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QUICKBOOKS ONLINE 2013 STUDENT GUIDE

Course 4:
Recording Transactions in
QuickBooks Online

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© 2013 Intuit Inc. All rights reserved.
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QuickBooks Online 2013

Table of Contents

TABLE OF CONTENTS
Course Overview........................................................................................................................4
Module Opening............................................................................................................................
Objectives.....................................................................................................................................
Training at a Glance......................................................................................................................
QBO Plus Test Drive.....................................................................................................................
Background Information................................................................................................................
Preferences Pre-work...................................................................................................................
Lesson 1: Money In....................................................................................................................8
Income List....................................................................................................................................
Money Bar..............................................................................................................................8
Filter......................................................................................................................................11
Batch Actions........................................................................................................................12
Income List Additional Features...........................................................................................12
Printing from the Income List................................................................................................13
Export to Excel......................................................................................................................13
Receive a Payment..............................................................................................................15
Sales Receipts......................................................................................................................16
Customer Charges...............................................................................................................18
Customer Refund or Credit...................................................................................................20
Billable Time.........................................................................................................................22
Billable Expenses.................................................................................................................25
Lesson 2: Money Out...............................................................................................................28

Course 4: Recording Transactions in QuickBooks Online

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.............................................................. Paying Bills and Writing Checks..............................................58 Course 4: Recording Transactions in QuickBooks Online 2 ..........57 Recurring Transactions. Spending Cash...........................................................................51 Types of Matches for Downloaded Transactions..........................................44 Downloaded Transactions............ Creating a recurring template.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................54 Match to Multiple Transactions..................................34 Entering Bills. Paying Multiple Vendors......................................................................................................................... Assign and Categorize Downloaded Transactions..................................................................................56 Exclude Downloaded Transactions.............................53 Find Matching Transactions............................................................................................................................................................................54 Unmatch a Downloaded Transaction.........................55 Handle Duplicate Downloaded Transactions..........................................................................................................................47 Edit a Downloaded Transaction................................................................................................................................................................56 Disconnect or Delete Bank or Credit Card Accounts............................................................................ Refund Receipts.................................................... Paying One Vendor..................................................................................................................................................................................................................... Lesson 3: Other Functions with Transactions..............................................................QuickBooks Online 2013 Table of Contents Writing Checks...50 How QuickBooks Online Analyzes Matches..................... Handling Debit Card Transactions or Bank Charges............................................................................................................................................................................... Debit Cards......................................................................................................45 Accept Downloaded Transactions.......................................................................... Entering Credit Card Expenses....................................................................................................

............................................................................................. What Does a Journal Entry Look Like?..........................................................................................................72 Course 4: Recording Transactions in QuickBooks Online 3 .......................70 What is a Journal Entry?................................................................................................................................................................. Why Make Journal Entries?............... FIFO Lots............... Set Up a Product for Inventory Tracking.............................................................................................................61 Lesson 4: Inventory and Purchase Orders........................................................................................................................................................................................... Purchase Products for Inventory with a PO........................................... Adobe Acrobat Reader..................................................................63 Product and Services List.................................................................QuickBooks Online 2013 Table of Contents Creating Just a Template............................................................................................................................................................................................................................................................................................................................................................. Selling Inventory Products.............................................................................................................58 Printing............... Course Conclusion................................................................................... Lesson 5: Journal Entries........

This training will also cover Inventory and Purchase Orders as A/P and A/R transactions. Important to accountants and customers alike is the function of Journal Entries.QuickBooks Online 2013 Course Overview COURSE OVERVIEW MODULE OPENING Working from a QuickBooks Online Plus trial company. OBJECTIVES In this module. You will cover forms and transactions related to getting money into your company. you will explore the use of paying vendors and other expenditures. you will work through a hands-on activity to:  Create transactions related to receiving money: Money In  Create transactions related to spending money: Money Out  Utilize the “Income List” tool in your daily workflow  Utilize Inventory and identify its relationship to Purchase Orders  Utilize Journal Entry’s for making “Backend” transactions Course 4: Recording Transactions in QuickBooks Online 4 .

. There will be many activities to create receipts and receive payments. Sometimes it requires a Journal Entry to correct or change reporting data. 5 .QuickBooks Online 2013 TRAINING AT A Course Overview GLANCE Lessons 1. This training will help you setup inventory correctly and match the sale of your products to invoicing and vendor purchases using Purchase Orders. Other Functions with Transactions 4. This training will help you make those kinds of changes “behind the scenes”. This is an overview of several additional functions related to transactions like. “You have to spend money to make money”. Downloading Transactions for the bank. No one wants to run out of a certain “hot” selling item in inventory. Journal Entries Topics  Income List  Sales Receipts  Customer Charges  Customer Refunds  Refund Receipts  Time Activity  Writing Checks  Spending Cash  Entering Credit Card Expenses  Debit Cards  Entering Bills  Paying Bills and Writing Checks  Paying One Vendor  Paying Multiple Vendors  Downloaded transactions  Recurring Transactions  Printing  Product and Services  Setup a Product for Inventory Tracking  Purchase Products for Inventory with a PO  Selling Inventory Products  Journal Entries Overview  Transaction & Accounting in QuickBooks Online Course 4: Recording Transactions in QuickBooks Online Description Explore the types of transactions that bring money into a company. setting up recurring transactions and Printing. This part of the training will help you learn the correct way to account for the checks you write. Money Out 3. In most cases. Money In 2. paying the bills in QuickBooks Online requires you to have a bill matched to a payment so that reporting is correctly displayed. Someone once said. Inventory and Purchase Orders 5.

