quickly set for other two, which is wholesale prices, set it to per item, select airpods. I'll write $80 here, press tab, and let's click. Now let's create export prices. Find our item, and this is set to $120. Press tab, you don't need to click on dgeS, because when we click on jest, it will change it to $100. Instead, what you will do is just write the item price and press tab and then click Okay. Now that our price list set, let's assign this two customers and let's see what changes does it have. For example, we will take these three customers. One is Allard Robert. Second one is Babcock music shop, and third is Baker Chris. Let's open this first. What I'll simply do is, I'll go to the payment settings and set its price level to retail prices, that's it. Now let's open the second customer, and I'll go to payment settings and attach the price level of wholesale prices and click. And the third one is Baker Chris. I'll go to the payment settings, and now we will attach it to export prices. That's it. Click Okay. And now let's test this. Let's say I want to create an invoice. I want to sell these airpods. So in the first scenario, my customer is Alar Robert. Say to what price the Squig book suggests to sell this airpod to alert Robert, because this is a retail customer rate. Let's sell the airport. As you can see that it automatically is suggesting the retail price. If we click on this rob down, we can see all the custom prices based on different price level list here. Since this is a retail customer, this price will apply. Say Save and New, and now I want to sell this Airpod to Babcock music Shop. Let's sell the airpods. And now we can see that since this is a wholesale customer who buys from us in bulk, we can sell it at $80. So this price will apply automatically based on the price level list. Let's click on saven New and now sell the same product to Baker Chris. Since this is an export customer, I want to sell it a little higher than the normal cost. Let's select airpods. Now, it should suggest us $1 because that is export price, and that's exactly what we are getting here. This is the export prices applicable for the Baker Cris, since this is an export customer. Let's see ten items to this customer and click on Save and Close. Guys, this is the overall concept of price level list. Obviously, you can use it differently in different situations depending on your company requirements. But from this example, you can figure out yourself how creative you can be with this price level list and how in different situations, you can take the benefit from this function. Just practice this by yourself and I'll see you in the next one. 73. Invoice template Customization: All right, guys, in this video, I am going to show you how you can customize the default template of Quickbooks invoices that looks like this and convert it to something like this. As you can see the difference, how premium this looks, and this has a stamp, a digital signature, and all these things. So this is very easy to do. I will just show you in a couple of steps. So let's get started. First of all, what we will do is is the sample invoice. Let me just open it from the starting. I'll go to create invoices and go back to access any previous invoice. Now I'm using Sample company that is Sample product based business by default offered in QuickBooks. It is Sample Rock Castle Construction Company. I just go back and check the preview of any particular invoice. L Preview invoice. This is the default template rate, and I want to convert it to something like this. Now, this template, I accessed it from Kanva. What you can do is just go to the home page in Kanva You might be using the free version, but the free version also has many templates. Just write invoice in the main section. The simple templates are these, and some of the pro versions, which you can see the cap on, I'm using the educational version is like this. Choose any invoice which suits you. I prefer this one. Let's customize the template, and then you can see this opened in a separate window. Now, what I'll do is I'll just duplicate this. Remove all the names from here. Because the names and the fields Que books will automatically pick. I only need the style like this. Write your own terms and conditions here. I can ask a GPT to do it for me. Write terms and conditions for invoice template. These are some of the terms and conditions. Let's say I want to use this one. Just copy and paste it here. Let me just zoom it a little bit. Let's say payment is due within 30 days from the invoice rate unless otherwise agreed in writing. You can use the digital signature just write a digital signature, make sure that it is transparent, and then you can simply upload this in Canva and place it anywhere you want. Same thing goes for the payment method and the name and all. What you can also do is keep this one as it is, or even you can remove this one as well because we have this in the template. This is our template, which is ready. Now what we'll do is just click on Share from NVA, and let's export it to JPAC. And by the way, guys, I have attached this one with the link of this video as well, so you can check that out. But what I recommend is you create it by yourself. Anyways. Now, let's go do the formatting, and I'll click on Managed templates. I am under the invoice from Invoice, click on Managed templates. Now as you can see that I have a lot of tamlates here. And this company has also created its own custom talate. So it depends on whatever you want to use, but I want to use the minimal template, Let's go with into it product invoice. I'll just make a copy of it to make sure that I don't disturb the original one, and let's write here my beautiful template. Click. On the main screen, I have a lot of options. I can apply the logo. I can change the color scheme of the invoice. I can make it gray, make it green, maroon, whatever. But most preferred one is black obviously. For the logo, I'll not use any logo because that all I'll get in the template. Means whatever logo you want to apply, you can apply it directly here and then import that in QuickBooks. For the company name, company address, phone number, options, et cetera. It depends on that if your template already has all of these things, then you can just simply uncheck those because that is already included in the tate. But if the template is very simple, it doesn't have these things, then you can include those. In that case, you can include these, and let's go to additional customization. Now, I'll just quickly show you what additional customization is. Here you will find different tabs, which is related to headers, columns, progress columns, footer print, et c. Now, the header is what you see on the main invoice. You see a default title on the screen of the invoice and also in the print. You can see the date on the front of the invoice and also in the print. Let's say I want to disable something from the main invoice template. I can do that. Let's say this one. Let's Un check this date, click, and now you can see that my beautiful template is selected here and I cannot see any date field here. I can remove it from the main sheet. Let's enable this. Sometimes you need something to be entered in the screen, but not in the print. You need it for your own records, but you don't want to show it to the customer. You can make all of these customizations. You can even add some custom columns, you can change the names. You can change the titles, for example, SO number, you want to write for SO number, actually it's sales order number, you want to show the full name, and you want to show it to the print and to the screen both. You can adjust that. But obviously, in some cases, when you continue with the invoice template, you might need to adjust the fields as you can see here, that the print preview looks like this. It's overlapping the existing fields, we might need to tweak it a little bit to adjust it properly. For now, I'll just uncheck this. Now for the columns, columns mean this particular area, you can disable something from the screen and something from the print as well. For example, you want to write the item code on the screen, but don't want to print it in the invoice, you can do that. I can find the item code here and let's say I want it to enter in the screen. It is by bold set, but I don't want it to be shown in the print. Let's uncheck this, and as you can see that item code is now removed from here. These customizations you can do in the additional customization. You can just play around with this because obviously we're using the sample company, so nothing will harm us. You can change anything and play with it totally. Now let's go to the Layout designer, which is our main area. This is the main screen. I can click on Layout designer to customize this template. The simple method of beautiful customization is you just import an image as a template and then set it as a background. I'll go to add, click on image, and let's choose the template. Click, and now I can set this as a background. What I can do is, since you can see that it is a very small image, you can drag it to the top corner and then expand it from here. Make sure that it occupies the whole screen, and now it looks something like this. Obviously, we need to change the position of the fields in voice should come here and date should come down here. So let's see the customizations. First of all, if you want to move multiple fields downward, what you can do is for now, just minimize this image background image first and select all the fields like this, drag the mouse around, to make sure that everything is selected, and then you can move it all together here. Let's say. Then let's say I want to set it to full screen my template, and then I want to adjust this field right here. I have placed the invoice to the right area. Now let's see the format here. Here we're using this monstrat format. Let's double click here, go to Font and try finding this format. If you can't find that one, you can find anyone close to it and click Okay. You can reduce the size of the field, and you can also change the position. Let's say I want to align it to the left, right or center. I can easily do this. Get bold, increase the size, let's say to 28, click, and this is how it looks. Now, don't worry about this box because that will not appear in the print preview. Let me show you. It will look something like this. Let's set it a little bit more. Now here is my final settings. Let me just show you, I set the justification to the right. Choose the font of Microsoft, Yahi, select bold, size is 36. Let's go to Okay and see the preview. This looks nice. Let's move to the next step. Let's go to the Layout designer again, and now let's try generating this one. Which is our company name, Let's move the remaining fields downwards. Now, let's say I want to use this format, but only change the size later on. What I can do is just select this, click on Copy format and click it here, and then click on n format because otherwise you will continuously see this pen sign. Wherever you click, it will change the format that way. Let's press Control Z to undo, click on n format, and now let's change the size only. I'll change it to 20, and let's align it to the left. Now the next requirement is the address right here. Let me just zoom. Here, I'll just copy the format here and the format, and now I'll make some changes. The changes I'll make is just go to the font and change from bold to regular, or you can even change it to light and just reduce this one to 12. Actually let's change it to light. Let's see. Now this looks nice. Let's look until this point. This is our look, which looks nice. You can adjust the fields a little bit as you want. Similarly, I can make the other changes in the same way. Let me just quickly change all the things, and then I'll show you the final outcome. Now, guys here in this example, I don't want all of these fields. I want the minimals design, so I am removing all of this. Now that I have created the template same as what we have seen in Canva. This is the invoice that I saved from Quickbooks directly, and you can see how similar it looks. This is from Quick books, and this is from Kanva. Obviously, some of the functionality might not be present in the software like placing the dashes with each single line. But as you can see that output is almost the same and don't worry if you wile customizing, you see a difference in color. Like here it's showing a little gray color, here it's showing white, and here it's showing again gray. I might look weird in the preview. And you might think that it will show you the same way. But when you download it, it will not show you the difference in colors. Guys, this is how you can customize the template in Quickbooks. I definitely recommend you to practice it by yourself so that you can properly understand all the tools that we have used in the Quickbooks template customization. Just do it by yourself and I will see you in the next one. 74. Adding Custom Fields in Invoice Headers: All right, guys, in this video, we are going to see how you can add the custom fields to your invoices or receipts or any kind of template. Here, let's see the example of sales invoices. If I go back, I can see on the face of the invoice, there are some fields like date invoice bill to terms, et cetera, but these are the fields which exist by default. Let's say I want to mention another field, which is sales tax number. Or let's see if I want to keep the track of the sales representative, I can add those fields here. It's very easy to do. What I have to do is just close the invoice first. And then I will make all the adjustments from the customer section. Here, let's take the example of this customer, which is Allard Robert. And by the way, guys, I am using the Sample Rock Castle Construction Company, which is the sample company that Qi Books offers by Dvault. It is a product based business, so you can use that. Let's double click to open it. And here by default, in the Address info, you can see multiple fields here, like company name, full name, job title, phone number, et cetera. These fields exist by default. But if I want to create a new one, I can go directly to the additional info. And here since I am using the sample company. I can see some custom fields already added here. But if you create a new company by yourself and it's not a sample company, you will see nothing here. That means you can create your custom fields. And still, even if these are there, I can still add some fields here. So I can click on defined fields, and here I'll write a new one. I need a sales representative. I want to keep track of who made that sales. Maybe I'm offering the commissions to my sales rep. I want to use it for the customers, and let's see if I want to use it for vendors or employees as well, you can check both of them so that it can appear on both of the templates. But right now, sales representative is more relevant to the customer, so I'll just check this. The next field, ask you what kind of data you want to keep. If you want to keep the field open without any kind of restrictions, you can keep it to any text. Here you can add the numbers, special characters, alphabets, whatever. If it is related to numbers, dates, you can specify that. But if you want the exact sales representative name to be entered, you don't want people to make spelling mistakes. In that case, you can use the user's multiple choice list. Here you can just simply specify, let's say Smith, Bob, and David. These are the sales rep. So click. And now let's add another field, which is, let's say sales text number. I want to keep the track in the customers only, and this I want to keep it as any text, let's say. Click and click again. I can see these new fields are now entered. Whenever I want to add the sales representative, I will see this multiple choice list, and Sales text number will be open. So click and let's see. I'll go to Home page and click on Create invoices. But on the default template, I can't see anything in the fields. That means I need to customize the template. So Let's make the changes to a new template. In fact, what I'll do is I'll go to the formatting and click on the managed templates and whatever template you like, I can make the copy of it and then make the changes. For example, this is the intuit product based invoice, which is the standard. I want that. I will make the copy of it first, and then I will add, let's say custom fields template. Now let's click. Now to add these custom fields on the face of the invoice and on the print as well. Face of the invoice means on the front end. I'll go to additional customization, and here I have two options. One is you want the additional field on the top area, which is called the headers, and one is, if you want to insert a custom column here down in the data field, that is called columns. In this scenario, we only want to add a header. That means on the face of the invoice. Can see my new custom field created here, this one and this one. If I only want to add it on the screen and not on the print, I can just check in this area and uncheck the other one. Or otherwise, if I want to add in both areas, I can just check both of them. But it will show you this message that if you continue with it, you might need to adjust the fields a little bit because it might overlap the existing fields. Let's continue and see. As you can see here, if you see the print preview, You can see here that this field is overlapping the existing one. That means I either need to create a new area for this or I can remove some of the fields here and then add this one. Let's close. Let's say I don't want the project. Also, let's say I don't want these additional fields. Now the fields are not overlapping, but still I need to make some adjustments in order to fit in properly. I also want to add the seals text number and this one. Let's see, I check this ia area and this shipping. I don't need that. And representative, sales representative, I've already created the field, I'll uncheck these ones as well. And now let's click. And click. You can see that my custom fields are now added here. Let's see a sample of it. I can mention the item code, the quantity, let's say, and this is the text. I want to mention that Bob has made the sales and the sales text number is this one. Let's click on Safe and New. Click, Yes, go to the main tab and go back. This is the invoice, if I'm want to see that how it looks in the print preview, I can simply see that. Now, if you want to adjust these fields, I have made a complete video on it, you can check that out. Let's close this. Now, if you're thinking, what is the benefit of adding the custom fields in invoices, the main benefit is not only you can keep the track here on the front of the invoice, QuickBooks also has the option to track it in any kind of report. Let me show you how. You go to Report stab, and let's say I want to extract the profit and loss. Let's set it to all dates. Now this is the profit or loss for all the production services you sold throughout. But if I want to track this profit and loss only by the sales representative, I can do that as well. I can just go to customized report and then go to filters. Now I can find my additional filter shown right here. For example, let's write sales representative. You can see the sales tax number, the sales rep that I have mentioned. And let's say Bob has made the sales. Let's click, Okay, and you can see and track the income related to that sales representative. Isn't that cool? This means you have endless possibilities to extract the reports in QuickBooks, so you can try it by yourself, just create any kind of custom fields, and then you can track it according to that. Even if you have mentioned the project name or anything, although the project field is separately mentioned already in QuickBooks, so you can track it basically by any kind of field. It's that simple. Guys, this is how you can add the custom fields in QuickBooks. Now this is mostly done for the sales part only because this is the template that we customize for our customers. Mostly, these changes are always made in the create invoices or the sales part, whether it's se receipt create invoices or sales order. Guys, this is how you can customize the template, just practice it by yourself and I'll see you in the next one. 75. Adding Custom Columns in Invoices: In this video, we are going to see how you can create the custom columns of your choice in Quickbooks. You can add to your invoices. For example, by Dvault invoice contains item description, quantity, unit of Mor rate, amount, et cetera. But you want to track each item with its color, with its size or other specifications, so you can add those columns here. Now, there are two types of custom fields customizations. One is about the header, which is related to the stop area, and the other one relates to this one, which is this particular area. We have already discussed about the header customization. You can check out that video, and now we are going to customize the fields here. Now, if you want to create or customize the column fields, I need to make the adjustments in the inventory. I'll go to make adjustments here in the items and services. Let's click on it. F here, I'll just scroll down and select any kind of item. Let's select this one, named airpods. Let's click on it. F here, let's go to custom fields. It seems like we are making the adjustments only for the airports or this inventory item, but this additional fields will be created for all the other items as well. As you can see by default, I have color and material fields added. That's because I'm using the sample company that Quickbooks offers by default. If you're creating the new company by yourself, you might not see this fields. You will see all blank here. You have to define fields by yourself, so let's define fields. Say I want to add a label of size. Let's add size, and I want to use it, but I have only three sizes that is ten, 12 and 14. Instead of leaving it to any text, I'll create a user's multiple choice list. That's because there is less chance of error by the data enter while using the multiple choice list. You only have the choice to choose from the list. Let's add these sizes. Ten, 12, and let's say 14. Now, if I have some additional size requirement, I can do is, allow users to edit their own text. The text will not be safe to the list. That's a very nice option. If you want to add the custom sizes while you are in the invoice, you can do that, but it will not be added to the list. Let's see this option later on. Let's click Okay. Now this first field is created, let's track it with another field. Let's say made in. I can use this field, and I can again create the list. Let's enter some different countries. These are countries click, and. Let's again click, and now my custom fields are added here. Let's click. I don't need to specify it into any inventory part because these fields will be added for all the inventory items. I only need to customize this in tablet now. I'll go to the home tab to make the changes in the create invoices. Go to the create invoices, and here I can see that still it is in my default tablet. What I can do is just make some changes. First of all, let's change it to this custom field template, or what you can do is go to formatting managed templates and choose a template off your choice and then make the copy of it. Just rename that template and then you're good to go. I've already done that, create the copy, change the name. This is my custom field template. After that, I'll just simply click Okay, and I want to go to additional customization. Let's click on it, and from here, I have two options. One is headers, and the other one is columns. Now header is related to the top area while columns are related to this bottom area where I can create some new columns fields. I'll click on this column area. If I scroll down, I can find my custom fields right here. If I want it to show on the screen and not on the print, I'll just check this one and not this one. But if I want to show it both on the print and on the screen as well, I can check to both of them. But I might need to change or customize my template in order to adjust that. Same thing for made in. I want to add it in the screen, but let's say I don't want to show it on the print. Let's click on Print Preview. Now, let's say after description comes the quantity, then the price, and let's say after that, I want to show the size. Means size should come before the unit of my year. What I will do is I can change the numbering order from here. Can see that unit of mere comes on the six point. If I make this one sixth, it will automatically become seventh. Same thing, let's say right after description, I want the size. What I'll do is I'll make it two, and you can see that it appears on the first. Why is that? Let's see. Let's check the description. It become the fourth point. I think one is by default class. If I uncheck this, let's say I don't want the class option. Then I can make this 11, and now it seems fine. Description is on the one order, and the second one will be size. Let's see the print review. This is perfect. This is how you can even change the orders in the columns here. After that, let's see the customized fields, and now I can see my custom fields which is size and made in. Let's enter a new invoice here. I need to mention some item code. Let's say anyone like this. Let's write some description. Although this sizes is not related to the airborns, but still mention some sizes here, is, the quantity rate is this one, and this is made in China. So this is the total. Let's click on S and Neu. Let's close it. Go to the main tab, go back to check the print preview because we have also customized the invoice template right. I'll go to here and click on Preview, and here I can see these fields entered right here. It shows the size and maiden is not shown because we chose not to show this. This is nice that Quickbooks has included all the options according to all business types. Sometimes you need to enter some data or details for your reference only or for your records only, but you don't want to it in the print. We have these customization options in Quickbooks. It's a very simple and pretty customizable software. Guys, this is how you can add the custom columns in Quickbooks, just practices by yourself and I'll see you in the next one. 76. Report Customizations in QuickBooks: All right. Now we're going to learn some of the report customizations in QuickBooks, we're going to use this particular option right here which says customized report. It can be found in any report, but I've extracted profit and loss here. But if we check any particular report, let's say sales customer by summary. So in every report, you will find this tab. So how it can be used, let's see. Now, if we go to the create invoices, and let's go back. Can see the sales representative mentioned here. Otherwise, I'm using the Sample Rock Cassel Construction Company, which QuickBooks offers by default, I have entered the additional field in the head of sales representative. Now, if you don't know how to add this custom fields, you can check out my other video about it. Let's say I have entered the invoice with the sales representative right, and I have a couple of invoices with the same sales representative. Now, I want to extract the profit and loss account, but only related to this sales representative. How can I do that? I'll just go to the reports, and let's say I want to extract profit and loss account. So Company in financials and profit and loss standard. Now here, what I'll do is, let's say I want to extract it for all dates. So I'll set it to all dates, and it is showing the complete profit loss account, but I want to filter it for the particular sales representative or any of the custom fields that I created. So I'll go to the customized report, and from the filters tab, I will write here sales representative, and here is my custom fields showing right here. And I want to extract it for Bob. Let's click. Okay, and you can see that sales is extracted for this particular sales representative only. Isn't that cool? And if you want to drill down further to see what the sales revenue includes, just double click here to see the details, and you will see all the details right here. If you check it by all, you can check out the details. Also, let's see that I have extracted a standard profit and loss account, but I want to make some changes here. I want to show it by all dates always, and I want to, let's say, increase the size of it, increase the size of the text. So what I'll do is, I'll just go to customized report. To the font ten numbers and click on change font. Now you can change the writing style, the font style, and the font size. Let's say I want to increase the font size only. Let's click and it will change to all the related fields, click. Let's make some further changes as well. Let's say I don't want to extract the time prepared and also the date prepared, I don't want to show it. Under the display tab, I don't want the totals only. I want the monthly profit loss, and I want to show the percentage of income. And that's it. Let's click, to see how it looks now. Now, this is the month by month profit loss account with the percentage of change, let's see. I've made a couple of changes, and I don't want to make these changes over and over again. What I can do is, I can memorize this because otherwise, if I close it, I won't be able to extract the same report the next time. I have to make the same changes every single time. So I'll go to memorize and right here, profit and loss customized. Now, there are some groups here to keep the memorized reports. I'll click on Save in Memorize Group, and let's say I want to save it in accountant group. You can also share this samt with others, so others can extract the same report as well. Let's click Okay. L et's close it. Now, I'll click reports, and now I'll not extract the profit and loss report, my customized report from here because this is showing the standard ones. What I'll do is I'll go to the top area which sees memorized reports, and here you can see and check the accountant group for your customized profit and loss. Right here. Let's click here. You can see the customized report. Now, every time you make some changes, what you can do is just let's say I want to extract the cash report now. I can just memorize this and replace this with the earlier one. Now, this will save the new copy. Let's extract again. I'll go to the memorized reports in the accountant field. Let's click on PNL customized. And now you can see that the report basis is set to cash. Guys, this is how you can make the awesome customizations in QuickBooks report. What I want you to do is just go to the customized report and explore all of these filters. So you can get the overall idea of how you can apply the filters. You can also filter it by amount by aging, by days, by billing status by customer type. Can filter it by all the types. Let's say I want to extract the profit and loss report only for the commercial type. Let's click Okay, and you can see this is the different report than the DA one. It's showing 8,000 as profit loss if we go to the customizations again. All the customization in here. So before it was 8,000, let's select for all customers type, and you can see now it's 11,300. So you can filter it by type as well. So I want you to explore all of these filters, these all options, so you can get the overall idea of what you can do in QuickBooks for the report customizations. 