Zoho Books Basic to Advance Training

1. Course Introduction: Welcome to Zoho Books Basic to advanced training course. My name is Sad, and I'll be leading you throughout this course. I'm a professional trainer and consultant with over ten years of experience in accounting and business software. So if you are a freelancer or a small business owner looking to manage their finances or provide any kind of financial services in the freelancing world, this course will be ideal for you because this is cloud based accounting, which is most widely used nowadays. So in this training, I'll teach you completely how you can get the latest trial version of Zoho Book, how you can subscribe to. And then how will you use all the basic to advance functionality? Because this software is one of the most powerful and widely used cloud based accounting software. In all of our trainings, we use the practical project based method. That means we will not use the software just like you were reading a book or theoretical understanding the functions we will work on a practical project in which we will take the example of the company which has a trading business, and they want to implement Zoho box completely from scratch. And before implementing the software, let's say that they were working manually or they were maintaining their accounts on the spreadsheet. So we will take an example on how you can completely implement accounting system from scratch, which involves creating a new company, which involves configuring a chart of accounts, customers, suppliers, and putting all of their opening balances along with the inventory. And don't worry. Whenever you are stuck in any particular area, you can just go to the Q&A section and use ask the question feature, and I'll be more than happy to help you. So this might be the only course you need. And with this said, let's start the training. 2. How to Activate Zoho Books Software and Create New Company: Video, we are going to see how we can install the free trial of Zoho books so that you can practice and follow along through the future projects that we are going to see on Zoho books. So first of all, just go to your favorite browser and just write on Google Search Zoo books trial free or free trial, and you will get this official website where you can activate the free trial for 14 days to practice along. So just click here. And the signup process is very simple. You can either fill in all of these details to create your account, or you can simply sign up using a Google account or LinkedIn or Facebook, whatever. So I prefer this one because it's more quick and easy to follow. Just click here. I'll choose the relevant email account. Continue. And it will ask you for the first name and last name, it will automatically pick up from your Gmail information. I agree to the terms and conditions and click on Create Account. It will take some time to process. Then it will ask you for the organization name. So we will fill in these details of Elite traders project that we will follow in the future videos. So this is the company which deals in the car parts. They buy and sell the car parts. It's a trading business. So let's write Elite traders here. Organization, location, you can mention any location. I'll just mention here, USA, or just like it states. Okay, it's USA. Let's get started. And it will ask you for further information what kind of industry it is. So I'll just mention here automotive. State, you can mention any state here, since it is a compulsory field, we need to mention any state here, let's say New York. You can mention the currency. You can change the currency from here, choose the language, you can choose the time zone. Is this business liable to collect sales tax? Right now, in this particular assignment, there is no sales tax, so we will continue with no, but in future, we will see this scenario as well. So current accounting software, let's say that you are shifting from one software, one accounting software to Zoho books, or maybe you are working manually for this particular company, and now the business is expanded and you plan to implement software. So it's asking you the same question. Maybe you're shifting from QuickBooks desktop QuickBooks online, zero or others. Let me mention others here and click on Get Started. So it says welcome aboard. And if you want the Zoo books to show you around different functions, you can ask them. Otherwise, just click here. No thanks. I'll explore it since we will learn everything from scratch. And now your premium trial plan is activated for 14 days that you can fully practice on. There are all modules on the left hand side that we are going to explore, and also we have the Quick Reate option where we can quickly add different things. So this is how you can not only activate the software, but you can create a brand new company in Zo Book. Just try this by yourself, and I'll see you in the next one. 3. How to Create and Edit Chart of Accounts in ZOHO Books: Video, we are going to see how we can create the chart of accounts and customize any existing chart of accounts and then put the opening balances in Zoho books. So we have an example of Ali traders, which is a trading company, which buys and sell car parts. So basically, these are car decoration parts. They buy Carola windscreen, headlights, some wheel cups, rear lights. So these are the details. Now, the business is not new. They were operating for many years, but they might be working on an excel sheet or maybe on a manual system. And now they are trying to shift from the manual system to a computerized one. So what they need is they will close the balances of the last year. They will take some closing balances as of 31st of December in the last year, and they will collect all of these information along with the opening balances, how much total receivables we have, how much total payable we have, and all the other information. And we need to extract the customer details from the last year as well, how much we need to take from every customer, how much is the receivable for each customer then same goes for vendor and inventory details. This is the complete implementation process. After that, we can work on the day to day transactions. This is the complete scenario. Now, what we will do first, first of all, we have to make sure whether we do have all of these chart of accounts already existing in Zoho books or not. If not, we will create some new chart of accounts or maybe we need to adjust or edit a name of a particular one. Let's see. First of all, we need to locate where chart of accounts are. So on our left hand side, we have the navigation pane where we have different modules. If we need to enter anything related to sales, all the functions related to sales are here, whether it's adding new customer codes, invoices, payment receipts, payment, credit notes and stuff. And if you want to go to purchases, all the activities related to purchases can be found here, time tracking, and all the general functions, whether it's entering journal entry, whether it's making currency adjustments, setting chart of accounts are all in the accounting section. So let's go to the chart of accounts on the left hand corner. And we have all of these chart of accounts that is automatically created. So this is very nice. What we need to do is we need to check one by one whether we have these particular accounts or not. So first of all, we have debtors or receivables. Let's see that. We can sort it by account type as well if you want to. Just click it once, click on the heading once, and it will be sorted in the alphabetical sequence. So I guess we don't have this receivable account, but we will keep it as it is for now because this might be a control account. Now, what is control account? Control account means that sometimes it will be automatically updated as you entered the individual customer details along with the balances. If you notice this debtors or receivable balance, it's 195,000, right? But if we check the breakup of it in the individual details, we need to receive from Justin 85,000, we need to receive from Albert 30,000. So the total we need to receive from each customer totals up to 195,000. So this is the same amount written here. So it might be the case that when we enter the individual customer, this balance will automatically be updated. So, same goes for creditors and stock. Let's start working from the building at cost. That is 750,000. So for that, we need to locate the fixed asset. We only have one fixed asset which is furniture and equipment. Let's explore for other assets. No, we don't have any other fixed asset, so we need to create a new one. Now, how will we create a new chart of account? On the right hand corner, we have this option called new. Just click here. And here we can just simply select the account type, which is fixed asset. Account name is building at cost. Just copy and paste this. Make this a account, not needed right now. So account code. I can give any account code, but since this is not a compulsory field, I can ignore that as well. So the basic rule of the chart of accounts journal coding sequence is this. If you want to code in any accounting software, if you want to write the chart of accounts code, 1000-1999 is all the assets. That means all the quotes starting from one should be assets, from two should be liabilities, from three should be equity. F four should be revenue, five to 5,999 should be cost of sales and 600699. That means all the quotes starting from six will be for operating expenses, seven is for indirect expenses. Eight is for exceptional item or any kind of adjustments, and from nine should be statisticals or other accounts. So this is the coding sequence that is nearly followed in all of the accounting software. So if you want to just manually code for it, like we do in Zoho books, because it's not a compulsory requirement, we can code it this way. One double 01 is for fixed assets, and we can just copy and paste this same in the description. Click Save, and there we have it. This is the account code, building at cost fixed asset, and now it's created we will put all the opening balances later on. First of all, we will create all of the chart of accounts which is not there. Next one we have is accumulated depreciation of buildings. Just copy that. Click on New. Like on fixed asset, paste the name here. Just make sure that we don't have any other suitable category which is more closely related than fixed asset. So some softwares also offer accumulated depreciation as a separate account, but since this is a contra fixed asset, we will place it here. So it can be one double 02. And the name, I'll just copy and paste the same in the description as well. Click Safe. Next one is motor vehicles. Click on New. Since this is also a fixed asset, I'll just paste it here. Motor vehicles, it can be one double 03. I'll just paste the name in the description. Make sure that you remove the extra spaces by pressing the backspace, like safe. Next one is accumulated depreciation of motor vehicles. Click on New New Account. And it's a fixed asset. It can be one double 04. Paste it here. Since this is an extra space, just remove it. Save. Next one is machinery. Click on New. Fixed asset. Paste it here. Account code can be one double 05. Paste this in the description, save it. Next should be one double 06, fixed asset. And this is a contra fixed asset, accumulated depreciation of machinery. We'll put the balance on the other side by putting a negative sign, but right now we are just creating the accounts. One double 06, accumulated depreciation of machinery. Click Save. We have is cash. So for cash, we already have two accounts. That is undeposited funds and petty cash. So it's not a petty cash, but let's say that we won't be using petty cash here. So let's say that if we want to change this, we can change or not. It's a log account, as you can see here. All the rest of these, which we have created is an open account, but this one is closed. Account receivable, like I said, before that it might be automatically created. It's already there, but it's a log account. So we cannot change anything let's move back to the chart of accounts. Okay, just remember that if you accidentally click on any particular account, how will you go back? You just need to click on the chart of accounts again and you should be able to move back. Okay, let's continue. Let's say that we want to change the petty cash name. We cannot do here, I guess. Okay, let's move back to the topic. Let's say that we want to edit this petty cash name. Just go to the chart of accounts, click on Petty cash here. And here we see a little added sign. Click here and we can change it to cash in hand. Let's say, and we will paste it in the description as well. And we can code it to one double 07, let's say, and save it. So now name is changed to cash in hand with this code. Next one is standard Chartered Bank, which is a bank account. Click on New and we will choose Bank here. Now, some softwares allow you to choose cash for both of these because the cash and bank have the same purpose. Either you can collect the money or you can pay the money, both from cash or bank. So they offer only one category. So we will select the most suitable one. I'll choose Bank here. Bank name is Standard Chartered Bank. We have the account code option. I'll just name it as one double 08. Account number, if we have any specific account number like an IBN number, you can specify it here, currency and description and save it. Click on New again. And next one we have is United Bank Limited. Just choose the bank again. United Bank 109, account number. Let's specify any account number. And we can copy and paste it right here as well. Click Save. Next one we have is accrued expenses. Now accrued expenses is other current liabilities. It's basically bills payable from last year. So if you want to understand more about accrued expenses, you can find a complete description with the resources section of this video. And also, if you want to get this chart of accounts coding sequence format, you can find this file with the resources section of this video as well. So this is the complete file where you can learn more about accrued expenses with the complete explanation and examples. So anyways, we need to create a new account for that. Take on the plus sign and it's other current liability, accrued expenses. Now for the account code, we will not follow the same sequence as we do for assets because these all assets start from one. Liabilities always starts from two. So let's say 2,100 and I'll just copy and paste the name here. Click Save. And the last one we have is capital invested, or you can say it a capital account or net owner's equity. So under this equity section, if we scroll down a little bit, you can check the account type. Under equity section, we have owner's equity. So let's say you want to change the name, just click here. Just click on this little rid sign. And then we simply change the name by just copying it from here and paste it right here. So these all start from 3,000 sequence. So I'll make it 3,000. Let's check in the coding sequence. Yes, all the capital and equity start from three up to 3999. So click Save. And this is how we create and adjust all the chart of accounts in Zohu books. Just wry this by yourself, and I'll see you in the next one. 4. Dealing With Chart of Accounts Opening Balances: Video, we are going to see how we can enter the opening balances in Zoho books. Since we have already created all the chart of accounts, now we want to put their balances. For that, on the top right corner, we have the settings option. Just click here. And here we will see a lot of functions. But we want to go to this organization section where it says opening balances, just click here. And once we are in here, we need to enter the migration date. Migration date means on which date do you want to put all the opening balances of these ledgers? Since we are considering that the company is transferring all the accounting system to another accounting system, which is Zoo books, so we want to implement the system from first of January. So 31st December closing balance was received, and we want to put in Zoho for first of January. So I'll place first of January, put first of January here, and there we have all the sections on which we can put the balances. So first of all, let's not enter these three balances. We will deal with them later on. We will start working from building at cost. I'll just highlight this. 750,000 is the balance on the debit side. So let's copy this balance, copy. Go to the assets, and here we have all the assets on building at cost, the left side is the debit side and the right side is the credit side. So we want to put these opening balances on the debit side for fixed asset because this is an asset, it is by default debit in nature. Next one we have is accumulated depreciation of buildings, since this is a contra fixed asset, we will put this balance as a credit balance. Accumulated depreciation of buildings here it is. Just place it, Control V. Next one we have is motor vehicles. Again, it is a debit balance. Let me just choose and highlight this. So 380,000 for motor vehicles. Motor vehicles, here it is motor vehicle. Let's put the balance on the debit side. Accumulated depreciation of motor vehicles, which should be on the credit side. Here it is, paste. It's 45,000. Next one we have is machinery, 290,000. On the debit side, we will copy and paste that balance. Accumulated depreciation of machinery. On the credit side, we will copy and paste this 58,000. Next one is cash. Copy this balance, scroll a little down or a little up, cash in hand, here it is, paste it. Next is standard chartered bank, copy, and standard chartered bank Okay, we have a bank category separately mentioned. So let's close this asset section. Let's open the bank section. And under the standard chartered bank, I'll paste the balance on the debit side, and same goes for United Bank. I'll just paste it here. Next one is accrued expenses. So accrued expenses is liability. So I open the section. On the credit side, we will just copy and paste the balance right here. And the last one we have is capital invested, which is this amount. So equity section, just open that and capital invested net owners equity, I'll just past this balance here. Let's click on. Continue. And it says opening balance adjustment is for 518,000. Why is that? Because we haven't entered these three balances. So let's open the calculator. On the debit end side, we didn't enter 195,000 453,000, and out of that, credit side, we didn't enter 130000. So debit minus credit 130,000. 518,000 is the difference, which is exactly shown here. Click on continue to see whether we are able to enter this or not. Click on Continue. It says that total debits and credits differ by 518,000. You can go back and adjust the balance by reviewing the difference or you can continue the difference will be transferred to opening balance adjustment account. Okay, what we will do here is, okay, since we cannot enter the account receivable and payable balance, as you can see, there is no option for it right here. So we will click on Continue. And even if it shows this message, I'll just click on Continue again. Showing the summary of all the balances, just confirm with your project. Everything is okay. And after that, just click on confirm on this little blue button. Click Okay. And then to move back to the home screen, I'll just press this icon right here, which is for Zoo books. It will take you to the home screen. And if we now go to the accountant and chart of accounts, here we are. So here all the ledgers are shown, but not the opening balances. So to the opening balances, we need to go to the reports section, which is right below the accountant. After Texas comes the reports. Here we can extract all the important reports. So until this point, let's see how the trial balance looks. I'll just search for trial balance. Otherwise, you can just scroll down and go to the accountant section, which is section number six here and extract the trial balance. Otherwise, if you're finding it difficult to locate, just use the search function and you are good to go. So trial balance, we can set the period today or let's enter a date range and click on custom here. So if you just want to see the opening position, just select the date range from here, and here we will select first of January on both side from first of January till first of January. Click done. And click Run Report. It will then refresh and show you this date from first of January till first of January. This is the opening position. So all the assets are shown account codes with debit and credit balances, all perfect. And the difference was 518,000, which is categorized as a liability in opening balances adjustment. So this is how you enter most of the balances in Zoho books. Just try this by yourself, and I'll see you in the next one. 5. Upgrade to the Latest Version of Zoho Books: Before moving forward, I want to show you something. When you start working on Zoho books soon after you start working, it will show you this message. We have fine tuned Zoho books under the hood. When you find time, refresh this tap to experience the latest Zoo books. So if you want to see the latest interface, you just click on Refresh. It might take some time, and it will update everything for you so you might experience better interface. So just a quick overview on how you can upgrade to the latest version of Zoo books. 