excellent landscaping services. In addition. some features. it is completely refreshed. The merchandise is inventory for your company to resell. This test drive is designed for you to explore and try out new things without worrying that you will break something or make a mistake. just complete the security validation and click Continue. It contains some features that are not available in QuickBooks Online Simple Start or Essentials.” Your company writes checks to pay these vendors. NOTE: The test drive uses the QuickBooks Online Plus plan. BACKGROUND INFORMATION Your primary business is to provide customers with reliable. Once you close the QBO Plus test drive. But don’t worry if you have to close the test drive before you are finished! You can always begin again.intuit. this is subject to change. such as the Apps Center tab and inproduct Help are not enabled at this time.com/redir/testdrive You don’t have to create an account or sign in.QuickBooks Online 2013 Course Overview QBO PLUS TEST DRIVE Lessons in the Activities Handbooks include hands-on exercises in a QuickBooks Online Plus “test drive”. so please remember to allow sufficient time to complete each activity. The test drive uses a sample company file called Craig’s Design & Landscaping Services. supplies and services “on account. You require purchase orders to effectively track inventory. It can be accessed through the following link: https://qbo. On occasion. Course 4: Recording Transactions in QuickBooks Online 6 . You purchase merchandise. some of your transactions have errors that need a Journal Entry correction. It is not designed to retain any changes you make. However. Craig’s Landscaping also builds gardens and fountains for residential and business customers.

intuit. 3. Go to Company>Preferences>Sales Form Entry>Estimates. 4. Go to Vendors & Purchases and make sure Manage bills and Purchase Orders are selected. This is an estimate only. For Estimates billing method select Yes. 6. 7. 2. and click Quantity on Hand (Inventory tracking). 5.com/redir/testdrive if you haven’t already done so. In the Message to customers on estimates only area enter. Click Save. Select Custom Transaction numbers. I want the option of including both Pending and Accepted estimates on invoices. Add a custom field called Delivery Date. Course 4: Recording Transactions in QuickBooks Online 7 .QuickBooks Online 2013 Course Overview PREFERENCES PRE-WORK Please log into the QBO Plus Test Drive at https://qbo. 8. Still in Preferences. The Custom Fields section opens. and set the following preferences: 1. go to Products and Services>Quantity on Hand.

Transactions you will be exploring are as follows:  Income List  Sales Receipts  Invoices  Estimates  Receiving Payments  Statements  Credit Memos  Refund Receipts INCOME LIST This feature is not just a list of Sales Receipts or Invoices. Since you are using the Accrual Basis for accounting. It allows clients to action on those transactions.  What are the benefits of using the Income List?  It helps to manage workflow and reduce errors. Money Bar The Money Bar gives you a graphic way to instantly sense how income (potential and received) is moving through your business. It shows:  Unbilled items: estimates and unbilled time and costs (charges)  Invoices that you have open. and those that are overdue Course 4: Recording Transactions in QuickBooks Online 8 . It is a “Command Center” to track customer transactions like.QuickBooks Online 2013 Lesson 1: Money In LESSON 1: MONEY IN Everyone loves to receive money.  Spend more time on business analysis and planning not on cleaning up the books. these transactions appear on your Balance Sheet. These accounts usually turn into cash within 30 to 60 days. Estimates and Invoices. Accounts Receivable is simply you allowing your customers to purchase your goods and services “on account”.  Small biz owners will save time by putting client tasks in one central location.

and more. the list below changes (or "filters") to show you just those items that belong to the category. Clicking the bar opens a list of specific information for the following: Unbilled Unpaid Overdue Course 4: Recording Transactions in QuickBooks Online 9 .QuickBooks Online 2013  Lesson 1: Money In Paid items (sales receipts and invoices) for the last 30 days Each area of the Money Bar is a general category of income (or potential income). For example. To return to an unfiltered view of the list. click the red Overdue category in the bar. date. If you click a category. You can also filter the list by customer. to focus on just overdue invoices. transaction type. click Clear Filters/View All next to the Filter button. like Overdue or Paid.