77. Reports Scrutiny In Company: Right. Now let's see a scenario that you have recently joined a company as an accountant. And let's say that you have joined a single owner company. And the owner of that company ask you to take all the necessary information from the last accountant because the last accountant will leave in a couple of days or maybe in a month. So you need to properly take over all the system from it because afterwards, you will be responsible for all the account keeping. So let's see what questions can you ask and how you can get the overall information of the company. Now, there are many other information that you might take from the last accountant. But as far as QuickBooks is concerned, what you can do is just go to the reports. First of all, the most important report is the trial balance. I'll go to the accountant and Texas and click on the trial balance. Now what you can do is just change it to all dates and then take out the print of this trial balance. And you need to check and analyze each single ledger one by one, and if you find any discrepancy or anything unusual, you can ask the questions from the last accountant. For example, this is the checking account. Checking account means bank account. So whatever is your bank, let's say here, I can see 46,969. That means we have $46,000 in our bank account. But when you check the physical balance, it's only showing 4,000. This is a major discrepancy that you can ask that why the bank statement is showing 4,000 only and here it is 46,000. Whatever he explains, take the note of it and make sure that he is providing you the right information, double click and check the individual transactions if possible. You can also analyze the minor figures like petty cash. For example, there is $500. You can ask the question about it that where is this petty cash kept and who is responsible for managing it? Let's say in single owner business company, you are responsible to manage the petty cash as well. What you can do is just take over all the petty cash records and just manage. Similarly, you can check the account receivable balance and just double click to see the details. Now by default, it's showing by the account list if you want to change it to customer accounts. You can do this, change it to all dates, and now what you can do is to check the balances properly. What you can do is just take the third party confirmation, that means write this customer and e mail that we need to reconcile your ledger with ours, so you can request the customer to send you the complete ledger of what is pending or due by them. And you can reconcile that. Similarly, for undeposited funds, you can ask the question that where is this undeposited funds, that means maybe there are some checks that need to be deposited. You can ask questions about that. You can check the inventory, all the minor expenses you can ask it about. For example, if there is very minor figure still standing, let's say 48.13. This might need to be settled and closed properly. Because sometimes some minor figures still remain in the accounts, which have no purpose and no further processing. So you can ask about it. Now, it's not like that you need to ask every single question about every ledger. We'll check out most of the records by yourself, and if you have some confusions, you can ask about it. Now, the second one is the profit and loss report. I'll go to the reports and click on Company and Financials and click Profit and Loss Standard. Now, I need to figure out the major discrepancy to see the overall position of the profit and loss and make sure that everything is recorded in the right sequence. Now, in the small owner businesses, the accountants make this mistake often, that they are not keeping the prepayments and accrual records properly. They're not applying that specific concept, that they should record the expense in the particular month in which they incur, even if it is not paid yet. For example, electricity bill. So you need to make sure that everything is divided evenly in all the months. Now, to check this, first, you will change the dates to all From here, I'll change it two months. Now, this is the monthly profit loss account. Now, what you can do is just analyze overall, what is the sales revenue in each month. For example, here, it says thousand second thousand, then in the third month, it's 10,000. You might ask that what is the reason for this major jump in the sales? Maybe there is some mistake, or maybe we have started a new project, so you might get the information about it. Similarly, here you can see that labor income is 913, and in the very next month, it's 9,800, and then it is reduced to only 11 75. So you can get the idea about these changes by asking them. Similarly in the utilities. Make sure that the utilities should be recorded in every single month evenly. If it is showing a major jump in the expense, it might need some correction or needs further explanation. So you might ask from the accountant. For example, telephone bill. Now, we all know that these bills are paid every single month and the expense should be recorded to every single month separately. But here, I can see the telephone expense, zero is recorded in November. 623 is recorded in December, and again, in January, it's zero in February, it's only 80, and afterwards, it's 80 every month. So why it's showing 623 here? You might ask this question. Maybe there is some mistake or they are not keeping the proper records of prepayments and approvals. Now, if you don't know how to record the prepayments and approvals, you can just search it on Google. It's a very important concept, so you will get to know about it. Liarly all the major expenses are rent expenses, electricity expenses, salaries that should be divided in every single month evenly. Guys, this is about the report scrutiny that you can do if you want to take over in the company. Make sure to check every single record because when the last accountant leaves, you might not get the opportunity to ask further questions from him, and afterwards, you will be responsible for managing all the accounts. This is the way you can start from if you want to get the information about the QI Book sofa and how the records are managed here. 78. Automate Recurring Entries In Quickbooks: This video, we are going to see how you can deal with the recording transactions in Quickbooks. We will use the Mbride transaction area. Now, as the name suggests, the recording entry means that the same amount of entry should exist in every single month, just like rent or any other professional fees or any telephone charges if the telephone charges are fixed. It shouldn't be variable, it should be fixed every month. That expenses can easily be automated and it will decrease your workload. Let's see an example of recording entry. Let's say that on first of January 2024, we have paid the rent in advance for complete 12 months, and the rent was 1,200,000. Now, we all know that if you're paying for an expense in advance for a complete year, it will not be treated as an expense, rather, it will be treated as a prepaid expenses or a prepayment, which is a current asset. And it will only be converted when the expense is actually incurred. And when it's considered to be incurred, when we consume the benefit particular month. Let's say that on first of January, we have paid the complete year rent, but we haven't consumed any benefit yet. When the benefit will be consumed, it will be consumed when the first month end, and that will end on 31st January. That means on 31st of January, we have consumed the benefit of the building or the rented premises, and only that part should be charged as an expense in that particular month. That is 100,000. As we can see in this transaction, it says 31st January 2024, rent expense recorded for the month of January as 100,000. So this initial entry, we are considering it as a prepaid expenses, which is a current asset in nature. And at that stage, we have paid everything from the bank account. So 1,200,000. Now, when we consume the benefit of a particular month, at that stage, we will only charge the rent expense, right? And that is 100,000 for that particular month. But since we've already paid all the expenses in advance from the bank account, now we will just reduce the prepaid expenses and convert that part to expense. This is the entry that can be automated easily, because this is the same entry every month. Let's see how we can do this in QuickBooks. I will open the journal entry. You can open it from Company and click on Ma Journal Journal entries. Let's put the date of first of January 2024 and write prepaid expenses. Or prepaid rent setup. Now I will select other current assets for it because prepaid expenses is considered in this. It is also showing you the example of this. Let's continue and save and close. Let's put 1,200,000, and we can just mention this as a memo and we are paying by the bank. This is the initial entry save and new. Now after the completion of one month, only that part should be consumed as an expense and consumed from the prepaid expenses. Debit will be rent expense and credit will be prepaid expenses. On 31st of January 2024, I will write rent expense 100,000, and we can copy and piece this memo. But actually, if you want to automate this, we will only mention a general memo here. We will not specify any month. We can write something like rent expense charged for the current month. Something like this, and we will deduct it from the prepaid rent. Now we can memorize this or make it recording. But for the recording, you need to consider a date which exist in every single month. If we consider 31st January as the date of recording, it will try to record it on every 31st, but some months don't have this 31st date, so we will consider a date which exist in every single month, and that is 28th. So let's say 28th of January 2024. We can do is either we can record it on the start of the month or on a date which exists in every single month. After that, we will click on Memorize and right here rent expenses. Automate, I will automate the transaction entry, select this option, and it asks how often do you want to repeat this? I want to repeat this transaction every month. Now, since I want to save this one, the next entry will be on 20 of February 2024, and if we save this particular entry, then the remaining entries will be 11 for the complete year. If you want to enter some days in advance, like one or two days in advance, I can select this, but I want to enter it in the exact date, so I'll click Okay. Guys, this is how you can enter the recurring entries. I'll click on Save and Close. Now this is done and how it will recommend you to post the entries. It will recommend you the entries according to the system date. Right now, we have ninth of July 2024. If we close this, reopen this, then only it will recommend. It will not recommend all the entries in the running company, we have to start the company again. When we start the company, it will automatically show you that the rent expenses needs to be entered for all of these months. January, we have already entered, and according to the system date, July is not yet completed, so 28th, February, March, April May and June needs to be entered. This is the amount. This is the exact same entry every single month. If you have these entries, you can easily automate this and enter all the entries, or otherwise, if you want to enter any single or two entries, you can just click here and click on Enter check now. If I want to enter all the entries, I will select all from here and click Enter C check now. All the five transactions are now entered. This is how you can automate all the entries, which is similar in nature, similar in amount every single month. It can greatly reduce your workload. Just try this feature by yourself and I'll see you in the next one. 79. Dealing With Petty Cash Imprest Float Account: In this video, we're going to see how you can manage the petty cash impressed account in QuickBooks. For example, if you have allocated the petty cash of certain amount to different employees. For example, 5,000 pes each employee and you have three employees. Each of these employees will be managing these expenses on their own, and you will be provided with a weekly or daily report. And according to that report, You will check all the bills that matches with the amount they have spent, and then only that amount, for example, they have bills of 2000 rupees. Only that amount you will reimburse to make the float back to 5,000 pes. In this way, you can manage all the petty cash expenses. But how we can track all the separate employees and all the petty cash inprest accounts, let's see. What we will do is we will create multiple accounts. First, we will create the main account of the Petty cash Impress float account, and then we will create the individual accounts, which is the sub account of the main account named after each employee. Let's see how we can do this. I'll click on the C chart of accounts, and from here, I'll go to the new account and select Bank because all the petty cash cash account saving accounts all are considered in the bank nature. Let's continue and we will name here Petty cash. Empress account. This will be our main account. Then we will click on Save and New, and now we will create a sub account. Petty cash account for employee one. This is the sub account of the main Petty cash empress account. Save and New. Now let's create Petty cash account for employee two. Now, instead of Employee two, you will name the employee so that you can manage it more effectively. And in the sub account, I'll again select the petty cash empress account as a main account. So let's consider these two employees. Let me know. And now if we go in the chart of accounts, we will see the accounts like this. This is the main account, and these are the sub accounts. Now, let's also see an example that if I want to create one other account, name it as Bank, which is Petty cash account for employee three. And I forgot to mention it as a sub account, and I have saved and close. Select know here, and now this account is separately mentioned here. It doesn't come under the main account. How we can do this on the main screen? Either we can right click and click on dit account and simply make it a sub account of the main account and save in close. We can do this as well. But if I want to do this from the main screen, what I can do is, I can just hold it from this diamond sign and push it downwards. First of all, we need to be under the main account. Then we can simply again hold the diamond sign and push it forward. That way, it can come under the main account. Now let's see how we can manage this impressed accounts. For example, I've issued 5,000 rupees to employee one. We can do this since we are issuing it from the main bank, obviously, we will withdraw the money from the bank either from ATM or check and then hand it over that cash to employee one. What we can do is we can go to the banking area and use the transfer funds option. Let's select the current date, and I'm transferring from the Bank of America and transferring it to employee one, and the transfer amount is 5,000 under the petty cash Impress. L save, and here's the 5,000 amount. Now, similarly, let's do this for other two employees. I want to transfer the money from the Bank of America to employee two, and this is on the current date. Let's mention 5,000 here, let's consider funds transfer. You can mention any memo obviously. So Save new, and let's quickly select the other one as well, Employee three and 5,000. It's showing the current account balance here. Let's close this. Now, every employee has 5,000 in the petty cash account. The overall account of Petty cash Impressed account is 15,000. Let's see how we can enter the expenses for each particular employee and manage their petty cash. I'll go to Company and click on M Journal Journal entries. Now, for example, on the specific date, refreshments expense was made for a particular client, let's say in the office, a client come for a meeting, and this employee paid for the refreshments expenses from the Petty cash, and that amount was, let's say 750 refreshments of client, let's say, and that expense was done by employee one, Sven, and similarly, Stationary expense was done. This is an expense account, Save and close, and this was 800, and that's also done by employee one. Let's save and close. Now let's do it for the other employee. Let's say he also met with the client and spent something on refreshments, petty cash for employee two, and he also spent some fuel expenses. The amount was, let's say 1,500 fuel and petty cash by employee two. And he also spent in some car repairs, let's say. Let's say he was a marketing guy. We issue them petty cash so that they can meet all these expenses. Car repairs, let's say 1,700, and this was done by Petty cash Employee two. Save and close. This is also 1,700, save and close, and now we can go to the home tab chart of accounts, and we can see every single detail here. The overall petty cash Impress account is 9,300, out of which, the amount we issued to employee one was 5,000, and they have made some certain expenses. If you want to see the complete ledger, you can just double click and see the complete details of it. 5,000 was issued, and these are all the expenses on the left hand side and the deposits we have given on the right hand side. Similarly, let's see the details of employees two. They have spent all of these expenses and we have issued them 5,000. Now, why this one is showing down and other ones are showing upwards? That's because we are doing all the entries in the same date. The latest expenses or latest entries are showing upwards, and the remaining ones are showing downwards. That might be the case, but if you have some earlier transaction entered, they will show in correct sequence. Let's also check if we change the employee given date to, let's say first of January 2024, how this will show up in the records. Now it will show the deposit first and the expenses afterwards. Similar thing if we do this the same for this employee on first of January 2024. It will show you the correct sequence. Deposit will be shown first. It's arranged according to the dates. Deposit will be shown first and then all the expenses. What we can simply do whenever we want to reimburse an employee. What we will do is, we will make sure we have the bills for all of these expenses. And once we have all the details, we can simply add all of these expenses, which is 4150, and we will only reimburse that amount so that it so that the amount of petty cash float comes back to 5,000. Here we have 4150 to be transferred to employee two, 4150. I will transfer it from the Bank of America to employee two. Now we have received and collected the bills of 4150. Let's transfer this, and now we can see that employee two Pettit cash empress account is back to 5,000. Now, similarly if you want to extract the petty cash reports for all the employees, just select the main account, right click here and click on the Quick report to check the complete report. As we can see, this is for employee one. This is for employee two, and this is for employee three. Now, this is the complete report, but if you notice, we only have the amount column, which is showing all the positives and negatives, not the debit and credit separately. If your company prefers the debit and credit, what you can do is easily customize this. I'll click on customized report. From here, let's search in the columns. I will write debit here. Debit is not checked, so I'll check it, and again, credit is not checked, I'll check it and click Okay. Now you can see the debit and credit separately and the amount as well. Now, let's say if I want the deviden credit only in the balance, not the amount column. Either what we can do is hide directly from here, just hold the column corner and overlap the other column, so it will automatically hide. Or otherwise, what you can do is just go to customized report, search for the amount, and if it is checked, just uncheck that and click Okay. Now, if you want to print the report, you obviously don't need some extra columns, so you can either just hide it or resize it according to your requirements. For example, the date needs more space, the number needs less space. You can adjust all of this. You don't need the split. You want to expand for the memo so that every detail can show properly, and then you can simply go to the print and click on SAS PDF or just directly click on print and print from here. You can obviously check the preview before printing. Similarly, if you want to change the column positions, you can also do this in QuickBooks very easily. For example, if you have a requirement to show the date on the first column, when you hover over to the date, you will see this hand. That means you can just hold it the left lick and just move it anywhere you want. You can see this red arrow here right here. Anywhere you place this, the column w shift to that area. If we want to make sure that we print a complete report, I'll go to print and click on report and see print review. Now here on the report, we had the balanced column, but as we can see here, we don't have all the columns showing right here. What we can do is just close this Instead of portrait orientation, we can print to landscape if you have many columns. Also we can make some adjustments of the columns and the page breaks and then check the print preview and make sure it's showing all the columns you want to print. Now, similarly, if you want to only save it as PDF, you can save it directly here. Just name the report like Petty cache, and here it is saved as PDF. This is how it will show up. Now let's say that we have different amounts for different employees. We are not managing the same petty cash empress float because the employees nature of work is different. Some people, we are only managing the 5,000 impressed, and for the other person, we might be managing 10,000 empress. If you don't remember how much you need to reimburse, either, you can just double click and check the first funds transfer so that you can get what amount you have issued and managing, or otherwise, you can just right click, click on edit account and mention it in the description that 5,000 is the empressed account. Or any details like this. Now, even though we have mentioned this in the description, if I want to see that description on the front of the Chart of Accounts sheet or on the face of the Chart of Accounts window. What we can do is just right click on any column and click on customized columns, and I can enter or add the description in the chosen columns. Just select that description from the left hand side and click on ad, and you can also move it up right after the name. Click, and now we can see this description right here. So that's how you can easily manage the petty cash impress float for all the employees and make all the customization and extract all the reports regarding petty cash. Now, obviously, this is not a fixed rule that you will only manage in this way. Some people manage all the things by write checks option. What they do is they create the employee account from here and then manage that accordingly. There are many methods of managing this. I've only shown you what is more convenient and more easily to be managed. Don't be surprised if your company is using some other method. There are many ways of doing work in Quick box. As long as it is producing the accurate reports and it's helping you and it's easier to use, you can opt for any method you find convenient. Just practice this by yourself and I'll see you in the next one. 80. Managing Employee Advances: In this video, we are going to see how we can manage the employee advances in QuickBooks. For this purpose, I will be using QuickBooks Enterprise version. Although this is the latest version as of now, which is Qui Books 2024 version, but it doesn't matter if you have 2016 18 2021, whatever year of version you have. Just make sure that you are using the enterprise version, which is the latest one. Even if you're using some other version as well, don't worry, you can just try this method and this might work in your version as well. If you want to check the current version, you can just simply go to help and click on At section. Here you will see all the details about your QuickBooks license. Now, if you want to manage the complete payroll, Qui Books offers some additional apps that you can attach with it. For example, here on the bottom left corner, you can see this two more with QuickBooks. You can turn on the pay roll, but obviously this needs some additional subscription, and then you can completely manage the pay roll in QuickBooks. But if I want to manage some certain aspects and not the complete pay roll, I can do that. Because most of the time, the company has only one subscription that is for Qui books account. Are managing payroll and salaries on the Excel sheet. They just want to enter the final entries, but there are some requirements. They want to track the employee advances because some employees ask you for the advance, and then they request you to deduct it from their salary. But the problem is when the salary date comes, they want you to defer the deduction in several months and don't deduct all the amount. For example, one employee took 5,000 in advance from their salary, but then they want to not just deduct 5,000 right away from the next salary, they want you to