Invoice Created From Check Created From Purchase Order 7180 QuickBooks Pro Plus Desktop 2022

QuickBooks Pro Plus desktop 2022 invoice created from check created from Purchase Order. Get ready because we bookkeeping pros are moving up to hilltop with QuickBooks Pro Plus desktop 2022. Here we are in our geek rake guitars practice file going through the setup process with a view drop down the open windows list on the left hand side company dropped down home page to the middle maximizing the homepage with a great area of reports drop down company and financial take a look at that balance sheet standard report customizing it range change a 1012 to 1231 to two and fonts and the numbers change in that font to the size of 14.


Okay, yes, please. And okay, doing it again. Reports drop down company and financials profit and loss this time range change a 1012 to 1231 to two, customizing the report with the fonts and the numbers change in that font size to 14. And okay, yes, please add Okay, one more time reports drop down accounting and taxes this time for the trusty TB otherwise known as the trial balance range, change a 1012 to 1231 to two customize in that report fonts and the numbers with the font size of 14.



Okay, yes, please. And okay. So now let’s go back on over to the home page and prior presentations we went through and we started off looking at the inventory cycle of going through the purchasing cycle and then turning around to the customer cycle. One good way to see that is for us to assign a customer as we go through the process. So our imagination saying here where imagine a customer came into the shop, they said hey,



I’d like this particular guitar or this few guitars, we don’t have those in the shop at this point, we will request them from our vendor, we did so with our purchase orders here, assigning a particular customer to the purchase order not because the vendor cares who we’re going to be selling to but because that helps us to track through the process to turn around once the guitars are received and sell them to the customer with an invoice or sales receipt, then we got the inventory.



Oftentimes we might enter a bill but we entered the cheque payment form at that point in time recording the inventory the check then, from the purchase order showing the fact that we had a particular customer that we bought the inventory for. And now we’re going to be using that information to populate the invoice that we’re going to turn around now. Calling the customer said, Hey, we got your guitar, we’re going to be applying it out and give you that guitar.



Let’s see if we could follow that process by going to the vendor drop down and the vendor center and see if we’re going to maximize or increase the size of our vendors. And we bought some items from Epiphone, for example. And I can see here the activities. So we got the purchase orders and the purchase orders and then a check here up top. So if I was to another way we can look at this is to go to the transactions. And we might say look at the purchase orders.



And I want to say I want to look at all the orders if I go to all the purchase orders. Here’s our list of the purchase orders a couple of these items we had assigned a customer to so for example, if I went to Epiphone here and open up the purchase order, you can see here we assigned it to a customer called Eric music, not because Epiphone cares about it, but because that will allow us to follow it through the process. As we go through the receiving of the inventory, this being just simply the request for the inventory.



Then we had another one where we had the Gibson, USA, this one, we didn’t have a customer, and then this one here, we had a customer for music stuff store for this one, then we paid off the purchase orders with a check after having received them. So if I go to the checks items down below, we see the checks that we have here, and we have some to Epiphone for example, if I double click on that item, for the checking, we could see that this was in order to to pay off for the inventory items that was tied to the purchase orders in order to track that across to the check and if I scroll down here, I’ve got these two items that are checked off as billable.



That’s because it was done automatically pulling this information from the purchase order, which we had said on the purchase order that we purchased it directly for a customer for these two items. Now when I go to the invoice, then it’s going to show that these two items are available to be populated automatically. So now I can say okay, now I have the inventory I can turn around and sell it to the customers for Eric music here. So let’s do that I’m going to close this back out, we’re going to go to the Home tab. And let’s say that we’re going to go to an invoice now.



So we’ve done this we’ve received it, which is basically down here receiving the inventory, in essence, and now we’re going to turn around to the sales side and sell the inventory. Go into the Create Invoice to do so we can hit the drop down to see the customer. So we could just type in ERIC music, it starts to populate as it does, I’m just going to hit tab. And then we get this pop up the pop up says the customer or job you selected has outstanding billable time and or costs. Do you want to select the outstanding billable time and cost to add to this invoice, exclude outstanding billable time we’re going to select it, I’m going to say OK, then.