6. Add Customers and Set Opening Balances: Video, we are going to see how we can add the new customers in Zohu books and put their opening balances along. So here we have the scenario where we have the customer details from the last year, and they have some opening balances. So we are going to put both of these. From Zo books, if you are in a particular area, you can go back to the home tab, or otherwise, if you directly want to just create the customers, you can just click on this quick create option. This is a quick solution for entering all of these areas. So in the Sal section, we have the customer right here, or otherwise, you can go to the SLS section here as well, and you will get the same options. So click on the customer, and here we have the option to choose the customer type, whether it's business or individual, I'll keep it to business and primary contact. And name is Justin. I'll just enter the basic information and leave the rest. Company name is also let's say Justin. Display name is Justin. And even if we shift to individual, we get the same options. So email address. These all information is pretty simple. Under other details, we have the option to choose the currency, the opening balances, which is 85,000 here. Payment terms is selected due on receipt. That means whenever you see any particular item to this particular customer, it will be due on the same date. If you want to set it to 30 days, means after 30 days, it will be due. You can set it here, or otherwise, we can change it from the invoice as well. Problem. Portal languages, English documents, if you want to upload some important documents like a contract or something, and you can add some further more details. When you click on Add Moe Details, we have a lot of options like website department designation and stuff like that. So in the addresses field, pretty basic information, you just have to enter the billing address, the shipping address, and all the other stuff. Custom fields, we can create some new fields by going to the settings and preferences, but we don't want that reporting tags, remarks. All of these fields are available, but basically we will stick to the basics, which is just using the customer type name, display name, and just putting the opening balance. That's it. Click on Safe and let's move to the new customer. Again, let's click on this plus sign, click on the customer. And again, we have this screen. So next customer is Albert. Display name, same, and the balance is 30,000. Save. Again, click on plus, click customer. Next customer is Victor. This play name is also Victor. Balance is 65,000 safe. Click plus again. And the next customer is Walter, paste it here, paste it in the display name. So after entering all of these balances, just click Save. Now, all the customers are entered along with the balances. Now we will go to the accounting tab and click on the chart of accounts from here. We just need to confirm whether we can see the account receivable balance. If we click on this ledger, we can see the balance is updated right here. So recent transaction, you can see all the individual detail of the customer balances automatically updated in the account receivable field. That means it works as a control account. As soon as you update the individual customers with the balances, this balance is automatically updated. We can confirm it with reports as well. Let's see the trial balance position. We can go to the Section six or we can just simply write trial balance here. Trial balance, open that up. And here we have it. In the account receivable section, we have the balance shown up right here of account receivable, 195,000. So that is how you can enter the customers, along with the opening balances and update the control accounts automatically in ZO. Just try this by yourself, and I'll see you in the next. 7. Setup Vendors and Opening Balances: Video, we are going to see how to set up the vendors along the opening balances in Zoho. So we have two vendors right here, Daniel and Sean. We just have to click on this quick Create option at the top right. And from here we see this purchases section, and on the top, we have this vendor option. It will directly open the new vendor screen where we just have to enter some basic information I'll just copy and paste this name right here. Display name. I'll choose the same. Rest, all the details are pretty straightforward address custom fields. You can add it on your own. The currency is US dollar, and the opening balances is 50,000. So I'll choose 50,000 here. Payment is set to due on receipt. That's fine, but you can change it to any other term. And Portal language is all selected. You can upload some more documents, and this is the simple process. Now, in the same step, we entered the vendor along with the balance. Let's move to the next one. Again, we have to create, click on vendor. And the next one we have is Sian, choose the display name as same. Opening balance is 80,000. Don receipt, save and now finally click on the reports and open the trial balance again just to see that opening balance is updated as a control account in the accounts pable section or not. So we have the accounts pable section right here. 130000 is updated as the opening balance on the credit side. This is exactly what we want, and this is how you can update the vendors along with the opening balances. Uhubx. Just try this by yourself, and I'll see you in the next one. 8. Setting up Inventory with Opening Balances: Video, we are going to see how we can add all of these inventory items that we get as the opening inventory. So we will create all of these items, put their opening quantity rate, and then this will be the total amount for each, and this should make this total right here, which is 453,000 as an opening balance. And if you remember, we didn't also put the stock or inventory total balance because it is a control account. So control account simply means that when we enter the individual stock details, along with the opening balances, that balance should cumulate and automatically be updated in the single ledger with the total balance. So to add the inventory items, first of all, if we go to the left hand corner, we can see all the sections right here, sales purchases, but there is specific area which is called items where we just click on the plus icon or we can just directly click on these items, and it will show us the summary of items right here. But since we haven't entered any of the item on the right hand side, we can create a new item option. So click here. We need to choose whether it is goods or service. So first item is Carla windscreen. Just copy this piece it right here. It is a good. Unit is already created, whether it's box doesn't each. So we just have to choose the relevant one. We want pieces, so I'll choose that. And also, if some of them are not relevant to you, you can delete that as well. As you can see, kilometers, we don't have this, so we can delete this from the section. Pieces, sales information, selling price, we don't know the selling price yet, but since it is a compulsory field, we might increase it a little bit. This is the cost price, and I'll change it to 500. Let's say, selling price is 500. Account is already selected to sales. That means whenever we see this inventory item, it will automatically hit this letter. Cost is 400 and whenever we purchase, it will go to the inventory, and when we see, it is automatically charged to cost of goods sold and the sales as well. So in both of these descriptions, we'll copy the same name paste it in both descriptions. Preferred vendor, we can choose any preferred vendor if we normally purchase from them. Now, it says here, do you want to keep track of this item, enable the inventory to view the stock based on sales and purchases transactions to record for it. Settings preferences items to enable the inventory. So this means that even though we entered the item with the basic information, we still didn't see the option to update the inventory details. That is quantity in stock and hence the opening balance. So what we'll do is just save it at this point. We'll edit it later on. Now we need to enable the inventory tracking. On the right hand side, we have the settings option. Just click here. And here we click on the item section, click on items, and click on Enable inventory tracking. Here we just have to mention the start date from which you start tracking the inventory on Zoobx. So in this case, it's first of January. If you want to enable some more features like show out of stock warning when the item stock drops below zero. So it will automatically show you the warning. Notify me if the item quantity reaches the reorder point. So if you're maintaining a specific reorder point, you can enable this feature, and not only that, you can specify or email to specific person. Zoho books will automatically do it for you and you can update the price list and other features. But we will explore them later on. First of all, just enable that, and let's see what changes does it have. Now, let's go to the home tab by just clicking on this Zoho book sign. Go to the items. Click on items again. Here we have the item already added. But when we click on this, it will be chosen and we want to edit this. Just simply select this item and then we will see this overview screen. From here, we can choose Edit. Now we have the option to track the inventory for this item. Let's click here. We have this further information now. Inventory account is already selected to inventory asset. Inventory valuation method, we have first in first out and we did average costing. Nowadays, most of the businesses only use the average costing. I'll choose 470 is the opening quantity. And what is the rate per unit? Rate per unit is 400. So here we have it. Click on Save, and that's how we entered our first inventory. Now, if you want to enter more items, we just have to go to the item section, deselect that, and then you should be able to see this icon. Click on New. Next item is civic headlights. Unit is pieces. Selling price, I don't know the selling price, but let's just put 250 here because it is a compulsory field. Saves account is already selected. Purchase account, cost price is 400 account is already selected, I'll just choose copy and paste both in the descriptions with the same name. Track this item for inventory. Inventory account, we might have to select that inventory asset. Inventory valuation method is weighted average. Opening stock is 950 and rate is 150. So 950 and rate is 150. Click Save. Again, let's add more. You get this option of plus right here as well to create a new inventory item. Next is Prius Val cups. Unit price is pieces. Selling price is 50. Selling price, I don't know the selling price. I'll just put let's say 70 here. Ledgers are all selected. In the description, I'll page that. Cost price is 50. Cost of goods sold account is already selected. I'll just page in the description as well. You can choose any preferred vendor, but just move to the track inventory section. Inventory account is this one. Opening quantity stock is 250. Valuation method, I'll choose weighted average and opening rate is 50. Click Save. Let's click on the plus sign again. Next is pre rear lights. It's in pieces. Selling price is just put a little higher than the cost price. 650, let's say, Account is already selected to sales. Cost price is 200 Description, copy and paste in both areas. You can choose preferred vendor. Inventory account is inventory asset. Opening stock is 550. Inventory valuation method, weighted average, and opening stock rate per unit is 200. Click on Save. So we have created all the items, but we just have to confirm whether it is accumulated and shown as a total balance in chart of accounts or not. So we have two ways. First of all, we will check the individual chart of accounts and then we will extract the trial balance as well. So click on Accountant, click on Chart of Accounts, and just locate the inventory account. So here it is inventory asset. It is in stock. Click here, and we can see the balance is automatically updated. Let's confirm it with reports as well. Click on Reports. Choose trial valance. From the search function, and we can set the period. It's already set to first of January. So under inventory asset, we have 453000 shown on the debit side. So now, you will notice that in liability section, that opening balance difference will automatically be eliminated. Finally, we just have to confirm whether we have this same debit and credit balance in the project as well or not. So we have 4762 730, both on the debit and credit side. That means our implementation of the software is completely done. This is the practical situation how you implement the software only the data will be changed and in more quantity, but the method will always remain the same. Now we are considering that we have entered all the chart of accounts along with the balances, the customers, we have updated all the customers with balances, vendors, and with balances, and we have put the inventory with opening balances as well. That means we are live on the system, and now we start working on the Doody activities like purchasing something, selling items, and all the other stuff, making journal entries, returning some items. So we will see all of these examples now. So just try this by yourself, enter the inventory details, complete it until this point, and I'll see you in the next one. 9. Dealing with Fixed Asset in Zoho: Video, we are going to see how we can deal with the purchase of any kind of fixed asset in Zoho. So right now we are entering day to day transactions just after implementing the software. That means we have already imported and created all the ledgers along with the opening balances. We have created customers with opening balances. Same goes for vendor and inventory. So that is the part of system implementation, and now we have considered that we have fully implemented Zoho and we can do all the day to day transactions. So the first day to day transaction is of third January, and it says purchase furniture by giving cash, and it is of 10,000. So what we can do here is just pass a simple journal entry by debiting the furniture and crediting cash, but we want to explore a special function in Zhu that is maintaining the fixed asset register. So not only it will allow you to do this debit and credit entry, but in future, it will automatically recommend you the depreciation to be charged every month or every year, whatever you like, you can automatically pass the future entries based on that. It's a very interesting feature, Let's explore this. First of all, you will find this feature on the left hand side in the accounting section if it is enabled. But right now, as we can see, there is no fixed asset, so we need to enable it from the top right corner in the gear icon. We just click here and click on the preferences and journal option. From here, we can see this fixed asset right here, but it is unchecked, that means it's not enabled. I will just select this and click on Save. Just remember to save this otherwise, it will be not activated. So let's go back to the main screen. It might take some time or refresh this, and then you can move to the main screen by just clicking on the Zohu icon from the top left. And then we can click on Accountant, and here we have a new feature called fixed asset. So if you want to manage the asset type, we can click here. There is no asset types selected, so we can create a new asset type. What this does is, for example, all kind of furniture and fixture Depreciation should be charged in the same way. So furniture and fixture, let's say, depreciating method could be declining method, depreciation percentage could be let's say 10%, depreciation frequency could be monthly. Asset life is let's say five years in terms of months. Okay. Let's make it 60 months. Computation date on a pro rata basis. Accumulated depreciation account, you can select that furniture and equipment, let's say, we can create a new account of accumulated depreciation, by the way. Let's create a new account. Accumulated depreciation or furniture and fixture. Copy and paste that in description as well, Save and select. Depreciation Expense account. Let's search for it. Depreciation expense is already there, so click Save. Now, whatever we create as a fixed asset and we categorize it as this asset type, it will automatically charge the depreciation based on this method. So let's go back. So once we are back after creating the asset type, we need to go in chart of accounts. And here in chart of accounts, we either need to create a new fixed asset or we need to locate an existing one. So let me sort it from account type, and let's see. So we have the furniture and equipment account right here. So we need to make a little setting here, click on this particular ledger. And once it is open, just click on Edit, and it is this option right here that we need to enable. Create item as fixed asset. When this account is associated with the line item in a transaction, create the item as a fixed asset. So I'll just check this up. And you can select the asset type. We have already created that asset type of furniture in fixture, so not only it will link it to that asset type, it will automatically calculate the depreciation schedule based on that calculation which we have mentioned in the asset type. So click Safe. Now let's create a Bill. And for that, we can go to the purchases and click on Bills and we can click New here. Select the vendor. Since we don't have the vendor name here, I'll just choose a new vendor that is cash purchase. I'll just name it as cash purchases. Display name will be same, and there's no opening balance and click on SV. So cash purchase, you can give any bill reference number. Bill date is compulsory. So the bill date is third of January. Due date is automatically set to due on receipt, if you remember. The payment terms is shown right here as well. Subject, you can mention any kind of subject here, but here's the main part. Now, what I'll do is I'll just write here furniture. Press tab. It goes under furniture and equipment right here, and here in the amount or the rate, I'll just write here 10,000. This will make the total here. And this is the overall bill. Click on this one, save as open. Now let's go to this accountant tab and choose fixed asset to see whether the purchase is recorded in the fixed asset register or not. So even though we haven't created the item in the bill, we just mentioned the name of furniture, and we simply linked it to the asset type of furniture and fixture. Still it is able to pick it up. In the fixed asset register. So I can go in here, and if you want to still make any changes, we can click on Edit, and we can still go to this area and make all the relevant adjustments. But let's just go back and just shift to depreciation schedule. Click on depreciation, and here it is charting the depreciation every single month like this. So you can see that not only it is showing the summary of the depreciation, it is showing the depreciation. Flow chart. Also the depreciation forecast for the future. And once you click on Mark as active, the depreciation flow chart will be followed. That means it will automatically create the entries for you. Click on this one, Mark Act as active. Click yes. The amazing thing here is it will automatically charge the depreciation every single month and not only it's showing the depreciation history here based on the dates, that means right now, we entered the depreciation for the month of January. And since we are in May, it automatically reduced the value as you can see, and it has posted all of these journal entries. You can view that journal as well here in the depreciation history. So view journal, debit is depreciation expense, and credit is accumulated depreciation for furniture and fixture. This is posted in the records. So that's cool. Now, if we continue with our transaction, this furniture was purchased by giving cash. So that means there is a pending bill payment. I'll just go to the purchases and click on payments made. Go to unpaid bills, and this purchase is overdue by 163 days. Why it's showing overdue status? Because we have ended everything in January. We are considering that we are starting the new business or transferring the existing records from the previous software from January, but right now we are in May or June. So that's why it's showing the difference in the dates. So this unpaid bill should be paid. Now, if we have multiple bills to pay, we can select many bills and pay at the same time. But since this is a single bill, we can just simply click on this particular bill and click on record or payment. On the same date, we will pay for 10,000. No bank charges. Payment mode is cash. Payment date is third of January. Payment through cash in hand. Reference you can make any reference here, you can make any notes here and click on Save as paid. Now, this one is paid. You can click on payments made to see the summary of these. This is cash purchase, right? Open this up. And you can click on the S dots and click on View journal to see the journal entry effect. Now, the accounts payable was recorded first when the purchase of furniture was made. So that means at that time, furniture was debit and payable was credit. And at the second step payable was debited, means payable is canceled out from debit to credit, and cash is credit. So ultimately, the entry would be purchase of furniture by giving cash. Furnitures debit cash credit, but at the same time, by following this whole method and booking it through bills, we have maintained the fixed asset register as well. So let's see the Bills entry as well. Click on Bills. There's no unpaid bill. But we want to see all the bills. So, click on the three dots preferences, or otherwise, we can go to vendors and click on cash purchases. Here we see the summary of all the transactions. Click on the transactions here, and this is the bill. If you want to check the journal entry effect of this particular bill, we can view this bill. Click on the street dots and click on View Journal. It will scroll down and it will take you to this area. Furniture equipment is debit and accounts payable is credit. And on the second step, accounts payable will be debited or settled off, and cash is credit. So ultimately, the entry would be furniture to case. So this is how the complete system works, and this is how you can basically effectively manage by using the proper functions in Zohu for booking the fixed asset purchase. Just try this by yourself and I'll see you in the next. 10. Dealing with Prepaid Expenses: Video, we are going to see how we can deal with the prepayments in Zhu. On fourth of January, it says advanced rent paid for six months by cash at the rate of 1,000 per month. So although rent is an expense, which is just charged every month simply as an expense. But since we have paid advanced rent for six months, that means we haven't consumed the benefit yet for this particular time period. Even for the January, we haven't consumed the benefit yet because we have paid for six months in advance at the start of January. So when we reach to the end of the month, only then it is considered that we have consumed the full benefit for the month of January, only then it should be charged as expense. So at this point, when we have given all in cash, this will be treated as a prepaid expenses, which is a current asset. So whenever we consume any particular part in any month, like $1,000 every month, we will expense it out at the end of the month, only that portion, and we will credit the advanced rent or prepaid rent against it. So if you want to learn more about the pre pednt, how it works and how the accounting treatment is done, along with the examples, you can check this document with the resources section of this video just download and read through it so that you can understand it better. Moving back to the topic, let's see how we can add this. So from the dashboard on our right hand corner, we have the quick Create option, click here and click on journal entry from the journal section. Click here. Transaction is of fourth of January 4 January, or we can manually change it this way. Journal number is automatically given. We can start from one or we can configure it. Let's say that we are using the previous numbers and we want to continue with that. Let's say that it should be one double 01 because we have already made 1,000 entries. So in that case, we can just click on this little gear icon, and the next number should be 1001, save it, and then you should be able to see this. Reference number notes. This is a compulsory field, so we can just copy this particularneration right here and pat it in notes, and it's a cash past journal entry. So we need to check this. Now, in the journal type, we need to select the cash based journal. Otherwise, it will not allow us to select any kind of bank accounts or cash account here. Currency is United States dollar, and it is a prepaid expense. So in other current assets, we already have a prepaid expenses when we create the company, but if not, you can create it as an other current asset as well. So click here. In the description, I'll just copy and paste the same. No need to select any particular contact. 