do some installments on it. Now, it's very difficult to track this for each separate employee, and you have to make sure as an accountant that you don't overpay an employee without deducting the advance or without keeping the proper records, right. Now we can easily and effectively manage this situation in Quick Box easily. I will just go to Company and click on Mae Jal Jennal entries. Now, let's suppose that an employee took an advance from you on tenth of January. I need to enter it in employee advances. Now since I am using the sample company, I already have the employee advances account, but I don't want to use this because it already has some entries, so I will use employee cash advances, something unique so that I can create a new ledger. Employee cash advances. Press tab, I need to set it up. Now if we want to select the nature, what nature should we select? Because we have given the cash in advance to employee. Obviously, we will receive that money back, and this is a receivable. That means it should be a current asset or other current asset. So as you can see that in other current assets, it is showing clearly an example that what can be recorded in this area, it could be prepaid expenses and employee cash advances. Clearly mentioned here. So let's click Continue and hit Save and close. Now, let's say that I have given 15,000 to employee in cash advances from their salary. So I will put a memo here. Let's put a memo. Although I've mentioned the memo, I want it to be recorded in the separate employee section, and that can be specified in the name. Let's write Joseph here and press tab, and I can click on Quick ad. It will ask you the option if it is a vendor, customer, or as an employee. I'll select the employee and click Okay, and let's move to the next line. Now here I need to specify from which account did I give the cash For example, this is speed from the checking account, so I'll just select the checking account here, just write it here, and you will get this. And I'll mention the name here as well, and Sven close. And let's add some more in the situation. Let's say on 25th January, he actually has some general problem, and for that reason, he took the advance again. Before the completion of month. So right here, employee cash advance. And let's say he need 7,000 more. And let's write advance salary issue to Mr. Joseph. Let's specify here as well. Again, we are paying from the checking account, and let's specify the name again and click on Safe New. Now, similarly, let's take an example of another employee. He also took an advance of eighth of January, and let's mention employee cash advances here. L et's say he took 5,000 from us. Let's write the name here. David, quick add. This is an employee. Let's continue, and we are paying him by checking account. Let's also specify again the name here, and let's save and close. Let's say he also took more advance on 20th employee cash advances. Let's say this time he has taken 10,000. Let's specify the name and the checking account from which we have paid. The sole purpose of entering multiple employes and their records is that we can see the multiple filters that we can apply to the report. Let's click on Save and New. Now here basically why we are using this name feature and not creating the ledges, because most of the people do this mistake, they create a lot of employee cash advances ledger for each separate employee. But that's not the correct way to deal with this. Why? Because the employees come and go. That means if you create the ledger for him, it will still be standing in the chart of accounts, and you have a lot of chart of accounts to manage then. As you can see here that we only have one ledger that manages all the employees. All right. Now let's suppose that both of the employee have 50,000 monthly salary. On 31st January, we will see how we can enter the salary, and how we can deduct that advance from their salary. Now, I'll go to Company and click on Make General General entries to make the monthly salary entry. Let's say on 31st January 2024, we need to record the salary. That is called accrual concept that you have to make the salary expense, the part of the month in which they are actually incurred, even though they are paid later. So for example, the general salary will be paid in next month like fifth or second of February, but still you need to record the expense in this particular month so that it can reflect in the profit and loss account. Salary expense or let's write payroll expenses. Actually, this is the sample company, so I want the fresh ledger to be created. I'll create the salary expense ledger, set up, and set up as expense, continue, and save in close. We are supposing that each employee has 50,000 salary. But employee one, he was Joseph right. He took 10,000 in advance. What do you think will be the salary expense? Now, if you're thinking that salary expense will be 40,000 now, you are wrong. Why? Because they took advance, that is separate thing that they need to pay. But the salary expense will be still 50,000 because their salary is 50,000. The expense on our part will be 50,000. Out of which, they have already taken 10,000 that should be separately accounted for, but the expense will be the same. I'll write salary FMO. Now it will save you a lot of space if you write FMO instead of for the month off. You will say four words in this abbreviation. January 24, accrued. Now, I've already explained to you what accrual is, and now we will specify the employee here. And on the second line, we will adjust the customer advance. Let's see the employee agrees to deduct the 5,000 in this pon salary. So employee cash advances, I'll mention here. Now, at that time, the employee cash advances was recorded as a receivable as an asset means on the debit site. But now that he's paying this 5,000, I will reduce the receivable. That means I need to record it on the credit site. Again, I'll mention the employee name here. On the third line, we need to pay 45,000. 5,000 we have already paid, which we will reduce it from the overall payable, and the rest of the employee salary is payable. But on 31st generar, we haven't paid actually anything. We just want to make the part of this month as an expense. At that point, we will write here payroll liabilities, or you can write it salary payable. Now, this will be recorded as an other current liability. Click Continue. Save and Close and save and new. Now let's mention it for the other employee. We're paying for 31st January 2024, employee expense or let's write salary expense. Since I've mentioned that each employee is given 50,000 salary, so I will write salary for the month of January 24 accrued. Same method. An employee two name was David, and he has also agreed to deduct 5,000 from his salary of this month. So let's mention here employee cash advances, 5,000. Let's mention the name here as well, and I'll write salary payable here. It automatically shows 45,000 as a balance. To be paid. Now let's save and close because we have done the entries. Now we don't have any specific report of employee cash advances. We have to create that report out of some other report. So what I'll do is I will go to the reports and click on Accounts and texts, and you can select this option which says transaction detail by account. Then if we set it to all dates, you can see that there are a lot of ledges here. But I need to see only one ledger details. As you can see here that this is all the checking account details, and we also have the details of David David Joseph here. But we want a separate account to be shown here, which is for employee cash advances. For that, I will use the filters, which is very interesting. I'll go to customized report here, and from here, I will go to the filters, and from filters, I can mention the employee cash advances here. That's it. Click, and you can see the individual details of the cash advances. If you just want to see for one particular employee, what you can do is just reapply the filter and now re apply it by name and right here, David, and click, Okay, now this is the tial for David Ledger only. If you want to access that again, without needing to apply the filters and all settings, you can just simply memorize it. Let's write David report cash advance. Anything you can mention in the memorize group, and let's save it in the employee section. We have a special category in the report section that I'll show you click, and this one is now saved. Now, whenever you want to access this report, I'll just go to the reports. Under the memorize report, I can see the employee section where I have the report just for David. Just imagine how much customizations can you do and create your own reports and save it in the memorize group. You can also specify the form sizes and all the headers and footer settings, whatever you want to do with this. Just play around and try to enter all of these cache advances like I did, and I'll see you in the next one. 81. How to Import Journal Entries in Quickbooks Using IIF Import Template Kitt: In this video, we are going to see how you can use the IAF import template to import the journal entries customers vendors list inventory item details. And all the important stuff can be imported easily in QuickBooks using the IAF import kit. Now, where you can find this kit, you can just head over to Google and right here, Import K I IF for QuickBooks, anything like this. Just go to any QuickBooks website. The official website, you can just click on this link, Export Import, and edit IIF files. Let's go here. F here, I can click on this IIA files. From here, if you scroll down, you can find this. Select this buttons to start the download of Download Kit. Let's click here. Then it will ask you to save the location, Let's save it, and it will start the download. Let's open the folder, right click and extract it, and here is the extracted folder, and you can find all the import tablets here. Now, don't worry if you see here, Qi Books 2004 QB 2005, because this IAF import kit will still work in the latest versions as well. This is designed for all the versions you have. I'll attach this website link with the link of this video as well. You can just easily check this out. Now, let's say that if I want to import the journal entry, I can just go to I example files and just use anything, let's say, 2007, and I'll go to journal entry. Now, this is the template that I will use to import my journal entries. Now, since this is an IAF file, but I need to enter the data, in the Excel format. If you want to open this in Excel, just make the copy of it and paste it to the most convenient location. In my case, it's desktop, and then I'll just open Excel, and I'll choose my file location. Now, if I go to desktop, I cannot see this IAF import file. What I'll do is just change the format to all files, and then I can see all the templates here, and there is my telate. Click pen. We'll ask you for some customization, but just click on finish. Don't change anything, and now it's open in Excel. Now, this is the complete template. If I zoom in, here you can see that these three lines, it has a specific formatting or writing style or import style that I want change. This will be fixed. Every transaction starts with TRNS or transaction, as you can see. Since this is a journal entry import template, here the transaction type journal, and date is mentioned and the account and amount. Now, this one is a sample journal entry. What I can do is just try to import one general entry based on the same permitting, and then we can import hundreds and thousands of general entry using the same method. For example, on 31st of January 24, I want to enter the rent expense of 15,000, which is paid by cash. Make sure the date of both is same, and I am paying by cash. Now, since as you can see in the template, that the credit side will be indicated with the minus sign. I have to follow the same thing. I will put a minus here and then write 15,000. This indicates the debate and this indicates the credit side. After that, I will just make sure before you import the ledges. You have to make sure that the ledges already exist here with the same name. As you can see here, that the rent exists here, but it is not rent expense. I have to make sure that the name is same, otherwise it will cause problems. I'll change it to rent expense and save and close. Now let's see and search for cache. I have petty cache. Let's create a new account. Bank, and let's mention here cache. Make sure the spellings are same for the ledges you want to import, and now this should import fine. Now, I'll save this yes, and then close. Now, it will ask you again and again to save. But since we have saved it one time, I don't need to save it over and over again. I'll just click on, Don't Save now, and this template is now saved. That's why I always advise to make a copy of the original import file because obviously you will be changing it with your own data. When you want to import this, it's very simple. I'll just go to file, and F here, I'll click on utilities and in the utilities, I'll click on import and import IAF files. Now, just make the note of it, write it somewhere, so you won't forget. In the file, I'll go to utilities import and IAF files. Now, it will ask you show you this prompt to close all the windows. We're fine with it. Import IAF. I'll just choose the location, and here is my location on the desktop, click open, and it will show you that we were not able to import your file. So we are not sure that what caused this error. And now QuickBooks has created a separate IAA file that I need to check. I'll open Excel, and let's browse for this. Go to the location, select all files, and this time, I'll select this general general entries to see the error, why it's not imported. Now, it says that 31st January 2001 is an invalid date for the column date, expected a date format of this format. Month first, then date then year. Or y dt M. Although here we are using the date month and year format, but it's specially mentioning it that we need to import in this particular sequence. That's right. Now we will make all the changes in our original entry. Let's open this click finish. Now we will change it to slash. Make sure you put the slash here. And month first, then date, then year. This is the correct format. Click yes, safe, Don't safe because it ask you again and again. Now let's try to import, select this file, and you can see now it's importing and we have imported your file. You can check the info. Let's go to the transction. If I go to company and make general general entries, since I am using the sample company, it has a lot of entries. What we can do is just find it by a date because when we click backwards, it will not find this transition. What we will do is just specify the date here, of January 2000 and, of January 2004. Just find the entries, and here is our entry. Just open this and this one is imported entry. It will be more convenient if you try this in a fresh company file so that you can easily find the transactions after importing. Guys, this is how you can import a lot of general entries using the same way from the IAF import template. Stride by yourself and I'll CU in the next one. 82. How to Manage User Access Rights in Quickbooks: Right. Now we are going to explore a very important area in Qi book, and that is setting up user access rights. Now, basically, when you practically implement this software in a company, there is not only one user using this software, but there will be many other users or employees that will be using the same software, and they might be on different levels. Some of them might be on the junior level, some of them might be on senior level. That means their access rights should be different. A Junior level staff should only be allowed to enter the documents and should not be able to see all the reports or company and financials. While the senior level of the staff should have much more access, Similarly, some of the people might be working just for the receivable department. So in that case, they should only access the customers area. Some of them might be in payable departments, so they should be able to access the vendor section. So just like that, we can set the excess rights for all the employees of the company, so that we can manage everything properly while maintaining the security of the company. Moreover, guys, you can also set the excess rights that an employee can only enter the invoices and should not be able to edit or delete it later on. Similarly, you can implement user excess rights in such a way that you can implement the segregation of duties. For example, the person who is entering the invoices should not be able to use the receive payments option. Because if both of these functions are performed by the same person, it increases the chances of fraud. Let's see how we can set up all of these rights. Now, by default, when you create a company, there is only one user which is manager or admin of the company. Afterwards, Admin or manager will decide the user access rights for all the other users in the company. Now you can set up user access in two ways. One way is you set up the specific user access rights for each individual employees. The second way is you specify the user access type or the category or industry they are working in. For example, receivable department, receivable department might have certain access to the invoices, reports and all. This should be the same for all the receivable department staff right. In that case, you can just define a user access right for the receivable department, and that should work for each and every single employee. You will select that category and that should do your job. This is basically defining the roles. Let me show you how. Now, in QuickBooks 2024, the link which I provided, if you go to users and try to set up user end roles, it might need some additional subscription. You won't be able to access this area until you have the official purchase license. What we can do is to learn this area properly, we will use another version of QO Books, which is Co Books 2018 version that I will attach with the link of this video. You can just install that one as well. You don't need to uninstall Q Books 2024. You can just additionally install QO Books 2018 version, and you will notice that it's almost the same. If you see some lesser options, that's because I am using the service based business, which doesn't involve inventory, so that's why. If you want to enable the inventory, I can go to edit and preferences. I'll go to the items and inventory, company preferences, and select inventory and purchase orders are active click. Okay, and now you will be able to see many more features. The interface, as you can see, this is Q Books 2018, and this one is QOE Books 2024. Almost each and every single thing is similar. Let's close this 2000 ey four because we are unable to access the user access rights. Let's work on 2008 18 version. By the way, guys, I will attach this with the link of this video so you can just download and install this with no problems. So anyways, I'll go to company and click on Users and set up Users and rules. Now, remember, this can only be done by Admin, and since we are already logged in by default as an Admin, so that is shown here. Now, I'll go to new area and set up the user name, let's say, Joseph. And let's create a password. Now it is recommended that you set up a complex password. But for now, I will keep it very simple, which is 1234. Confirm password 1234. At the bottom, you can see that we already have many available roles. I can just simply allocate if it is related to account receivable. It is described what is included in the excess of account receivable. This role is designed for your account receivable staff members. Access to areas, activities such as invoices, receive payments, statements, credit memos, and customers and receivables report are accessible to them. If you simply want to use the current settings of QI books that it offers by devolt, you can just simply add it and click, and it will be set. Now, if you are happy with the current access right settings, that's fine. But again, we cannot see the assigned role, what it includes, and what it excludes, I want to customize this, for example. Let's click, but after that, I will go to the role list and I will see the account receivable role. Click on edit, and now I can see all the areas. In the accounting, he doesn't have any access. As you can see here, that all of this is marked as empty. It's not filled in green. If you click on full, you will see that some of them are filled with green and some of them are still set to partial. If I select none. Now if I drill down the accounting and change it to full, you will notice that all of them change to green. That means we have full access in the accounting features. I'll again set it to none, and similarly, you can set each individual area. Now, for example, in the banking area, I can see that deposits have full access. But maybe I want to give the partial access that they can view it, they can create it, but they shouldn't be able to modify or delete the existing records. Similarly, in the centers, I can see the customer center employee center and vendor center. Vendor center, we don't have any access because we are related to account receiable. In the employee center, we have the area of excess of view list only. For example, I don't want to give any access. In the customer section, we have full access. But for example, I don't want them to delete the existing records only. Similarly, you can check each and every single area if they should have a vehicle mileage access. I will set it to none, let's say, print labels, remote access. Synchronization contacts, let's set it to none. You can customize all of this. Whatever you seem fine, you can set it according to this. So for example, I have done my customization and click Okay. Now, this role is suitable for account receivable, and now I can easily allocate it because I have customized it. So let's say next one is David, 1234 is password, and now I want to simply allocate the account receivable, since we have already customized it, I don't need to change this default role. I have customized it according to my requirements. But let's say, I want to employ some of the persons with the sales team, and they should only be responsible for entering the sales invoices. That's it. If we check the existing role list, can see the sales, but we are not sore up to what extent does it give the excess. I want to set up just for the sales data entry. Let's create a new role, and let's write it sales data entry. You can describe it, what is included here, and then let's browse the customer and receivable section and select the invoices. Now, let's say we want them to just view create and print the sales invoices. That's it. Let's say they're able to view create and print sales order as well. And sales receipts as well. In the report section, they should only be able to view the report of sales. That's it. Click Okay. And this is the sales retry, which should be the new role list. I'll create a new user and this one is Smith Let's say password is 1234, 1234 is confirm password, and I want to allocate the sales data entry role to him. Let's allocate it. You can see it in the assigned roles, click Okay, and we are good to go. Let's close this. Now, this is how you can define all the roles. Now, if you want to log out and log in from that current user, you can simply do this. Right now I'm logged in with the Admin access, so I have all the right site. But it will be very different when we use or log in by the other user. Let's click on file and click on Close Company or log off. Now I will open this company again. And let's write Smith here. 1234 is the password. Click. Okay. And now although on the main interface, you can see all the areas, you can even see the vendor section, the Chart of Accounts section. But when we click on any particular part, you will be warned that you need view access under the Purchase or to perform this action. Ask your Q Books administrator to grant you this permission. Similarly, if you click on Chart of Accounts, you will get the same message. You will get the record deposit same message, refunds and credit same message. You are only allowed to enter the create invoices. That's it. For example, if I want to create any sales invoice, let's say I have saved it. Now if I want to make some correction, you can see that it is under read only area. You can see this all grade out. That means you won't be able to delete it. You need admin access for this. You can see how good it is. You can see how clearly you can define all the roles and user access rights and can manage your records in much better and secure way. Guys, this is how you can use the user access rights feature in quick books. 