And so now it’s got these tabs up top, which can be a little bit confusing, because you’re going to say there’s nothing here what is going on, but you got the time, time would be allocated. If we were using the time tracking in the system and applying out the billable hours, as we might do in like a job cost system for a bookkeeping service, or for a law firm, which is desert which is set up like as a partnership. And then you might have all the staff that’s working for you and you allocate the time out. And that way expenses would be the expense items.



If we enter an expense, then they would be popping up here. The mileage is another kind of billable item that we might be tracking through the system. And we’re looking at the items here, which is nice that they have this set up, because now I can track this over with that billable quote billable kind of items. But they’re not pulling it over at the cost what we paid for it, it’s using the item now to apply out the actual sales price that we want to sell it for.



So I’m going to check these both both off, or you could say select all and then say okay, and it pulls over those billable items nicely. And so now we have the standard invoice process that we populated in connection to basically the billable the billable item, let’s make this as of the date, oh one, let’s say let’s say 23, I’m not sure exactly where we were 22. Let’s do that. And then tabbing through everything else looks the same, we might want to change the terms, let’s just say net 30 on the terms.



And then there’s our inventory items. So now what’s this going to do when we post it I’m going to say this quickly, because we’ve seen it before. But just to recap, this is what I would do every time you post something what’s going to be the impact on the financials, it’s an invoice. Therefore accounts receivable, it’s going to go up by the full amount for 30,004 50 Other side is going to go to the sales account and revenue or income account driven by the items for the amount of the 25,000 and the 4000, not including the sales tax, the difference is going to go to the payable of sales tax for the 1004 50.



There’s also going to be a decrease in the inventory for an amount not on the invoice but driven by the item. So it knows to do it on a perpetual system. The other side going to cost of goods sold will also have an impact on the sub ledger supporting the accounts receivable for the customer of Eric music for the 30,004 50. And we’ll have a sub ledger for the inventory tracking the units that are being impacted here as well. Let’s save it and close it and then we’ll check it out. saving it and closing it I’m going to close this because I don’t want to email it I’m not actually going to send it here, save it and close it again.



And I’m going to say yes, and let’s go to the trial balance the trial balance to trust the t be accounts receivable double clicking on it, we’ve got an increase there of the 30,004 50 that’s the full amount on the invoice 30,004 50 Other side going then to sales closing this and that down below 39 107 on the sales side broken out into separate items, but both those items on the same invoice not including the sales tax here closing that out.



Closing that out the payables the difference, here’s the sales tax payable there’s the difference in the sales tax pay of bowl, the inventory is going to be going down. As we can see up top in the inventory asset. It’s going to be on decrease for the invoice closing it out other side going to the cost of the goods that are sold the expense account related to us consuming the goods to generate the revenue. Now these amounts on inventory cost to get sold the 20 and the 3002 are not actually on the invoice but are driven by the item.



Closing this back out closing this back out we also know that there’s going to be a sub account for the accounts receivable which we could have a sub report for company and financials customers and receivable customer balance detail. We’re looking at the detail for Eric Music There’s the amount there’s the total amount of 30,006 7150 times out to the trial balance at the 38 671 50. We also know the inventory should have a another sub ledger reports drop down company, not company inventory, look looking at the inventory valuation summary, which now totals then if we change the date to 1231, two to two, the total that’s left here, the 15 678,



which should tie out to the trusty T be the 15 6782. There’s a lot of action on the invoice. Most people think it’s a fairly basic kind of thing a lot of action on especially if there’s inventory involved. Let’s do it again. Can we do it again, we sure can. So that we are the other one that went through the purchase order to the end to the receiving of the inventory, we wrote with a check. And then we’re going to have the invoice that we’re going to create that’s going to tie out to it. Let’s see if we could find it this time, just so we can look it up this way the purchase order.



