Sales by Customer & Income by Customer Reports 4080 QuickBooks Online 2023

QuickBooks Online Sales by Customer and income by customer records, get ready to start moving on up with QuickBooks Online. We’re going to be using the free QuickBooks Online at test drive searching in our online search engine for


QuickBooks Online test drive selecting the option that has and the URL Intuit being the owner of QuickBooks, we’re going to be picking the United States version of the software and verify that we’re not a robot.



Zooming in a bit by holding down control up on the scroll wheel currently at the one to 5% on the Zoom and noting in the cog drop down, we’re currently in the accountant view as opposed to the business you will try to toggle back and forth between the two views.



So you can see where stuff is located in each of them. Right click the tab up top to duplicate it, as we do every time. Right click in the duplicated tab to double duplicate,



we’re going to be putting reports in these tabs, as the tab to the right is thinking and we’re going to tab to the left reports on the left, we’re going to be opening up the balance sheet report as that’s thinking tab to the right reports on the left. And then



Income Statement Profit and Loss p&l Close the hamburger otherwise known as the hand Bogey, range to the change from a 101 to two tap well 31 to two tab, run it to refresh it, tab to the middle, close the bogey, scroll up ranges to change ins a 101 to two tab 1231 to two tab, run it to refresh it.



That’s the setup process that we do every time, we’re not going to be looking at our reports that are breaking out Income Statement line items.



Remember, basically all other reports in essence usually break out some added information about a line item or multiple line items of one of these two financial statements balance sheet income statement,



otherwise known as the p&l profit and loss, we’re now focused on that p&l profit and last looking mainly at the income line item, I’m going to collapse it right now,



the income, you’ll recall that the major two sections of the income statement, our income and expenses, income minus expenses, given us that net income income could also be called a revenue category.



That’s the increase in our revenues over a timeframe. Now remember that most of the time when you put income accounts into the system, you’re not going to be breaking out too many income accounts.



Usually you’re gonna have very broad categories about what it is you do possibly breaking out in a most generic type of fashion between your goods that you sell.



If you sell inventory and service items, you might get a little bit more detailed, you might say, you know, this is a certain group of items that I sell on the inventory side or certain service types that I do.



But normally you have very limited income account types, because you’re specializing in the type of thing you do, and then you pay for whatever else you need.



That’s why there’s a lot of expense categories, as opposed to the income category side of things. What you need to be aware of, and try not to do most of the time as a general rule is to create a bunch of income accounts that are tied to a customer.



So you might say like, this is my favorite customer or a big customer of us. This is the income from



Joe Smith, you don’t typically want to do that in a full service accounting system, because one, it’ll make your income statements quite long.



And two, you can typically get that added detail in the subsidiary reports and breaking out the information by customer per, for example. So you don’t want to put it here on the face of the income statement.



The other thing people typically do is break out too many categories in terms of what they sell surface items, inventory items, you don’t want to have every income account for every different little item,



you so you know, because you’ll end up with a whole lot of income statement accounts on the profit and loss again, and again, usually, you can get that information from another report.



Now when I say usually we got to point out the exception here. So if I hit the drop down, you’ll recall we’re looking at the income side of things now.



So the income cycle, which you can think of as the customer cycle, and if you have a very simplified cycle, then you might not be using the forms that are the sales type form.



So let’s go to the most complex to the simplest this time. If you if you have an accrual system where you have to invoice the clients because you do the work before you get paid, then you’re gonna have to invoice the client and then receive the payment.



So the invoice form is the form that creates the sales line on the income statement. If you have a cash register, like a food truck, you get paid at the same point in time you’re on a cash based system,



but you’re still going to use the full service accounting system entering the transaction with the sales receipt And then deposited into the bank. However, if you have a very simplified kind of structure where you can basically have gig work that you’re getting paid by YouTube,



you’re getting paid by Amazon, you’re getting paid by these other platforms or something like that, then you might just wait till it clears the bank possibly using bank feeds, which will create a deposit form, typically, to record your income.



If you’re recording income, that way, could be a perfectly fine way to do it, because they’ll be simplifying your system a lot. But the deposit form doesn’t have the same capacities as the sales receipt and the invoice to create the sub ledger, breaking out income, by customer and by account.



Therefore, if you’re using that system, it’s likely that you might have a bunch of income accounts basically named by the customer who’s paying you, you might call it Amazon income, Youtube Income, AdSense income, Google income, or whatever.



And so we’ll talk more about that kind of system when we get to the bank feeds course or section at a later point. So just keep that kind of caveat in mind. If you’re using invoices and sales receipts to record your revenue, then you probably want to have a limited amount of income accounts.



So that you can then you could then get the added detail if you need it with the sub ledger reports breaking out income by customer. And by item. Let’s look at those now. So I’m going to right click on the tab to the right and duplicate it. And we’re going to go on down to the reports on the left hand side.



And I’m going to close up the handbook II scroll down a little bit. So we’ve got the business Overview Report who’s owes us here’s the sales and customers, this is where you would think it would be.



Now there’s two reports that look quite similar, that we want to just point out, they can be a little bit confusing, you got the income by customer here, you got the income by customer. And then you also have the Sales by Customer summary.



And Sales by Customer detail reports, you would think these are basically the same thing. But in essence, the I believe the income report is the one over here, that is actually kind of tying out the net income, income minus expenses.



So if you sold cost of goods sold, they’re going to apply the cost of goods sold, you know, to the customer that you purchase from so it’s kind of like tying up to gross profit, in essence, as opposed to the items over here, which which is the ones that first come to mind to me, which is breaking up the sales the top line by income.