83. Backup and Restore Plus Schedule Company Backups: In this video, we are going to see how you can take the backup of the company and then restore the backup copy. Now, to secure the company data, companies must take the regular backups because every day they will be entering hundreds and thousands of entries, and that financial records is really important for the company. Let's suppose that at some point, if the data is damaged or corrupted, then it can result in huge financial losses for you. Because you will be managing all of your records in QuickBooks write. And also, let's suppose that you enter hundreds of transaction each day. Different employees are entering the data. But you realized later on the very next day that the transactions that are entered in the earlier day were completely wrongly entered and needs to be corrected, because either they are in the wrong ledger or something like that. So in that case, you have to manually either delete hundreds of transactions, or what you can do is just restore the backup poppy at the earlier point. So if we consider this situation, then the company should take the backup regularly even on the daily basis. Now, let's see how we can take the backup of the company. I will just simply go to file and click on the backup company. Now, we have the option to create local backup or restore the existing backup. So I'll create the local backup. Now, again, it will ask you that do you want to save your backup online or locally? You want to use the online backup facility, that means the backup will be stored in the QuickBooks Cloud store it, and for that, fees may apply. But if you want to secure it by yourself to some other location other than your normal hard drive, because obviously if it is corrupted or lost, you will lose the backup copies as well. It is recommended, either you can store it on a USB flash drive or an external drive or at some other location. Let's select local backup. Click next. Now, for now, I will just browse the location and I will store within my Drive, but it is not obviously recommended. You can choose some other drive, the Flash Drive or Google Drive as well. Click Okay, and just name it as let's say QuickBook backups. Actually, let me choose a folder that I created, which is Drive folder. And let's store it as quick books. Backups. You have the option to add the date and time of the backup with the file name. It is recommended so that you can easily identify at what point was the backup saved. There is another awesome feature that you can limit the number of backup copies in the folder two, let's say three. You can set it to 30 if you want to keep a backup. In that way, it will keep on taking the backups on daily basis. But when the 30 backups are completed, it will remove the earliest one to make sure that it only has the latest 30 backups. If you check the online and local backup here you have the reminder two backup when I close my company every fourth time. This is the normal setting, let's say that you are closing for the fourth time. It is considering that you are closing the day and you want to take the backup. It will automatically remind you the fourth time. If you want them to remind, keep it checked, but we will uncheck this because we will also see how we can schedule the backup automatically so that it can take automatic backups on a daily basis or a weekly basis. Now, it will make sure in the complete verification that the company file is okay and not corrupted, as you can see here, so you can keep it checked and click Okay. Now it says that the directory we have selected doesn't exist. If you want to create it, yes. And now it is showing you the caution that I just recently told you that you have told us to save the backup in the same as hard drive that holds a company file. We do not recommend this. So as recommended, it should be in the USB flash drive Google Drive or the external hard drive. So since we are considering just for the sake of example, I will use this location. It will ask you the second question that when do you want to save your backup copy, you want to just save it now, or you want to save it now and schedule the future backups only. Or you don't want to save it now, you only want to schedule the future backups. Whatever you want to do is you can just select according to that. Now for now, I will just save it so that we can learn the complete process of the saving the backup first, and then we will see how we can schedule the future backups. Let's click on Finish, and now it's taking the backup. All right. Now the backup is complete. Click Okay. Let's see the benefit of it. Even if you have completely lost the company file, you've accidentally deleted it or something bad happens and the company file is deleted. We can completely recover it from scratch. Let me show you how. I just close the company form file and then close the company. Just hide it, but this is hiding the company, not deleting it completely. So we will delete it completely from this location here which is shown Drive Quickbooks life files. So I'll just hide these, and then I'll minimize go to the life files and just delete all of these. So this is now completely deleted. Skip this. Now if we want to restore it completely, I can just use this option open or restore an existing company file. Let's click on it. Now, it will ask you if you want to access the live company files, but the live files we have just deleted, so I want to restore a backup copy. I will select the local backup, and let's choose the location. This is the location, which is in D Drive and Quickbooks backups. Let's click on Open, next, next, I want to save it in the Quickbooks Live files. Save, and there you have the restored backup of the company. Right. Now, this is the method of taking the simple backup. Now, if I want to take this backup on a daily basis, either what we can do is just keep the reminder on our phone to take the backup, or otherwise, we can prefer the work of automation. When we talk about the software, automation is our top priority, so that's why we will automatically schedule the backups for 30 days. Let's see how to set up that schedule. I'll go to the file and click on the backup copy. F here, I will create the local backup, the same area which we have used just now. We will select the local backup click next. Now I want to only schedule the future backups because we have just taken the backup of this particular copy. Let's only schedule the future backups. Click next. Now how do you want to take the backup? I want to backup automatically, save the backup copy automatically when I close my company every three times. No, I don't want this option because this is just the normal prompt to ask the user whenever he closes for the third time. So this is not very useful. In fact, I want to backup on a schedule. So I'll create a new schedule here. I will write, let's say daily backup. And where is my backup stored. Now again, it is recommended to use some external drive or some other location than your normal drive. But for the sake of example, we are choosing any particular location within our hard drive. Quick book backups, number of copies I want to keep is 30. At what time do you want to take the backup? For example, I want to take the backup on 7:00 P.M. Let's say, this is the closing time and sing this task every week or every twice a week. That means it will miss one week and it will take the backups on other week. But I want to take the backup on every single week. On what days you want to take the backup, I want to take the backup on Monday, Tuesday, Wednesday, Thursday and Friday. Saturday, Sunday is off, so I don't want to take the backups. In that case, you can limit the monthly backup to 22 only because Saturday Sunday it will not take the backups, so the monthly backup consist of 22 days. Now, if you want to click on Safe, you need a password, which is your windows password. Let's mention the password. Click Okay. Now just mention that password, click Okay, and we are good to go. Let's click on Finish, and your backups have been scheduled as specified. Now, it will automatically take the backup on 7:00 P.M. Tomorrow. So you can check that by yourself. Guys, this is how you can take the backup, restore the backup copy, and schedule the future backups in QuickBooks. 84. Job Costing in QuickBooks: This video, we are going to learn how you can perform the job costing in QuickBooks. So, for example, you are providing different services to the customers, and each type of service is considered as a separate job. That means the revenue from that job should be separately recorded, and you will be increasing some cost particularly related to that project. So you want to track all of that. And it happens a lot in the service based companies and also in the charities, where the government issue some donations budget as a revenue, and then you will be increasing some cost or you will be spending that budget for different purposes. Then they want the complete report to be submitted for that particular budget, where it is spent and complete details about it. So there are multiple purpose with which you can handle the job costing feature, so it can be allocated in many different ways. With this, let's see how we can deal with the job costing in quick books. To create the jobs, I can go to the customers. And from the customer section, I will firstly create a new customer. And let's say this is a mall, and the name of the mall is Packages Mall. All right. So click. Okay. And let's say for packages Mall, we are providing different services. We are providing the cleaning services, let's say. B, as you know that Mall main purpose is renting out shops. So they might be subcontracting all the other activities like cleaning services, because there's lots of staff working in the cleaning department. So they just don't want that headache to manage all the employees by theirselves. They will agree a contract and pay a certain amount to a company for cleaning services, and then it's their job to manage all of this. So in that purpose, for example, we are that company who are providing the cleaning services to Packages Mall. Packages Mall is our customer. They are paying us, let's say 500,000. And out of this 500,000, we will be increasing some cost on that cleaning services. Obviously, we will manage staff salaries. We will manage the cleaning equipment, and even if it is a tough job or building which needs some external cleaning of class windows, obviously, we need special equipments, shoes, and machinery. So all of this can be managed separately by jobs. Now the customer is entered, right? So to add job, I'll again go to this section, new customer job, and now I will click on Add Job. And let's say this is cleaning services. And this cleaning services is provided for packages mall. So let's click, and you can see that the customer is shown on the top, and then all the associated drops with that customer is created as a subcategory. We will take this example further. I've told you that we are receiving some certain amount for that cleaning services job from Packages Mall. Let's create an invoice for that because we need to enter the revenue right. I'll go from the home tab to create invoices, and I will write here cleaning services. It will automatically pick this job, which is in the packages Mall. It will show something like this. First packages Mall, then Column sign, and then you will see the job name. Afterwards, we will create a new service item. I'll click on Add New, and from here, I will choose service. And here, let's write cleaning services. So cleaning services, whatever category you want to choose. You can choose that. For this example, I'm using on any existing company. That's why it's showing some non related categories, but whatever is suitable, you can select that. So cleaning services, let's say, each is the unit of my ear or because this is service, actually, no unit of my ear will apply, but still you can select that if you want to apply something. Again, in the description, I can write the cleaning services. And in the revenue, I will again mention cleaning services, press tab setup, and it should come under income. So Save and Close. Now let's click on, and this is saved. Now you can mention the overall amount, which is, let's say, 500,000. And here I can add the description if you want to mention anything further. For example, I want to mention that cleaning services for packages M. And this is for the month of July 24. Now, I'll save and close, and this is the simple entering of invoice. Now, this is only the revenue recorded directly from the customers. This is just like a normal invoice. Now we will see how can we track the expenses against this job in QuickBooks. So to enter some of the expenses we incurred, I'll go to enter Bills. Now let's create a vendor, let's say, a miscellaneous vendor. Because there is no fixed vendor for it, but we are hindering some frequent expenses. So press tab, and click on Quick Add. And now let's mention some expenses. And for the expenses, let's say I have purchased some disposable equipments. Now, that should not be recorded as an inventory part because that's disposable. I will just simply use the tab of expenses and just expanse that out. So let's write disposable Equipments. Pres tab, set that up and you have to choose the right category. So let's select expense and click continue and save and close. Now, let's suppose the cost incurred on that disposable equipments was 130,000. And let's give any reference number. But this particular cost is allocated to what job I can choose the job here. That is for cleaning services. Now, let's also mention, let's say cleaning materials. Pretab set that up. In the expenses, I will continue and save in clothes. And let's say I incurred around 70,000 on this. You can add a memo, and then you can allocate the same job here as well. Now for now, let's consider that only this is entered through bills. And next is some salaries that we will give, but we will not enter it through bills. We will use some other area. So for now, this is the bills. Let's save and close. And let's say we have incurred some expenses on the salaries as well. So I'll go to Company and click on M Journal Journal entries, and let's right here salary expense. Set it up as an expense and continue. Save and close. Let's say this is 200,000, and let's write a memo here that let's say salaries paid to employees for month of July, let's say. And I can allocate the same job name here as well. I'll select the cleaning services, and then let's say this is accrued for the next month. So this would be salary payable. Now, if you don't know about accrual, accrual simply means that if the expense is related to any particular month, it should be recorded in that particular month, even though it is paid or not. So for example, you pay the salaries every next of the month. Let's say the July salaries are paid in August by fifth. But if you record that in fifth, it will be part of the next month, but I want it to be part of July. So I will mention the salary expense, but since it is not paid yet, I will credit salary payable as a liability. And the very next month, when it is actually paid, I'll reduce that liability and pay the cash. So this is the simple concept. So I'll add it to other current liabilities, and let's click Continue and Save and Close. Now, I will again allocate the job here, and let's hit Save and Close. And now let's explore another area to see that whether we can allocate the job in every single area of COE books or not. So let's say I am incurring some random expenses like refreshment for labor. And I want to use this write checks option because I'm paying it by cash. Let's write cash here, and let's write refreshment here. This refreshment, let's say it's for labor. And for example, this is of just a minor expense, which is of 2000. You can enter the details here, and you can also allocate the job here as well. Now any expense which is incurred on cash basis can be entered from write checks. Now you might be asking that why not we use the general entry simply? And the answer to this is you can easily use general entry in every particular situation, but you have to see that if it is only the expense, which should not be recorded as a quantity, then it's fine you can record it through journal entry, but if you are incurring some expenses on cash, and this is kind of an item or anything which requires you to track the quantity as well, then it's suggested to use the write checks option. Otherwise, whatever you enter can be entered from the journal entry as well, because at the end of the day, everything is entered in debit rage. Now, let's click on Save en Close, and now we will extract the report. Now I'll extract the report. I'll go to reports, and from the company and financials, I want to extract the profit and loss report but by job. This is the option that I will use here. Click Okay. And since we have multiple customers as well here. But you can see this is jobs. For the packages Mall, this is the customer, and if you click on this plus sign, you can see all the jobs associated with it. Now you can see that we can track by individual job that for this cleaning services, 500,000 was received as a revenue, and then we have also incurred some of the expenses like this. So we have incurred salary expense of 200,000, 70,000 as cleaning materials, disposable equipments, and refreshments. So for receiving 500,000 revenue, we have incurred 402000 by ourselves, and 98,000 is our profit. This is the exact purpose that if you're increasing, let's say, you're working on many projects at a single stretch, and you're incurring the expense, let's say of salaries of 100 and thousands. You cannot track it exactly what cost is incur or any particular project. It's very difficult to track. That's why this job feature is given in Quick box. Guys, this is how you can manage all the expenses and track the reports through job costing. Just practice this by yourself, and I'll see you in the next one. 85. Customizing and Memorizing Reports Part 1: In this video, we are going to see how we can customize and memorize the reports in QuickBooks. Now, if you're following my training program from the starting, then we have already discussed some of the customization features that Quickbooks offers, and we've seen how you can save it in the memorized reports group. But let's see some more features about it. Right now, I am working on my company project that is Empire textiles. But if you want to practice and see all kind of reports, what you can do is just open the sample company that QI Books offers by Deval. So I'll go to file, and from here, I'll close this company. And to open the sample company files, I'll go to the right area right here. Open a sample file. And here it offers product based business, service based business, and advanced inventory business. Now, it again depends on the version of Quickbooks you are using. For example, if you have re customized it for a different industry, it will offer some more sample companies right here. So your version might be different if you're not using the same. So I'll click on sample product based business. Click. Okay. And if it shows you this message, you can just simply click on, continue. And here in the sample company, since it has entered almost all type of business transaction, that's why you will see more reports in the sample company. And also on the home type, if you notice, you can see a lot of icons, which are not normally there when we work on our particular company because all the features are not label, right. First of all, we will analyze what are the important reports, especially if you're joining in a new company as an accountant. And the company is already using QuickBooks because until now, if you're following the training from the start, we have seen a situation where you are starting the company in QuickBooks from scratch. But that will not be the case. Company will already be working on QuickBooks. But just what you have to is you have to take over from the last accountant when he leaves. So you need to analyze whether or not he is maintaining the proper records or not. He is not maintaining the proper records, you can ask the questions about it so that you can get all the knowledge before he leaves. So let's see some important reports. First of all, you will extract the trial balance. Trial balance is the most important report that you can extract. So I'll go to reports and go to accounts in Texas and click on trial balance. Now, trial balance will show you all the ledges, whatever is entered in QuickBooks, and to see all the ledgers on all dates, you just have to customize dates and set it to all. And here it will show each and every single ledger. So that way, you will know how the company is maintaining the records. For example, some people don't like to enter a separate ledger for a construction income or of every single type. Rather they book the type as a class or use other feature for that, and they only create a single ledger. Right now in this company, we can see that this company prefers to create a separate ledger for each individual income item. Same goes for job expenses, payroll expenses. So you get to know about the nature of the work and how they are performing their operations. And then you will simply analyze each and every single ledger, and you can ask questions about it. For example, if it shows cash or let's say petty cash, 15,000, you can just ask the accountant who is maintaining the petty cash and where it is kept and where it is managed. Maybe it is managed on an ex set, and then the final entry is done in Quickbooks on a monthly basis. So they will explain you about it. Same goes for checking account. If it shows that let's say Barclays Bank has this amount in bank, you need to check with the bank whether in the bank statement is showing the same amount, and if it shows the large discrepancy, then you can ask the questions about it that until what point it is reconciled, what is not entered in this system, so you will get to know better. Same goes for petty cash account receivable and each and every single ledgers. Also, in some ledgers, you will notice that there is only very minor amounts standing in the ledger. They might need to be settled out or to be adjusted and closed. Same goes for, let's say you can see QuickBooks credit card. It's only 94.2. Same goes for this ledger. Let's say these minor amounts are negligible with needs to be closed. You can check that. And whatever ledger you see and don't understand something about it, you can just simply ask, and it will help you a lot in identifying the company's nature of work and how they're dealing with each and everything in QuickBooks. The second most important report is you can check the reports, company and financials, and you can extract the profit and loss standard. Now, what profit and loss provides you is the information that is the accountant performing all the operations correctly? Is he accounting for the prepayments and accrual concept in accounting? Because sometimes, especially in the single owner businesses or some simple businesses, they hire an accountant who is not Very knowledgeable about all the concepts of accrual and premayments, and he's not dealing it in the same way, it should be treated. So you have to set it to all dates, and then we will see and divide this profit loss in the monthly profit loss. So you have to see each and every single month should be consistent. For example, you have paid the electricity bill in January, let's say. And again, in February, it is paid in March, you don't see any electricity bill, which is very strange, let's say. And then in April, you don't see any bill in May, you don't see any bill. And afterwards in June, you see a very huge amount. That means accountant is not recording all the expenses, considering the accrual concept. Recording it on the cash basis. So let's say the electricity bill is paid after three months. So what he is doing is recording it as an expense when it is actually paid. But that should not be the case. It should be recorded on the accrual concept, that is to which it relates. Just book that expense amount to which it relates, and if it is not paid by cash, then you have to credit the payables or bills payable. Let's I don't see much data here, what you can do is just scrawl towards right, and then you can see in February 28, 2025, you can see some data. Again, it is a sample company. That's why you see the data up till 2026. Now you can also see this not only in the expenses, you can also check it in income. For example, here you can see subcontracted labor income. In March, it's 16,500 in April, it's only 2,700. And then it's again 16,500 11,600, and then it's zero. And then it is recorded nearly in the double amount. So you can ask the question about it, that what is the average income that company receives? They receive almost an equal amount of monthly revenue, but they are not recording it properly. And even you won't believe that most of the people are only recording Quickbooks records for extracting the invoices and receipts. They are not closing the records properly on a monthly basis, on Quickbooks, they are doing it all on Excel. So that's why sometimes this report shows like this. Clearly, this is the concept of accrual, you can see that telephone expenses. If you notice, it is straightaway eight in every month. So this is recorded properly. Same goes for water in other utilities. You don't see any kind of discrepancy here. Now, one other important feature in QuickBooks is you can extract the report both on the accrual basis and on cash basis. Now, sometimes what happens is the company owner is not the accountant as well. Don't know how to record everything according to the right accounting process. So what they are doing is, they are checking their reports on cash basis. So for example, they are started a new project, and they are expecting a revenue of 4 million yearly. That means it should be recorded on a monthly basis as well. L et's say they will collect that revenue at the end of the project, but that is related to a monthly service. So according to the accrual concept, it should be recorded in every single month. But the owner might insist you that I need to see the records according to the cash basis. That means if I have not received any cash in the revenue form, then it should not be recorded, and the expenses that I am incurring, I want to see that. If I have received only some part of the revenue, I only want to see that what I have received in the bank, and that's it. The inking of cost, whatever I have spent by my pocket, I want to see that. You can easily switch that between cash basis or accrual basis. If we see the total profit loss here in this condition, According to the accrual concept, it's showing 41,000. Now, according to the cash concept, it might be more, if might be less. So let's switch. And now you can see in the cash bases, it's showing -30,000. While in the accrual concept, it's showing 41,000. So this situation is very important if the accountant wants to maintain everything according to the accrual concept, but owner might request you to see the cash position of the company. So that's why he's requesting to see the cash based report. So you can easily switch that and showed it to owner while applying your concepts of accounting properly in QuickBooks. Same goes for other report. If I go to reports in Company and Financial, you can also extract the balance sheet standard. Again, you can check the balances and confirm from third party. If you see the receivables of 93,000, that's a control account balance, by the way. You want to see the details of it. You can just double click, and it will show you all the invoices related to that ledger. But if you want to see each individual ledger, let's say, of anything, What you can do is just go to reports accounts in Texas and click on trial balance. It will show you each individual ledger details. Now, let's say that your company owner is checking all the accounts, and they are just randomly asking you questions about the ledger. And then they put the requirement that, okay, I want to see only the minor expenses because we need to settle all the So just extract the ledgers, which has less than thousand in their balance. So what you can do is this kind of customizations can easily be done from customized report. I'll go to filters. And from the filters, I can write here amount. And here, you can apply any filter equal to. If you exactly want to extract the 1,000 balance. If you want to see the less than or equal to balance, you can specify here. If you want to specify greater than, you can do it here, and you can also select the range here. Now, for example, I want to extract from thousand to thousand. Let's click. Okay. Now, most of the balances are thousand, but you can also see some balances are still showing 3,000 2000 6,000. Like this. So why is that? If we double click on it, you will understand that it is showing the drill down of it. It is showing the subcategory of this checking account, whatever has thousand in their balance, it's showing that, and then it's totaling it here. Similarly, if you check the account receivable, it will only show the thousand amount received as payment. And same goes for job expenses as well. So not only by amount, you can make all the customizations in the filters. You can explore it by yourself. You can customize it by aging account, amounts, billing status, each and every single thing. Obviously, you will get to know more about it when you practically work on it, but what I suggest is you can explore all of these filters by yourself, and you can gain much knowledge about it. Now, similarly, they might be checking a ledger, for example, checking account. And here in the checking account, I can see the balance here. But if you want to see all dates made sure you change it from here, and then let's double click here. Now, it has all the details here. You have the memo column as well. Now, once the owner was checking memo of each transaction, he can see some fuel expenses, and now he want to ask, and now he asked you to extract all the report for just the fuel expenses. And let's say it's recorded just in the memo. You mentioned it just in the memo. So how we can filter and extract the report based on the memo filter only. You can easily do this. I can customize report. To filters, and you can even filter it by memo. And you can write here fuel. Let's click. Okay. And here is all the fuel expenses. You can just take the print of it and show it to your manager or your owner. So these are all the tips and tricks for the report customizations in QuickBooks. Just practice this by yourself, and I'll see you in the next one, where we will discuss more about the customization of reports. 