QuickBooks Online 2013 Lesson 1: Money In Paid Course 4: Recording Transactions in QuickBooks Online 10 .

fully paid. pending. credit memo. sales receipt. overdue. or estimate)  Payment status (open. closed. accepted. rejected. You can narrow the list by:  Form type (invoice. expired)  Delivery status (to be printed. to be sent)  Date  Customer Course 4: Recording Transactions in QuickBooks Online 11 .QuickBooks Online 2013 Lesson 1: Money In Filter You can filter or narrow what you see in the Income List so you can focus on only the items you're interested in.

Click Apply. Resizing columns: You can resize columns easily by dragging. To sort. 9. click the column header again. like Date or Name. NOTE: You cannot resize columns if you are “zoomed in. Here are several features:  Sorting by column – You can sort using column headers in the Income List to group similar transactions together. To sort in reverse order. Some columns appear by default and can't be hidden. The list is sorted by whatever column has an up or down arrow in the header. date. You can also add columns for the custom fields you set up in Company Preferences>Sales Form Entry.QuickBooks Online 2013 Lesson 1: Money In Batch Actions Send or print multiple items with Batch Actions. and so on. Course 4: Recording Transactions in QuickBooks Online 12 . click and hold the mouse button down while dragging the edge to the right or left.” Press CTRL and the minus key to zoom back out. When the double-headed arrow appears. amount. Select the columns you're interested in.  Selecting columns for the list – You might want to display some columns but not others. To select columns for the list: 1 Click Edit Columns at the top right of the list. Rest your pointer over a column header and move it to the header's right edge. simply click a column header. Income List Additional Features Working with columns is a great feature for organizing your views to meet business needs. This is useful if you want to see all transactions for a specific customer.

either individually or in a batch  Print packing slips for invoices and sales receipts. To print a batch of transactions: 1 Select the transactions you want by selecting the checkboxes at the left of each row. but choose Print Packing Slip from the Action button or the Batch Action button. estimates). Export to Excel Just like many features in QuickBooks Online. sales receipts. select Print from the drop-down list of actions for the transaction you want to print. follow the same steps as printing transactions. you can export to Microsoft Excel. either individually or in a batch  Print the Income List itself To print a single transaction.QuickBooks Online 2013 Lesson 1: Money In Printing from the Income List Printing from the Income List is handy for a number of reasons. Click Batch Actions and select Print Transactions from the drop-down list. You can:  Print the transactions themselves (invoices. Course 4: Recording Transactions in QuickBooks Online 13 . To print packing slips (invoices only).

quantity. 10. Click Save. In the Customer drop-down list. Create an Estimate: 1 Go to Customers>Income List. 11. click the drop-down arrow in row 1 and select Design. 12.QuickBooks Online 2013 Lesson 1: Money In Income List Workflow This activity will guide you through a typical Income workflow in QuickBooks Online. Course 4: Recording Transactions in QuickBooks Online 14 . and amount are prefilled. Under the Product and Service column. rate. The Estimate window opens. 2 Click Create New and select Estimate. select Amy’s Bird Sanctuary. Notice that the custom message you added earlier appears in the Customer Message area. The description.

QuickBooks Online creates a Receive Payment form. 3 On the line with Amy’s Bird Sanctuary under Status. and you have completed the work. It is time to create an invoice for the customer. click Receive Payment. Click Save. in the Action column. 2 Still in the Income List. click Estimates on the Money Bar. and then click Save. there are no progressive invoicing capabilities in QuickBooks Online. In Amy’s Bird Sanctuary. Receive a Payment 1 Click Open Invoices on the Money Bar. 3 Enter the following:  Pmt Method – Check  Ref# – 123  In Deposit To – select Checking Click Save. 1 Create an Invoice. click Pending. 4 Change the status from Pending to Accepted. Course 4: Recording Transactions in QuickBooks Online 15 . Your customer has promptly paid the invoice and it is time to receive the payment. click Copy to New Invoice. QuickBooks Online creates the invoice. in the Action column. The workflow returns you to the Income List. NOTE: At this time. 2 In the row for Amy’s Bird Sanctuary. The estimate opens.QuickBooks Online 2013 Lesson 1: Money In Your customer has accepted your estimate.

Course 4: Recording Transactions in QuickBooks Online 16 . Creating Sales Receipts 1 Go to the Customers tab and select the Income List link.QuickBooks Online 2013 Lesson 1: Money In Sales Receipts Creating a Sales Receipt is always a good thing. Select the Sales Receipt link under the Create New drop down list. You have a client that needs a sales receipt for their record keeping. You are receiving payment for business. 13.

00  Payment Method – Check  Ref# – 123  Deposit to – Checking 15. Click Save.QuickBooks Online 2013 Lesson 1: Money In 14. Course 4: Recording Transactions in QuickBooks Online 17 .00  Under Product/Service – Fountain  Amount will pre-fill at 275. Enter the following information on the customer receipt  Customer – Amy’s Bird Sanctuary  Under Product/Service – Concrete (NOTE: the description will pre-fill)  Amount – 1000.