6,000 debit, press tab to go on the second line. And on the second line, we will choose cash. Pass the same description here, and in credit, we will also write 6,000. Once the debit and credit match, it will show the total difference as zero, and now you can save and publish this. If you want to check the journal entry effect how it is affecting the accounts, you can go to the reports to check this because it is already a journal entry. If you click on the three dots, you won't find the journal entry option here. So instead, we can go to reports and just write here journal and you will see this journal report. From here, we can specify a particular range of dates. So for example, just to date range custom, and it should be from first of January. After setting the period, you want to click on Run Report, and here it is it's not only showing the current journal entry, but it's showing all the entries earlier as well in the journal entry effect. If you notice all the transactions are shown here, but we cannot find our entry. That's because that was a cash based transaction and we need to change the report basis from accrual to cash and then click on Run Report. And after that, you should be able to find this entry on fourth of January prepaid expenses debit and cash on hand is credit. Same goes for other reports. If we check, let's say, balance sheet, the prepaid expenses should reflect in balance sheet, right? So if it is on accrual basis, you will see that even if you customize the time period and select the relevant time period, you won't be able to find it in assets, and that's because you need to change it to cash and click on Run report, and then you should be able to find it in other current assets. So that's how we deal with the prepaid expenses in Zhu. Just try this by yourself and I'll see you in the next one. 11. Handling Payments Against Security Deposits: This video, we are going to see what is the treatment of security deposit in Zoho. So let's say that you have rented a shop or an office and you have paid security deposit against that, whether it goes under other assets, current assets, fixed asset, how it is treated. Let's see. First of all, from the entry, it is evident that we will pass a journal entry for it. So click on the top right corner on the quick Create option, and from here under the journal tab, you will choose journal entry. The date of transaction is fourth of January. Make sure the right data is selected. Transaction journal sequence, it will follow automatically. We can put any other reference if you like. In the notes, I'll just copy this narration right here, paste it. And since this entry involves cash as well, so I'll just choose Cache Pase journal. You need to choose this. Otherwise, it won't allow you to enter any kind of cash or bank transactions here. Rest all is fine. Security deposit. Let me just search for it. Security deposit is not there. Let's write simple deposits. No, it's not there. So we need to create a new ledger. And for that, let's just write security deposit. We want to see whether it allows us to add it directly from here or not. No, it doesn't. So what we need to do is just go to the chart of accounts and leave when this card changes. Click on new account, and we need to create it in other assets because it is not a current asset, we can find other categories that is suitable as well. Like long term assets, deferred tax asset, impressed account, intangible asset. So we have all these categories, but I prefer to choose other asset because it is neither a current asset, which is used for only less than one year and neither it is a fixed asset like plant machinery, whichever is contributing in the operations directly. So it is just kept with the owner as soon as you are using the premises and after that, it should be returned. So I prefer to keep it as other assets. Let's write security deposit here. Let's copy and paste this narration as well. Account code. It's not compulsory, so let's save and let's move back to the journal entry from the Quick Reate option on the top right corner and click on journal entry. Change the date. Fourth of January 2025. Copy paste it in notes. It's a cash based journal. Security deposit is there. We will paste this description in This debit amount is 18,000. Go on the second line. Credit cash. Paste it in the description as well. And in the credit amount, we will again, write 18,000. So the difference is zero and click on Svein Publish, and that's how you do it. Just try this by yourself, and I'll see you in the next one. 12. Enter Repairs and Maintenance Expenses: Video, we are going to see how we can deal with any kind of paint and renovation expenses or basically any kind of indirect expenses in Zoo and especially if it is paid by cash. In this transaction, it's not mentioned that it is paid by cash or not, but it says on 16, we paint and renovation expenses for shop taken on rent. So we will consider that this minor expenses must be paid by cash. To enter the general entry on the top right corner, we just click Quick Create and choose entry. But before that, let me just close this. Let's go to the chart of accounts to see whether we already have a suitable account for that as well or not. Because unfortunately in the journal entry, while you are entering the journal entry, you won't be able to add new chart of accounts. So let's sort it by account type and search for expense category. So we have office supplies, advertising, advertisement and marketing, bank fees, travel, repair and maintenance. So this is the suitable account. Now let's go to the Quick Rreate and click on Journal entry. Transaction date is sixth of January. Journal reference is automatically continued with the previous sequence. In the notes, we can just copy this narration right here. Let me just cancel this. And it's a cache based journal, repair and maintenance, repair and maintenance. Copy and paste it in description. 1,500 debit, and just press tab to go on the second line. We will put cash in hand, same narration and 1,500. Once everything is done, debits and credits match, difference is zero, save and publish, and that's how you do it. Just try this by yourself, and I'll see you in the next one. 13. Receiving Payments in Full From Customers in Zoho: Video, we are going to see how we can receive the payments from customers in full. As we see here, on seventh of January, Mr. Victor paid all previous balance by giving us cash. So he's being generous. Let's see how the Victor balance was created initially. So in the customer details, all of this balance is from the previous year, and it is recorded as an opening balance. So now he has planned it to settle all. Let's see how we can receive this and close the pending balances against that. So on the top right corner, quick create and under the sales section, we have the customer payment. Just select the customer, which is Mr. Victor, and it will show us all the pending balance. We are receiving it in full. So just click on this particular option. If there's any bank charges applicable, that means if we have received the less amount because of some bank charges, we can specify it here. Otherwise, the payment date is seventh of January, payment number is automatically set to one, but like I said, if you want to configure it by continuing the last sequence that you were continuing in the earlier software, let's say that you have entered up to 320 payments, and now it should be 321. You can just click on the gear icon and click on 321 and it should be here. But just remember that this treatment or this decision should be done before entering the first payment. When you record the first payment, it will follow the same sequence afterwards and you won't be able to change that. So payment mode is cash. And deposit to cash account, you can deposit to undeposited funds as well if you like. Reference number, you can mention any kind of reference number here. Here it is. This is the pending customer opening balance amount. And since we have checked this option, it automatically sets and fills this payment with the full amount. So amount received is 65,000. Amount used for payments is 65,000. Amount is all settled. You can make any notes here, not visible to the customer for internal use only. So if you want to write details about it, you can mention it here. You can also attach some attachments if you like, and otherwise, click on Now, we just have to make sure that Victor should show zero balance now. For that, just google the sales and click on customers. And under Victor, we have the zero balance right here. So this is how we can receive the customer payments in Zoho. Just try this by yourself, and I'll see you in the next one. 14. Dealing With Item Purchase Invoice in Zoho: With you, we are going to learn how we can enter a purchase invoice in Zoho books. So we have an inventory based purchase invoice here on eighth of January, which says purchase of following items from Mr. Daniel. Now, you can see that the vendor name is mentioned. That means we are purchasing it on credit, and 90% of the world over business runs on credit. So let's see how we can enter this in ZO. First of all, on our left hand side, we have the purchase module right here. But if we just want to use a quick Create option, we can use that as well from the top right. And here we just need to enter a bill because this is an existing customer, so we shouldn't have a problem. Disco purchases and click on Bills. And from here, let's select the vendor. We have the Daniel vendor here. Bill number, you can specify any bill number here. Order number is not applicable. Bill date is this one eighth of January. So let's make it eighth of January. Due date is set to due on receipt. And let's start entering the items. First item is Carula windscreen. So these items are already created. Quantity is 20 and rate is 400. Now, guys, you will notice that on stock, quantity is also mentioned here with stock on hand for each transaction. And how the stock is build up, you can check the recent transactions as well. So this makes the rule 28000. Let's go on the second line by just pressing the tab. Next is civic headlights quantity is 30, rate is 150. So quantity is 30, rate is 150. This makes the Rule 240500. Pre use Val cups. Pre use al cups. Quantity is 50, rate is 50. This makes the Rule 220500, and the last item is preuse filters. So this last item is not there. That means this one is a new item. So we don't need to go back and create the item separately. We just click on add new item, and it's a good Copy the name, paste it here. Unit is in pieces. Selling price, we don't know the selling price yet, but let's just assume that it's 100 because this is a compulsory field, so we need to enter anything, and cost is 70. All the ledgers are set, whether sales, cost of goods sold or anything else, we just need to mention the description that we will copy and paste, and we are good to go. Track inventory for this item, we will select this as well and choose inventory asset. Inventory valuation method will be weighted average costing. There's no opening stock and click safe and now we have previous filters. Previous filters. Quantity is 70 rate is 50, 70 rate is 50. And this makes the Rule 230500. So all set. Let's say that you accidentally entered some additional item, and whenever you want to delete this, you can delete the complete row from here. So just click here and you're good to go. Just make sure that all the totals are correct, 8040520530500, 8040520530500. All correct. If you want to mention any notes here, just like this narration, you can do that. And after that, you can click on CBS draft if this invoice is not yet finalized and you need a second thought of it, or you need to confirm it once the items are all gathered. In that case, you can just save it as draft. Otherwise, I'll just click on Save as open, which means that it is saved as an open bill, but it is not being set it yet. So save as open, and now it will take you to all bills section where you can check the journal entry effect. To check the journal entry effect, we can click on these three dots and click on View journal, and it will take you downwards here. Inventory asset is debit and accounts payable is squared. And at the same time, Bill format is like this. So that's how we enter the purchase invoice in Zoho books. Just try this by yourself, and I'll see you in the next one. 15. Entering Bill Against New Vendor: Video, we are going to see how we can enter a purchase invoice of item against new vendor. So we have the transaction here of ninth of January which says purchase of falling items from Mr. Matthew, which is a new vendor, and the rest of procedure is same. So let's quickly add this. We have already added this bill. Just click on Quick Create or we can create the bill from here as well. Click here. I'll just straightaway write, Mr. Matthew name. Matthew. No results found. Let's create a new vendor. First name is Matthew. But just remember that we only need to fill in the compulsory fields, and that's it. So rest of all fields, I'll keep it as it is to be quick. Click safe. Let's enter any bill number. Bill date is ninth of January. Payment terms is due on receipt, so due rate is the same. In subject, we can just enter these details right here, and let's move on to the items. First item is Carla windscreen. Quantity is 50. Rate is 400 and this makes the total to 20,000. Next one we have is civic headlights. Quantity is 30 and rate is 150. Let's move to the next line, and next one we have is previous filters. So here, quantity is 100 and read is 50. And the total of this is 5,000. So let's check the overall amount, 20,040 505,000, 20,040 505,000. This makes the total to 29,500 all set. If you want to mention this same duration in the notes, you can do that, or you can attach the physical bill here as well. After that, you can click on Saves open. And immediately, it will show you all Bills summary here. You can see the physical bill. And if you want to check the journal entry effect, just click on the street dots and click on View Journal. So inventory asset is debit and credit is accounts payable. So that's how you do it. Just try this by yourself, and I'll see you in the next one. 16. Recording Cash Sales of Inventory in Zoho Books: You, we are going to see how we can record the cash sales of any kind of item in Zoho books. So basically, this business is dealing with the credit customers and the credit vendors. But sometimes what happens is walk in customer comes in and we are also selling item to them because there might be a lot of walk in customers as well. So we don't want to miss on that sale. Also, the wholesale rate might be different than the retail rate. So we might be charging more to the walk in customers who are just purchasing a single item. But since the walk in customer is not a repeated customer and we don't want to record it as customer, so what we can do let's see. First of all, from the sales module, we can click on invoices or otherwise, just click on Quick Rate and click on invoices from here. Now, this invoice is recorded as a credit invoice. So what we do is we will create an imaginary customer, which is walk in customer or cash customer. So just write cash customer here. Click on New customer, and display name is only the compulsory requirement. We will keep all the rest as it is. Click Save. Invoice number is automatically mentioned. Invoice Date, however, is 11th of January. Due on receipt. All good. Salesperson, you can allocate any salesperson here. In this subject, we can mention anything if you like, or otherwise, just move to the item details. So we are selling Carla windscreen, rate. Quantity is one. Rate is 560. So all set. But when we scroll down until now it is recorded as just we entered the credit invoice. But when we scroll down, we have this option. I have received the payment as well. So just check this. And how did you receive the payment payment mode is cash and deposit to cash in hand, let's say. So amount received is 560. Click on Save. So not only it will record the invoice, it will record the payment against it as well. To confirm this, let's check the journal entry. Click on the three dots when you see this all invoices. View journal. It says, please check after some time, okay. Let's click again and now click on View Journal. Okay, that's fine. What we can do is just check it from here. 560 was the total amount. Against that, payment made is 560, so balance due is NIL. And if you want to check the journal entry effect, we can just go to the reports and select journal here. What we can also do is since we access journal every now and then, what we can do here is just find the journal area. Which is under accountant, we just market as favorites. Just click on the star, and then you can simply access it from here. Just go to the favorites every time and click on Journal Report. So instead of this month, we will set a custom range for it, which is from first of January till, let's say the current date, click on done, Run report. And here is our entry cash in hand is debit, and against that, account receivable is credit. But at the time of sale, the entry would be this one. So both of these entries are done on the same date as you can see against invoice number one. First of all, it booked the account receivable as a generic customer. Against this customer, it booked an account receivable. Account receivable to sales and cost of goods sold to inventory. So this is the complete entry done, but at the same time we received the cash, so it again credited the account receivable and against that, it received the cash. So all done in a single step, and that's the beauty of Zhu books. Just try this by yourself, and I'll see you in the next. 17. Recording Credit Sales Invoice: Video, we are going to see how we can record a simple credit sales invoice against a customer of a single item in Zoo. So on 12th of January, we have the credit sales to Mr. Walter of previous realize the quantity is ten rate is 280, and let's book that. So from the top right corner, we have the quick create option. Just click on the invoices from the sales area. Customer name is Walter. Invoice number, we will keep the default numbering set up since we don't have any invoice number mentioned here. The transaction date is 12th of January. It's due on receipt. Subject, you can mention any subject. Let your customer know what this invoice is for. So this is basically to notify the customer and you can mention the details about it. So, for example, if you just want to copy this same naration like this, pace it here. We can do that. Item details is we are selling pre are lights. Quantity is ten, read is 280. Quantity is ten, read is 280, and this makes a rule 220800. Just check it once to make sure that everything is okay before saving. You can add terms and conditions and all the other stuff. And after that, just click on this arrow, save and send later. Or you can click on Save and send as well to make sure it is recorded Not as a draft invoice, but as a send invoice. Save and select, send, scroll down and send from the bottom. And now it is saved. If you want to check the journal entry effect on the three dots, just click here and click on View journal, and here it is. I might take some time to upload, so you can check later on. But this is how you can book the customer invoice. You can go to the customer to check the total balance. Just click on Walter, and now the balance is 17,800. Let's go to the transactions. So this is the transactions shown right here. So that's how we book the cred sealed invoice in Zoho. Just try this by yourself, and I'll see you in the next one. 18. Dealing With Cash Advance Recieved From Customer: Video, we are going to see how we can receive a customer advance in Zoho. So the transaction is of 13th of January which says receive cash in advance from Mr. Albert. Now, Mr. Albert is our customer. Why do you think that a customer will pay you anything in advance? Yes, it will be against a future sales order or maybe it is an advance against the future sales. So on the same date on 30th of January, you will notice that we have received the sales order from Mr. Albert against order number 25, and these are the quantities and items that the customer has ordered. So 6720 2,103 50. So nearly of 10,000 worth of goods that the customer has ordered. So we have a policy to receive some amount in cash, and then we will start working on their order. So this customer advance is received. This customer advance is a liability on us because in future, we either have to deliver the goods or we have to return that cash back. So let's see how we can enter this in ZOO. Now, it's very simple to enter. What you have to do is just click on the Quick Create from the top right and just straightaway, go to the customer payments. Select the customer, which is Mr. Albert. Amount that we have received is 5,000. Would you like to reflect this amount in the payment field? Yes. Date of the receipt is 13th of January. No bank charges is applicable. Payment reference or number is automatically created. Payment mode is cash, and we are depositing it in cash. Reference number, you can mention any reference number here, and it is not against any pending invoice. So let's cancel this, actually, leave and discard because we want to do something else. Go to Quick Create again under the seals. We click on customer payments. And as soon as we select Albert, we will not apply it here. We just receive the cash 5,000. No, we don't want to reflect. January 13, cash is received against cash in hand and no amount is settled against the opening invoice. And we can make the notes here not visible to the customer, or you can mention any memo here. So all set, when we save this, it will show you this prompt excess payment. Would you like to store the excess payment of 5,000 as over payment from this customer? And it says the excess amount will be deposited to unearned revenue. So instead, we will change it to what? We will change it to customer advances which is liability account. So click on Edit and let's keep it to earned revenue because we cannot customize this. Click ons continue to save, and it is recorded. What we need to do is just click on the three dots now and click on View journal. So unearned revenue or customer advances is credit as a liability, and cash in hand is debit. Now what we will do is just go to the accountant and click on Chart of Accounts and locate this unearned revenue. We can also sort it by account name so it's easier to find. Unearned revenue is recorded as other current liability. So this is perfect. We have to change the name to customer advances. So click here, click on Edit, and we can change this name too. Customer advances, which is recorded as current liability. Click Save. And by the way, it's also showing you an example. If you click on Edit again, it's showing you that in other current liabilities come the customer deposits as well. So this is a short term liability. Perfect treatment. It's very easy to deal in Zoo, unlike all the other softwares, and that's the power of this software. It's very easy in interface, and it has a lot of options to easily deal with all kinds of transactions. Even if we click on this customer again and against Albert, we have booked that customer advance right. So let's go to actually the payment receipts. So this is the amount that we have received. Click here. And if we now check the journal entry effect, you will see that this is the perfect treatment, customer advances is credit as liability and cash on hand is debit. That's how easily you can deal with the customer advances in Zoo. Just try this by yourself, and I'll see you in the next one. 19. Enable and Record Sales Order in Zoho: Video, we are going to see how we can record the sales order against a customer in Zoho books. So on 13th of January, we have received the sales order from this particular customer against this order number, and it's very simple to add in Zoho books. So we just have to enable the sales order. Just remember that when we click on sales, we can see all of these functions, but we cannot see the sales order right here. Also, if you click on Quick