86. Customizing and Memorizing Reports Part 2: This video, we are going to see what most important reports can you extract from Quickbooks to properly analyze the company's position, and what are the methods with which you can customize and memorize the reports. This is the part. If you have followed my training from the starting, you might have seen the first part in which we have discussed about it. We've discussed the balance sheet, trial balance, profit loss, and other kind of customizations that we can do in reports. So let's see further. Now, as we already know that in accounting software, everything is based on general entry at the back end. Whether you are using the invoice feature, bills, receipts, payments, whatever, it has a direct impact in the journal entry, and whenever we enter the invoice, we can just directly check that journal entry. If we go back, let's say this is an invoice, I will go to reports and click on transaction journal to see the back end journal entry effect of that particular invoice. But what if I want to extract all the journal entries on a single page in a single report? For that, I can extract the report from here. I'll go to reports and go to accounts and texts, and from here, I can go to journal option and select this week, this month, or whatever you want to select? You can select, let's say this month. You can see all the complete journal entries are shown here without needing to go in each and every single ledger. Whether it's deposit, bill payment, invoice, bills, all of this can be seen in a single report. Now, let's say if I want to print this, I can customize the columns. For example, if you want to increase the name column size. What we can do is if we go to the corner right here, you will see the three dots. When we ho over it, it will show you this stick sign with an indication to move left or right. I can just hold it with my left click and then move it forward. It will increase the column size however you want. And similarly, let's say I want to see the name just after the transaction number before the type. What I can do is just I can hold it by name. When I hold it by name with a left click, you will see this hand sign which is open right now, and when we hold the left click, it holds it. And now you can move it anywhere. You can see the arrow, which is indicating where it will be dropped. So if I leave the mouse click, it will be dropped right here. This way, you can adjust the column position as well. Let's say that you want to see the journal entry of only the invoices. What I can do is I will go to the customized report and from the filters, I can search for type. And here it says transaction type. I will select the invoice here and click Okay. Now it's showing all the general entries of the invoices only. Now, let's say I want to apply the filter of only I want to see the invoice journal entries, and I want to extract this kind of report every single month. So I'll set it to this month. Now, obviously, whenever I want to report next time, I need to apply this filter for this month again and for invoices again because there is no standard report for this purpose only. So instead of customizing it every single month, I can just memorize it. I will just memorize this, and I can write here journal entries, invoices or monthly invoices, let's see. And I can save it to the Memorized Report group. And under the Memorized Report group, I can select the relevant area. In this case, since it is invoices, I can choose the customer section. And you can also share this templet with others if they want the same report. They like your customization and you want to share with it. You can just share this, and it will be downloaded as a tat. So right now, I will just save it as a report group and click. And if I close this, now if I want to see this monthly report, I can just go to the reports. And these are all the standard reports. You will not find a customized report here. There is a special section for it in the memorized report group, and you will see and go to the relevant section. And from here, you can extract your report. In this case, this is journal entry for monthly invoices. So let's open this, and you can see that it is already set and customized to only show the invoices and for this month only. So guys, this is how you can effectively make the use of this feature to make many other type of reports with QuickBook doesn't offer by default, but you can make your own customizations and use it for yourself. Let's see some additional customizations that if I go to reports and go to accounts and Texas and click on trial balance. Now I can see this trial balance, but I want to change the font size because this is too small for me, let's say. I can customize this. I'll go to customized report, and you can see the special sections. We have already see the display and filters. Now we will see the headers and foters and fonts and numbers. So if you want to increase the size of the fonts, you can do it right here, and there are a lot of options. You can not only change the size, but the writing style as well for each and every single thing separately. You can customize the alumn labels, row labels, report data, company name, report titles. You can customize all of this. Let's say, I just want to change the size of it equally for all the things, whether it's heading, whether it's report data. So I will click on change Font. And from here, I can choose the relevant font, and let's say I only want to increase the size 210. Click. Okay, and it will ask you that you want to change the all related forts. If you want to say yes, then it's here. It will also show you this option that how do you want to show the negative numbers? Some people prefer it in parenthesis. That means brackets on both sides indicates the minus sign. And with the trailing minus means minus will be shown in the end like this, Parentheses this normally is this, and in bright red is this. You can also set both in parentheses and in bright red. Also, if the company numbers are too big, let's say in millions or billions, they can take the commons of thousands, divide by thousands, and they can also round the cents. In this way, if I click, Okay, you will see something like this. Now, my figures are not that big, so that's why it's showing only 1919 means 19,000. How do we know this? It's mentioned here. Accrual basis and thousands and dollars are in thousands. So each of them is in thousands. Now, if I don't want this, I can just go to fonts and numbers. If you want to revert it all, you don't like the font, you don't like the size or any single setting you don't like. You can just revert it all back to normal by using the revert function. So click. If I want to uncheck something, click. It's back to normal, and if I want to revert back every single thing, I will just click on revert and click Okay, and it's back to normal. Similarly in the customized report, we also have an option of headers and photos. Now you have the choice if you want to see the company name on the top of the report. You can use this. Otherwise, you can just uncheck this. You can even customize it with the name. You can show or hide the report title or write anything with it. Subtitle, if I don't want to show that subtitle, you can just uncheck that date repair if you don't want to show time repaired report basis. If I don't want to show all of this, I can just uncheck this and click on. Okay. These are all the settings which if you like, you can continue. Otherwise, if you want to set it back to original, so you can always revert back. That's why it's very beneficial. Just play around with it and nothing wrong will happen. Just don't worry about it. Whatever you see is a good customization and your company likes it, you can use this otherwise. You can just play around and whenever you want to go back to normal, you can just click revert. So just experiment these. You will learn a lot about this customizations. Now, for example, if you want to see the details of any particular ledger, you can just simply click on this. For example, if I am on trial balance, and I want to see this details of the checking account, double click here, and you can see all the details right here of transaction details by account. And similarly, this is transactions by account, right. I just explore it by double clicking it. But if I want to extract the same report not by a particular ledger, but the overall report should be of the same type, then I can just go to accounts in Texas and click on transaction detail by account. Now I can expand the fields I want. Now let me show you the one additional feature. Let's say that I want to extract the report of the truck payments. Now, if we see the truck payment, it's right here. Monthly truck payment, it says in the memo. If you check, the type of the filter is bill payment by check. The date is this. Number is this. Name of the supplier is this, and accounts payable is the ledger. That means if you use the filter of type or the ledger, it won't work because it will not extract the truck payment. That's why what we can do is we can specifically apply the filter to the memos as well. Anything which is written in the memo, we can apply the filter to that saying as well. So I'll go to customized report and click on Filters, and I can write memo here. And let's write truck here to see what report it extracts. Click, and this is set to month to date, but if I set it to all, you can see all of the truck payments right here. Now, let's see some more examples. Let's say that we have this ledger report, and we have the truck payments filtered applied right here. We can see all the report. But let's say that I have the debit ret, I have the credit field, but I don't have, let's say the balance field. I can hide this. If I want to hide, I can just hold this corner and meet it with the other one. So let's say the report is like this, and you want to see this additional balance field. So if you want to get rid of any particular field, what I can do is just hide it like this or otherwise, you can customize from here as well. And also, we can add some separate fields. I can go to customized report, and from here, you can search for columns. Let's say balance here. So I can select this, check this, and also if I want to remove this class field, because it's not used. You can just uncheck this, and if we click, y, you will see the customization. I have the balanced field right here, and I have this extra field removed from here. Now, if you want to trace all of these transactions for the audit trail purpose, you want to see when it is entered on what time or what date, you want to see the details of the entry. So I can just customize the report, and I can just add the entered and last modified as well. Last modified by as well, you can see the user as well. So click. Okay. So since this is a sample company, all of this is entered by the Admin, and you can see the entered and last Potify by as well. Now, here is my fully customized report, which is, let's say a truck report. And I want to save this. I don't need to do this customizations over and over again. What I can do is just fully customize this and click on Memorize to save this. And let's see, this is a truck report, right? Can save it in the Memorized Report group, and let's save it to accountant or company, whatever you want, click. Okay. And now let's say if I want to extract the report, I'll go to the Memorized Report group. And from here, I'll go to Company and click on Truck Report. Here is the fully customized report that we just saved. Now, we can do some more customizations, as well. Let's extract the same truck report. I'll go to the Memorized Report group and go to Company and click on Truck report. L et's see if I want to take the print of it, but I can see here transition detail by account. I want to change this title to monthly truck report. I can easily do this. Just go to the customized report and go to headers and footers, and you can change the report title to monthly truck report. Click. Okay. And here we have the customized report. Now, if I want to save this and replace with the current report, I can just simply memorize this and click on Replace here. It will replace the old report with this new one. All right. Now, another very interesting and very important feature of QuickBooks is, for example, you want to see the report of any particular item, any particular account, any particular customer, and you don't know how to extract this. For example, let's see, if I go to items and services, and let's say I want to extract the framing labor report. I don't know how to extract this. What I can do is just right click here and simply go to the Quick report. Now, this is the feature that is available in every single ledger, every single customer, every single chart of account. Wherever you want to extract the report for one particular item, you can just use this feature. Quick report. You can see the framing labor details for the entries. If you want to see it for all months, you can just customize this and Let's see some other examples. Let's say this is countertop. I'll just right go to Quick report, and here is the report if you want to see this month. All, you can see the details here. Similarly, let's say I want to extract the report, same kind of report for any particular ledger right here. For example, prepaid insurance. I'll just right click here, and I again have the quick report to extract with this particular ledger only. And you can see in the title that this report is filtered just for the prepaid insurance. Let's see some more example. For example, this one, right click, quick report, and you can see all the details. Now, if you want to go directly to the ry and you want to see and extract how this 110 was entered, just double click here, and you can see and go in the details. If you ultimately want to go in this entry, this was the detail shown right here. But if you click on this type or account of any entry, just double click it to go in the journal N. Using the same method, let's say, I want to extract the details for the customers. I can select this any customer. Let's say this one, right click and click on Quick Report. You will see all the details. Just customize it by all, right click on this customer, Quick report, and you can see all the details like this. Same goes for vendor inventory chart of accounts, each and everything. Now, I'll ask you one question. Since we have learned all of this feature, let me ask you one question. For example, I want to extract the particular report for this vendor. Right click, click on Quick Report, and you will see the complete report. If you want to see with all dates, you can see and customize here. But I can see here debit and credit only. I want to see Balance field also because I'll then print this report. How can I add this balance field? That's right. I can add this with customized report. From here, we will select this area and right here balance and check this. Now, it's open balance feature, but still let's say I want to add this. There's no other field right here. It's only showing the open balance, it's showing right here. Now one more question is, if I want to move it to the end, how will I move it? I will just hold it with the center on the heading, where it shows the hand sign and just hold it with the left click and move towards right, and just drop it wherever you want to place it. As this is how you can customize all the reports in Quickbooks to work efficiently, which can save you a lot of time. Just practice this by yourself and I'll see you in the next one. 87. Quickbooks Bank Reconciliation Part 1: This video, we are going to see how we can perform the bank reconciliation in QIP. So firstly, let's understand what is bank reconciliation. If you want to reconcile all the transactions, what is shown in the bank statement with your banking records in the software, that is called the bank reconciation. We have the banking area for this, and you will use the simply bank reconciliation function. So basically, what we do in bank reconciliation is we ensure that the bank statement, all transactions and the balances should match with our record of banking in our software. Also, we match this because we want to find any discrepancy. That can occur because of many factors, such as unpresented checks, uncredited payments, timing differences, and all. So let's understand about these discrepancies one by one. Now, the first discrepancy that can arrive is that when you see the bank statement, you might see some of the charges that is automatically charged as a subscription fees or any other fees that particularly bank charges. And you see this amount, and after that, you post this in your banking records. Now, this discrepancy can only be solved when we physically check the bank statement because many times we don't know what charges does the bank deduct for the bank service charges. Similarly, let's say that I have given a check to the supplier for the payment, and I want to clear that payment. But the supplier due to any reason has not presented the check until the month end. So that could be represented as unpresented check because we have deducted that from our bank records because we have made the payment, so it will reduce the bank balance. But since he hasn't presented it in the bank, the balance on the bank statement will be more. So the difference could be the unpresented check. Similarly, we might have received some payment from the customers, and we haven't yet deposited it in the bank, but we have entered that in our software. What it will do is, since we have received the payment, it might be showing an increased balance in my books records while in the bank. It is still not presented or deposited, so the bank balance will not increase according to the bank statement. For that particular reason, we have a special area named as undeposited funds. When we receive the payment, we can specify here that I owner received this payment as an undeposited fund. That if the payment is not yet deposited in the bank, it should not reflect in the ledgers as well. And then it will make easier for us to reconcile the bank statement and the bank. And the third one is the most important issue, and that is timing differences. That can occur most of the times in the bank reconciation. And the timing difference is that, for example, you have made a payment to a supplier. You have issued them the check by let's say at the end of the month. He have also deposited in his bank, but the banks are different. We're using the First Gulf Bank, and he is using the Emirate San By Bank. What happens is due to the processing time, it might take some time to credit the amount in the other bank. On in case of same bank, it might be credited right away. This kind of issues might arise due to the timing differences or the processing time the bank takes to process the payment. So for example, you have issued the payment on 30th or 31st of January. But although it's deposited on the same day by the supplier, it still take three to four days to credit in his account. If the month closes during this time and we perform the bank reconsideration, it might not show in our bank statement, and we might have reduced that balance from R records. These are all the discrepancies that you can face in the bank reconsiation. Now, how to perform all of this bank reconsiation. Let's see. By default, right now, I have Empire textiles open. This is the company I was working on, and we will use the special area of banking and reconciled area to reconcile the bank. But we will work on the new sample company. For that, I will go to file and click on Close Company from here. Now, you will come on the main screen from here on the right hand side, you will find some sample companies, and we will go with the Sample product based business, although it's directly loaded here, but I will open it from here. If you're a new user, you will use this area. Click Okay. And now we have our screen shown right here. Now you can use two areas to go to the reconciliation section. Either from the banking section, you can just directly use this reconcile option right here, or otherwise, you can go to the bank and use the reconcile function from here. So this is both same. Let's go to reconcile. Now all of the reconcils are performed from this area, whether it's credit card reconciliation, bank reconcilation, or even cash reconciliation. Whatever is with the nature of bank, you can use this area to reconcile their balances. Let's use checking account Checking Account means bank account. Now it states here statement date. That means on the date when we extracted the statement from the bank. Now here, I will go to the statement. This is the example statement. Now, this statement is from first of September 2014 to 28, February 2015. Although it's very old, this is just an example. You can just suppose that we are in 2024, right? So I'll just go down. Now, as you can see here that the current date is 28 February 2015. This is showing the latest or last date. I need to go down to the starting date, which is first September 2014. So let's scroll down. And this is the first transaction on this statement, and this one is the balance on this date. For example, this is the statement date, and let's suppose it's 2004, right. So first of, let's say September 2024, and the ending balance is what this? So you can just simply copy and paste it right here. Now, one other important point is the beginning balance. If you're reconciling for the first time in Quickbooks, it will show a zero balance. But if you have used this feature before, it will be showing the last close balance. Let's say that we have the ending balance right now of this amount. When we successfully reconciled it and use the reconciliation and just finalize that reconciliation, then this will be the beginning balance shown the next time. That means last reconcile balance will be your beginning balance the next time you use the reconciliation feature. There are some service charges or interest charges that you already know is deducted every single month. What you can do is you can specify this, for example, $200. Is deducted as a service charges every single month. You can just mention the date of that type of expense. For example, 20th of September 2024, you can just specify this, and you can just select the account where you want this to be posted. If it is an expense, you can just post it as an expense. Similarly, the interest earned. You might already know that what amount you will receive every single month as an interest. So let's say it is 100, or let's say it's thousand. Hundred dollar that you will be receiving, and the date is, let's say 25th of September 2024. Now, this one, you will mention here the interest income. Just write interest here, and you can select it under the other income. Now, when we successfully mention all of these information, the next step is simply continue. I will open all the transactions here. On the right hand side, you have the deposits and other credits. On the left hand side, we have the checks and the payments. And the downward here is showing the beginning balance of, in this case, 71,004 52. We have the zero checks or other credits that we have marked. We haven't marked something so far. When we market, it will be shown here, one in the quantity, and the amount is mentioned here. When we select the second one, it will change it to two, and the amount will also increase with the sum of these transactions. It will be shown like this. On the other hand side, we have the service charges any interest earned and the ending balance showed here. There will be a difference in this balance. We have started from this balance and we want to end on this balance. There is a discrepancy that we need to solve, seven, one, two, four, 65. That means we need to increase this balance. We have last reconcile of 71,000 and we need to make it to 793000. Now here it's showing the cleared balance and here's showing the difference. Now obviously, we need to close on a higher balance. That's why when we deposit something, it should decrease the difference. It's 712 right now. When we deposit, let's say this 25,000, it should decrease the difference. Let's see. You can see that it decrease the difference, and if we check all of these, it's continuously reducing the difference. That way, you can just check the bank statement one by one, and if it is a payment, you just clear the payment from here. If it is a receipt, you just clear the receipt from here, and that way, you can check all of the transactions that is shown in the bank statement and not in the software or the vice versa. Now, if you have some balances that is shown on either side, you might decide at the spot, what you should do with this. For example, you might be confused that we are reconciling for, let's say, first of September 2024, and it should not show any further balances after the end date, the statement end date. Let's say this is the end date. So you can hide all the other transitctions that you don't want to be shown. Otherwise, let's click check. Similarly, on the left hand side, we have the payments. So when we make the payment, it will increase the difference, because we need to go on a higher balance right. We are on the beginning balance of 71,000 and our target is to go on 793. So that means when we make the payments or check it from the bank statement and then market here that is the confirmation that we have the same balance shown in the bank statement and here as well. So we just check this. It will clear the balance. Now, one most important thing while reconciling the accounts is you don't just check the amounts from the bank statement and just simply reconcile if you found the same amount here in your records. Other you will confirm it with a reference number as well. In this case, it's a check number. For example, you find a 500 payment in the bank statement. But what you need to do is you need to check whether it's 470 check number or some other check number. There might be many payments of the same amount. What will be the difference will be the check number or the reference number. That way you can identify what exactly the payment is. Basically check number is a unique factor. Also, sometimes, you might not use this check number. Let's say that you have entered from some other area, and you haven't mentioned the check number, rather you mentioned the check number in the memo field. Now, by default, here, memo field is not shown. It's very easy. You can just select the columns to display from the right hand corner, and here, you can just enable the memo on both deposit and other cred site and check and payment site. Okay, and you can see the memo here. You can check the references and just reconcile your accounts. One other technique to reconcile the bank faster is, by default, your bank might issue the bank statement in the PDA format. But what you can do is just request them to issue the bank statement in the ACL format. So, the benefit of that is, you can just simply select some couple of transactions, and that might be entered on a single deposit, let's say. You have the cash receipt of 3495, 303,000. So that might be recorded as a total in your software. Here, you have to manually total it using the calculator. But if you receive this in CL, you can just simply select all of these and it will show you the total in the bottom here. This will be very easy for you to identify the payments which are club together. Even though if you receive the PDF file, you can try many online converters which convert PDF to L easily and very accurately. So you can just try that out. Now, for example, that you have downloaded and converted it into Excel format. Now, what is the benefit of it? For example, you want to check that until this point, we have reconciled these two transactions or let's say these three transactions. So what is the total here? It's clearly showing the total of 6196 here. You can just check this with your records that, we have the same total shown right here until now, we have checked these, so it's showing the same total. Reconciliation is a long process. It might take a lot of time. If you are in the middle of reconciliation process and just you want to leave for now and just continue tomorrow, let's say. You can just click on leave from here and it will keep it at the current state. You can just resume tomorrow by going to banking and click on reconcile and just click on continue. You will see all of the work you did is saved. Just try all of these steps that I explained until now, and then we will move to the next part where we will see some more details of the bank reconciliation. 