Populate Invoice From Billable Item on Bill Form 8.40

QuickBooks Online 2021 populate invoice from billable item on a bill form. Let’s get into it with Intuit QuickBooks Online 2021. Here we are in our get great guitars practice file, we’re going to be setting up an invoice which we will populate from a bill that we set up in a prior presentation making an item on it billable to look at the scenario, let’s go over to the desktop version just to take a look at the flowchart. You don’t need the desktop version here. But we’re just going to take a look at the flowchart to run down the scenario here.

00:32

So we had a customer come into the store asked for some guitars that we don’t currently have. We then said that’s okay, we’re going to request from the new vendor, which is going to be Fender the guitar vendor for these guitars for you. So we sent out a purchase order and the purchase order does not have any financial transaction related to it, it’s just a request.

 

00:52

However, in the purchase order, we also linked the fact that we have this customer that ordered this information from us this is the reason we’re asking for the purchase order to request the guitars not because that information is important to the vendor, but because we want to link it through the process so that as soon as we get the guitars, we can turn around and sell them. Then Fender sent us the guitars and we’d received them with a bill attached to them.

 

01:18

We entered the bill increasing the inventory and increasing the accounts payable. Now we have the guitars and we also populated on that bill that we’re going to link it with a basically a billable item. So that that will remind us when we create the invoice then to pull over that information from the bill that we created. So now we’re going to turn around to the customer side of things.

 

01:41

And now talk to the customer and send out the invoice, which was the reason that we set up this whole process in the first place using the billable item. Noting that in the QuickBooks version on the online version, we have to be careful that we pull over the sales price and not just the cost of the inventory item. Okay, so let’s go back on over. If we could take a look at that process. In another way, we’re going to say let’s go to the expenses tab on the left hand side.

 

02:09

And within the expenses tab, we can go to the expenses up top. And we then have our purchase orders. So there’s our purchase order from vendor or vendor, that’s our starting point in this whole process, we can also go to the vendor section, where we have the vendor as our vendor here, the new vendor vendor going into that item, we have the purchase order that happened and then the bill that happened. So that’s on the purchasing side of things.

 

02:33

Now we’re turning around and making the invoice with it. So we can do that up top, I’m going to go to the new item up top and create an invoice so we’ll create an invoice. Actually, let me take a look at one more thing before we create the invoice. If I close this out, if I take a look at the purchase order, and just open up the purchase order that we had, we linked in the purchase order of a customer down here, even though it doesn’t matter to the vendor vendor, but we linked it for our internal purposes.

 

03:01

And then when we got the bill, we’ve entered the bill. And we entered this billable item down below once again, indicating the customer down below. That’s what’s going to link it to the invoice and now this link here that we entered with the bill is what’s going to bring it on over to the invoice. Now let’s go to the new tab and open the invoice. So there we have it and our our customer is new music stuff.

 

03:26

So we’ll pick that up. And then I’m paraphrasing over here, but this thing on the side pops up and QuickBooks Online says hey, you know we’ve had we’ve got this billable item? Do you want to include that in the invoice and we’re gonna say Yeah, we do. And we’ll add that to the invoice and there we have it. And so that has been then pulled over. And the date that we’re gonna have is gonna be Oh 218 to one. And so it’s due on 320. So that looks good.

 

03:55

And then down below the this information is good, but it doesn’t it’s not perfect, because it brings over the cost. That’s what the billable items do. That’s a little bit different than that desktop version. And so we’re gonna have to, that’s a good reminder to us, but I need to adjust it here. So I’m going to then say okay, I’m just going to copy this down. So it’s an sq. Item, I got 20 of them.

 

04:17

So now the sales price is that 4008 zero, then what I’m going to do is I’m going to click off of this items, I’m going to tab down to them into the next row, I could then pull this one to the top, I’m going to drag it and pull it to the top and then the one underneath it. I’m just going to delete the information but I’m not going to delete the link so that it doesn’t link up again next time.

 

04:39

We try to make a new music stuff link here. So I’m going to just delete these items here. And so there we have it and delete that and delete VAT and so there we have it, I can make this uncheck that as well. So now we have our invoice not a perfect not a perfect link up for that because it doesn’t pick up the sale. Price, but it does link everything from the purchase order on down through the bill and the invoice in that way.

 

05:06

So now what’s this gonna do when we record it, it’s an invoice it’s going to be increasing the accounts receivable and that’ll be by the full amount let’s let’s change the sales tax down here to our flat kind of 5% generic practice problems sales tax rate, I’m going to select the sales tax and just make that down here, I’m going to say let’s just make that 5% with the override for our generic problem 5%.