Rate, you won't be able to find this option until you enable this. And it's very simple. Just go to the top right corner and click on stings and from here, just click on the preferences and click on journal here. Select the modules you would like to enable. So there are a lot of modules which is still not enabled. So let's enable the sales order module. Just remember to save the settings from the bottom, otherwise, it won't take effect, and now you can click on Quick Rate after it updates the plan. Now you can click on Quick Rreate and this is the sales order right here in the sales module. So after that, orders received against this customer Albert. Order number is by default given, but if you want to change or customize this, for example, I want to started with order number 25, click on safe Date of transaction is 13th of January. So let's make it 13th. Expected shipped in date. We don't know any shipment date. Payment is due on receipt, let's say, and delivery method, salesperson I'll just keep it as it is. And these are the items that the customer has ordered. So Corolla windscreen. Quantity is 12 Read is 560, and this makes a Rule 26720. Next line, civic headlights, press tab, civic headlights. Quantity is ten, read is 210. Quantity is ten, rate is 210. This makes a Rule 220100. And the third one we have is previous filters. Where the quantity is five, read is 70. Ages 70, this makes the total 2350. So just confirm all the totals once before saving. Customer notes, terms and conditions, you can add all of this. You can add discounts, shipping charges as well. But just to keep it simple, we will just follow our project and click on Save and send. Click on Save and send and it will automatically read an email for you as well, and that's the power of the software. So let's email it to myself. I need to add a new contact person. Sample, save insect. And these are all the details. Click on send. It's not compulsory to send, but just to check how it looks in the email, let's see. So here we have it in our email immediately received. Just click here and it looks something like this, along with the sales order attached. Pretty cool, right. And as we can notice that there is nothing to be worried about about setting up the procedure. And as you can see, there is no specific or advanced requirements or complex requirements to set up the email, you can just send it right away, and that's the power of this software. So we don't need to click on View journal because this is a sales order. That means the customer has just ordered and we haven't provided anything yet. So this is just the document for internal purposes, which enables us to remind that we need to prepare this order in future and deliver that. So that's how we book it. And whenever we want to supply this, you can directly convert it to invoice. So that's how we can record the sales order in Zoo. Just wry this by yourself, and I'll see you in the next one. 20. Enter Credit Sales Invoice: Video, we are going to see how we can book a sales invoice in Zoo. As of 14th of January, it says, sales made of falling items to Mr. Justin. So if it mentions the customer name, that means we are supplying them on credit. So to enter the sales invoice, we just click on the Quick Rreate option on the top right, and under the sales, we have this invoices section. Just click here. Customer name is Justin. Invoice number is automatically mentioned, we just have to change the date. The date of transaction is 14th of January. It's due on receipt, so I'll keep the settings as it is, and the items are Corolla windscreen. Quantity is 25, rate is 560. So now we can see the rate is upgraded. So rate is 560. Civic headlights is the next item, civic headlights. Quantity is 15, rate is 210, and this makes the rule 23150. The next item is previous filters. Quantity is ten. Rate is 70, and this makes the total 2700. Just check and confirm once all the totals are correct, make sure all are correct. You can enter any customer notes, terms and conditions, and otherwise, you can save it directly. I have not received any payment. We just have to book a sales invoice. Save and send or we can change it to save and send later. So let's go and book that. Schedule. No, I don't want to schedule the email cancel. So this is the sealed invoice booked. If you want to check the journal entry effect, we can do so by clicking on the street dots and click on View Journal. But since this says journal entries will not be available for the invoices in draft State. So it is in draft State, we can click on send invoice or otherwise, since it is a draft state, we can click on Mark as sent and now it is properly booked Click on the three dots and click on View journal. If it is still not able to show, you can click on reports and Journal report from the favorite section. Specify the time period. Sometimes it take a little bit of time to upgrade the reports. So that's not a problem. You can just update from here, Run report. And this is our invoice of 14th of January. Account receivable is 17,850. Sales is 17,850, so account receivable to sales and cost of goods sold to inventory. So this is how we can record a credit sales invoice in Zoo. Just try this by yourself, and I'll see you in the next one. 21. Enable and Record Purchase Order: With you, we are going to see how we can raise the Pechse order in Zoo. As of 17th of January, it says, aise PachezeOder to Mr. Sian. Order number is 49. Let's see how we can enter this. First of all, if we click on the corner and we check the purchase modules, you can see that there is no option to book the purchase order. Even if you click on Quick Rate option, we cannot find anything related to purchase order. So this means we need to enable this. And to enable this, on the top right corner, we can see the settings. Just go in here, and from the preferences, click on journal. So some of the modules are already enabled, but we need to enable some more. Like sales order, we can enable the purchase orders as well, but just make sure that you click on Save whenever you make any changes to this area. So click on Save close the settings, wait for it to update, close the settings, and now we can click on the Quick Read again, and now we can click on the Quick Red again. And two purchases, we have the purchase orders right here. So click here. Mr. Sian, it's already added. We have some open purchase orders as well. We don't have any open purchase orders here. Delivery address is set to organization or you can set it to customer. Purchase order number is already created, but if you want to customize it to the first number, let's say the first number should be 49. I'll just change it from here, and you can customize it by just clicking on the skeer icon right here. Date of the transaction is 17th of January. Delivery date, we don't know the delivery date yet, so I'll not enter this. Payment is due on receipt, shipment preferences, you can choose any shipment preferences if you want. You can create that. And let's go to the item details and write the items. So first one is Carula windscreen. Account is already selected to inventory asset. Quantity is 25 rate is 400 and this makes the Role do 10,000. Next one is civic headlights. Quantity is 30, rate is 150. Rate is 150. Total is 4,500 previous heel cups. Quantity is 20 and rate is 50. So all totals are correct. You can scroll down, write the customer notes, terms and conditions, offer any kind of discount and adjustment, but just to keep it simple, we have created it according to our project. Nothing extra. Save and send. You can email that simply to the contact person, add a contact person, and let's enter. A sample email, save and select, and we can click on Send. And now the purchase order is issued. As you can see, this is the simple template. You can customize this template if you want. But we will see that later on. Whenever you want to convert it to Bill, you can just click on the stop option. And for the purchase order, we don't need to check any kind of journal entry because there is no journal entry. We have just ordered the items from the vendor. He haven't supplied us anything yet. So that's why no need to check the journal entry effect, and that's how we book the purchase orders in Zoo. Just try this by yourself, and I'll see you in the next one. 22. Dealing With Bad Debts in Zoho Books: Video, we are going to see how we can record the bad debts against the customer in Zoho. As of 17 January, it says Mr. Walter didn't pay the due amount thus treated as bad debts. So as you can see, that we are unable to recover this 17,800 from this particular customer, and let's review their transactions first. So we have made a sale during the year to Mr. Walter of 2,800. And if we scroll up, this customer also had some opening balance of 15,000. So 15,000 plus 2,800 makes a rolled to 17,800. Let's see how we can record this batt. First of all, what we need to do is we need to go to invoices and click on this invoice of Walter. So once this invoice is open, you can click on record a payment and click on write off. Don't worry about the opening balance. We will see it later on. But first of all, let's learn how we can record the bad debt of all the open invoices that is entered during the period. So this invoice was manually entered. It's not an opening balance. We just have to click on invoices, locate the invoice, click on the invoice, and then we land onto this section, which is the summary. Record payment, click on write off. Let's select the write of date of 17th of January. And write of reason, we can just copy this particular reason and paste it right here and simply hit write off. Now the write off is created, and we can see it here as well. The total invoice amount was 2,800 and the write of amount is 2,800 as well. So this is all done, and you can see that it will adjust it within the invoice. Account receivable is debit and sale is credit, cost of goods sold is debit and inventory asset is credit. So bad debt is recorded right here against the account receivable. And as you can see, bad debt entry is adjusted within this invoice. Bad debt is debit and account receivable is credit with 2,800 amount. So this is what we can do for the open invoices. Let's see how we can settle the customer opening balance, which is of Walder 15,000. So in this case, we can click on the new transaction. Click on the customer payment. And let's say that we have received this amount in full, and deposit two should be batted. So just right here, bated. Payment date, I'll mention this as 17th of January. And the reference should be payment mode should be settlement. But let's keep it as it is. Deposit two is not available. So what we can do is we can receive it in undeposited funds, and we settle this balance. And after that, we have to pass a genuine entry to transfer these undeposited funds to bad dates. This is the only solution that we can do for the opening balance. Click on save here and just make sure that the customer balance of water is zero now. As we can see, it's zero. And now we can pass an adjusting entry. Click on the plus sign and from the journal, click on Journal entry on the same date on 17th of January, we will enter the note of this, and it's not a cash based journal, so we don't need to enable that. Here, we just choose Padit as debit. In description, I'll just copy and paste this amount we will mention 15,000 because we have already closed 2,800 with some other method. And here we will just select undeposited fund. This adjustment and 15,000 as credit. Click on Save and publish. And now we just need to make sure that in chart of accounts, there should be zero balance in undeposited funds. So undeposit funds just click here and it's zero. And under bad debts, the total amount should be 17,800. So just locate the bad debts from chart of accounts, and it should be 17,800. So this is the complete treatment on how you can book or record the bad debts both against the open invoices and against the opening balance and Zoho. Just try this by yourself, and I'll see you in the next one. 23. Dealing With Purchase of Services: Video, we are going to see how we can record any kind of purchase of services in Zoho. So on 18 January, you see packing charges invoice received from Mr. Anthony, which is a new vendor. Now, what kind of packing is this? Because the items we deal in is fragile items, so they might need special packing, and we don't have the packing unit or professional labor available. So instead of doing it in house, we buy the service from an external vendor. So they are providing us the service, and here is the invoice for it. Let's see how we can record this. First of all, on our right hand side, we have the Quick Rate option click here, and under the purchase section, we have the Bills option right here. Just go to the Bills. Vendor name, since it is a new vendor, I'll just copy the name, or I can write it here. Let me just write it. Anthony, it's a new vendor, and we will only fulfill the basic details, that is display name. Rest all the information is pretty basic and you can fill it later on. So let's continue with it. Click Save. Bill number, we can specify any specific bill number, and the bill date is 18th of January. So 18th of January is the bill date. Due date is same because the payment terms is due on receipt. In the subject, we can just copy and paste this narration right here. Just paste it here. And let's go to the items now. The item is a service item of packing charges. This is not an inventory, so we need to create a new item right from here. Click on Add New Item. Click on service because we are purchasing this as a service. Unit will be not specified here, and we don't know the selling price yet. So instead, let's say that the selling price is 5,000. The cost price is 4,500. Let's fill in any details here because this is compulsory. Sales, cost of goods sold. A is automatically set. Paste it here, paste it in the description as well, and I don't track the inventory because it doesn't contain any kind of inventory. This is a service. So click on Save. And here is the packing charges, which goes directly under cost of goods sold. Just remember that since this service is directly applicable to the products that we are planning to sell, that's why all kind of services or charges applicable directly on the products or inventory will be treated as cost of goods sold. So quantity, I'll just ignore the quantity, and directly, I'll just mention the amount here, 4,500, which is automatically mentioned since we have specified the rate. And the invoice is done. If you want to paste this narration in the notes as well, or you want to write your own, you can write it here. You can attach the physical bill and then click on Save as open. It will then move to all bills where you can check the journal entry effect and the physical bill copy. Click on this tree dots and click on View journal. So cost of goods sold as packing charges is debit and accounts payable is credit, the perfect treatment for purchase of services. Just try this by yourself, and I'll see you in the next. 24. Handling Payments Against Purchase of Services: Video, we are going to see how we can make the payment against the purchase of services in Zoo. So in the earlier transaction, we have booked the packing charges as a service invoice, and on the same date on 18th of January, we are partially paying for that service to Mr. Anthony. As you can see here, paid Mr. Anthony by check of standard chartered bank, and the amount we are paying is 3,000. Total bill invoice was 4,500. So what we are going to do is we are already in the bills. We can click on record a payment. Payment made is 3,000. From standard Charter Bank. So let's say we write bank transfer here, payment made on 18th of January. Paid through Stndard Chartered Bank, and let's select any reference number. Let's write any reference. In the notes, we just copy this thing right here, paste it. So all set, payment made is 3,000. It's a bank transfer. Payment date is 18th of January, paid through Stndard Chartered Bank, and this is the narration. All set, click on Caves paid, and we can check the journal entry effect. Click on the three dots and click on View journal. So right now, the journal we are seeing is for bills because we are not in the payment section. So we can click on payments made from the top, and this is the payment made. Summary is shown right here, but we have to go to payments made. Here is the payment. Just go here, and from here, we click on View Journal. Accounts payable is debit and standard chartered bank is credit. Let's go to the vendors again. And the pending balance against Anthony is 1,500. So out of 4,500, 3,000 is paid, 1,500 is left. This is how we can make the payment against the service invoice. In Zhu, just try this by yourself, and I'll see you in the next. 25. Creating Sales Invoice from Sales Order with Advance Adjustment: Video, we are going to see how we can convert a sales order to a sales invoice. Here we have the transaction of 19 January, send all items to Mr. Albert against previous sales order. So previous sales order is this one right here on 13th of January against these items, so we are sending them the items. Let's convert the seals order to sealed invoice. For that, on the left hand side, we can click on the sealed module, and here we click on Seals Order. And once we're in here, there's only one order for Albt. Click here, and simply on the right hand side, we click on Convert to invoice. In this subject, we just copy and paste this narration. Order number is 25 converted to invoice. All set, and click on save and send send to onsen here is the invoice produced. But if you notice this invoice is against the full amount of the order. But if we refer back to this sales order, we have already received some amount in cash as well as the customer advance. So 5,000 is the amount that we have already received, so we cannot issue them this invoice which demands them this total against all of these items. We've already received some amount, so that needs to be adjusted in invoice, if we scroll have this option right here. Credits available. Of 5,000, click on Apply now. Credit to apply 5,000. The invoice balance due will be 4170. Click on Apply credits, and then immediately this invoice will be adjusted with the new balance, and you can see the invoice in this format. So again, a very convenient option in Zoo books to deal with these kind of scenarios, especially when the order needs to be converted to invoice, as well as the customer advances needs to be adjusted within the invoice as soon as you convert. So this is how you can do it. Just try this by yourself, and I'll see you in the next one. 26. Handling Purchase Return and Open Bill Adjustment: Video, we are going to see how we can enter purchase return in Zoho books. So on 22nd of January, the transaction sees return ten Carla windscreens to Mr. Matthew. That means we are returning the items back to our vendor at the rate of 400 per unit. Now we have already entered the purchase invoice earlier in this project. So let's go to the returns by just clicking on this top right in the quick Create section. In purchases, we have this vendor credits option. You can also access it from here. Just go to the purchases module and click on vendor credits from here right at the bottom. So once we are in here, we see this screen where we can click on Create vendor credits. Mr. Matthew, let's select Mr. Matthew. If you want to see the details of Mr. Matthew, you can click on the right corner where it will show you all the activities and details about it. Disclose it. Let's enter any reference number here. Credit date is 22nd of January. Subject, we can just simply copy this narration, paste it here, and the item we are returning is Carla windscreen. Quantity is ten, ad is 400. This makes the total to 4,000. Let's scroll down. You can enter the same narration in the notes as well. And click on Save As Open. Now, the vendor credit is created. But let's say we want to deduct that amount from the overall purchase invoice balance. So let's say that we have purchased items for $10,000, and out of which we have made 4,000 as a return. So we only have to pay the remaining amount. So if you want to adjust this credit in the bills, you can click on Apply to Bills here. But first of all, let's check the journal entry effect. Let's click on the three dots, click on View journal, and it will take some time to process. Okay, click on Apply to Bills. And the bill amount total is 29,500, and it was recorded on ninth of January. Let's scrawl up, and this is the invoice from Mr. Matthew, around 29,500, out of which we want to apply 4,000 as credit. Click Save. And now the credit note will look like this that the credit is used against the bill. So overall, you see this entry. We cost of goods sold is adjusted on both sides, so just ignore that. Accounts payable is debit because we need to pay 4,000 less, so we have reduced the liability as well by debiting it, and inventory asset is credit. That means we have to return that item back, so it's gone from our inventory hence it is credit. So this is how we not only deal with the credit notes or purchase returns, we can also adjust it in the bills. Just try this by yourself, and I'll see you in the next one. 27. Handling Sales Return with Open Invoice Adjustment: We are going to see how we can enter a sale return in Zoho. So we have a transaction of 24th of January where it says, return five Civic headlights by Mr. Albert at the rate of $210 per unit. That means the customer is returning some of the items back to us. So what we want to do here is just go to the sales module and click on the credit notes. And here, just click on Create a credit note. Select the customer. Customer is Mr. Albert. Credit node number is automatically given, but if you are following the sequence from the last year, you can just customize it here. Just remember that you need to customize the auto generating number before entering the first credit note. Otherwise, you won't be able to change this, but still you will be able to enter the manual credit numbers. So I'll keep it as it is. Credit note date, 24th of January. 