88. Quickbooks Bank Reconciliation Part 2: This video, we are going to see how you can reconcile the bank statement in QuickBooks, and this is the part two where we will understand some of the more features and how you can make it more convenient to reconcile your statement. Let's say you are finding it difficult to find some of the transactions. What you can do is just sort it according to the date, whether it's ascending or descending. You can also sort it by checks. If you have many transaction on the same date, it might cause you some problems, so you can just arrange it with the check number, then it would be very easy for you to find the check number that you need to reconcile. Similarly by amount, memo, pay, whatever, you can just change the sequence or sorting order in QuickBooks. Okay, now, let's say that we are checking the payments one by one that we have made, and at the same time, we found a transaction, which is shown right here, but it's not cleared in the bank. So what we do in this case is we will just ignore this transaction, and don't check this because it might be cleared in the other month in the next month. And that might be because of the timing difference, or anything like I told you before, it might be unpresented checks, undeposited payments, something like this. So you can just ignore this. So when we check the next month reconsideration, these might be showing as a pending amount, and then we can just simply check them to reconcile if it's showing in the bank statement. Also, let's say that you have find a payment in the bank statement, and you haven't yet recorded it in the bank of your software, and you just realized that, oh, I need to enter this. So what we'll do in this case. We can just close this directly from here or you can click leave here. So let's close this. And then I can go to write checks, select that checking account, and let's mention the date. Let's say tie, September 2014, let's say. Let's mention the bank service charges. Let's say 13 75. And let's mention this as test service charges. And you can give any reference number that is unique. I will try to identify that. Now let's save and close. And now if we go to the bank and just continue with the reconsation, click Continue. I can find this transaction right here, 13 75. Now I can check this, and it will be shown both on the bank statement and on my records. So now I can reconcile this. So this is done when we realize by watching the bank statement that we need to enter this. Or even if you already remember that, but forgot to enter, you can just leave it anytime and just enter those transaction to continue the reconciliation. We have seen that although we can see the transaction, but the memo is not shown here. Why? Let me show you. I will go to write checks and go back. We have the transaction on 2014, since we are using this sample company, which shows the transaction up to 2026, that's crazy. So we will write it by dates. Let's say, first of January or let's say first of September 2014 and up to 30th of September 2014. Although we are in 2024, we are following it something like what is in the bank statement. So we have this this service charges here mentioned in the memo, but that memo was not shown in the reconciled. So what we do is just copy and paste this same here as well. If you do this into write checks, it will show in the reconcilation, let's save and close and then continue with the reconcilation, and then you will notice that the memo will be shown here. Now, similarly, if you want to get quick in the reconsideration process, you can just simply check, let's say that you have checked some of the transctions in sequence. This is 900, 900 sometimes. Many transction with the same number might arrive, and you instantly found this in your records as well. What you can do is just dig the mouse to check and just hold that click and move it downwards. It will check all the other payments as well. Similarly, if you want to get rid of this check marks, you can do the same, just select it once, and just scroll it true over all the columns like this. Now, since this is a huge difference and we have taken an example of the bank statement that is not related to this particular one. We just took their balance. Let's say we pass an adjustment entry so that it will fill of some of the transactions. Let's say that we have entered and checked all of these, and let's say all of these as well like this. One other cool feature, if you want to mark this all, mark this all, you can just select Mark all, and it will mark all of the transactions. Similarly if you want to unmark all and start it over, you can just unmark all from here and you can get rid of all the marks. Similarly if you want to go to any particular transactions, you can just select that transaction. For example, here, and you click on GT. It will take you to that transaction so that you can check or adjust the transaction. Let's select. Let's say I have checked all of the transactions and we are still in the difference of 784000. That's obviously because this is a sample ending balance that will never be reconciled this way. Let's say we had another payment as well that we forgot to mention, and that was 795,000. What we do is just leave it right here. Will receive a payment, let's say from any customer, and it was 8991 seventh, received in bank of 795,000, let's say, and it was on 20 September 2014, let's say, seven close. Now, it will be recorded as the undeposited funds. So I will select this and click Okay, and I will physically deposit it in the bank. Let's say on the same date or let's say 25th of September 2014. Anything like this Save and Close. And now if we continue with the reconsideration, it should show in the records. This one is the transition shown right here. If I select this, the difference is only 10,000 now. Let's say this difference is because of a payment of office supplies that we haven't entered. This is 10,834.87. Now, this is because I want to show you the complete process of reconciliation. Let's suppose that we have entered all the checks and the payments, and then this would be the practical difference that you will have. It will not be that great. It will be this minor difference. For example, you have exactly identified what is the difference and that is the office supply. Let's make the note of it. This is the amount, and let's close this, and let's go to write checks. Because that amount wasn't negative, that means we need to increase the payment from the checking account, let's say office supplies. This is the amount, and you can write office supplies here and similarly here as well so that it can show in the reconciliation. Just mention the date. Let's say 30th September 2014. Save and close, let's go back to the reconciliation, continue. And now if we check this one, it will show this zero difference. Before we click on reconcile no or anything, let's say a person makes a changes in the records. He feels that this is not accurately recorded. In that case, what might happen? Let me show you. For example, in the write checks, if I go back, since this is an example company, it's showing the transction up to 2026. In that case, if your transction lies 2000-14, let's say you can just select that period, let's say, let's say 14, 2014, and let's click on find. Now this is the supplies. Let me change this. Let's say it was 9,008 and 34. If we save and close this and record, yes, and close this. Now if we go to bank and reconcile and continue with the reconcilation, you will see that it will again create the difference. That's why it's recommended that when you enter all the transactions and you reconcile the bank, you can just close or lock that period so that anyone won't change the earlier transactions. If they do, they will notify you so that you can immediately easily balance that. Otherwise, it would be very difficult for you to find those transactions entered by one of your employes or altered by one of your employees. So let me just go back and change that transaction. For example, that was office supplies. Now, I can go directly from here as well. I'll just select this and click on G two, and just directly change it from here. I will make it ten and save and close. And now we're again on the reconsideration page. If we select this, it's showing the zero balance again. These are some very important techniques. I want you to pause at this point and just try by yourself each and every single thing, and then we will finally move to R P three, which is closing the bank reconciation and using the reconcile feature. Just practice this by yourself and I'll see you in the next one. 89. Quickbooks Bank Reconciliation Part 3: After performing all the steps in the reconcilation process, I've closed that until that point, and now if I want to continue, I'll just simply go to the banking area and go to the reconcile area and select the continue. And from here, I can continue my reconciliation. But as we can see the difference is now zero, so we can just click on reconcile now. When we click here, it will take some time depending on your system speech, and it shows you this message that congratulations, your account is balanced. A mark items have been cleared in the account register. So select the type of reconciliation report you'd like to see. Now you can extract any type of reports whether it's summary retailed or both, but usually summary is extracted. Now you have the choice to choose the summary and click on print, and then you can take the print of the report and just attach simply with the bank statement. That next time you can just simply see from that report until which point the bank was reconciled. You can print from here, and if you want to just display it on the screen, I can click on display, and here is my reconciliation summary report. We have the beginning balance. We have the checks and payments in the clear transactions, deposits and credits in the clear transactions, and cleared balance is this. Because we have checked all the items in the reconciliation statement. That's why it's showing it all in cleared. Otherwise, it would have shown these checks and payments, some of them in the uncleared transactions, and same goes for deposits and credits. Some will go in the uncleared and some will go cleared. Will attach the screenshot on how it will look otherwise. So now our final balance is on this figure. Now, it's your choice if you want to take the print of it, and then we can just simply close this. Now, to verify the payments, I can go to the check register from here and click on it, and here you will select the bank, which you have just reconciled and click Okay. Now, you will see the reconciled status. Whatever transaction is reconciled, you will see a tick with it, which shows you the reconciled status. So all of these transactions are reconciled. So let's say if we have some of them unreconciled, although it's not recommended, it's showing you the warnings. But still, let me just show you, let's say some of them were unreconciled. I'll not save this. It's not recommended. So whatever is reconciled in the bank reconcilation, it will be shown as ticked. Otherwise, whatever transaction we haven't marked it there will be shown as not ticked. So you can also sort by it. Now, for example, if I just want to see the cleared status, and we have a lot of transactions. So are cleared, some of them are uncleared. So what we can do is you can use the sort by option in the bottom left corner. You can change it to sort by cleared status. Right now, it's defined by date type and number reference. This is the sequence. And if we change it to cleared status, and click yes. You will see that all the cleared ones will show up, and the uncleared ones will automatically move down. Now, one very important point, since you can see that if I change any of the status, it will show you this warning one time, and it will still show you the steric and might show you the warning the other time as well. It's not recommended to change any of the status directly from here if you have already reconciled the transactions. Like I said, I will not save this. I just wanted to show you how the unreconciled status looks like. Now I've changed all of them to check again, and then let's close and save changes. Now, let's check the balance again if I go to the banking area and click on the reconciled status and change it to the bank. You can see that the last reconciled balance will be the beginning balance now. Similarly, you will enter the ending balance of the next bank stretment, and you can continue from there. This is how you can perform the complete bank reconciliation in quick books. Just practice this by yourself and I'll see you in the next one. 90. How to create copy of Existing Company for Practice: This video, we are going to see that if you want to make the copy of the existing company, and that copy should be a live copy, which can be executed right away on any laptop or EPC if you want to move your company files. So it's different from what you do in the backups of the company. Right now, I have this sample company opened. You can open any company, but for making a copy, you have to go to the file and click on Close Company. Here, you will see the company name, and down here, you can see the company location, where it is located. It's located in C, D Drive. I've named the folder as Drive, and Quickbooks Live files is the folder name, where these live files are present. Now, the extension of the live files is dot QBW. That means working files or life files of QB. I'll go to C, D drive, and go to Quickbooks live files. And here we have the life files copy. Now, here if you notice about the file types, if I change it to let's say large icons. This is the most important files, which is with the green icon. The other files are just the processing or system files. It will automatically be created even if I delete it. So this is our main files, which is approximately of 13 point 47mb. For example, if I want to make the copy of it, just to practice on the files. Before implementing it on the real file, I just want to make the copy of the live file. What I want to do is just control C, copy this and paste it right here. It will be saved as a copy, and then just open this. I'll just double click to open it. And here, you can see it's exactly the same as the file we were working on, it's not mentioned that it's a copy or whatever, because we have to change the company name from inside if you want to change it as a copy name. But otherwise, if I go to file and close company, I can see the copy mentioned here. So we have two files now. One is Empire Textiles original file, and one is copy. So if you want to identify it separately, inside the QuickBooks as well, so just open this, go to company and select my company here. Here you can click on this little edit sign and from here, you can just change the company name to copy and click Okay. Now I can see the copy written here as well. This is how you can make the copy of ok Books live files so that you can practice it without any problem. Just practice this by yourself and I'll see you in the next one. 91. How to Define Level of Accounts and Parent Child Account: In this video, we are going to discuss about the level of accounts in QuickBooks. Now, what are level of accounts? If I go to reports and click on Company and financials and then extract the balance sheet, let's say. You will not see the ledges directly, rather, you will see the categories in which they are defined. First category is assets, which is a parent category. Under the assets, there is current assets under which there is checking and savings account, and then you have the actual ledger, which is Bank of America cash or Citibank, whatever with the balances. These all are the level of accounts. Although while creating the ledger, we just did the simple procedure, we go to account and select ne, select the category and we click Continue. But still it will automatically create some level of accounts for you. But when we extract the reports, it is showing the report on four level account. So this is level of account. So if anyone ask you, what is the level of account, it is just the category and the subcategories in which the reports are defined. Let's tag it according to the levels. Assets is the major level, so it is level one. It is the topmost level. Under the asset comes the subcategory, which is current asset. Since this is a subcategory of the main category, this will be categorized as level two, and then under the current assets comes the checking or savings account. This is still a third heading or third category, so that will be marked as level three. Finally comes our original ledger in which we will actually post all the entries, and that comes on level four. This is four level of account like this. By default, Quickbooks offers you four level of account, and most of the times you cannot customize it. But let's see an example where let's say if we see the fixed assets area, we have the accumulated depreciation or the cost accounts separately mention of fixed assets. Let's see that I want to give a separate heading fixed assets at cost, and then it should show all of these ledgers. Now, how I will perform this, let's see. What I'll do is just close this, and from the main account, I will create an account like this. I will create a parent account, and then we will create all the sub accounts. Though I've already explained this in the past videos. But just for the refresher, let's do this again. I'll go to account and click on NU, and let's define it as fixed assets, and let's write fixed assets at cost. This is the parent account. Click on Save and Close. Now, the rest of the accounts are already created, so what I'll do is just scroll down up to the point where all the other fixed assets comes under this major category, this parent category. So just make sure of that. Fixed asset at cost is the parent account. Furniture and equipment should come under this fixed asset account. What I'll do is I'll just hold it from the diamond button here. It will change the cursor sign as well. So just hold it with your left mouse click and just move it towards right. As you can see that it is now showing as a subcategory of the main account. This is how you can make it all and adjust it as a subcategory. You will also notice that the totals of each category will be totaled in the a major category that is fixed asset at cost. Now, sometimes what happen is, let's say if I have sorted it according to the name. And then if I want to move any diamond upwards, it will show you the warning that you cannot move the list of element unless it's in the original order. So click on the list diamond column headed to list it in the original order. In that case, you have to just go to the corner here and just select this one. It will rearrange it in original order, and then you can freely move any ledger anywhere you want. Now, what some people do for fixed asset is this. Let's say I create an account of a fixed asset, which is let's say motor vehicles, and this should work as a parent account. So I'll save and close, and then I want two subcategories here. Under this parent account, which is named as motor vehicles, should come the cost account and the accumulated depreciation account, but it should be linked to this parent account. I'll go again in NO, select the fixed asset account, and I will just write cost here. And you can make it the sub account of motor vehicles from here directly. So you have the choice, either you can create the account and then adjust it manually from here, but that should be done when the ledges are already entered, and you want to adjust that. Otherwise, what you can do is just create the ledger. And let's say this time, I'll create the accumulated depreciation. And depreciation of what, I'll select the sub account of the motor vehicles, and that's it. Save and close, and it will automatically show it like this. If you want to move the cost up, you can move it up, and this will be the arrangement. So some people prefer to enter the fixed asset that way. So now if we check the presentation, especially for this, which has the balances. Otherwise, this one, we have created a new one, so it will not show any report because of the zero balances. So I'll go to the reports and click on Company financials, choose the balance sheet, and let's take it to all dates. If we scroll down, we can see that we have a special category here. Under the fixed asset comes the fixed asset at cost, and this is the level of account because this is a subcategory which comes under the fixed asset, and then comes our original ledger. This is the additional level which we have created. Now, what is the use of it? You can also collapse and expand according to your requirements. For example, just want to see the major category and not the details. What you can do is just click it from here, and you will only see the balances. And if you want to collapse all the rows, you will just select this, and you will just see the major categories. Whenever you want to see the details, just expand that particular ledger. Otherwise, you can just expand and collapse the rows directly from here. So for example, pattycan breast account, we can collapse all the rows, and you can see that not only for petty collapse, it's collapse for every single ledger. So that's how we deal with the level of accounts in quick books. Strike by yourself, and I'll see you in the next one. 92. Dealing Withholding Tax in QuickBooks: This video, we are going to see how we can deal with the withholding texts in QuickBooks, so let's get started. Right now, I am in my sample company, which is Empire Textles. So let's create a sales invoice. I'll go to create invoices, and let's select a customer here, and the item we are going to see is, let's say finished good is Spence. So ten is the quantity, and rate is, let's say 500. This is a sample sales invoice that I'm want to save. Let's click on Save and Close. Now, to check the journal entry effect, I'll go to create invoices, and let's go to the last record. This is the invoice that I just entered. I will go to the report stab and check the transaction journal report. Here we can see that entry is in four steps, which is account receiable to sales. Debit is account receiable, credit is sales, and at the same time, inventory is credit because we are selling that item, so it will be deducted from the inventory asset ledger. Also, whatever we are selling, we have to charge a cost for it. This is the cost of good sold, which is debit as an expense. This is the complete entry. Now, what happens is when we receive the payment from customer, some customers have to pay the tax on R behalf. What they do is they deduct the text at the point, which is called withholding tax, and then they will make the payment after deducting the text. They are submitting the text on R behalf. We have to charge or receive the payment in such a way that we can charge that as a withholding text as an expense because this way or another, we have to pay the text to the government, so this will be shown as an expense of s in the profit and loss. What we will do is I'll go to receive payments, and I want to select that customer from whom I want to receive the payment, and this is the invoice right. I'll click, yes. Now, the problem is QuickBooks doesn't have the direct solution to deal with the withholding text. We have to find other way around, and the ideal situation for that is using the discounts and credits. Since discount is also an expense, we will use this feature or leverage this feature for our benefit. And what we will do is instead of mentioning any discount ledger, we will mention the withholding text, which will be treated as a expense. So in the discount account, I will write here withholding text. Now, as we press tab, it will ask you that this account is not found. Do you want to create it? I'll create it setup and select the account type as expense, save and close, and then we will mention the withholding tax amount. Let's say that withholding tax was 10%. It was 500. When we click done, you will see that it will clear this five than complete balance of the invoice, but it will charge 500 in the withholding tax and remaining it will receive, and this invoice should be clear from here. If we want to collect the payment directly in Bank, instead of undeposited funds, we can choose to deposit in Bank when we are receiving the payment. If you want to enable that feature, I just want to go to edit and preferences and go to payments and company preferences. From here, you can just uncheck this. But make sure whenever you're making some changes from edit and preferences option, make sure to close all the windows, especially the entry windows, like I have opened right now. Just close that and then you can make the changes. So I've deposited it in Citibank directly. Let's click on SaveN New, Y SAN New because I want to check the journal fact as well. I'll go back and go to the reports and check the transaction journal. Now here, I can see that I've received the money, which is 4,500 from the customer, Y. Because we have deducted on our behalf something as withholding tax. We will charge that 500 as a withholding tax, we will collect the rest and we will clear the complete account receivable against this transaction. If we close this and I want to receive the payment in future from the same customer, I have to make sure that that invoice should close in full. If I choose Mr. James Carter, I can see only one invoice remaining right now. That means we are doing the correct treatment. Similarly, if you want to check the profit and loss account, I can go to the reports, go to the company in financials and check profit and loss standard. Here I can see the withholding text mentioned right here. This is all showing in the correct order, we have it in expense. Now some people prefer it to mention it in other expenses because that contains and all the other expenses which are not the normal part of the expense. You can choose it either way. That's your choice, but this is the treatment of withholding text, you have to find a way around. Just practice by yourself and I'll see you in the next one. 93. How to Multiply Custom Fields: In this video, we are going to see a Quik box add on, which can enhance the Qui box functionality. For example, you add some custom fields which are related to some kind of amount or quantities, and you want the fields to be multiplied. But there is no function with which you can multiply the fields. If you check the create invoices, let's say we have the rate and amount. But let's say we have some kind of Myer benth as well, and we want to multiply these three fields or four fields. We have some advanced calculations. So Quik Boox doesn't offer the multiplication feature of that fields, although we can create the fields directly in Quik box, but Quiox doesn't offer that. In that case, we have to apply some add on with it. That add on we can easily integrate. Some of them are paid, some of them are free, so let's get started and see this. I'll go to Google and simply right here, form Calc SST. And right here, QuickBook. I'll just zoom it for you. You have to write Fm CLC SST QuickBook. Let's hit Enter. So this is their official website, go flagship.com. So let's click here, and this one is a paid software, so you can buy it from here, but we can try it free for 30 days from this area. So let's click on Download Form CLC SST and click here. Save it anywhere you want. Now I will take some time to download. I will just wait for it. Sometimes it will show you something like this if you're using the Brave browser especially. It's showing here unverified download blocked. If you see this error, you can click on Download unverified file, and then it will do the job for you. After the download is complete, you can go to the folder, and the installation is pretty simple. I'll just click on the setup and click Run. Now, click Yes. Click next, Iccept, next, next, and next, and you can create a desktop icon and click Install. Now I will run the ast Z. If I click on new, you will notice that it will look just like the Excel file. So what I'll do is, I'll open this software in the background and just start working on QuickBooks. Now, for the purpose of explaining this all scenario, I have supposed that we are doing a printing business. I've just created a new company. You can just do it by yourself, just create a new company and enter some of the items. I've created the flex, item, frame, and metal sheet. What I'll do is, I'll attach the backup of this company with the link of this video. If you want to just restore and just follow along, you can do this. So in this company, I have supposed that we have three items. We are the flex printing business. So obviously, Bclt flex involves the metal sheet, frame, flex and all, and that all is miered in square fits. So we have entered all of this inventories, where we have flex, flex printing, we have mentioned the description cost and sales price in square fits, and we have supposed that we have thousand in quantity for every single item. So before entering the invoice, we will make one further change in the inventory item. I'll just double click on any inventory part and go to the custom fields. Now I will create some new fields. I'll define the fields, and the first one is length, and I want to use this in whole numbers because I want the form galc to multiply the fields. So that's why I've chosen numbers or whole number. Similarly, the next field I will create is width, I want to use this one as well, and I'll choose the same option here. So I require this in the transactions, in every template of the transaction, and I want to show it in the list as well. Let's enable and click and. Now any custom field you create for