This results in recording the money twice. 17. Click Explain these choices. 16. Select Statement from the New Transaction menu. 19. or in other words. Accept the defaults and click the OK to view the Statement. then ALSO going to the Receive Payments screen and recording a Payment. Customer Charges Customer Statements It is important that every transaction for a customer must be handled with a Sales Form or it will not appear in that customer’s register and many of their reports will not even show the customer’s name. Select Freeman Sporting Goods > 0969 Ocean View Road. So the bank balance is incorrect and the Accounts Receivable balance holds a credit for this customer. There are two categories of statements:  Specific Customer Statements  Batched Customer Statements You have been asked by a customer for a statement of their recent purchases.QuickBooks Online 2013 Lesson 1: Money In NOTE: A common mistake is entering a Sales Receipt. Notice the three choices of statements. click Customer Center. The Create Statement window opens. 18. To track a customer’s transaction activity. QuickBooks Online uses customer statements. Course 4: Recording Transactions in QuickBooks Online 18 . Creating Customer Statements 1 On the Customers tab. showing that you owe them.

a credit and a refund? Course 4: Recording Transactions in QuickBooks Online 19 . Notice the list of statements you can send in batch form. The Statements window opens. and then click OK. Select the Balance Forward type. 2 Select Open Item. 20. Let’s do an Open Item statement for Freeman Sporting Goods: 1 Select Statement from the New Transaction menu. 22. Customer Refund or Credit Credit Memos What's the difference between credit memo.QuickBooks Online 2013 Lesson 1: Money In Click Back. View the statement. Leave the default dates. and then click OK. For batched Customer Statements: 1 On the Customer tab. Unselect the No statements dated [today’s date] box. The Statements window opens. select Statements. 21.

Course 4: Recording Transactions in QuickBooks Online 20 .) This means that credit memos are used to offset an existing customer balance. You will create a credit memo that will be applied to a future invoice for Kate Whalen. Credits can be included only on an invoice. Also. credits don't affect a customer balance until they are included on a saved invoice. Refunds on the other hand are used to show money given back to a customer to refund for services the customer is not happy with.QuickBooks Online 2013 Lesson 1: Money In  A credit memo is a posting transaction which can be applied to a customer's invoice as a payment or reduction  A credit is a non-posting transaction that you can include later on a customer's invoice  A refund is a posting transaction which is used when reimbursing money to a customer. or an overpayment. merchandise or service not received. (Refunds are covered in the Money Out section of this course. to offset a credit balance.

QuickBooks Online 2013

Lesson 1: Money In

Creating a Credit Memo
1

Go to the Customers tab and select Income List.

23. Select the Credit Memo link under the Create New drop down list.

24. Enter the following information:

Customer – Kate Whalen

Product/Service – Design

Leave the amount at $75.00

Click Save.
NOTE: The Income List is a powerful tool for one stop Money In transactions. It is also possible to access these
same functions through the Customers tab and associated links.

Course 4: Recording Transactions in QuickBooks Online

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QuickBooks Online 2013

Lesson 1: Money In

Billable Time
Entering time for your billing and employees doing work for you is an important feature in QuickBooks Online.
Billing functions and Time Sheets record these transactions.
There are two types of time sheets you can use:

Weekly time sheets: Useful for entering or seeing several days' worth of activities

Single activity time sheets: Useful for entering or editing one day or event at a time

How to fill out time sheets
To entering a single timed activity:
1

Go to the Customers tab and select Income List.

25. Click Create New, and then select Time Activity.
26. Choose a name from the Employee list or add a new employee.
27. Enter the Date the activity occurred.
28. (Optional) Choose a Location. If you don't see it, location tracking is turned off.
29. (Optional) Choose a Class. If you don't see Class, class tracking is turned off.
30. Choose a Customer if you want to bill the activity to the customer or track expenses for the customer.

If you want time activities to automatically appear on invoices, Bill customers for time must be
turned on.

If you want to be able to track customer expenses, Expense tracking by customer must be turned
on.

31. If you use services to enter time, choose the Service that represents this activity. If you don't see a
Service field, Use services is turned off for your company.
32. If you're billing the activity to a customer, check Billable. If you are allowed to change the rate at which an
activity is billed, be sure the Bill @ rate/hr is correct.
33. Select Taxable if you need to charge sales tax on this activity.

Course 4: Recording Transactions in QuickBooks Online

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QuickBooks Online 2013

Lesson 1: Money In

34. Enter a description of the activity. If you use services, the Description is filled with the service's
description. You can edit it. If the activity is billed to a customer, the Description appears on their invoice,
depending on your preference settings.
35. Enter the amount of time worked in Time. If you want, you can check Enter Start & End Time and enter
the amount of time that way, instead.

Click Save.
Filling out a weekly time sheet
1

Click Weekly Time Sheet, (or, from the Employees menu, choose Weekly Time Sheet).