24th of January. Subject, we can just copy this narration, paste it right here, and the item details. Customer has returned five civic headlights. So civic headlights, let's choose that. Five at the rate of 210 per unit. Just make sure the totals are correct and after that, click on Save as open. And once the credit node is created, you can check the journal entry effect by just clicking on the street dots and click on View journal. But here it shows you will be able to view the journal as soon as the inventory evaluation process has been completed. Please check after some time, so that's not a problem. Let's move to the further step. And let's say that we have created an invoice earlier for this customer. And the amount is, let's say, $5,000. So out of that, the customer has returned us goods worth $1,000. So we need to adjust that in bill so that they only have to pay 4,000 now. So if you want to apply this credit note to the invoice so that it can automatically be settled and reflected in invoice, we can do that as well. Just click on Apply to invoices. And it will ask you against which balance do you want to adjust this? Against the opening balance or the invoice that is entered during the year. So I want to adjust it against the second one, and the total remaining credit is 1050. So we want to adjust all of this, click on Save. And now the credit note is shown like this. Total credit amount is this. All the credit is used, so credit remaining is zero, and credit note entry is now shown here, and the account receivable is 1050 as credit because the customer has returned the items back to us, so the receivable is reduced. Sale is also reduced, so it's debit. Cost of goods sold is credit and inventory asset is debit because the inventory is back in the store. So this entry is exactly the opposite of what we entered in the sales invoice. If we click on the Tree Dots view journal, we will head over to same area. So that's how you can enter the cred note and adjust it against the sales invoice. Just try this by yourself, and I'll see you in the next one. 28. Full Customer Account Settlement: Video, we are going to see how we can receive the customer payment in full against all the previous balances, whether it's opening balance, whether it's invoices during the period, because the customer has cleared all this previous balance by giving us cash. So the entry is pretty simple. All you have to do is just click on the top right and click on Quick Create. And from the sales section, we click on customer payments. Customer name is Justin. As soon as you click here, it will show you the total balance here and the option to enter the amount that you have received. Since the customer is clearing all the balance, I'll just mention this amount or otherwise, you don't even need to mention this amount. You just click on receive the amount in full, and it will be automatically mentioned here. Payment date is 25th of January. Payment mode is cash, and we are depositing it in cash in hand. Some people prefer to deposit all the cash that is received in undeposited funds so that they can easily track how much cash is in the office and how much cash need to be deposited. Next day in Bank, let's say. Reference number, we can mention any reference number if you like. And the amount, as you can see here, as soon as we click on receive full payment, it will automatically mention the amount next to each invoices, whether it's opening balance, the complete amount is mentioned, that it is paid in full, and same goes for invoice. So amount in excess is zero, all balance is clear, and we can make any note if we want to use for internal use and not visible to customer. You can also attach a physical copy of it, and after that, just click Save. It will immediately take you to the payment receive section where we can check the journal entry effect by just clicking on the three dots and click on View journal, and these are the couple of entries that is passed here. But you will notice that the customer advances is mentioned multiple times, and that might be confusing for you because ultimately cash should be debit and all the account receivable should be credit because the customer has cleared all the receivable balances. So this is a simple entry, right, cash debit and account receivable credit. But if you notice, customer advance is credit here, but it is adjusted against debit in two areas. So this one cancels out with debit, and ultimately the entry will be account receivable credit here and account receivable credit here. So if you add both of these, it will be equivalent to cash in hand. So ultimately, the entry will cancel out for customer advances, and the remaining entry will be cash in hand as debit and account receivable is cred. So this is how you can receive the full customer payment in Zoho. Just try this by yourself, and I'll see you in the next one. 29. Convert Purchase Order to Purchase Invoice in Zoho: Video, we are going to see how we can convert a purchase order to purchase invoice. So if we look at this transaction of 26th of January, it says, Mr. Sian send all items against previously issued purchase order. So in past, we have raised the purchase order for Mr. Sian, and now we have received all the items from this vendor. So we want to convert the purchase order to purchase invoice. First of all, let's head over to the purchase orders and locate that particular purchase order that we need to convert. So on our left, we have the navigation pin. We click on purchases and click on purchase orders. All the purchase orders will be shown here. And here we only have one, so click on that. And since we want to convert the complete purchase order to purchase invoice, on our right hand side, we have the option to convert it to bill. Just click here, and as you can see, the new bill is created. We just have to mention any bill number, purchase order references mentioned, and the bill date is 26 of January. Due date is mentioned against due on receipt, so which is same date. And as you can see, the complete purchase order is transferred to a bill. Now we just have to enter the notes if you want to attach any kind of physical copy and then click on Save As open. So now we have this in the bills section where it is overdue by 142 days. Why it is overdue by 142 days because we are in June right now, and all of these transaction is of January. So nearly six months have passed, but we are considering a scenario where we want to transfer the accounts from the last year. In December 24 to the starting of new year in Zoo, so we ended all the transactions from January. And also, if you want to see the journal entry effect of this particular transaction, since we've converted purchase order to purchase invoice, and now it affects accounts. So just click on the three dots and click on View Journal and the journal is right here, which says inventory asset is debit and accounts payable is credit. Perfect entry, and that's how you do it. Just write this by yourself, and I'll see you in the next one. 30. Dealing With Loss of Inventory: Video, we are going to see how we can deal with the loss of inventory in Zoho. So the transaction is of 27th of January which says one carula windskin damaged during loading and unloading. Just note that this is due to the mistake of the labor. So this is an indirect loss. The other kind of loss is a normal loss, which is normally in the production units where you manufacture the items, but some raw material will be lost in the process. Let's say that we have received ten kg of wood, but when we manufacture a table, the weight of the table is nine KG. So this means that some kind of raw material is lost during the finishing process or during the production process. That becomes the part of the inventory. But here, it is the mistake of our labor, so it should be treated as an indirect loss. To enter this, we will access the inventory module or the items right below the home tab. Click here. And once we click here, we see this inventory adjustments option. We need to create a new adjustment from the top and there are two types of adjustment. One is quantity adjustment, one is value adjustment. Just remember that if you want to adjust the quantity along with the value, then you will choose quantity adjustment, so the value will automatically be adjusted in the background. Just put any reference number. The date of transaction is 27th of January. The loss account goes to indirect loss, which is loss of inventory as indirect loss, loss of inventory. But as we can see here, we don't have any loss account available. So we will try to find one. Otherwise, we need to go back, skip this and go back until we create that account. So leave and discard changes. First of all, we need to create a charter of account. It goes under expense. Let's write loss of inventory. In description, I'll copy and paste the same. Click Save. Let's go back to items and inventory adjustment and click on New from the top right. Quantity adjustment is already highlighted. The date of transaction is 27th of January. And it goes under loss of inventory, write loss here. Select our reason. Since the windscreens are damaged due to loading and unloading, so we will specify it as damaged codes. And here we just copy this narration, paste it in the description. Select the item that is Corolla windscreen. Quantity available is 529, and the new quantity on hand will be 528, since one Carula screen is damaged, so it will automatically be mentioned in the quantity adjusted. Or otherwise, if we just remove this and just enter minus one in the quantity adjusted, it will automatically populate this field as well. So just roll down. A looks good. Reporting tags add new rows you can do that. But I'll just click on Convert to adjust. And it will show the adjustment right here if you want to check the profit and loss in order to make sure that its value is also adjusted. Let's check. Click on Reports and click on Let's check Journal Report. Specify the period. Run report. And here we can see on 27th of January, it says loss of inventory, debit with 400 and credit is inventory asset. We can also make sure by checking the profit and loss account, here it is, and we can see the loss of inventory right here as well. So this means that when we adjust the quantity, the value is automatically adjusted and it is entered as a journal entry in the background. So that's how simple it is to make an adjustment of loss of inventory in Zoo. Just try this by yourself and I'll see you in the next one. 31. Unwinding of Prepaid Expenses: Video, we are going to see how we can do the unwinding of prepaid expenses. As we have the transaction of 31st of January it says rent expense for January adjusted from Advanced rent account for an amount of $1,000. That means we are not paying cash against the rent expense for this month. Rather, if we scroll up, we have paid in advance for six months against hundred dollars each month. So 6,000 is already being paid, but at that time, we haven't consumed the benefit yet, so we record it as a prepayment or a current asset. So now, it's already a prepaid asset recorded as a current asset. Now we just have to expense out the portion that we consume the benefit of. So as the genre has ended, only that portion which we have consumed the benefit of should be expensed out against the advanced rent account or prepaid account, not the cash because we're not paying cash here. So it's very simple. We'll just pass a simple journal entry from the top right, click on Quick Create and click on the journal. So journal entry could be located in journal tab here, Journal Entry. Date of transition is 31st of January. Journal number, I've already mentioned that. Journal number is automatically mentioned, so I'll keep that as it is. Reference number, you'll mention any reference number just for the sake of example. And just copy the narration here, paste it in the notes, and it's not a cash based transaction because we are not paying any physical cash here. Rent is debit. Just make sure that we have the account, rent account. So rent expense, we have this. Again, I'll just piece the narration right here, remove the extra spaces, and the amount is thousand. On the credit, we will credit prepaid expenses so that prepaid expenses will be reduced from that amount. $1,000. So debits and credits, both are equal, difference is zero, we should be able to save it. Save and publish. And that's how we do the unwinding of prepaid asset in a Zoho. Just try this by yourself, and I'll see you in the next one. 32. Extracting Essential Closing Reports: Video, we are going to see how we can extract the essential closing reports after the completion of this project. So in this project, we started off from entering the chart of accounts and their balances. Same goes for customer vendors and inventory, and then we have seen all type of day to day transactions, and now the transaction has ended for 31st of January. So we want to extract some important reports, and there are three important reports when you want to check any kind of records. That is trial balance first, then comes the profit and loss, and then comes the balance sheet. So to extract each of them, just go to the report section from the left corner. And there you should be able to see all kind of reports. You can search it here or you can go to any specific report category in order to find that. Most of these financial reports are under the accountant section. As you can see here, Trial Balance is right here. So first of all, let's extract this. Or even if you want to frequently use that, you can mark it as favorite. Just click on this star, and it will be added in the favorite section. Just open that by just simply clicking, and I need to set a custom period here. Click on custom, specify the period from first of January till 31st of January. Make it first here and 31st. Make it first here, 31st here, click Done, and click on Run Report. Just remember that this should show first of January till 31st of January for the period. And this is how you can extract the trial balance report. It's a simple format. You can customize these columns as well. You can just change the order of that. For example, if you want to see the account code first, then the account and then the Biden grade, you can use that. And as far as the customization of columns are concerned, on the left hand side, we have the available columns that you can add to the report. And on our right is the selected columns that is already the part of report. So let's say if you want to add the account description, we can just add that. We can add the closing balance and all of the stuff. But that's enough. I'll just pick on apply because it is already set to standard, and you can filter the accounts. You can show all the ledgers, even if they have zero balance. You can only show the accounts with transactions. We can only show the accounts with zero without zero balance. So right now, it's only showing the accounts, which has some kind of activity, and it's not with the zero balance. Otherwise, it will look something like this. There are many accounts shown right here, but most of them has zero balances. So if there is no activity, it shouldn't show here. So simple kind of customizations. After that, if you want to export it as a PDF or Excel, on the top right corner, we have this export option which supports PDF Excels, Microsoft Excel latest version 1997 to 2004, compatible. Export to Zoo sheet, print or print preferences. Let's say we want to save it as a PDF. So click PDF. Trial Balance is the name. I want to protect this file with a password. You can do that as well. So let's keep it simple one, two, three, four, Export. Okay, one, two, three, four, five and six. Export. And it's by default exported in downloads. So what I'll do is I'll attach this trial balance for your reference with the resources section of this video so that you can check and match your balances with it. Next very important report is the income statement or profit and loss account. So just go to the reports again and let's this time search for profit and loss from here. Profit and loss shows in the business overview. So if you want to access it by category, we need to go in business overview right here, and we have the profit and loss right here that we can mark as favorite. So if you click on that, we can customize the period. Custom period is automatically set January to July, but I want to specify it from first to 31st of January. Click done, Run report, and then you should be able to see the updated dates. This is the profit and loss account, simple format, similar kind of customizations, and after that, you can export it. I'll export it in PDF and attach with the resources section of this video, so you can check that out as well. So let's also see some kind of report. Trial Balance has some password, so one, two, three, four, five, six, and as you can see, it's a very simple straightforward format, and that's how it looks. And if you want to access the profit loss it didn't had any password, so it looks like this, very simple format. All right. Let's move on to our final report, which is a very important one, and that is balance sheet. We can market as favorites. It comes under the business overview, and just click that, set the customized period from first of January till 31st. Or basically it's as of 31st of January. So it shows the closing date only from the starting. And you can select either cash or accrual method. By the way, guys, you need to check for all of them if it is a cash based or accrual based. Most of the business follows accrual based accounting and accrual based reporting. So we need to make sure of that. So this is how the balance sheet looks. Let me just export that as well. So these are all the essential reports that you need to extract after the completion of any project or after completion of any month or year. Just try this by yourself, and after that, this project is complete and we will start working on more interesting areas in Zuhu books, which we haven't explored before. 33. Create Recurring Invoice in Zoho Books: Video, we are going to see how we can enable the multiple currency transactions and how we can use that for our customers or vendors if we have international clients. So if you're using your local currency just to deal with the local customers and vendors, that's fine. But if you are dealing with international customers, let's say you are supplying some goods in UE, so you need to invoice them in UE currency. Or maybe you are purchasing something from the external vendor, and you want to customize the invoice like that. So how will we do that? First of all, just remember guys that in the new Zoo books, it's enabled by default. So if you click on settings, and under organization, we have currencies. So all of these currencies are already there and it's enabled. Just we have to check what is our base currency. Right now, our base currency is US dollars. So if your currency is not reflecting here, you can just click on the new currency and you can just enter let's say INR, currency name, currency symbol, and all the simple information about that. And after that, just go to the main screen. And we will create the international customer with the currency settings. So click on Quick Create and click on customers, and the customer type is Business. And let's say that the customer name is Alburg traders. And same is the name here. And this is in AED. No opening balance is there. Exchange rate is automatically populated with the latest exchange rate. So as we can see, AD to USD, the exchange rate is 0.27, so it's picking it up in the real time. Lick on Save. Now let's sail something. Click on the invoices, click on plus sign or new from here. The customer name is Albus Shraders which deals in AD. Now, just remember, guys, if you want to deal with any customer in any other currency, we need to make sure that their customer default settings is on that currency. Otherwise, you won't be able to change it from here. Let's say for any different customer, the by default currency is already set to USD. So let's say now it has moved to some other region and it's dealing with some other currency. In that case, we need to go in that particular customer. Go in here in the configuration, edit that, and from here, you can change the default currency, and then you should be able to enter the invoice. So let's continue. Click plus. This is Albert rads. Invoice number is this, invoice date is, let's say on the current date, all set. Let's say that we are selling the items. One quantity, let's say five is the quantity, rate is 918, and that's in Durham's. So it has automatically created the whole invoice in Durham's, as you can see here. A exchange rate is mentioned here. This is directly picked up from Google. So if you have any difference, you can recalculate it on this. Otherwise, just click on Save and send and you can directly send the invoice from here as well. So let's click and let's write the same address. And click on Send. It will be shown like this, and we need to add it here as well. Make sure all the fields are selected, and now it is sent, and you can see all the other invoices are in dollars while this one is in the hums, so it has automatically converted it in real time. All of these details are also in the hums. Now let's see how we can record the payment for the same. So in here, we already have the record payment option, but if you want to access it separately, let's say you are not in that particular area, you can just click on the customer payments from the Quick Ret option under the sales module. But let's just click here from record payment, click on record payment. Now we are receiving this whole amount in the hums from this customer, all set, all is automatically mentioned. But if you are, let's say, receiving some less amount, you can just mention that. And it goes under case in hand. Exchange it is again mentioned to the latest date. Click on record payment, and it will save it and show you the summary of it. It is partially paid right now. So if you want to check the journal and defect of the payments, just click on the payment received from the left hand corner, and this is the payment we have received. Just click on that and click on the three dots to view the journal. So in here, this is converted to USD, and that's the power of Zoho that not only it has generated the invoice in DR hums, we have recorded the payment in the HMS, but when it comes to the letters, it has converted it according to the exchange rate and converted it back to the base currency in dollars, so that we can report it in our reports, and there is no discrepancy. So that's how we can easily deal with the foreign currency transactions in Zoho, try this by yourself, and I will see you in the next. 34. Create Recurring Invoice in Zoho Books: We are going to see how we can set up a reckoning invoice in Zoho books, and that is a very powerful function in this software, especially if you have some kind of customers for which you are providing any kind of specific services which have the same charge every single month or maybe even for a specific inventory. Let's say that you are providing a specific number of inventory every week, every month or every six months, so you can configure an automated reckoning invoice, which you don't need to create. You just set up for once and it will be repeated and created every single month or every single week automatically. So it's very simple to set up. All you have to do is just click on the top right corner to click on the Quick Create. And here under the seals, we have the reckoning invoice option. Just click here. And if the customer is already set up, you can choose any one of them, or otherwise, you can create the new customer. It's pretty simple. You just need to enter some basic information along with the currency details and how the payments are due, and afterwards, you're good to go. Let's try it on Albert. Profile name. You can specify any profile name here. I'll just mention here Albert Recording Services. And I want to repeat this every single month. So we have the option of week, two weeks, two months, and so on. But let's just suppose that we are charging them every single month on the first of every month. So this ends on 31st of December. Or even if you don't want to expire it, you can do that as well. And also, we can mention any subject if you want to mention or let your customer know what is this recurring invoice for. So you can mention it here. And let's say that we are providing them any kind of social media service. So add a new item. Let's say we are providing them a social media management. And we have some pulsory fields. So let's say the seal price is $100, and our cost is like 200. It goes under sales account, cost of goods sold, all selected social media management. I'll just select it here and here as well. Click on Save. And for the social media management, we are charging $1,000 every single month. If you want to offer some discount, we can specify it here, some shipping charges not applicable here. And maybe some customer notes or terms and conditions that you want to mention