a particular item will be shown in every single other item as well. Let's see if I cancel this or click on this, and I want to check it for frames. Let's go to custom fields and you can see the same fields entered here as well. This is how you can create the custom fields. Now what I'll do is I want to create an invoice for this. I'll go to the Home tab and click on Create Invoice. And from here, let's enter a sample customer. Now let's write here any customer, which is Ali Enterprise, let's say, it tab, and when we hit tab, I can quick add this customer. Now by default, you can see this template of any default template into it. I want to change it to first product invoice, because I want to create the product invoice. Now I want to customize this as well because I want two new fields here. I want length, and I want width. So what I'll do is, I'll go to formatting and click on Managed templates, and you can just make a copy of it. Let's select this product invoice template, click Copy, and here I will name it as printing business Invoice template, let's see. And let's keep it to printing business invoice. Click. Okay. And now I want to add this custom fields here. So I want to go to additional customization. And from the additional customization, since I want to make the changes in the columns and not in the headers, I will go to the columns tab. And here I will see this custom columns that we just created. I want to see it on the screen for now. But I can see that it's showing in the position of sixth and seventh. I want it to appear in the starting. So let's say just after the item code or just after the quantity. If I change the quantity to one, let's say, one numbering. You will notice that automatically each and every single order will change accordingly. Similarly, let's make it the item code one, and quantity should be on second number, and this should be on third and fourth number. Let's say, like this. Now, description in everything will automatically change its numbering or order. So this is perfect. Let's click, and let's click here. Now I can see the new columns are added here. Before entering this invoice, let's close again. Let me show you from the starting. If I go to create invoice, I can see this templates selected to service invoice, and I need to convert it into printing business invoice template. Once you enter this invoice or once you enter a couple of invoices based on this template, it will automatically make it as default. But if not, you can go to list and go to template. What you can simply do is just keep this template and make all other templates inactive. Just right click and click on, make template inactive and do the same for all of the things. In that way, you can make this one as a default template. Let's go to invoice again. Let's select Aly enterprise, select the item. Now, let's change the invoice template. I've entered the customer. I have selected the item. Now, this quantity, I want it to be multiplied by length and width because this is, let's say in square fits. So I want the length and the wid to automatically multiply. So let's write eight here, and let's write four here. Although the quantity can be multiplied like this as well, we have a default calculator in every single field. I can write eight here, and when I hit multiply, it will automatically turn on a mini calculator, and I'll choose the four here and press tab. It will show 32. It will take a lot of time if we have a lot of line items. So for that purpose, we want automatic calculation. And the problem is in the manual calculation, you might make some mistake. So that's why I want to avoid this. Let's keep it to default, which is one. Now, let's select some random sizes. I want to select the frame and quantity keep it to one. And let's give a random size of 12 by six, let's say, and let's give a random size to metal sheets as well. And let's mention it as 22 by 18. Now, first of all, I want to take the screenshot of this. That means I want to import that template in the form Calc SST. What I'll do is, I'll just open this and go to the action. Click, Okay, we can use the F 11 shot key as well. What I'll do is, click on new snapshot. You will see that all the fields are blinking. That means it's picking the data from all of the fields, and then it will create a template for you. Once it's done, you can see a template is printed here. On the top, we can see the header fields. Since I am not making changes to any header fields, so I can just hide the header from here, just select from here, it will hide the header, and this is our main area. Now, since it is not sing properly, I will attach or map the fields with the Quick book fields so that it can easily identify and then do the calculation. Column types, I can write lick to edit. Here it is mentioned as well. Just right click. This one, as you can see, it's inventory names showing here, I'll select item here. And this one was quantity. This one is description. Now, these ones are not the default fields. This is length and this is width. What I can choose is I can just right click and click on custom field here. But don't worry, you can change the name here so that you can identify each separate field. I'll mention the same here custom field. What remaining fields do we have? Let's see. Here 30 is what is 30, 30 is price. Let's right click and select the rate or price here. Now the last one is amount. Let's right click and select amount. Now every single time you see this message, just so you know, when you change a column type, form Calc may revert its format codes to default for this new column type. Don't want to show this over and over again, just select. Don't show this message again, and you are good to go. Now, what further adjustment do we want here? I need to write the name which appears in the Quick books in the same sequence. So since I can see the custom field here, I need to change it to length and this one to width in the similar order which we have in Quik books. First one is length and then is width. Let's write length here. And let's write width here. Just make sure the spellings are correct. Now let's create a formula. Here I want to multiply length with width. I'll write equal to here. Now normally in Excel, you can just select the cell and it will do the job for you. But here if we select the cell, it will not pick that up. Instead, what we will do if we have to identify the row and column numbers manually. This is under F column 21 row. F 21, multiply by G 21. Let's write G 21 here, press tab and make sure it shows you the right calculation. Eight multiply by four is 32. So this is perfect. Now, this all activity, I need only to do it once, and then I can just use the save as option to save this template. Create a password protected. No, I just want to save this. For now, let's save it to desktop. And let's say I want to name it as auto multiply dot SST. Because there are two templates, one is SSF, one is SST. So if you mentioned this, it will be confirmed that it will be saved as SST. Let's go and save. Now let's see if we even close this all template. We can open it with the saved template or not, and how we can open it. Let's see the complete procedure. Let's close this, and let's close this one as well. Let's save it for now. Yes. And now I'll open the software again, and by default, it is opened, but if not, you are on the new, I can just use the file and open current file, change it. No. I'll choose it from desktop, and this is my format. So now it is open. Now, what I need to do is I need to open this in the background and then go to QuickBooks. Now since I've already saved an invoice, I just want to adjust the quantities, I'll go to the Qa invoices and go to Main and click on the last records. This one is the template. Now since I'm recording right now, F 11 short key is used for other shortcuts as well in the recorder. That's why I will not use that. I'll go from here actions and then process that, but you can use the F 11 key as well. Lick. Now I can see that processing form is shown right here, and I want to process this Quick boox form. What it will do is in the same sequence, it will calculate all the fields and wherever I put the formula, it will multiply the fields and show you the results. Click on process this qui box form, and you can see the magic that it's automatically calculating and mentioning all the quantities here. Just make sure that the calculation you are seeing is accurate. For example, 96 is 22 by 18. Let's make sure 22 by 18 is 396, that's perfect. Not only this, you can use it for any purpose. You can use it to calculate the salaries of the employees if you have a complex payroll or attendance sheets. You can use it to determine the commissions of the seals employees or the freight charges. Anything which involves the calculation in the column fields can be used with this form calist. So let's click on Save and Close and let's see a demo again. Let's save this and let's enter it from scratch. Let's say Matthew, Matthew, limit it. Quick add. Let's quickly mention any quantities now. This will be automatically calculated. Let's say ten into seven and five into 13, let's say. Let's say this is 22 by three. So just mentioning the random numbers just to see the calculation, how it shows. Now let's quickly go to the actions here from the formal assists, since we have opened this in the background, click on the action and go here and process this Quick box form, and it will automatically do all the job for you like this. Sometimes if you don't have the quantity or some mistake, it might show you this problem where you have to recalculate this Most of the time, it will do the accurate calculation for you. So let's say five and six, five, six or 30, I should show 30 now. Let's go to actions, process this again. So now it's showing correctly. If it makes a mistake, you can try it again, and then it will do the job for you. So just imagine the power of it, if you have automatically calculated all of this and you have some bulky invoice which involves 16 to 20 line items. It can save you a lot of time. So guys, that's it just try it by yourself, and I'll see you in the next one. 94. How to Manage Inventory Expiry: In this video, we are going to see how we can manage the expiry dates in QuickBooks. So let's suppose that you are dealing in business that has perishable items. So you might need to manage the expiry dates, right? But by default Quick Box doesn't offer that expiry dates, and we have to find a way around. So what we will do is quickly explain you because we have discussed all of this, how to create the custom fields. Let's suppose we are dealing in this business. I'll continue with the printing business, but let's suppose that these are food items or perishable items. What you can do is just create a custom field for any item, just double click in any item, and go to custom fields, and here I'll create a new field, which is called expiry rates. I can create it from defined fields. I mentioned here, expiry rate, I want to use this, and the date format is month first, then date, and then year. Make sure you enter it in the same way. And I ticked in required for transactions and list. So that's it. That's how we created the custom field, and now we want to attach this custom fields in the columns. So let's go to invoices. And by default, I have this invoice template. I have entered or added the expiry rate column here. We have also discussed that previously, but just for the reminder, I want to go to formatting and click on Managed templates, and click Okay, and then you can simply click on additional customization. From here, I'll select the columns, and down here where you can see this new field, just enable it on the screen, or if you want to see it on the print, you can do that as well. Let's click and. Now, I want to enter some of the items with the customer, some item codes and the ex, the random expiries so that we can see the reports. I've already entered some of the items. This is for Ali enterprise, these are the items, let's say, and all the other details, and these are some of the expiry rates. Similarly, I have entered one other. You can enter that in the same way. Just make sure to enter the date in the right sequence. This is the month first, and then this is state, and the year should be not the short form like 24. You have to mention the full year, that is 2024. Only then it should work. Otherwise, it will show you this kind of error. Let me just show you. I will show you this formatting error. Make sure you put the right format. So I've entered all of these details. Let's close this, and now I want to extract the report. Now, like I said before that, Qibook doesn't offer the expiry dates management by default, so we have to find a way around in the reports. So you can sort by dates near to expiry in order to manage the perishable items. To extract this kind of report, I'll go to reports, and under the Company in financials, I can select this area, which is called Income and Expenses graph. Just click on it, and you will find this dashboard kind of report. Now we can see that the income portion is in green and expenses portion is in red. If you want to see the details, just double click here, it will open some of the details. Then let's go to the sub report. Now, as we can see that we have most of the transactions in Genery because we have entered some of the transactions in Genery as well, and the latest ones with the expiry was entered in July. I want to extract the retail for July only, so I'll just double click here. Now, if you change it to all, you can see this complete report. Here, if you want to see the expiry dates, I'll go to customized report, and from the columns, I will right here expiry date. Just stick on it and click. Now we can see the expiry date. For the earlier transactions, the expiry date is not mentioned as you can see here, but for the later transactions, we have mentioned the expiry date for each single item. Now, before sorting it according to the expiry date column, I want to see the item code and item details as well. Right now, we can see only memo. If you want to enable some further fields, I'll go to the customized report, and from here, I will write here item. You can enable both item and item descriptions and click. We have all the details of the inventory here. From here, we can just quickly get rid of the extra columns that we don't want or we won't be using that. Quickly resize the ones we want like this. Now, let's say that we want to extract the report that is near to expiry. Sort by is set to default and which is according to the date format. If you want to sort it by the special column, which is expiry rate in this case, you can sort it a to z or Nz to A. As you can see that it is now arranged in the date or month sequence. It's basically 13th of October. Later expiry is showing first, and this one is 28th of July. Instead of this sequence, I want to change it to A to Z. If we ignore this, we can see the remaining arrange according to the expiry rates. The most nearby expiry is on 28th July, and right now we are on 27 July. Here is our final expiry dates report. If you want to save this and don't want to customize this over and over again, you can just quickly access this. I'll go to view and just simply select, add custom transaction detailed report to icon bar. I can change the label. Let's write here inventory expiry report or expiry report simply. Let's mention in the description as well. For inventory, let's say, here we have different labels. Lick, Okay. Now, we have added it, but it will not show here. It's showing right here in the M shortcuts area. If you scroll down, we have the area of expiry report. If you want all of these shortcuts to appear on the top, we can easily customize this by using the view option. I can select Top icon bar instead of left. Let's click on it, and now you can see it like this. Whatever we want to remove, we can easily remove this by customizing the icon bar. For example, we don't want the feedback. We don't want this extra spaces. I can reduce this. We don't want the services, credit cards, payroll, app center. Let's say we want to delete all the spaces as well. This is showing like this. Now, if I want to add a separator here, what I'll just simply do is, I'll select the reports and add a separator. As we can see here that this is the separator showing. And that's how you can manage your shortcuts. So whenever you want to extract the expiry date reports, you don't need to do it at all. Just simply extract it from here. So guys, that's it. This is how you can manage the customized report in QuickBooks, trite by yourself, and I'll see you in the next one. 95. Chart of Accounts Import Part 1: In this video, we are going to see how we can import the chart of accounts in QuickBooks from a fresh company. So right now I'm in my existing company. I'll go to the File menu and just close this company. And from here, I will create a new company. I'll click here. So you can choose any one of them for myself or for someone else. So here I'll choose myself and click on Start Setup. And if we ask you for the sign in, just click on sign in later and just fill in the company details. So this one is, so here I have entered the business name, which is Strategic guard and Security Solutions, and for the industry type, now because we already know that industry type help you to create the Chart of Accounts automatically. But since we are going to learn how we can create all of chart of accounts on our own, we will select none here. And let's suppose that this is a sole proprietorship business, and here I will just write my e mail. That's it, Let's create the company. And once the company is created, you will be redirected to the home page. From here, I can check the chart of accounts. So if I click on Chart of Accounts, even though we haven't created any chart of accounts and we selected none as the industry, Quickbooks by default create some chart of accounts. So that's fine. Now, for the purpose of this assignment, since we are going to import a lot of chart of accounts, since this is a practical company example, we need all of these accounts to be entered. Now, the account nature shod exactly match with what we have in the Quickbooks. Now, for example, if you are creating the accounts manually from Epox over here, you can see that the account nature you can select is income, expense, equity, bank, fixed asset, and other accounting natures are this ones. So whatever we mentioned in the Excel sheet to be imported should exactly match with these account types along with the spellings. Now, one additional requirement is, we need to create some categories as well, as we've seen earlier as well, that you can create some further categories under which you can write these account names. So this is the category that I additionally want. This means that should be treated as a parent account, and all of the other accounts should be a child account. This one. This is how we will create some separate categories, but I want to deal simply by importing all of these categories and the account name should come under these categories. Now, to make it simple, first of all, we need to import these categories. Only then it will be a parent account and then account names should be imported as a child accounts. First of all, we need to import the parent accounts. Just select both of these columns and paste it in a separate sheet right here. Then we will rename it as category import. Enter, and now we will remove the duplicates. We only want a unique category. Each of the categories should only be mentioned once. Now, to remove the duplicates, I'll go to Data and click on remove duplicates. Now it will ask you to delete the duplicate values, select one or more columns that contain the duplicates. I will remove according to the category because the category is the one which I want only one time. So instead of selecting both, I will select the category as a driving force to remove the duplicates. And then all the other columns will follow along. So click, and you can see that only these categories are the ones we need to import. Now, I want you to stop at this point, do and follow along until this point, and then we will continue further. So guys, hopefully, you have successfully created these categories and removed the duplicates. Now what we will do is we will save it as the category import name. I'll go to file and click on Save As. Let's right here with category. And click save. Now let's close this and to import the chart of accounts from the Home tab, I'll go to Chart of Accounts. Now, I'll go to account, and from here you can see this option import from Excel. I'll click here. Now, sometimes when you click on Import from Excel, it might not work. So what you can do is just close this QuickBook file and then reopen it. So I've re opened the company, and I'll go to Chart of Accounts, and let's try again. I'll go to account and from here, I'll click on Import from Excel. Now as you can see that before it was not working, and now it's working perfectly fine. So I'll browse the location. And here is my chart of accounts with category. Let's click here. It might take some time depending on your system speed, and now it will show you the sheet that you can choose from the Excel Workbook. Now, since I want to import the categories first, I'll select the second option, and it says this data file has header rows. Now, I'll tick here. Now it's already ticked, but make sure that you tick here because we have the header rows or headings in our Excel sheet, right. Guys, before moving forward, just make sure that whenever you're importing a bulk data, just make sure to take the backup. Because if you ever make any mistake, let's say that you have imported 200 chart of accounts and you have accidentally imported it all wrong, then there is no bulk delete option. You have to delete each of them one by one. We'll take a lot of time, so it's recommended whenever you are trying to import something, import it in steps. Firstly, take the backup, just try to import. Then once the first backup is successful, let's say you have imported the customers. Just take the backup again, then import the vendors, then take the backup again, then import the inventory. This is the complete implementation process that you need to follow. All right. Let's continue and the other option is Data mapping. Now, I will select the mapping field. I will click on Add New. The mapping simply means that Quickbooks has some field and the field names are categorized like this. But you need to relate it to the Exel sheet. For example, we have one field in Quickbooks, which is called type. What type is called in Exel sheet. You just have to mention that so that it can import the data from that field. This mapping name, I'll change it to chart of accounts import. Import type, I can import the account, customers, vendors, or items. Here I am trying to import the accounts, and QuickBooks field name is type. What is this in Excel? It is account nature. Account number, we don't have account number. In account name, we will choose the category because we are going to import the category as a parent accounts as a chart of accounts. Description, we didn't have any description. Opening balance, we don't have, all the other fields will be remained as it is. Even we can change it to category import so that we can remember. Now, I'll click Safe and simply click Import. It will show you this prompt that once you import the data, you cannot undo it. So for this reason, we recommend you to take the backup. Exactly what I told you that if you make any mistake, you have to manually deleted each of them one by one. So click yes, and your data will be imported. Will also show you this logged that import is finished, ten records have been successfully imported. To records have errors. If you want to view and save errors, you can just save it so that we can analyze what errors do we have? Errors, let's say. So I'll just open this. It will show you this exact same sheet, but with the imported status. It says here that general and administrative expenses, this fee contains more text than allowed. That is why it is not imported. So we will try to reduce it. Let's make it admin expenses, and let's make it and like this, and let's make it advances and prepayment, let's say. No. So let's save this, and then we can use the same exact sheet to import the remaining chart of accounts. Or let's make a copy. Aristo Click no. Don't save. Just make sure everything is saved. Be CSV file ask you over and over again. Yes, the account names are changed. Now, let's import the remaining. I'll click on Import from ECL again. And sometimes if it gets stuck like this, you can open the Quickbooks again. I'll again go to chart of accounts, go to account and import from Excel. Now I'll browse the sheet and change the location to here, and here I'll choose these errors too. Data file has headers and category import is also done. So click on import and clicks. So two records are now imported, and we have zero errors now. So click Okay. What happens sometimes is you get error in a lot of ledgers and you don't know the exact field or text that is allowed in every single column. Guys, that is 31. The character limit is 31 in Quick box. If you want to apply the formula to check the length, you can write length here equals to L E N is the formula and select this length here. Right now it's showing 26 drag and drop for all the ledges, and then adjust accordingly. This way, it can really help you to take it to a maximum. If you have a long name, you can simply extend it to the maximum. By the way, guys, we have a complete Excel course. If you want to join that, I'll attach the discounted coupon with the link of this video, so you can also check that out. All right. Let's continue. Guys, this is how first step is done. We have imported the categories which will be made as the parent accounts. In the next step, we will learn how we can import the accounts by making this the child account of these categories. So just trite by yourself and I'll see you in the next one. 96. Chart of Accounts Import Part 2: All right. Until now we have seen how we can import the major categories named as the parent category or parent ledgers in quick books. So what we have done until now is we created a separate sheet which contains the category names or the category ledges, only one time. We have removed our duplicates and then imported all the ledgers in quick books. So if you want to see the work until now that we have done, I'll go to the Home tab and click on Chart of Accounts to see all of the ledgers. But these are all the major categories or the parent categories. Now we need to create or import the accounts in QuickBooks, which should come under these categories as a child account. Okay, what we'll do is, I'll go to the accounts from the bottom and click on Import from Excel again and browse here the sheet from where you want to import. I'll select this file chart of accounts import with category, and you can find it with the link of this video. So just select this, and you need to make sure that the Excel file is closed. But before closing this, I want to tell you one thing. Let's say I selected the sheet one, which contains the account name, the account nature, and the category. Let's say that we are going to create a new import mapping in which we want to import all the ledges under the parent articles. So I'll go to Add New, and let's write it account with category import. So here I can select the type. Type is account nature. We don't have the account number, Let's choose account name as the name. Description, we don't have any description. But here we can see that there is no option to define how we can make it a sub account. So let's cancel, and we will make some changes. Let's say if I want to make one ledger a sub account of another, what we can do is just simply open this ledger and here we will define it that it is a sub account of a specific main account. But in the import template, we don't have any option to choose the sub account rights. What we need to do here is we need to make some changes. We will create one column which contains both the categories and the account name that is separated by the column sign. In this way, it will automatically pick it as a child account of the main account. I'll name it as parent category with child account lets. Or you can say it account with category. Just keep it simple. Since the category is the parent category or main ledger, it will come first, and then