 

05:28

They’re going to ask why. And we’re going to say because other and then confirm. And okay, so there we have it now. So now what’s this going to do? Well, the invoice is going to increase accounts receivable by the full amount, including the sales tax 5124. And then the other side is going to go to sales, which is going to be for the 4880, the amount we charge not including the sales tax. And then the difference is going to go to sales tax payable, which is a liability of the 244.

 

05:55

And then the account, the inventory is going to go down by the amount that’s not on the invoice, but the system knows about it, because we have this item that’s telling it, and then the cost of goods sold expense item on the income statement going to go up by the cost as well. Let’s save it, close it, check it out, save it, close it, check it out. We’ve seen the invoice before. So I’m going to do this a little bit more quickly with the trial balance this time.

 

06:18

So I’m going to right click up top and let’s duplicate the tab. And let’s practice this with a trial balance rather than bouncing back and forth. From a balance sheet to an income statement. This is faster, this is what I recommend doing. When you’re when you start getting good at these items. So we’re gonna go to the reports down below. And we want to get the trusty t be trial balance, trial balance here and range, change it up top ending at 1231 to one, run the report, close the hamburger hold down Control scroll up just a bit.

 

06:53

So we’re at that one to five, remembering that the balance the trial balance is in essence balance sheet on top of the income statement or balance sheet items more specifically assets, liabilities and equity on top of income statement accounts, Revenue and Expense Type of accounts in general. So if we go up top, we’re gonna say right, we knew accounts receivable went up.

 

07:12

So here’s the accounts receivable, if I select that item, we should have an increase down here from our invoice there it is music stuff or new music stuff for the full amount of 5124. Scrolling back up, other side is going to go down to the income statement. So that’s going to be towards the bottom, where the income statement starts after owner’s equity down here. So there’s the end of the balance sheet started the income statement. Here’s the one we wanted to click on.

 

07:37

So I’m going to check that sale of the product. There we have that. And so there’s this amount, this amount is the amount not including the sales tax. And then the sales tax, if I go back up liability accounts. So it’s assets liabilities, that’s going to be like in the middle here, assets than liabilities. So we’re looking at this one, it’s the California Department of tax and so on, they put the vendors name there, I won’t go into it, but that’s where the sales tax would go.

 

08:04

And then the the inventory should be going down. So we know inventories going down here. Let’s check that out. Scrolling back down from this item, the new music stuff store goes down for the 3360 that amount. Of course if I click on it is not on the invoice, because the invoice we don’t want to put that on the invoice for the customer. But it knows about it because this item here is telling it that that will be that will be decreasing.

 

08:32

That’s how it knows what the amount is closing that back out scrolling back up top, then going back to the good old TV, we know the other side’s going to be on the cost of the goods that are sold the cost of the goods that are sold down here. And that’s going to be for the invoice we just created four new music stuff this one. So there it is 23360 scrolling back up top. Also, there’s going to be an effect on the sub account for the accounts receivable, for example.

 

09:02

So we could tie that out to the sub account, I’m going to right click and duplicate this tab again, duplicating the TAM reports on the left hand side. So we’ll go down to the reports on the left hand side we’re going to scroll down to who owes us so we’re going to scroll down business overview who owes you and we’re going to go to the customer balance detail customer balance Detail Report. And there it is. And if I close this up, we have this one to music stuff store. So there’s that item that has been included. Actually that’s not the ones one down here it was for its for this item for the new music stuff.

 

09:39

So the five my generic names are getting mixed up. So that’s the 5124. So this is coming out to the total of 13 834 17. That then is going to match out to what’s on the good old TV 13 834 70. We can also take a look at the inventory report which should be then supporting this number because that has changed too. So if I then go back over here and I go to the reports again, reports down below, we can take a look at and check out the inventory valuation summary.

 

10:10

And so there we have that. And so we sold a Squire, I believe and so those are those are back down to zero and we’re at the 1952. For go back on over to the good old TV. There’s the inventory at the one, two, let’s go back over here, something funny is going on, scroll back up top, let’s change the dates 1231 to one, see, it’s always a date issue or not always but like a lot of time to date issue if something’s wrong.

 

10:38

And then now we’re there 1248 once again, let’s go back on over 1248 on the inventory. So obviously every once in a while I forget to do something on purpose just to show you that you know is the date range or some other kind of problem that happens Oh intentional, obviously. So then this is going to be the trial balance. We’re going to be checking our numbers here on the trial balance. I’ll also print out the trial balance so you can check them with on your own as well.

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