36. Choose a name from the Employee list, or, add a new employee.
37. Choose the week for which you want to record activities, and click OK.
38. For each type of activity, enter an activity line:

Customer – Choose a Customer if you want to bill the activity to the customer or track expenses for
the customer. If you want time activities to automatically appear on invoices, Bill customers for time
must be turned on. If you want to be able to track customer expenses, Expense tracking by customer
must be turned on.

Location – (Optional) Choose a Location. If you don't see it, location tracking is turned off

Class – (Optional) Choose a Class. If you don't see Class, class tracking is turned off

Service – If you use services to enter time, choose the Service that represents this activity. If you
don't see a Service field, "Use services" is turned off for your company.

Billable – If you're billing the activity to a customer, check Billable. If you are allowed to change the
rate at which an activity is billed, be sure the Bill @ rate/hr is correct. Select Taxable if you need to
charge sales tax on this activity.

Description – Enter a description of the activity. If you use services, the Description is filled with the
service's description. You can edit it. If the activity is billed to a customer, the Description appears on
their invoice, depending on your preference settings.

39. For each day of the week this activity occurred, enter the number of hours spent on this activity for that
day.

You can add more activity rows, and enter different time amounts for different
days.
POWER TIP: If the activities for this week are similar to last week's, you can copy last week's time sheet.
40. Click Save.

Course 4: Recording Transactions in QuickBooks Online

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it is removed from the invoice. Deleting a Time Activity 1 Find the time activity you want to delete. or show your customer time worked but not billed Course 4: Recording Transactions in QuickBooks Online 24 . rate. You may want to notify the customer. check Billable on a time activity. deleting the activity gives the customer credit. and the customer already paid for it. was on a customer's invoice. Click Delete. If the activity is billed to a customer. any changes you make are also reflected on the customer's invoices. date.QuickBooks Online 2013 Lesson 1: Money In Editing a time activity 1 Find the activity to edit from the Find feature or Employee tab and locate the employee. but hadn't actually been on an invoice to a customer. and total amount to bill then automatically flow to the customer's next invoice  You can also have your activities billable by default.  If the activity was billable. billing customers for time is turned off for your company  On weekly time sheets. You may want to notify the customer and resend the invoice. each activity has its own line and its own Billable checkbox  That activity's description. duration. If the activity was marked billable.  If the activity was billable and was on a customer's invoice. If a change affects an invoice that has already been sent to the customer. you may want to resend the invoice. there are no consequences of deleting it.  If you don't see a Billable checkbox. Billing Customers To bill time to a customer. Make changes and click Save.

42. Course 4: Recording Transactions in QuickBooks Online 25 . Selecting Billable lets you specify that an expense should automatically flow to a customer's next invoice. 44. Select Use billable expenses. 43. 41. Click Save. Click the Vendors & Purchases section.QuickBooks Online 2013 Lesson 1: Money In Billable Expenses What are billable expenses? The Use billable expenses preference puts a Billable check box on purchases you make (using Enter Bill. If you have the Sales Tax feature turned on. for example). Review and set the preferences for marking up and tracking billable expense income. or Enter Cash Purchase. Write Check. Credit Card Expense. Turning on Use billable expenses forces Expense tracking by customer and Multiple split lines to be on. select Charge sales tax if you want the Tax checkbox selected by default for billable expenses. To turn on Billable Expenses: 1 Open Preferences. so you can more easily enter billable expenses.

You can also quickly select an entire group of transactions. by selecting the top level checkbox. 45. and time. select the checkbox next to each transaction you want to include. expenses and time table at the top of a new Invoice screen displays non-posting transactions for which your customer has not been billed. this table may include unbilled charges. This list will display unbilled charges and time for work your company has performed. such as Time Charges. Tell me more. Note the following fields in the Expenses and Products and Services tables: Account or Product/Service Amount Choose the expense account or product/service appropriate for what you purchased for the customer. Course 4: Recording Transactions in QuickBooks Online 26 . click its link. or Enter Cash Purchases. expenses. You may want to see more detail about the transaction. If you don't see a Billable column. enter a separate detail line for each different amount. This appears on the customer's invoice. If you don't see a Customer field. Markup Optional. Billable Check the box. billable expense tracking isn't set up. Tax Depends on how you made the purchase. Enter the cost of what you purchased for the customer. Depending on your preferences settings. credits. You can enter a calculation. credits. Write Check. Applying Unbilled Time and Cost The Income List has feature to view and gain access to your unbilled activity.QuickBooks Online 2013 Lesson 1: Money In To enter a billable expense: 1 Enter a billable expense using Enter Bill. To include these unbilled transactions on a new invoice. If that cost is less than the total amount of the transaction. Choose the customer who will be billed for the expense. The unbilled charges. Description Customer Enter a description of what you purchased for the customer. Expense tracking by customer isn't set up. Credit Card Expense. This column appears only if a Billable column appears and if sales tax is turned on.