about your service. And if you want to get paid faster, there is an automated option in Zoo, which is very interesting. You can set up a payment gateway so that they can just click on the invoice and directly pay for it. These are all the supported platforms. And email communications, if you want your customer to communicate with you on a specific email or Skype, you can add all of these details here. And after that, just click on Save. So that's how you set it up and it will immediately move it to the recurring invoices. We have the $1,000 invoice every month that is issued to this particular customer. So the next invoice will be due in first of July. This invoice is automatically created for first of June. It's active and it's showing in all of the records. So every single month, whenever the deed comes, you will see the next invoice created right here. Even in the overview, we have the current invoice, and under the next invoice section, we have the next invoice automatically already be prepared, but it will be generated on first of July. So that's how we can create the reckoning invoices in Zoho books. Just try this by yourself, and I'll see you in the next. 35. Creating Automated Recurring Journals: O, we are going to see how we can create the recurring journals in Zoho, and that's a very important function, especially if you have unwinding of prepaid expenses, like we have seen in our assignment as well, that the rent expense for January adjusted against advanced rent for an amount of $1,000. Let's say that you have paid for rent six months in advance on the start of the month, but every single month that payment should be adjusted from the advanced rent. So at the time of amount paid, you paid all the rent in advance for six months, that is equivalent to 6,000, but we haven't consumed the benefit yet, so what we have done is we recorded it as a prepaid expenses debit and cashier's credit. But now, whenever any particular month completes, it should automatically enter rent expense debit and advanced rent credit or prepaid rent credit. So this is same entry for every single month, and there might be a lot of adjustments similar to that in your company. So you don't need to enter it every single month. What you can do is just click on this quick creative option and click on the journal entry on the left hand side, click on journal entry. And here we just create the entry. For example, for 28th of February because we have already entered for January, we need to create it for February 28 of February. Reference number, we can mention any reference number here. In the narration, we can just mention this. And let's say we will not specify here January, rent expense for the month. I'll just write here. So whatever is the month, it will consider that. Adjusted against the advanced rent account. Currency is this, and let me just make the entry, which is rent expense debit. Copy the narration here. It's $1,000 against the prepaid expenses. Copy the same iteration here and it's $1,000. Make sure the difference is zero, and we can make this recording from the bottom right. Just click here, make the recoring. Profile name is rent posting, let's say, repeat every month. Starts on 28 February, ends on, let's say till December or it says never expires. So you can specify that as well. Reference number, we can mention any particular reference number for that. Notes is this one. Its currency is this, all set, like safe. So it will create a separate category of recurring journals, and it will be repeated every single month. So as soon as the month completes, it will do that for you. But unfortunately, if you book for 28 February like I have done now, it will only calculate based on the calendar dates. So right now it's 18th June, so it will only create for the upcoming month and not the past months, even if you entered the previous date. So just make note of that that if some months have already been passed, you need to create separate journal entries for that, and it can repeat automatically in future. So the next posting date is 28 of June. If you want to ever edit it to specify something else, you can just click on this little edit option and you can specify date. Let's say that now I figured out it's not able to make this start date is February, let's say, let's make it 31st of March or 30th of March, which comes every single month. Click on Save and now it will be due on 30th June or the next upcoming dates. Whenever the date comes, it automatically posts the journal entry. So that's how easy it is to manage all kind of adjusting entries at the month end. Just try this by yourself, and I'll see you in the next one. 36. Creating Fully Cuztomizable Zoho Dashboard: We are going to see how we can configure your own dashboard. In a beautiful way and how you can customize all the fields. Let's say that according to your preference, you might need some of the dashboard charts above others, and you want to reposition all of these. And even if you want to add more fields to it, how we can do that. So first of all, if we click on the Home tab, we can see the default dashboard right here, but it is set to the default configuration of total receivable total payables, cash flow, and some other income and expenses summary. And it's not much customizable because it is set by default. However, on our right, we can see the new dashboard option, and that is an amazing function in Zoo box that you can completely design your own dashboard here. Just click on the new dashboard, and let's name it as my dashboard. And if you want to define what that dashboard is about, you can do that as well. Share this with only me, only selected user or everyone. Let's make it for everyone. Click Save. And it will take you to a complete new panel with a blank screen where you can customize your own dashboard right from scratch. So for example, I want the total receivable here, so create the panel. I want total payable summary, income and expenses, reports, I want sales by customer. Sealed by customer time period starting from first of January till the current date, apply, and panel name should be seals by customer as well. Click next. You want to see line chart, Bhart or Pie Chart. Let's say I want to see it in Pie chart, save it. And that appears here. If you want to see some more details like build details, you can add it here. Time period. Let's set it to this year. Say it's Bill details, and you can mention it in description as well just to be quick. And you can add a line chart here or let's say, add a bar chart. Click Save. Purchases by vendors, you can create a new panel purchase by vendors. And it should be a bar chart. And there are many other things here, many other fields here. This is for report panels, and this is for all the predefined panels. So we can, let's say, add predefined panels as well. So now we have a customized dashboard with a lot of information. Let's say that we want to organize it now. First of all, I want to see sales by customers. So just hold it from the top, hold it from the dots, and move it anywhere you want. You can even reduce the size of that particular report if you want to or even increase the size like this. And let's do the same for ables. Let's say I want to see pables first and then receivables, and let's say I want to reduce the size of this report, and it should be after income and expenses. First should come top expenses. Top expenses field is a little bit bigger. So let's move it down. Let's move income and expenses up. So as you can see here, we can make many customizations and after that, just save changes. And the dashboard is updated. Let's close out of here. And now we see two panels. One is default dashboard, which is non customizable and the other one is M dashboard, which is fully customizable, and you can add many new fields here. So that's a very interesting function. And by the way, if you want to get rid of this dashboard whenever, you can just click on the settings. You can reorder the panels and adjust the size of it. You can edit the dashboard. Again, it will take you back to this screen. And otherwise, you can just click on the dashboard, delete option, and you can easily get rid of that. So that's how you can configure your own dashboard in Zuhu books. Just try this by yourself, and I'll see you in the next. 37. Invoice Template Customization: With you, we are going to see how we can customize the invoice template in Zhu books. So for example, if you want to customize any kind of template, not just invoice, on the top right corner, we see this Serings icon or this gear icon, click here. And from here, we need to locate the templates. So if you want to customize the Per of templates, here you have the customization tab where we have the PD of templates option. And from here, as you can see, the invoice template sales order templates and all the other templates are here for you to customize. So if you want to set up or edit an existing template, let's say you want to add a logo, you can do that as well. Or otherwise, what I prefer is to always clone for the default, and then you can make all the customizations. So I want to clone this, and the new template name is whatever is your company name, let's say Elite traders template. First of all, you can choose what should be the paper size. So whether it's letter A four, A five, I'll keep it to a four. Orientation should be portrait or landscape. You can choose that. You can choose the margin size on all the sides. So let's say you want the margin to be 0.5 and 0.5 for all. And you can refresh the preview to view it in real time. Now it looks like this. You can edit the font if you don't like the current one. We have a lot of fonts option. You can change the font color as well, font size as well. So all the customizations can be done, but I like the standard font, so I'll keep it as it is. Background image. You can choose any kind of background here. So let's say if you want to add any kind of headers that looks nice, you can add that choose from desktop. Now in the background, we can choose any kind of background that is suitable. Let's say that you want to be a little colorful or something like that. You can make that adjustments. You can set that image position. Let's say if you want to add a watermark here or something like that. So you can do that here. Okay, in the font, let me just make one adjustment in the template properties, basically. So from top, I'll just keep it to 0.8. Why? Because I want to add a header or a style here at the top. So click on Refresh preview, and now we have some space. So click Save. And as we can see here, this is the standard template, this is Eli readers template. Looks identical until now. Click Edit. Let's make some further customizations. As you can see here, this is just the first tab. Let's go to header and footer, and let's add a header. Click on Choose from Gallery, and we can add any header we like. Let's say I want the invoice to be a little fancy. You can just add this one right here. And again, refresh preview to see how it looks. It looks very, very nice. You can position it anywhere you like. Customize your header content. You can customize and write something of your own. Apply to the first page only or apply to every page. If you want this invoice that even if it goes beyond one page, this banner image or background image should follow. You can do that as well here. So let's set it. In the Footer, we have all such kind of adjustments. Let's choose from gallery. Let's say we want that to appear in Potter as well. So it looks something like this. If we refresh preview, it will look like this. So it's a very nice format. And same thing. You can customize it afterwards. Let's go to the transaction details to explore more about it. Let's say that I want to add a logo of our company. So click on Upload your files and make sure you have any kind of logo. I have this one right here. Let's add it. You can place it anywhere you want. You can resize that logo so that it can suit according to your thing. What you can also do is you can search a sample company logo on Google. Let's go to the tools as well and search for something that is let's go to the Advanced Search and let's use something which is free to use. Click on Advanced Search, and there we have some logos. Click on Images. And let's say that this one is my company logo. Save Image. Company logo. And now we cannot change it from here. We can change it from organizational profile. So let's go in that section. Click on the gear icon and click on profile here. And from here, we just delete this one and we upload a new logo, which is the one we have recently downloaded. It's not supported, so let's try any other one. This one is also nice. But that should be transparent. So I'll just go to the tools and just make it transparent. So these are some transparent options. Let's use this one. So it's a PNG. Let's upload that. Okay, that's fine. Now we will go to the gear icon again. Let me just refresh this. Go to the gear icon again, and under the customizations, click on P of Tempts, and let's continue the customization of Elite readers like Edit. And now the company logo is automatically adjusted. Just we have to resize this. Resize the logo. I'll just reduce the size of it. So now this looks nice. Okay, that's fine. After that, you can change the color scheme. Let's say if I change it to this. It changes some kind of color scheme until I apply this refresh the preview. Okay, changed the name font. Okay, it changes the name font color. Same, you can increase the font size if you want. You can add the customer details, customer name. You can change the color. You can change the font of the customer. So some people prefer to keep some kind of different colors here. Let's say like this and if you make it dark and if you apply this, it should be a different color let's make it light. Okay, right now, we cannot see any visible change here. But that's about the customer name. Okay, that's pretty basic. You can try around different options. I'll just go to the next section, and that is document details. Same goes here. If you want to change the document title to let's say right now it's invoice. Let's say that I have all the text invoices here, so I can change the title, refresh this, and now it's text invoice. And again, you have the option that if you want to eliminate some of the fields here, let's say I don't want the terms here to be shown, and let's say I don't want the reference number, we can eliminate this refresh preview to see it updated. It's very easy to customize all of these details in Zoo. So let me just um a couple of these and refresh, and as you can see, it appears right away. Let's go to the table. And the table wit, you can increase and decrease the sign of these line items. You can change the description item in description. Right now, it labels are as follows. But if you want to change it, let's say, this one should be serial number and not a hash. So serial dot should be this. Click here to refresh. Now it shows like this. Item in description, you can customize all of this. And if you want to include any particular field, let's say, I want to include the text field, text amount field, you can add both of these, and it should reflect like this. Now when it comes to total in the other field, you can add different totals here. You can show the total quantity column as well. Show amount in words. If you want to enable this, it's a very cool feature, refresh preview, and you will notice that the total amount in words is also shown here. So it's a very simple customization layout. You can explore these simple details. Notes, you can change the nodes labeled to something else or let's say disclaimer. If you want to add any kind of disclaimer here, it should show like this. Terms and conditions and all, if you want to add a signature, you can click on the signature. You can upload your signature. Now we can choose any of the signature here and we can write the full name of the signature, but you might be wondering why it's not showing here, but that's not a problem. Me just save this and let's create a new invoice. Let's say, I'll just go back here, go to Sales, click on invoice, and let's create a new invoice for a couple of items. And let's click on SVS draft. And let's click on Print PDF. And this is the standard template, right? I want to change to light reads template. And now it should look something like this with the signature shown right here perfectly. So this is how you can add the signature. You can obviously reduce the size of the signature. Let me just make the settings here. Just go to the customization again, click edit. And under the other details, we have this right here. So we can take the screenshot of lower size signature. Unfortunately, we are not able to change the size of it here, but it looks so cool, it looks something like this. An extra, if you want to add some terms and conditions to your invoice, you can add an extra content just by copying and pasting it right here. Most of the terms and conditions are copied and pasted, so you can generate some awesome terms and conditions by just looking or exploring some online website or even take the support of Chat GPT here. So click Save, and that's how we can make all of these customizations not only for invoice but for every template. Now, I want you to explore further details. Let's say that you want to customize any kind of credit notes, any kind of format for the bills. So just try this on sales order quotations, whatever, and I'll see you in the next one. 38. How to Manage Multiple Companies and Branches in Zoho: Video, we are going to see how we can set up a new organization in Zohuboks, especially if you are already working on your trial version on a single company. So let's say that if you want to open any new branch or manage multiple branches, how we can do that. So right now we are working on Elite traders, which is our current organization. So let's say we want to open up a new organization. So on the top right corner, we have the Elite traders name, and from here, we can see that this one is active right now because it shows with a tick sign. Under my organization, we only have one currently open. So click on Manage and from here, you can access all of your organization. You can go to the organization you are currently working on. You can just click on the three dots and leave the organization or even delete the company. And also on the right, we have this little blue icon which says new organization. So as you click on that, you can clone the existing settings or you can add a completely new organization. So let's clone the settings because this will preconfigure all the settings, but not the records. So click on Clone settings, and let's write the organization name as new branch, let's say, and the company that we want to clone is light traders. Choose the setting you wish to clone organizational profile, document templates, email templates, chart of accounts, and custom fields. So without data, all of these things will be clone. And that's a great thing, especially if you want to open a new branch with the same settings, with the same invoice templates, with the same email templates and chart of accounts. So click on Clone. It might take some time depending on your Internet speed. And once this is cloned, you need to refresh this or just wait for a while until it refreshes automatically. And here we have the new branch open. If you go to the accountant and click on Chart of Accounts, you will notice that we have all the things that we have configured intact on a new branch as well. So building at cost, accumulated depreciation of buildings you remember, these are all the chart of accounts that we set up along with the account codes. But if we go to salTen customers, we have no customers here because obviously in the new branch, the customers might be different, so they only copy the settings which are common for all the branches. So this is very cool and you can just click on the new branch and you can switch between organizations and manage all on a single place. And on the top right corner, if you click on this new branch option, we have different branches open right here, so we can manage all of them on a single place. And if you go to the manage option, we have this one as default settings. So whenever you access zero from scratch, it will always open litrators. But if you want to make this one as default company, you can just click on the three dots and make or mark this one as default. So that's how this system works. And even if you want to open a complete brand new organization, and click on New organization. Let's say that you want to practice on a separate project that's completely different from the existing ones, you can do that here as well. So this is how you can open many companies, many branches in Zohu books. Just try this by yourself, and I'll see you in the next one. 39. Setting Up Re Order Level in Zoho: Video, we are going to see how we can set up the reorder level for all the items so that we make sure always that we are not short of stock. And if we shot below a certain quantity, it should automatically notify you or prepare a sample order waiting for us to execute. So if you want to set a reorder level for particular items, you can just go to items tab here on the left hand corner. And we are in the new branch. So let's switch the company where we already have some stock let me just switch to Elite traders. We just click on Manage and click on GoTo Organization. And now we are in Elite traders. Let's go to items again, click on items. And here we already have some items. Stock on hand is 516 for Carula windscreen. So let's click on that. And if we want to set the reorder level on an existing item, we just need to click on this little pen icon, which is for Edit. So when we click on Edit, you should be able to see the reorder point in the track inventory for this item area, but if not, disclose out of here. And just click on the three dots in the more actions and click on preferences. Once we click on preferences, we need to enable two areas that is prevent stock from going below zero and click on Notify me if an items quantity reaches the reorder point. So enable both of these. What this will do is it will automatically activate the rederPoint field in the added inventory option. What we can also do is just click on show an out of stock warning when an item stock drops below zero just in case. So click Save Close settings. Go to the items again, click on the windscreen, click on Edit, again. And if we scroll down, now we are able to see the reorder point option. So for this particular inventory, let's make the reorder point to 400 pieces. Click Save. So right now, our stock on hand for this particular item is 516. What we can do is just click on sale, and let's make the sale of this item. And quantity should be 120, let's say. I'm setting to AlBt on the current date, and the item is Carla windscreen. And I'm selling 120 pieces. So save and send, click Send. And now if I go to items and click on items, stock on hand is 396 which is below 400 level. Now, we can see that even though the quantity falls below the reorder point, still it is unable to show the reorder report or any kind of recommendation, and neither it is giving any kind of notification here. So that's because this is the part of Advanced inventory options. And if you want to enable this, just close out of here. Just click on the three dots and click on preferences again. And here we click on this option. If you're looking for Advanced inventory management features, integrate the Zoo inventory. So click on Zoo Inventory. And I want to try Zoo inventory