If I go back and say this one was for music stuffs store was the customer. I don’t have too many of it. There it is. So this one, this is the one that we’ve got this time and we assigned it to this customer. And then we paid for it. So that was for the Gibson, then we paid for it with a check down here to Gibson, if I just go back to Gibson check, so then we paid for it. And this item we marked off as billable to the customer of music stuff store.



And now we’ve got the guitar, or the five of them, however, whatever 10 guitars, so now we’re going to take that and say now we’re going to sell it we’re going to turn around to the sales side of things, make an inventory invoice to music stuff store hit and the drop down music stuff store. That’s the one. And then it says hey, I’m paraphrasing this time, hey, we’ve got some, like billable stuff for this customer. Do you want us? Do you want to check those out? We’re gonna say yes, we do.



And then we’re over here on the items, the inventory items, that’s the one checking it off. And okay, date range. Let’s make this on 24. This time tabbing on through let’s make the net 30. Our terms, net 30. They got to pay us in 30 days. In other words, and then if we were to record this one out, what will it do invoice going to increase the accounts receivable by the full amount 8001 5850.



The other side’s going to be going to sales but only for the 777. And then the difference going to go to the payable the 388 inventory is going to go down by an amount not on the invoice because it’s not we don’t want to print it there but it’s driven by the item so it’s going to be decreased on a perpetual inventory system method, cost of goods sold will go up, which is the expense account related to us consuming the inventory. We will also have the sub ledger for the invoice related to the music’s stuff store, which is going to be on the other report for the accounts receivable by customer for the amount of the 8001 5850.



And the inventory will be decreased on the sub ledger as well in both units and dollar amount by item of the GSB the Gibson S G. Gibson S Okay, here we go save it and close it and check it out. Again, I don’t want to email it. We’re not actually emailing it here, this is a practice problem. We’re not actually sending the thing out. So then we’re going to go to the trial balance and check it out. So we then have the accounts receivable again, double clicking on it.



There we have music stuff store there it is that’s for the full amount including the sales tax, as we can see on the bottom of the invoice, closing it back out closing it back out other side in the sales on the income statement side of things, double clicking on it, we’ve got the invoice double clicking on it, it’s for the amount that we charged not including the sales tax the difference then go into a payable that we got to pay the government and that’s going to be up top to the sales tax payable right there.



There’s our payable amounts for this invoice closing it out we also know that the inventory is going down so we go to our asset of inventories it has been decreased as we can see here by an amount 5980 That amount not on the invoice because it’s driven by the item even though the item or that amount is it on the invoice because we don’t want to tell like the person we’re selling to how much we bought it for and then the other side is going to the expense of cost of goods sold double clicking on it. And there we have that closing it back out the supporting documentation with regards to the accounts receivable on the left hand side and the customer balance Detail Report.



We see here that we now add up to the 46 830 This one was to the music stuff stores, the one we just did right there and the 46 830 back on the trial balance on the left hand side that 46 830 is right there to inventory sub ledger should add up to the 9006 98 still inventory valuation summary. In other words, let’s take a look at it. So we got our list of our stuff now. And we still got the 9006 98.



And we have a negative amount on hand here, which is not good. But that’s okay, we’ll leave it you know, we’ll leave it there. That’s fine. How do we sold like a phantom guitar somehow but okay, that we That’s okay, something’s wrong, we got to adjust our inventory.



So there we have it and then and then on the on the profit and loss you’ve got the impact on the profit and loss being the difference between the sales items and the cost of goods sold items, as we can see here, so our sales items here for the the invoices that we just populated down below and then the cost of goods sold the cost of selling that stuff here as well. Let’s check take a look at the trusty trial balance.



You could check your numbers on the good old TV, which I think is the best way to do it. So this I’ll just scroll through here so you can have a little bit time at checking them off. Check them off if you’re following along, and then we’ll move on to the next one.

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