QuickBooks Online 2013 Lesson 1: Money In When you view an invoice you've already saved. the table includes transactions you already included on the invoice. plus all the available unbilled charges that you can add to the invoice. Course 4: Recording Transactions in QuickBooks Online 27 .

office supplies. The other method is called "cash basis" where expenses are reported on the income statement when the cash is paid out. overhead Paying employees Paying yourself The following activity will help you understand the Money Out process. This includes bills or credit that you have arranged with vendors. These types of transactions are entered on the Banking tab. Let’s start with paying some cash basis expenses. Course 4: Recording Transactions in QuickBooks Online 28 . WRITING CHECKS There are many reasons for spending money: Paying vendors for work completed or items to resell Paying vendors for utilities. These are examples of Money Out transactions:  Writing Checks  Spending Cash  Entering Credit Card Charges  Entering Debit Cards  Entering Bills  Paying Bills and Writing Checks  Paying One Vendor  Paying Multiple Vendors  Refund Receipts You have some vendor invoices and receipts on your desk that need to be accounted for. AP transactions are considered "accrual basis" of accounting where expenses are reported on an income statement in the period when they occur or expire. In this next exercise. These transactions are entered in the Vendors tab. you will write a check for equipment rental from the checking account. It is time to spend some money.QuickBooks Online 2013 Lesson 2: Money Out LESSON 2: MONEY OUT Accounts Payable (A/P) are any transactions related to money you owe.

and then enter in the following information:  Bank Account – Checking  Pay to the Order of – Computers by Jenni  Amount – $70 46. 48. select Maintenance and Repair – Expenses > Computer Repairs . 1 On the Banking tab select Write Check. The help topic when to link an expense to a particular customer.Expenses. Type in a description One hour @ $70 per hour. 51. 49. Using the Itemized by Account feature helps to track expenses. 50. You want to print checks later. Account column. In the Itemize by Account section. Jenni spent some time diagnosing the problem and determined that the fan was dirty. click the Why link to read this pop-up window.QuickBooks Online 2013 Lesson 2: Money Out Writing a Check You called Jenni to take a look at your computer. Click Save. In the Customer column. Time to pay Jenni. which was making a funny noise. 47. She cleaned the fan. Course 4: Recording Transactions in QuickBooks Online 29 . This expense is not related to a customer. and all is well. so check the To be printed box at the top at the top of the screen.

52. Now you can enter that sales receipt from Office Depot. and then read the description. 54. Click Index and in section 1 search for Petty Cash. 53.QuickBooks Online 2013 Lesson 2: Money Out SPENDING CASH The next transaction is a receipt from Office Depot for some stamps that were already purchased. Follow the steps in Help to create a petty cash account. This should be easy to set up. Setting-Up a Petty Cash Account 1 In the upper right corner of any screen. 1 On the Banking tab. click How Do I. In section 2. under the Feedback button. The Help Topics window opens with suggested topics for whatever screen you have open. Once you create the account. That topic opens in a new window. In this section you will learn how to:  Use QuickBooks Online in-product Help to learn how to complete a simple task  Set up a petty cash account  Transfer funds  Enter a cash expense You realize that you have to set up a petty cash account. Click the What is petty cash link. Course 4: Recording Transactions in QuickBooks Online 30 . Click Save. 55. 2 Transfer $200 from the Checking account to the Petty Cash account. You notice that it says that the stamps were purchased with cash. but aren’t sure how. you need to put some money in it. You need to set up a Petty Cash account in QuickBooks Online so that you can track the use of this cash. click Transfers. double-click Setting up a petty cash account. After reading the help file you now understand: Petty cash can be used for small purchases that are made easier paid for with cash.

Enter 35. Leave the Vendor drop down as is. Select Add New in the Purchased From: field. Course 4: Recording Transactions in QuickBooks Online 31 . click Cash Expense. Select the new Petty Cash in the Cash Account field. 60.00 in the Amount. Click Quick Add. Enter Stamps in the Description field. 59. Click Save. 58. Select Office Expenses for the Account. and then enter Office Depot in the Name field. 57. 61.QuickBooks Online 2013 Lesson 2: Money Out Entering a Cash Expense 1 On the Banking tab. 62. 56.

Select Robertson & Associates in the Purchased From field c. Select Visa in the Credit Card field b. Entering a Credit Card Expense 1 Go to the Banking menu and select Credit Card Expense link. They overcharged you by a half-hour. It appears that Robertson & Associates made a little mistake. the next piece of paper in the pile has you really confused. Should you try and edit the amount? That’s when you notice the Charge and Credit options! Course 4: Recording Transactions in QuickBooks Online 32 .00 that was placed back on the Visa card. It’s a receipt from Robertson & Associates. The receipt is a credit for the overcharge of $100. You pick up the next piece of paper in the stack. and then used a Visa Card to pay for legal expenses. Enter in $500 in the Amount field d. The credit card transaction you just saved will be debited and credited between the Legal and Professional Fees: Lawyer-Expenses expense account and the Visa credit card account. You needed some legal advice about starting a business. Select Legal and Professional Fees: Lawyer-Expenses as the Account at the bottom Click Save. 2 Enter the following information: a. Just when you think you have this whole program figured out.QuickBooks Online 2013 Lesson 2: Money Out ENTERING CREDIT CARD EXPENSES So far you have written a check and recorded the use of petty cash in QuickBooks Online.