So let’s open up this one. First, we’ll go to the income by customer summary. Let’s open that one up and check it out. I’m going to change the range up top from a 101 to two tapped we’ll put one to two and run it to refresh it. And there we



have it we’ve got our we’ve got our customers on the left hand side we’ve got the the income by customer. So if we scroll on down, that comes out to the 10 to 8005. If I go back to my income statement, and look at the income side, that’s not the income statement, the income statements over here, and the income 10 200.



So it’s pretty close, not exact on it. And notice, oftentimes you might be a little bit off or it’s more likely that there’s going to be a difference between this income report and the sub ledgers over here.



Because QuickBooks doesn’t force you to use the system in such a way that the sub ledger will turn out correct every time like it does with other accounts.



So for example, if I go back to the first tab, and I look at this balance sheet account of accounts receivable, you’ll recall, we found it accounts receivable aging report, which tied out exactly to this number.



That will typically be the case because QuickBooks will not allow you typically record something to an accounts receivable account without assigning a customer in such a way that QuickBooks can then make the sub ledger tie out to it.



And that’s quite nice, because with this particular account, that’s very important. Although it does cause problems. As we’ll see when we’re doing adjusting entries when we don’t really want that to be the case.



The same is not the true not the same or it’s not the same if you go over to the income line items, meaning if you were to record something to income with it with a journal entry, or with a deposit form, as you might do, if you were recording with the bank feeds,



then you might not assign a customer in the same fashion that QuickBooks can then add it to the sub ledger. So that’s why it’s more likely that your income account will be off than your sub ledger.



But if you’re recording all of your income with the sales forms, invoices and sales receipts and assigning a customer to it, it should be tied out it should be correct.



Also note if there is a problem with this one, it’s not as big an issue as it is if there’s an issue on the balance sheet side of things with accounts receivable or accounts payable because these are temporary accounts.



So at the end of the year They’re gonna close out. And you’ll start over again with a zero at the beginning.



So if you if you got out of whack somewhere, it’ll reset itself at least on a yearly basis, so you can get back in alignment, and move forward from that point in time. Okay, so if I go back on over, then it gives us our expenses, which are typically going to be the cost of goods sold here.



Now, sometimes you might have a more complex kind of job cost system, where, where it might be something different than that, but now it’s got the expenses.



And then you’ve got the the net income, which is, it’s a little deceptive a term, because it doesn’t tie out to the bottom line of net income.



But this is the impact on net income of these transactions or gross profit, in essence, so that 9683 41, you would think would tie out to basically gross profit. In this case, I went to the wrong report, again, which would be income minus the cost of goods sold,



or in other words, that 405, you would think would tie out to this number, it’s a little off, it’s a little different, because of some of the issues we just talked about.



So that’s one of the two kind of sub ledger reports, notice how nicely you can you can create bar charts you can imagine. And we will do in future presentations to use this data to create like a pie chart of who your best customers are, who you sold to the most to,



and that kind of stuff to kind of spice up your visuals on your reporting, possibly for month end reporting, and quarter end and year end. Let’s go to the other one. Scrolling down into the reports, again, we’re on the sales reports.



This time, let’s look at the Sales by Customer, let’s just look at the detail item, Sales by Customer detail range into the change in from a one a one to two, tab 1231 to two, tab Ronette.



And so now we’ve got just just the total column here, broken out by customer, the bottom line of it, we would think should tie out to what is on the income statement tend to add.



And we’re close, not quite on the Profit and Loss report. So there’s that one same, same kind of concept, you could take this data quite easily export it to Excel,



for example, which we’ll probably do in a future presentation and make a pie chart out of it, or make a bar chart that can give you some good visuals. So let’s go back to our reports again, and close up the ham bogey and scroll down one more time. And did I skip it here? I’m too zoomed in, I can’t see right, it’s too zoomed in.



So now we’ll look at the Sales by Customer detail. Now note you also have this sales, sales by customer type. And that would be applicable if you have you know, customer types as as a category category section,



you can take a look at that. But we’re just gonna look at this one Sales by Customer detail Sales by Customer detail.



So I’m sorry, this one’s Sales by Customer type detail, I’m gonna go to this one, Sales by Customer detail. Let’s pick that one up and change the range again, from Oh 101 to two, tab 1231 to two tab, run it, refresh it.



So now you’ve got the customer information and the actual activity per customer. So this is a nice report that gives you the detail. But this is one of those reports that you might not use quite as often because you might look for this kind of information.



Over here, if you’re if you’re trying to communicate with a particular customer on the side, where you would be going into the sales, the sales side of things, which would be kind of like the Customer Center,



I’m going to close up the hamburger. And if you went to the sales transactions, then here’s where you can sort those transactions, and possibly sort by the invoices, for example.



Or you can sort by the sales receipts. So now we’ve got the sales receipts that were sorting by. And we can also go to the customer side of things.



And we could sort by the Open Invoices, and so on. So if I’m actually communicating with an invoice about the sales we made to an individual, we probably find the individual in here, and then look at that, the detail that they have within it, as opposed to say running a report like this.



And then looking for you know, the detail within the report was my thought process on that. But there is this one now next time in future presentations,



we can also imagine and we’ll do again next time I hit the the arrow here or the ham Boogie, and then scroll back down these sales reports that are going to be by item by the things that we sell. So we’ll break those out next time.



So that’ll be good times next time. And let’s just hit the ham Boogie, I mean, sorry, the the cog and switch to the business view just to see where stuff is located as we wrap things up.



And now we know the reports of course We’re in the business overview, business overview and then the reports and then we know that we’ve been in the get paid and pay area.



And we’ve been talking about the the, in the Get Paid area. We talked about the invoices, and we talked about the customers and in that sales area, you got to remember if you’re in this business,



you are talking to people that are in the business. He was in the bookkeeping area transactions up top, look at the sales stuff up top so you can sort in that area as well.

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