after that should be the child account or the sub account. What we'll do is we will use a formula here. I'll write equal to select this ledger right here and and should be separated by cool sign. Colm sign here will be treated as a text, anything which is in text form should be under the inverted commas. Then I want to join it with the account name. Hit Enter. So it should look something like this. First, the category name should come, separated by the column, and then account name should come. Once we are done, just double click to set it down, and we can see all of the column filled. Now, let's just save this. I don't need to remove the formula from here. I'll just keep it as it is, just close the file, and let's import it again. I'll go to import from Excel. Whenever you have some problems, just close that file and just re open. Try to click on Import from Excel again. Let's choose this file. I'll select my sheet. Let's make the category again. I'll choose the mapping. Let's write here account with category. I want to import the accounts. Type will be account nature, and name will be account With category. That's it. I'll click on safe and click Import. Notice that it will automatically create all the account as the sub account of these accounts. Click on Import, clicks. Now, I recommend you to take the backup at this stage and then try to import. Whenever you make any mistake, you can just redo it. Click ys. Now you can see that many accounts are successfully imported, but some accounts still have errors, which we will save and view it later. But you can see that we have successfully done the job. Under the property planted equipment, we have some sub accounts. Same thing goes for cash and cash equivalents and all the other accounts. Let's save this log to see what errors do we have. Save it to desktop, and let's view this. Now here we have opened this error log, and the first error is, it says that this field contains more texts than allowed. If we want to count the number of characters in the text. I'll use the formula n equals to L E N and just select this, and we can see that it exceeds the maximum character limit, and maximum caracter limit is around 31, 32 characters. It clearly exceeds that. What we can do is just rename it as journal and Admin expenses. First of all, what we will do is, I'll change the category name from here. Already Admin, so I think legend name doesn't match as well. Okay, let's make it journal in Admin expenses. Same thing, I'll do it for here. If you want to make sure that you don't make any spelling mistakes or difference in account name, just copy and paste it directly from there and just make sure that you change only the first name from here. Fact, what we will do is we will just separate the fields first and then recompile this. Now if I want to separate, what is after the column sign, we can easily do this by using a simple technique in Excel. I'll go to data, go to text to columns. D limited, delimited allows you to choose the specific aracors after which you want to separate the fields. I'll see that whenever column science comes, after that, just put the other information in the separate column. We can see now it's separated, and now we can change this caption and just recombine.'s bat it here. Same thing goes for here, advances deposits and prepayments. Let's make it something else. Let's say I write here advances and prepayments, just like this. Now until this point, we are done. We have solved the problems. Just we need to combine the ledges and we are done. But for this account type, short term assets inventory, let's see what is the error. Maybe the issue is with the name, short term assets. Let's write here revolving assets. Let's change it to something that is not in the Que books defaults categories. Let's say I want to change the short term assets to, something like miscellaneous short term assets, let's say. And let's do the same for this one. Now, what we will do is just make the copy of this one. Because the other one is a separate error, we will resolve that separately. So let's import these ones. I'll create and open a separate Excel file. Just paste it right here, and let's write here ledger name. And let's make it remove all of this. Let's make a special category. Let me just increase the size so you can see properly. Name with category. So category should come first, and then we will use n to join it with another thing, whether it's text or some other cell. So column sign and this letter name. Hit Enter. Just double click to send it down, and I'll save it with the name. Try to it enter. Close this. And then we will try to import again. I'll go to chart of accounts, go to account, and import from Excel. Now, what I think is, you need to import the categories first and then you can import. Otherwise, it will give the error. I've selected this. I'll choose the sheet. First of all, I'll use the category import type. Go to mappings. I'll click yes to make some changes. Type is name, and eser name is nes name. I haven't changed the name to category. That's why it will be shown as name. Let's click on Import, clicks. First of all, we have imported the category. Again, we got some errors. We need to make and write the nature of account. This is expense. These are all expenses. This one is other current asset. I've made the changes in the error two log file directly, and now we will use this one. It's good that we are seeing these errors. Only then we can know how to resolve this in real time in any given situation. That's great. I'll go to import from Excel, and now I will browse this and select error two. It will take some time to process and then it will allow you to choose the sheet, so just wait until it does. If you have to wait for a long time, what you can do is just close this file, go to chart of accounts again and select the input from ECL option again. Let's try choosing the file again, but make sure you close all the open files. Now type, I'll choose it as nature of account, and Name, I'll choose the name here. Now we can see that nine records have been imported and zero errors. Now the second part, I'll click on Import from ECL again. If it doesn't work, just close this, go to chart of accounts again and just try to click on Import from Excel again, and then it should work. Now I'll use the second one, which is account with category. Choose the mappings. Click yes, and we need to make some changes here. Now that the parent category or the main category is imported. Now we'll import the accounts, which should come under the sub accounts. Before importing, I'll make some changes here. Since I've opened the error two file, let's insert a column again, and right here, account with category. Select the category first, then n sign, call in in the inverted commas, and again, and then should come the ledger name. Double click to send it down. Let's save this, and let's close. Let's go to import from Excel. Choose the file. Select here account with category. I need to adjust the mappings. Here, I'll choose type as nature of account. Name as name with category or account with category so that it can automatically come under the main category. Just notice this one. Advances in pre payments. Right now we only have the main category and not the sub accounts. But when we click on Save and Import, some of the ledges should come under this. Click, yes. Now you can see that these ledgers successfully came under this parent account. That's it. This is how we can resolve the errors and import the accounts as sub account of the main category. Just write by yourself and I'll see you in the next one where we will resolve the other issues. 97. Chart of Accounts Import Part 3: Now that we have imported the category accounts and the sub accounts under that category successfully. We have also learned how we can resolve some simple errors, which says this field contains more texts than is allowed. We have successfully imported this part, and now we will continue further, where we will see how we can resolve these type of errors which says either invalid account type or this error, which says, you cannot change the type of the sub account. It must be the same type as its parent account. Let's see. Now what we need to do is, first of all, we will check whether we have this category ledger or not. Miscellaneous short term assets, let's say this one. Miscellaneous short term assets. No, we don't have this category. Now, first of all, we will define a nature of account for it. Let's write here. Nature. Of account. For this particular example, if we go to the home tab, we can see that we don't have inventory enabled. That's why we can see much lesser columns. To enable the inventory, I'll go to edit and go to preferences. From here, I'll go to items and inventory, go to company preferences and make the inventory and purchase order are active. Change it to tick and click. Reprocess and close all the windows, then we need to open the home tab again and now the inventory is enabled. But let's see whether the inventory account is updated in the chart of accounts as well. No, it's not. If I try to enter any bill, let's say I want to purchase some inventory. I'll create a general vendor, let's say ABC vendor, and let's add an item, which is inventory part. Let's say item A, item A. Those sales here, let's say we have thousand items. Cost is 50, sales price is 70, and let's click. Okay. Save and close, and now we will notice that chart of accounts will automatically create an inventory ledger. Now as we can see that inventory asset ledger is now created under the other current assets. We will use the same nature of type here to import that. But since inventory is already done, we will just remove this. We will now deal with the other types. So I want to import the category first, which is miscellaneous short term assets, and then should import this office supplies. I'll write even shorter name so that it doesn't cause any problem to import miscellaneous short assets, let's say. And same goes for here, miscellaneous current liabilities, and let's write here, miscellaneous income. I don't want it to conflict with the default settings in QuickBooks. That's why it might be showing this error. Operating expenses is fine. Let's change this one to miscellaneous operating expenses as well. Income account is already created as well. Let's get rid of this. As we can see here, that income account is now created. The other ones are operating expenses. Now, the type is nature of account here. I'll just remove this one. Just make sure that the nature of account already exist in that category. For example, this one, other current asset, make sure it is the same name. Credit card, make sure we have the credit card option. Let's say just try to create the credit card. Let's say if I make credit card A, we need to see what nature does it have. We have the type of credit card, so we can mention here as well. Then we have the other current liability. Just make sure we have this name, other current liability. Other income, other income. Now let's try to make some other income as well. I'll write here, O income. We can see the type named as other income, Other expense. Let's create one. We're just cross checking how the account type shows up. Now we have other expense. Make sure the spelling and all the information is same. Now let's make a copy and try to import it again. I'll make a separate file, paste it roll right here and make sure to have the column headings for each. I can remove this extra fields, which is error and import status. Now I will be using the nature of account, the category account, the sub account. And we need an additional field here, which field category plus sub account. Category with sub account. Now I will combine both of these fields. First of all, category should come first and separated by a column, and then right here and again and choose the sub account. By the way, guys, we have a complete course on Excel. If you want to join this, I will link the coupon code in the descriptions so that you can get the maximum discount on it. Let's continue, and let's save, and let's make it a final try. Let's close. And now I'll follow the similar procedure. First of all, I'll import the category, and then the ledgers. If it doesn't work, just close this and go to C chart of accounts again and click on Import from Excel, and then it should work fine. I'll use the final try now. Just choose my sheet. And let's add some new mappings. First is category import final, let's say. Here I'll choose the nature of account as type, and name should be category account. First, the category must exist only then you can import the account with category. Yes, we already have some existing details, so apply to all. It says four are imported, but some still has error. So errors, four, let's say, Okay, so these ones, this is not actually an error. This is duplicate record error. So that's fine, not a problem. What we want it to do is we can separate the category and then remove the duplicates and then try to import as we have done earlier. So not a problem. I'll just continue with this, and now the category is imported. Now let's try to import the sub accounts. If it doesn't open the first time, I'll go to the chart of accounts again. Now, guys, I know that it is taking a lot of time to import the chart of accounts, but trust me, once you get an expert in this and you figure out how to resolve each and every single error, will be a two minute draw for you, especially when you're doing the implementation work for a lot of clients. You must learn this technique and you must resolve all the errors. Even though we can enter all of them by ourselves, but it will take the same time every single time. But once you learn how to import that properly, it will only take you few minutes to enter all the ledges. Let's continue. Go to the mappings. Now we will create a new mapping, on add new. Let's write here category with S account. Nature of account, I'll choose it as type, and under the name, I'll choose category with Sub account, click on Save and click on Emport. Clicks. We have nine records being imported, six have errors. Let's write here six errors, and let's see what is the error. Guys, sometimes it still doesn't import because it might be conflicting, these names might be conflicting with the existing names. In that case, What we can do is just use the existing ones or just manually create these ledges, which you feel is conflicting. Most of the errors we have resolved, but unfortunately these errors, you need to manually figure out something. Let's say, three, four ledges, you have to manually enter that because that might still be conflicting with the existing names. That's it, guys. This is how you can import all the ledges in QuickBooks. Just try by yourself and I'll see you in the next one. 98. Working With Sales Tax in QuickBooks 2024: This video, we're going to learn how we can enable the sales tax feature and charge the sales tax in quick books. First of all, you need to identify in which state or county you are living. Because there are different rules for every state. Make sure you are in the taxable state and just check on which items sales tax are charged because again, some of the items in a specific state is taxable and some are not. Just identify all of these rates right down in Excel or any other notebook, and you are good to go. We will set all the texts accordingly. Sales tax is collected from the customer, but it should be paid to the department of the revenue. It is a liability on us. We are collecting on the behalf of the government, and then we will repay it in the tax returns. First of all, we need to enable the sales tax in QI box. It's very simple. I'll go to edit and go to preferences, and from here, I can select this sales tax area. From here, I'll choose the company preferences. It will ask you first, do you charge sales tax? I'll change it to yes. Since I've created a new company by default, it is set no, so I'll change it to yes, and then it will ask you to add the sales tax item. By default, I don't have any sales tax item. It says it clearly that add a sales tax item for each country, district, parish, et cetera, where you collect the sales tax. You can see the examples here as well. Now, if you want to set up a sales tax item directly from here, you can set that up from here, and we can also do it from items and services. Let's see an example. Select here, and I'll choose here sales tax item, and let's write here, let's say GST. I'll write a description journal Sales tex, and then you can select the rate. And we're collecting the text for the tax agency. We need to add the name for it. This will be a vendor. Let's write here, Department of Revenue. And click. Now you can select the most common sales tex item. If you have a lot of sales t ex item, you can choose any one, which is used most frequently. Click Okay. On updating, it will ask you, what do you want to do with this sales tex? You want to update it for all the customers that are taxable. Make all existing customers taxable, make all existing non entry and inventory parts taxable. I'll click with this stick check and it will do the job, I will refresh all the windows, and then you have the sales tax enabled. As you can see that additional icons are added on the home screen, that's great. Now, if you go to items and services now, you can see that we have the sales tax item added here. Since we only have one item, you can easily see directly from here, but if you have added a lot of items, you can just go to the bottom to check this category of the sales tax items. Similarly, if you want to set up not a general sales tax, but our state tex, you can easily create a lot of items as many as you want. So I'll go to sales tax item from here. Let's just say that it is state sales tax. I can mention it in the description as well. And just choose a rate which states charge. So, for example, for a specific state, the state tax is 7%. Let's say that the same tax agency is collecting the revenue. So let's click. Okay. Let's say we have some additional tax that is charged for specific states. I'll choose the sales tax item again. And let's just write additional tex additional local text, let's say, Local tax. Let's say this is 1%, and it is collected again on the behalf of Department of Revenue. Let's click Okay. Let's say we have some roads taxes as well, and that is a fixed percentage. Let's write road tax or let's see educational tax. I'll just copy and paste this in the description, and let's say this is like 1.5% collected on the behalf of Department of Revenue. Click. Now, let's just say that for different states, taxes are charged differently, like for state one or county one, we are charging three taxes, but for county two, we are charging four. So we will set these counties accordingly. We can create this in the sales tax rope. If you want to charge different taxes under the same invoice, you can create a sales tax rope for it. So that's pretty amazing. I'll go to New and right here, sales tax group. And let's say county one. Now you will select the sales tax items that is charged for county one. We have some general sales tax, which is charged across all states, which is state sales tax, with 7%, and then we have additional local tax just for this county. Let's click, Okay. Now let's create the county number two. Now here, let's say that I'll charge it a sales tax rope, and I'll create county number two in the description as well. For example, here we are charging more taxes in county number two. We' are charging the state sales tax, which is charged across all the states. Then we have the educational tax here, then we have the additional local tax here, so we can charge all of these. For county number one, the overall sales tax is 9.5%. In summary, for the county number one, we have 8% of overall tax, and for county number two, we have 9.5%. The next step is before creating the invoices, we need to create some customers and allocate the taxable rates and whether they are taxable or not, and if they are taxable, what rates do we charge them? I'll go to customers. Since this is a new company, we don't have any customers, I'll create some new customers. Let's say customer one. We can create some opening balances. Let's say 10,000 is the opening balance, and then we can charge the sales tax. Under the third tab, you can specify the sales tax. Now, first of all, we will choose either the customer is taxable or non taxable. Means all the items related to that customer should be taxable or not taxable by default. We can choose any of them. I'll choose tax here. The next thing is sales tax item. For example, we are charging different taxes under the same invoice, we will choose the sales tax groups here. Let's say county one is the sales tax group for customer one. Let's click, and the resale number applies in the scheme where although the items are taxable, but let's just say that this customer is a reseller of a particular item that is text by the manufacturing companies. So maybe they don't have to pay tax on that item because this is already text on the manufacturing level. In that case, you can mention the resale number. Let's click. Let's create a new customer again. I'll create it as customer number two. Let's go to sales tax items. It's also taxable, and we will choose County number two, and let's click. Let's just also take an example that we also have an additional customer, which is customer number three. If we go to sales tax settings, let's say this is a non taxable sales, and we are not charging any sales tax for this. In the tax item, we can also choose the non taxable sales as well created. By default, we don't have this, so we can set that up. I'll go to the add new group, and from here, I'll add the sales tax item and right here, non taxable sales. It will be a 0% tax. You can select the department of revenue here as well. Let's click, and click Okay. Now that we have created the customer successfully, let's go to the invoices, and let's create some sample invoices that contains that tax. I'll go to create invoices, and let's just choose customer one. Now, I need to create some items. Let's say item A is already created, I'll create item B here. I can choose any category. Let's just choose a unit of my year. And let's just say that this is a taxable sales item. I'll choose the sales revenue here, choose the cost. Choose the sales price. And let's say we already have these items thousand in stock as of this dst, or even let's say earlier than that. First of January 2024, Let's click. Okay. If the transiction is 90 days in the past, it will show you this caution, although you can turn off this warning. But let's just click yes now, and we will change that in future. So let's just say we are selling this ten in quantity for item B, and this is a taxable sales. Since for customer one, county number one tax is applicable, which is a total of 8%, and let's just say that we are also selling item A. By devault, it is a taxable item as well. So we are charging tax on this as well. Let's say we are selling five in quantity. Uh, at the same time, let's create an item which is a non taxable item. Let's say item C is not taxable. So let's say item C, and this is ten, sales price is 15. Sales account is this, and this is a non taxable item, and we have thousand in quantity right now. As of first of January 2024. Click, Okay, click Yes, add this, Yes, and we are good to go and this is a non taxable item. Even though the customer is taxable, by Dvat, some items are non taxable, the customers still don't have to pay the tax on it because it is allowed by the state as a non taxable item. Let's just click Save in New and go back to the reports. If we go to the reports to check the transction journal, we have this entry right here. You cannot see each and every single text details. We can only see the ledger entry overall. Let's just create some more invoices and then I'll show you the text reports. Let's go to create invoices again. Let's select customer number two. Let's select item B, seven in quantity, and then we have item C, which is three in quantity, and this is a non taxable items. We have taxable and non taxable items. That is applicable for customer number two and E is related to a different county, which is county number two, the overall tax will be 9.5%. So let's click on seven new, let's choose another one which is customer number three. And since the customer is overall a non taxable customer, let's select a taxable item. We already know that item A and item B are taxable items. Item C is the only item which is non taxable. So we will select the item A, and let's write here the quantity. And you will notice that even though the item itself is a taxable item, but since this customer is a non taxable customer, it will automatically change it to a non taxable item. Again, let's select an other taxable item. Let's say three, again, it has chosen it to be a non taxable and item C is already a non taxable item. The overall sales is completely non taxable as it is mentioned here. Let's just click safe and close and now is the time to pay for the sales tax. But before paying for the sales tax, we need to check the report. On how much do we owe? So I'll go from here in the corner. We have managed sales tax. I'll click on here. Let's just select the sales tax liability report. And if you see all zeros, that's because you haven't set the dates properly. So whatever month is related, you can choose that month. And since we're working on just an example, so we will choose all dates here, and then you are able to see the sales tax report. You can clearly see that it not only just mentioned the overall text, it has categorized it in every single text that is applicable in a particular group. We have just chosen the group while creating the invoices. But when we extracted the text report, it is showing each individual items within that group. We have the educational tax, we have the sales state tax, we have additional tax as well. This is the overall sales. This is the non taxable sales, this is the taxable sales, and this is the overall amount that we collected in tax, and we have this sales tax as payable as of 31 July 2024. Now, since we have checked the sales tax report, now the final step is to pay for the sales tax, and that can be done from here. If we go back, we have extracted the report from here. Now to make the payment of the sales tax, I'll go to appeal sales tax, but make sure we have the account of the bank and we have the balance in it. Let's say this is the bank account. I'll just delete this bank account, and let's just create a new one with the balance. I'll create the bank account. Let's say this is a checking account, and we have the opening balance of 100,000 as of first of January 2024. Click, and seen close. Let's just go back to Managed sales tax. We can click on pay sales tax, and let's just choose checking account from here. If you don't see any sales tax to be paid here, that's because you need to extend the date to the current date, let's say 31 July 2024. Just extend the date up till the current date, and you will see all the payments due. Also if you want to pay it in future, you can select the check date that you deposited as in a advance. Let's say for the next of the month, you want to pay it on let's say on tenth of August. You can choose that date, create the post dated check and then just submit it in the bank. Just select all the taxes that you want to pay. I am just taking an example that I am paying on the current date so that I can extract the reports and show you how the payments are done or shown. Let's click, now what I'll do is, I'll go to the check register, and you can see this payment right here in the checking account. Have multiple accounts, it will ask you to choose the account first. But in this case, I only had one account, so it's directly opening the ledger, and you can see the details. 100,000 was in my account, and we have paid to the Department of Revenue as a tax payment. This is the amount. You want to go in that particular entry. I'll just double click on this area and you can see the entry. This is the entry. Let's see if we made an error, we can just simply delete this and re enter the entry. That's how we deal with the sales tex completely in QuickBooks. I want you to try by yourself, take your examples, according to your states county or the city, feed in the real details that you have according to your scenario, try it by yourself and completely manage all the sales tex, and I will see you in the next one.