Click Save. The original charge was made and then the mistake was discovered and the difference was credited back to the Visa card in a separate transaction. You can create a new one that represents what really happened. Select the Credit. Select the Legal and Professional Fees: Lawyer-Expenses account. 66.QuickBooks Online 2013 Lesson 2: Money Out Correcting an Overcharge on an Expense You don’t need to edit the original transaction. 63. and enter in $100. Course 4: Recording Transactions in QuickBooks Online 33 . 65. Select Robertson & Associates in the Purchased From field. 64. select Visa in the Credit Card field.00 in the Amount field. 1 Still on the Credit Card Expense screen.

Pay special attention to these fields in Write Check: Bank Account Select the banking account from which you're spending the funds. how do you think you should record a purchase made with a debit card? HINT: Where does the money come from when using a debit card? You guessed it: Handling Debit Card Transactions or Bank Charges To record purchases made with a debit card. Small businesses are no exception. 67. ATM withdrawal. check card. Date Account The date of the transaction. An expense account to categorize the purchase or bank charge. or EFT transaction. use these steps to track a bank charge such as a monthly fee. From what you have seen so far of QuickBooks Online. use Write Check. To Be Printed Do not select. Course 4: Recording Transactions in QuickBooks Online 34 . ATM card. If you are getting cash back from a purchase. or fee for printed checks. or other useful notation. 1 Select your petty cash account for the Account. Check # Check number. In other words. any funds going out of any bank account should be tracked this way. What if I'm getting cash back? If you are giving your vendor an extra amount for the transaction so you'll get cash back. Enter the cash you're getting back as the Amount. Also. see below. just track the cash on an additional split line.QuickBooks Online 2013 Lesson 2: Money Out DEBIT CARDS Debit Cards are as popular as credit card these days.

70. Click Save. Course 4: Recording Transactions in QuickBooks Online 35 . 72. Select the Automobile Expenses: Fuel Expenses expense account. 71. Enter today as the Due Date. 68. we need to enter some bills to pay. Select Chin’s Gas and Oil in the Vendor field. First. Entering a Bill Enter a bill for Chin’s Gas and Oil. 69. It looks like you will be creating more checks to print. Enter $155. 1 Go to the Vendor menu and select the Enter Bill link.QuickBooks Online 2013 Lesson 2: Money Out ENTERING BILLS Your stack of paperwork seems to be mostly invoices from vendors for products and services that you have ordered.00 in the Amount field.

74. But this time you navigate to the Write Check screen and begin to create a check for Ellis Equipment Rental. Select Ellis Equipment Rental in the Pay to the order field.QuickBooks Online 2013 PAYING BILLS Lesson 2: Money Out AND WRITING CHECKS Next in your stack of paperwork is an invoice for Ellis Equipment Rental. Click Yes. 75. 73. another Vendor you occasionally use. The Bill Payment screen opens. Paying Bills 1 Go to the Banking menu and select Write Check. Course 4: Recording Transactions in QuickBooks Online 36 . Select Checking in the Bank Account field. You get a confirmation message.

Once you are at the Bill Payment screen you notice that it is very similar to the Write Checks screen with the same payment account field. you can see the bill has been paid and itemized by account. 77.QuickBooks Online 2013 Lesson 2: Money Out 76. Course 4: Recording Transactions in QuickBooks Online 37 . But instead of Itemize by Account you see a Bill listed for $75. If you click the blue Bill link. Select Bill.00. and then click Save.

Search for pay bills write checks. Open the KB 1193: What is the difference between Pay Bills and Write Checks? Now it all makes sense.QuickBooks Online 2013 Lesson 2: Money Out QuickBooks Online will guide you to bills you have entered to be paid at a later date should you select the Write Checks link from the Banking tab. QuickBooks Online Support opens. QuickBooks Online wanted to make sure you were using the correct screen. 78. the bill and the Check will not be linked together. To shed a little light on what might be somewhat confusing. When you started to write a check rather than use Pay Bills. Once you enter a bill using the Enter Bill feature. If you use the Write Check screen. Now you understand the reason for the confirmation message. you need to pay that bill using the Pay Bills feature. let’s use the help features in QuickBooks Online to explore a further explanation. Difference between Pay Bills and Write Checks 1 Click the Help link at the top of the QuickBooks Online screen. Course 4: Recording Transactions in QuickBooks Online 38 . Ellis Equipment Rental had an outstanding bill.