because this involves a lot of functions like advanced inventory management, back order, composite item, multiple warehouse management, and much more. So this looks nice. Click on Try Zoo Inventory. And we are already the part of the trial version, so it will automatically activate it as soon as you just click on it. It says, awesome, you're already signed in excess Zoo inventory. I want to join it in the Elite readers, and just click on all of this is already set. Click on Get Started, and it shows the welcome message. Show me around you if you want to explore it via Zoho guide or otherwise, just click on No thanks, I'll explore it. Now, if we click on inventory, we have a couple of more options. We have the options to create item groups as well. And now it shows the reorder level in a separate column, as you can see. The interface is a little bit different now. Let's try it on some other item now. Let's do it on previous rear lights. Click on Edit. And now the interface is also a little bit more advanced. We have the SKU stockkeping unit dimensions manufacturer, and many other fields are here. And also the opening stock, okay, right now, let's see the quantity on hand. So we have the stock on hand of 540. So let's make the reorder 0.2 500. Click Save. This is for rear lights. And now let's try to save any rear light. Click on invoices. Click plus, select any particular customer. This is previous rear lights, and we want to seal 50 quantity, and let's save and send. Add a person. I've added an email and click Send. Let's remove this placeholder and this percentage as well. Click Send. And that's it. Now, once we have done it, what we can do is just click on the items and click on all items to search for the low stock items. Now we have these filters. So you can mark this as favorites as well. So as we click on this low stock items, it will automatically recommend the ones which are below the reorder level or on the reorder level. Now if we also want to set the low stock item, preferred vendor, that means whenever the stock goes below a certain quantity or below the reorder level, it should automatically recommend the order in the vendors field in the vendors filter for the preferred vendor. So let's go to Edit again. And scroll down until you see this purchase option, and from here, just select Mr. Daniel, let's say, click Save. And now we go to purchases and click on vendors, we can also filter it from active vendors from reorder items vendor. So what we need to do is whenever it recommends something like this in this filter, just click here, and it shows that some items associated with this vendor are low in stock. I will automatically detect that and click on Order Now if you want to order. We just have to calculate the difference so that it can top up the low quantity. Let's say the re order level is 500 and the stock in hand is 490 right now, I will automatically calculate the quantity that you need to order. So after that, we just need to click on this and click on Add. And the new purchase order feed will be automatically filled with all the details along with the inventory and the quantity required. We just have to save this. Let's click on Save and send. Let's click on Save and select. And send. So this is how you can manage the inventory in a better way by managing the reorders levels by just activating the advanced inventory option. Just try this by yourself and I'll see you in the next one. 40. Creating Item Groups in Zoho Inventory: Video, we are going to see how we can create the item groups in Zoom inventory. So for that, you need the Advanced inventory option. If you have not already activated this, it's very simple to go to the items and click on these three dots and click on the preferences. And here you should be able to see in the bottom here to enable the Advanced inventory option. So once you're in here, you can just activate from there. You can refer to our previous video where I've shown you all the complete settings of it. So let's move forward. After that, you can see the item groups. And as we can see, there are a lot of functions that you can use here. You can use the price dis composite items, item groups, and items. So right now we are exploring this item groups here. So, let's say we have the garments business and we are selling t shirts. Now, the t shirts might be of different color, different sizes. How will we configure that all items and sizes combinations? Let's see. It's very easy with the item groups. Click on New Item group. So here we need to choose whether it's a goods or service. Here in this example, it's a group of T shirts, which is a good. If you want to mention any description, you can just enter it here, otherwise, just paste the same item group name. And if it is a returnable item, you have this option as well. After that, we just need to select the unit, which in this case is pieces. And after that, you can add the manufacturer if there is any specific manufacturer or a brand or the inventory valuation method. Let's set it to weighted average costing. And after that, if you have enabled the text option, you can make it taxable or non taxable, but in this case, I haven't activated the text option, so I'm not getting that. Now what you can do is we can create some amazing combinations just simply by creating the attributes and options. So let's say the first option to create multiple items in one go in a single click is, first of all, I'll just make an attribute of color. And let's say we have four options in here. Black Prestab white, Prestab or click anywhere. Blue and gray. Then we can add more attributes as well. For example, size. We for different sizes. That is small. We can also press comma to save the tag, medium, large. An Excel. After that, you can choose what kind of inventory it is. It is either an inventory or a non inventory. In this case, this is the items that we are planning to sell, so it's inventory. And as we can see, it has created all the possible combinations from this inventory. We have different colors with different sizes. So black is in small, black is in medium, black is in large, black is in Excel. Same goes for white, same goes for blue gray, so we don't have to create all of this. It will automatically set up all the combinations in here. Storekeeping unit, if you want to generate it on your own, you can do that. But otherwise, you can ask for the recommendations given by Zhu as well. Just click on SKU and you can choose or generate SKU like this. So click here, it will automatically create the suitable SKUs for each item with some combinations. So it will take the short key of T shirt is for S is for shirt, BLA is for black, SMA is for small. So this is a combination of the SKU. Now, in the cost price field, let's say, the cost is of $15. If the price is same for all the t shirts, just click on Copy to A, it will be transferred to all of this. It's that convenient. And let's say the selling price is 20, again, copy to all. Now, if you have different product codes like UPC, Universal Product code or international article number, international standard book number, so if you have these kind of configurations as well, you can fill it here. And you can set the reorder points as well. Let's say below ten, you should reorder, so you can do it in the same way. But I'll just skip this for now and click on Configure accounts, scroll down a little bit until you see this at the bottom. And we just need to set up where the safe goes, sale goes in sales, purchase goes in cost of sales and inventory account goes in inventory asset. Let's click on Save and the item group is created with all the possibilities of different combination in the t shirts. Now if we click on the item groups, we should see the T shirts as a main group and all the possible combinations here. And after that, in each item, you can just fill in the opening stock quantity, click on item groups, and sometimes you get this stock on hand field that is activated, but otherwise, just click here and click on the Edit option and you can place the opening stock for each. Okay, now that we have configured all the items, along with the different combinations, let's see if we can purchase it in the same combination or not. So if we just go to the purchases and directly go to Bills and we want to enter our purchases from a particular vendor, let's say, Anthony, on a specific date. Let's say the current date. And let's give any bill reference because these are the compulsory fields so I just need to enter that. And as you can see, we have all the combination options right here. So we can purchase any one of them. Let's say I want to purchase 100 of these T shirts black Excel, save as open. And now if we go to the inventory and click on item groups and track this, we have stock on hand of 100 in a single item. So all of these are set to zero, but this one is 100 in quantity. Now, if you want to sell this, it's black and Excel. I want to sell it to particular customer. I can do that as well. Black Excel. So I have 100. Let's say I am selling two shirts at 20. I can see sent. You can send the invoice as well. Just mention that click Send. Just we need to remove the placeholders. Sent. And after that, if we go to the reports and click on sales by item or let's say inventory summary, we can check any of the report, set it to this here, click on Run report, and we get all the report right here for stock on hand. So as you can see, it's a very detailed report that you can extract, and then you can also use this inventory summary sheet for audit purpose. It's a very clean sheet. So that's how you can create the item groups in a very effective way and can manage a huge inventory along with different combinations of sizes and colors and Zoho. Just try this by yourself, and I'll see you in the next one. 41. How to Switch From Zoho Inventory App Back to Zoho Books: Video, we are going to see how we can switch from Zoo inventory to Zoho books pack because as you can see that when we activated the Zoho inventory, we are able to see a different interface with a lot of different details or advanced details about the inventory, but we are not getting this banking and other accounts option where we can manage the chart of accounts. So basically, we are in a different app, which is a Zoho inventory. So to switch to Zoho accounts or Zoho books, what we can do is just click on the gear icon of settings from the top right corner and from here, just scroll all the way down to integrations and marketplace, and there we need to select accounting. And from here, we see this Zoho box option, click on excess Zoho Box. It might take some time to load that interface, and now we are back in Zoho box where we see these details of our existing company. So that's how you do it. Stry this by yourself, and I'll see you in the next one. 42. How to Reconcile Bank Accounts in Zoho Books: Video, we are going to see how we can reconcile the bank with our records so that if there is any discrepancy between the receipts and payments. We can see some of the receipts or payments in our records, but not in the bank statement, or we can see some of the bank records that we have not recorded. We can make these adjustments accordingly. So on our left hand corner, we have this banking section. From here, if we scroll down, we have cash, bank, and all these bank accounts here, basically. Whatever you want to reconcile, just click on that bank. And from here, you can add some of the transactions if you want to, like some expenses, some returns, card payments or anything if you already know about it. You can also import this statement, and then it will automatically reconcile or match the balances, and that's an amazing feature in Zoho. But we are going to see just the manual procedure. After that, just click on the settings or gear icon and click on Reconcile the accounts. Here, we just click on Reconcile now, and it's just guiding you what you need to do. Click on Reconcile now. We just need to enter the start date from the period you want to reconcile, enter the start date end date and what the closing balance should be according to the bank statement. So let's say the bank statement shows the total balance of 250,000. After that, just click on start reconciliation. And here is the difference amount. So let's say that we found this balance, this is whatever deposit or receipt. So let's say that we found it in the bank statement, we will just click on that. So let's say this balance is 16 47,000. I'm just taking an example so that we can easily match that and click on Start reconciliation. And what we need to do is just hold your bank statement, whether it's in the period form or in a paper form, and just match the balances one by one. Let's say, whatever is the deposit shown in your bank statement and you can see in your records as well, you can just select that this one is clear. And it will be shown in the cleared amount, and same goes for the payments. Right now, I only have a few transactions, so I can show you the example of only that. Just match it with your bank statement, and let's say we found this kind of payment as well, and now the difference is zero. Now, it's not necessarily that every time the difference will be zero, there will be difference. In that case, you can just add the transaction. If there is a deposit or withdrawal that you feel is missing, that is recorded in the bank statement, but you accidentally didn't record it in your records. Or sometimes these are some kind of charges that you only know when you see the actual bank statement. So that might be some of the cases where you can add it by just looking at the bank statement and you can do that. Also, it's not necessary that each of the balance should match. Sometimes there is a timing difference. That means you have make the payment, but since the vendor has not deposited it in their bank, so it's not cleared from the bank yet. So that might be timing difference. In that case, if you want to match it to zero, you just need to uncheck that particular transaction because it is not presented in the bank yet. So after doing all of this, just click on the reconcile button. And there it should show you the reconciliation period is done. And if you want to see the details or print the reconciliation sheet, you can print it like this, and it will show us this reconciliation summary. So that's a mini version of it because I only had two transactions, but otherwise, you can just explore if you have a lot of transactions. You can just practice it on here. Just try doing different things. Let's say United Bank limited. We have this gear icon. We can click on Reconcile Report, start with reconciliation, and we can specify the period, let's say, from first of January till the current date. And let's say the bank statement closing balance is 65,000. So click on start reconciliation, and we have a couple of balances right here, and you can do the same for other banks as well. But the procedure is pretty much the same Now, I want you to try it by yourself. Just enter a couple of payments and receipts so that you can see even more transactions. So just try this by yourself, and I'll see you in the next one. 43. Creating Price Lists: Video, we are going to learn about the price list and how you can apply different price list of the same item. Let's say, in a different season in winter season, you increase the price of sweaters and in the summers, you reduce the price of it. So the same product is here, but you can increase or decrease the prices. And same goes for customer. Let's say that you have three type of customers, the retail customer, wholesale customers, and the cash customer. So we are charging for the same product, but the different amounts. The wholesale customer will be buying from us in bulk you might be offering different discounts policies or different rates to them. So that's what price list is all about. First of all, we need to enable the price list. By default in Zoox, it's not enable, click on the settings from the top right. And from the items section, just click on the items. And here it says, enable the price list, apply price list at line item level. So what we can do is we can apply for each line item, for each item separately in a bill. So we want that as well. Click on SAFE. And let's go back by just clicking on the Zoho Box icon. And if we go to the items now, we have the price list feature here enabled. Just go in here. After that, just click on the price list, and here we have the new price list option. Just click here. Now, let's see that we are offering some kind of seasonal discount. On all of our products. So we are offering the discount on sales for all items, and we can copy and paste the same description or you can define the seasonal discount even further and the percentage. We can mark up or mark down by certain percentage. So let's say that we are offering 25% of discount. If you want to round off to a specific nearest whole number or nearest decimal place, you can do that, or otherwise, you can keep it as it is. So I'll set it to never mind. Click on C and after that, whenever you want to apply it on any sale, for example, I'll need to go to invoice, click on plus, and let's say we are making the sale to an existing customer on the current date, but we want to select a price list. Right now, the CRLa windscreen price is shown as 500, but let me just close it. And let's apply the seasonal discount of 25%. So now if we select CRLla windscreen, it will offer this in 375. So this way, it will be very easy to manage. Whenever your discount offer is on, you can just simply apply the price list on the invoice, and it should automatically discount all the products here. Now, this is not only applicable in the discount policy where you offer seasonal discounts. You can also make the customized price list for each type of customer. I'll just go to the price list and click on new. Let's say that I want to sell to wholesale customers. For all items, I'll sell to wholesale customers, 20% less at 20% less prices, save click New. I have retail customers, retail customers, let's say, 5% or 0% markup. That means at the current rate, safe and we have some export customers. Let's say to them, we sell all items and charge the markup or increase of 15% off rate. So click Save. And now we can attach this to the customers as well. Just let's go to the customer and create sample customer. I'll just write sample wholesale Limited. Let's say this is our sample customer. I'll keep rest of all settings as it is. But let's just apply the price list of the wholesale customers here so that we don't have to choose this and this will also make sure that you don't make any kind of mistake. So click on Save. Now, whenever we create the invoice for this particular customer, the price list will automatically be selected to the wholesale prices. So this is wholesale customer. And as we can see, the price list is already selected. Now, whatever item we will select, it will always be at a 20% discount. Same goes for the retail customers and export customers that whenever you create any particular new customer, you can just attach the prices. Let's do it again. Export Limited, and we can attach the price list of export customers here. So click on Save. Not only that, you can change the price list attached to existing customers at Well, click on the customer and click on Edit and you can edit it from here. Also, we do have an option to make customized price adjustments to each product. I'll just create a new price list, and let's say custom prices on sales, but it's not applicable to all items for a certain markup or certain price. I need to apply it manually to individual items. So maybe for one item, it should be a 20% discount for other item. It should be a little bit different. So T shirts white. Let's say we are offering this for 15. For this one, we are offering it for 12, just because it is less in demand, or maybe for this one, we are offering it for 350. So you can write all of these prices on your own. Or you can make it on volume pricing or unit prices. I'll just keep it to unit prices. And if you want to offer discount on a certain percentage, you can add this column and you can offer the discount here. So that's about unit pricing. If we change it to volume pricing, it's also a very useful feature that means that if the persons buys 1-5, the custom rate would be this and if they bought 6-10 items, the custom rate would do that, and 11 to 20, you can define custom rates based on the quantity they are buying. So this is especially very useful for the wholesale customers where they are buying from you in bulk. So that's about it. Now, I want you to create all of these price list for the example of a seasonal discount and for retail customer export customers and wholesale customers, create an item and offer different customers at different prices and just try to create invoices by yourself, and I'll see you in the next one. 44. Managing Landed Costs in Zoho Books: Video, we are going to see how we can manage the landed cost in Zohuooks and that's an amazing feature, which you will not find in many online browser based accounting software or many cloud accounting software because this one is the part of all the ERP systems, like you normally find it in SAP or ECL and stuff like that, especially if you are managing any kind of imports and you are ordering the items from other countries, there might be a lot of cost involved beyond the actual product price. So the lended cost means the total cost of the product once it has arrived the buyer's location. It includes not just the purchase price, but all the cost involved in getting the product to your warehouse, basically. So the common example of this is, let's say that you are importing thousands units of mobile phones, accessories from China to Pakistan. So the product cost is $10,000 for 1,000 units, but we have the ocean freight of 1,500. We have marine insurance, we have custom duties, we have port handling charges, we have clearing agent fees, bank charges, transport to warehouse. So the lended cost of the import of 1,000 units till it reaches your warehouse would be 14.3. 14,300 is the total cost, not 10,000. So all of this cost will be added up, divided by 1,000 units, so 14.30 per unit will be the added cost. Let's see how we can manage these kind of advanced scenarios in ZO. So first of all, guys, we need to enable this advanced feature because it is not enabled by default. Just click on the top right corner in settings and just go to the items section, click on items. And here we just need to scroll down until we see this track landed cost on items option. Just click here and click on Safe. Now let's close settings. And now let's learn how we can add this landed cost into your bill. So go to purchases and click on Bills and click on New Bill. Let's select any vendor, select any bill reference and bill date. Now, let's add the item. What we will do is we will follow this particular examples here where we are importing the mobile phone accessories. So I'll just create a generalized item of mobile phone accessories, add item. This is a product. So mobile phone accessories unit is in pieces, selling price we don't know yet, but I'll just mention it as 20, let's say, per unit, and the cost should be ten, the original cost because thousand units for 10,000 initial product price, 10000/1000 is $10. Goes in cost of goods sold. Here, we just mentioned description as same. Track this inventory item. Inventory item. Inventory account goes to inventory asset while the inventory valuation method goes to weighted average costing. You can mention any kind of opening stock if you want, but I'll just keep it as it is. Click Save. And now our item is created, which goes straight into the inventory when we buy stuff, and I'm importing 10,000 quantity. Okay, guys, this one is a foreign vendor. So let's create a local vendor. Let's invoice this one. 10,000 units at $10 each. After that, we just click on Add Landed cost. So add landed cost. The cost details are these. Ocean freight you can select an account. Now, I will choose all of these as cost of goods sold. Some people make it directly the part of inventory. You can do that as well. So let's say it should go straight into the inventory asset I guess. Now, in the account, some people prefer to keep it in cost of goods sold, but I prefer to keep it in inventory asset because this is the actual cost when it reaches your premises, right? So I'll just mention it as 1,500 in total. Just mention the rate here. We'll consider the quantity as one because this is a single import charges for all the products. Just add a landed cost again. Notice you don't need to create the items of this landed cost. We just mentioned it straightaway and we put it in the specific ledger if you want. 200 is the charges here. At a landed cost again. Custom duties is 15%. Just mention that. StretlyGes in inventory asset. 1,500 total charge, add a landed cost again, port handling charges. I'm filling it all so that you can get a better idea of what can be involved, and I want you to consider a practical scenario here. That's why we are adding all of these items to make sure we get the per unit price of 14.3. Clearing agent fees goes in inventory cost 250. Add a landed cost again. Local transport to warehouse. So not only this involves the clearing and custom duties, it involves the local transport as well. Let's mention 400 here, Adand cost again. And finally, we have some kind of bank charges here. Goes in inventory asset, and the total charge is 150. Okay, this is thousand in quantity. So the total is 14,300, same as we have it here. After that, just clicon save as open and apply landed cost. Look here. Now, it says here, item field under stock account cannot be empty. So I guess this is the mistake with account. We can categorize it as cost of goods sold. That's also fine. Let's make it cost of goods sold for all. And now let's save it as landed cost. The bill is now saved. Now we can apply on allocation method based on the quantity for all the items. So it's not just this one, it's for all the items. According to the thousand units, save in next, save in next. Again, save in next. It's basically applying the complete duties based on 1,000 units so that they can allocate the final cost of the total product. Save in next. Save in next and click on Save. Now, if we go to the items after that, we can see that right now the purchase rate is $10, but the lended cost is not mentioned here. What we can do is just create an invoice for a single item. We sell this item to any specific customer. Let's say to Albert on the current date, and we are selling mobile phone accessories. Selling it for $20, and the quantity is one only. Click on Save and send. I just want to check whether it charges according to 14.3, which is our actual landed cost or not. So when we click on Send, just make sure you select any email. And after that, this bill is recorded like this. So if you want to check the journal entry effect, just click on the three dots and click on View journal. If it doesn't show here, just go to the reports. And click on the favorite section I've already saived as general report, but you can search it here. General reports. And as we can see, this is the entry of 20 June. Invoice is zero tetra 012 for Albert. We have sold the item for $20, so account receivable is $20, sale is of $20, and the cost of goods sold, it automatically read it according to the landed cost because this is what caused us to import these items. Not $10, it is charging it and reducing it from inventory as it has 14.3 and also charging it as cost of goods sold for 14.3. So that's a perfect example on how you can deal with the landed cost. In Zoho books, that's a very interesting feature that you need to learn about. Destry this by yourself, and I'll see you in the next one. 45. Managing Drop Shipping Business in Zoho Books: This video, we are going to see how we can manage the drop shipping business in Zoho books very conveniently. So if you have an e Commerce website, you have a Shopify store or even an online Wordpress store, where you simply list some of the products that you source from a particular vendor, you don't have an inventory, and you just want to sell it and maintain all of your accounts. So Zoho books is perfect for that. And I have created a full drop shipping example here. That you are running an online shop, the customer buys Bluetooth headphone from your website at $150, but you don't have any stock here. Instead, you contact your supplier, buy the product for $90, and the supplier ships it directly to your customer. So just you mentioned the shipping address of the customer when you buy it from the supplier, and you are good to go, the supplier will directly ship that items to the customer. So you get paid $150 from the customer. You pay $90 to the supplier. So you have this kind of cash inflow here or profit or loss here, your gross profit will be $60. So here is how the profit and loss account looks like and how the cash flow statement and all this looks like. By the way, guys, if you want to download this project and follow along, you can check the resources section of this video and just download this to follow. But not only that, sometimes you are short of inventory. And your business is not basically a drop shipping business, but sometimes the customer orders something that you don't have. So you just directly order it from the vendor and just ask the vendor to deliver the goods. So in that business, even though you are not in the drop shipping business, this also works there as well. So with this set, let's see the example of drop shipping. First of all, what we need to do is just create the item or just simply go to the sales order. Let's go to Sales and click on Sales Order here and click on New Sales Order. Let's say our customer is website customer. And all the fields, I'll keep it as it is just simply click on Save. And the order number is this automatically generated. SLS order deed is current deed. Expected chip in deed, you can mention that here. Or let's keep it simple and make the same date delivery. Delivery method, you can choose any delivery method salesperson, if you like, and just create a simple sales order, but I need to follow this particular project, so Bluetooth headphone is the item that we need to create here. I need to add a new item. Blowtooth headphones. Pieces, sale price is $150, buying price is $90, and we will just mention the same name on both fields. We need to track this inventory. However, if we don't track the inventory, that's also fine. You don't hold any kind of inventory in the drop shipping business. But I'll just mention it here. Click on Save. And here is the item. Customer orders one headphone for $50, and we'll click on Save and send. We just need to add a contact person here. Otherwise it will save it as a draft. Order. We just enter email here. Make sure all the fields are filled so that you can click on Send. After that, the order is created and you will be redirected to the screen. This is the order. We will just select that. And here we just need to click on the street dots and find the drop shipping area. But unfortunately, we don't have it here. What we need to do is just configure some of the settings, click on the settings, go to items, and we have some fields to be activated here, but nothing like drop shipping. So this means that we need to convert the app. Go to the settings. Right now we are in Zoho books. Let me just show you we are in Zoho books, as you can see here. We need to shift to the app of Zoo inventory, and it's very simple just go to settings on the gear icon, go to Zoho apps. And we have Zoho inventory, which is already active right here, we just need to access it. Now we are in Zoho inventory, just go to sales and our order is automatically there already. But just to notice that we have a lot of features now in the sales, we have the packages, shipments, and all the other stuff. So just good the sales order, and here is the order. If we now click on the three dots, we have the dropship option right here. Click on that. And it shows you that do you want to drop ship partially or fully? So I'll just click on complete drop shipment because we are sourcing the complete product from the supplier, and we only have one item. Just click here. Click on. But before that, let's read this. You are converting the sales order into a purchase order. This means that immediately when you drop ship, the sales order is automatically created to purchase order and you just directly order it from vendor, and that's pretty much it. Do you want to copy this to a new purchase order? Yes. And we have the new purchase order here. We just have to fill in the supplier. Let's make a new supplier. And let's right here, source supplier. Right? Sourcing company. Whatever is the sourcing company, I'll just write it here. And just to keep it simple, I'll not fill all of the other tags or other fields. Click Save. So this is my source supplier, and we don't have any open purchase orders here. We are creating one right now. So it's of Bluetooth headphones, but we are sourcing it for $90 as we have configured in the inventory before. And in the shipment preferences, you can mention the details about the customer, and in the shipping address, we will mention the customer address here. Okay? So billing address will be ours, shipping address will be the customer's one so that it can be directly supplied to the customer. Just click on Sven Sen here and just need to select any particular email, write here an email. And click on Send, attach Purchase Order PDF. And now the purchase order is created. We can just directly convert it to Bill as well so that it can hit the accounts. Same thing. Mention the reference or any compulsory field if necessary, click on Save as open and we can also record the payment made to the supplier right away. It's $90. So all set, we just have to click on Save as pad. Now, once we have completed the purchase process from the source supplier, we can immediately go to the sales and click on the sales order, and now you just convert this drop shipped sales order into a sales invoice. Just click here. It's already drop ship, and we just need to convert it to invoice. Just open it up and click on Convert to invoice. And you don't particularly make any changes here, click on Save and Send and just notice that we have zero stock here. We just buy it from the supplier and supply it to the customers. Click on Save and Send. So we don't have any stock Antle can proceed. Let's replace the placeholder here. Just remove this, and we need to mention email here. Now, if you want to filter all the dropshiped orders, you just go to the sales order, and instead of all orders, you can just click on any one of them. So let's say dropship. You might have the filter here as well. Dropship. So this one is drop shipped, and same goes for the purchases. If you have any purchase orders that under drop shipping, we can filter it here as well. So let's look for the 20th June profit and loss account. If we go to the profit and loss account, we just search it here. Okay, we can't find it here because we are in the inventory module. But if we go to that area, we will find that the profit of $60 is made. So we can check that later on. Okay, let's go to the items here, and under the Bluetooth headphones, we have the zero stock here. But if we click on this and click on transactions, we will see the order is closed and fulfilled and all set. H. Let's switch the app to Zo accounts. Click on the settings. Click on the accounting in the integration and marketplace. And let's access Zo box now. And here we can check the reports. Profit and losses there. Let's set it to today's date like CranRport. We have made the sales of 170. I'll remove the extra ones for now. Let's click on Delete here. Okay. Let's access this again for the current date. So we have made the sales of $50 against the headphone today, and the cost of goods sold is 90. So we have made the profit of 60 here. The perfect example of drop shipping, and that's how you can easily manage all the e commerce businesses, all the shop AFI kind of businesses, unlike all the other softwares until and unless you use ERB systems. But here in Zoho, we have a lot of integrations for advanced functionality based on different apps here. So not only this inventory is very helpful, go to the settings and you can see that if you click on Zoho apps, there is a lot of apps here. You can attach to CRM so that you can maintain your customers in a better way. You can manage many projects here. We have, many functionality here, but right now we are in the Zoho book training basically. But still, I've shown you how we can manage this kind of advanced functions. Practice this by yourself and I'll see you in the next one. 46. Master Budgeting in Zoho Books: Video, we are going to see how we can manage the budgets in Zoho books, and that's a very interesting feature, especially if you want to plan your business in advance, how it is going to perform based on different parameters. So budget can be found in the accounting section, click on the budgets here. But for the budget to be created, we need a practical example, and this is this one where we are considering that ABC is a digital marketing business, which wants to plan for the monthly budget with growth in 2025. So they are providing different services, social media servicing, like social media management, and they plan to grow 3% per month in that. They are also providing SU services and graphic design services, and they have planned the growth at 5% and 1% per month. So these are some of the targets. These are the growth rates, and these are the sales forecast for each month. Similarly, they have some kind of expenses here, and they have also planned in percentage for these ones. Offers rent would be intact. Some of them would be intact, like the software subscriptions, Miscellaneous, they are not going to change, but the salaries, they are planning to give more salaries or more commissions based on the targets reached, and also utility bills will increase and advertising and budgeting and advertising and marketing will increase as well if you want to increase the sales, obviously. So this is the complete practical scenario, and you can find this with the resources section of this video. So let's get started. Just click on this budgets from the accountant section and click on Create a budget. Here, we just choose the budget name and just right here, ABC Digital Marketing budget for 2025. We're going to set the period from January to December 2025, and the budget should be of monthly targets. As we can see here, it's monthly targets, but we can set quarterly budgets, yearly budgets, whatever your company likes. And we need to add some of the accounts here. We'll click on AD accounts, and there is only some kind of accounts that is created here. And also for expenses, we don't have much here. So first of all, let's cancel out of here. Leave when this card changes. Let's quickly create some chart of accounts based on these parameters. Let's go to chart of accounts because I want to show you a complete practical example here. So let's create few accounts. First of all, we have one income account income. This is our direct income, not the other income. And account code, I'll just sign that social media management New account again. It's an income account, and it will be SU services. Just space it in the description as well. Save and create a new one which is, again, of income, and we write graphic designing services here. So graphic design, save. Income accounts are all created, and then we need to make sure that we have all of these expenses available as well. So we have salaries and wages. Let's go to the expenses section. Or let's say that we create all of them separately so that we can track them as well. Salaries and wages, I'll just write here for budget with each so that we can separate it. Let's write for budget. We'll only use these ones. Save. We have office rent. Just take it in expenses, and it's for budget. You don't have to write this for budget for each ledger, but since I'm using this example in an other company where we have maintained some accounts and already placed some entries in particular ledgers, so I just want to keep it separate. Otherwise, you don't have to write this. Like, save, you'll just use your main accounts, utilities, oh F budget. Let's copy and paste it here, safeneext one is software subscriptions for budget. Copy and paste it here. Again, expense. Advertising and marketing. Let's write for budget. Paste it here, save. And the final one we have is miscellaneous cost. Copy and paste it here, save. Let's go back now. Go to the accounting tab and click on budgets now, create a budget. Again, we have to write ABC budget. 2025, fiscal year is already selected. We can select different periods for which you are planning. Let's say if you're planning ahead for the future, you can plan it for 2026 as well. So let's create the monthly budget and add some income accounts. Here we have all of these services now. Let's configure it according to that. Social media management, here it is. We have SU services, here it is, and we have graphic design services. Graphic design, here it is. Click on Update. All of them are added. Let's go and do the same for expenses. So for expenses, we have the salaries and wages for budget, office rent, office rent for budget, utilities, utilities for budget, software subscriptions for budget. We have advertising and marketing. And we have miscellaneous expenses or budget. Click Update, and all of them are added. Click on Create budget. And here we need to fill all of these details. Now, we have the choice either we can manually fill all of these or we can use the feature of auto fill here. So let's take an example of the first service, according to this project. And that is social media services. Initially, we start from 4,000 for the January month. Social media management. So let's add 4,000 here. Now, the growth rate of social media management is planned at 3% monthly. So it's our choice if we want to fill all of these details manually, or we can use the auto fill feature for that. So let's say for the social media services, first is 4,000 and the growth rate is 3%, right? So 4120 should be the sale in February, then March, then April. So it should be this way. But if we fill all of these details manually, it might take a lot of time. So we click on autofill here and apply a fixed amount for each period. I'll just select that. But instead, we don't want to apply a fixed amount. We want to apply a fixed adjustment percentage. So the growth rate is planned at 3%, right? Add the amount calculated from the percentage to each period existing amount because the growth rate is always planned on the new figure. But it shows an example that it will make the genre as 4120. We don't want that. So let's click on the first period and the first period amount is 4,000. Just fill in that first and it will show you the preview before adding as well. 4120 for the second month, 4,243.6 exactly matches this 4,370.9 for Apple. All good. Click Apply. And automatically, these all fields will be filled right away. How cool is that? Same thing. Let's go for SU services, and the growth rate is planned at 5%. So SU services click here, adjustment percentage is 5% from the first period, and the initial amount is 3,000 et's review it before saving. So first month it's 3,000 315-03-3073 427.8. All good. Apply, and automatically all will be filled. Just do it in the same way for graphic design, adjustment percentage. It's at 1%. First period amount needs to be mentioned that is 2000 2000 2020 2040, and similar thing goes on. So apply. And as you can see, all the budget is created for a complete entire year based on the autofill options right away. By the way, guys, if you click on autofill options, we have many options here. Apply a fixed amount each period. That means if the growth is planned for, let's say, in amount, it should be 2000. Let's do an example of expenses, and then I'll show you the revised version. So let's say that we have gradually planned to increase our advertising and marketing expenses in a certain amount and not the percentage. I'm just showing you an example, not following it according to this project, just showing you the other options of what we have in budgets. So click on autofil options, and let's say that I want it to be adjustment amount. So the first period amount is, let's say we have initially planned to spend a monthly budget on advertising of $1,000, and it should be increased each month with 500. So I'll just fill 500 here, so it should show something like this. First month, the budget is 1,000, then second month it's 1,500, then 2000 2,500, and let's apply to see it for all months. So up till December, it always increases it with 500 each month, so we reaches up to 6,500 by the end of December. So this could be done as well, but we are just falling our project. So let's move. So let's move back to the scenario where the salaries and wages are planned to increase at 2% per month. Let's leave it as it is. Go to salaries and wages, auto fill. It's by percentage, adjustment percentage is this. First salary. We need to see the first salary amount. That is 3,000 3,000 plan to be increased at 2% per month. So 2% per month should be increasing, and we need to see these columns right here. In the Gen it should show 3,000 then 3,060 then 3121. Then 3121, and then 3183. All good. Perfect. Click on apply and it should fill all of these projections or budget up till December. That's good. Next one we have is office rent, which is fixed. $800 per month, and it's fixed and it's practical. So click on autofill. Apply a fixed amount for each period. I'll just fill it with 800 for all months and click on Apply and it will be filled right away. So up till now, you can see that how amazing options do we have to create the budget easily in ZO. Miscellaneous expenses are 100 initially, and let's say that they are fixed. So we just keep the budget of some extra expenses, and it's a fixed amount of 100 each month. Click Apply. Next one is utilities. So utilities, autofilO percent per month should be increasing. Adjustment percentage, 1% per month will be increasing and the first amount of the utilities is 150. So 150 next month, it should be 151, 153.02, 154.55 all good, matching with the assignment. Next year, software subscriptions and software subscriptions are fixed. So let's click on autofill here. Adjustment amount. Apply a fixed amount for each period. Let's choose that. Software subscriptions. So it is 200 every month. Just fill it, click on Apply, and we're good to go. Advertising in marketing is planned at 5% per month. So click on that adjustment percent date. 5% per month is expected to increase, and the first month budget is 500. 500. So next month, it should be 525, then 551, then 578, all matching with our project, click on Apply and we are good to go. Miscellaneous is already set, so I guess nothing is left here. Already set. And also, we can match it with total expenses. For January, it should be 4750. For January, it is 4750, 436 for February, 4,836.504 925,475,017.98. So it is matching each and everything. Click on SAFE