QuickBooks Online 2013 Lesson 2: Money Out Remember. record the transaction using Write Check. use Pay Bills or Pay One Vendor to clear the bill and generate the check. When you pay it at the end of the month. use Enter Bill to track what you owe. use Write Check. use Pay Bills or Pay One Vendor to close it out. which is not due till the end of the month. (Accrual basis accounting)  When the receipt date is the same as the date paid. Credit Card Expense or Cash Expense after entering a bill will not link the two transactions. when you receive your electric bill. that the Enter & Manage bills feature is not available in Simple Start. use Enter Bill/Pay Bills. Credit Card Expense or Cash Expense depending on how you made the payment. If you bought supplies at Office Depot and immediately paid for them. and the bill will still be unpaid on reports. Credit Card Expense or Cash Expense skipping the Enter Bill and Pay Bills steps altogether. If you originally used Enter Bill to record the bill. If you're using an electronic method of payment. (Using Write Check.) Course 4: Recording Transactions in QuickBooks Online 39 . (Cash basis accounting) For example. you should still use Write Check but just enter EFT where the check number is. PAYING ONE VENDOR There are two ways to handle bills from vendors:  When the bill date is different from the pay date.

Some time has lapsed and you receive a reminder to pay the phone bill you entered earlier. 82. You notice that besides the bill you entered earlier.07 bill.07 that is still not paid. Since cash is tight this month. there is an earlier bill for 98. Select Checking account in the Payment account field. The amount appears in the check and in the Bill Payment column. Select Cal Telephone in the Vendor field. Check the $98. 80. 79. Course 4: Recording Transactions in QuickBooks Online 40 . 81. Click Save.07 bill first. 1 Go to the Vendors menu and select Pay One Vendor. you decide to pay Cal Telephone $98.QuickBooks Online 2013 Lesson 2: Money Out Paying One Vendor In order to get to know QuickBooks Online better you decide to try paying just one Vendor first.

a bill that was entered for $121. 85.00 in red at the bottom of the Bill Payment form.QuickBooks Online 2013 Lesson 2: Money Out Now that we saw what happens when we pay a prior bill.03 for that bill. Enter in $131.03 appears and we can see that we currently have a balance of $121. Course 4: Recording Transactions in QuickBooks Online 41 . Select Diego’s Road Warrior Bodyshop in the Vendor field.03 in the Amount field. 84. Handling an Overpayment to a Vendor 1 Go to the Vendors menu and select Pay One Vendor. In the Bill Payment section. Note the Amount Overpaid $10. let’s see what happens if we accidentally overpay Cal Telephone. Click Save. 86. 83. Select Checking account in the Payment account field.

Click Pay Bills. the $10. 91.QuickBooks Online 2013 Lesson 2: Money Out What do you think we happen with the $10.00 appears as a credit for the next billing. select Pay Bills. But isn’t QuickBooks Online supposed to make things easier and more efficient. PAYING MULTIPLE VENDORS OK. and then click the + sign next to Total Credits. Let’s pay all the remaining bills at once! To paying Multiple Vendors at once: 1 On the Vendors menu. Leave the default at Printed check in the Payment Method section.00 overpayment? If you click Pay One Vendor and select Diego’s Road Warrior Bodyshop. Leave the Payment Account at Checking. 90. 87. 89. so paying one vendor is pretty easy. Check the boxes next to all of the vendors or click the Select All button. 88. Click Show all bills. Course 4: Recording Transactions in QuickBooks Online 42 .

Select Refund for goods or services that didn’t satisfy the customer. you can print the associated refund check automatically. Course 4: Recording Transactions in QuickBooks Online 43 .) 92. The Refund Receipt screen opens. Select Refund.00 in the Amount field d Select Check as the Refund Method e Select the Checking account in the Refund From field f Leave “To be printed” checked 95.QuickBooks Online 2013 Lesson 2: Money Out REFUND RECEIPTS When you are issuing a refund (with a check or cash) to a customer. 93. (It might be under the More drop down. Enter the following information: a Select Cool Cars in the Customer field b Select Design as the Product/Service c Keep the default of $75. you can enter a refund receipt for your records. Click Save. and then click OK. however. Creating a Refund Receipt 1 Go to the Customers tab and select Refund or Credit. You can't directly print or send the refund receipt. Note the message at the bottom on the refund screen. you have a customer who was not completely satisfied with your design work and you choose to issue a refund. Unfortunately. What do you think would happen if you used Write Checks for a refund? 96. 94.

you can upload it to QuickBooks Online.QuickBooks Online 2013 Lesson 2: Money Out LESSON 3: OTHER FUNCTIONS WITH TRANSACTIONS DOWNLOADED TRANSACTIONS If you can't connect your bank. you may still be able to get your bank data into QuickBooks Online. Course 4: Recording Transactions in QuickBooks Online 44 . If the file is a Web Connect or .QFX file. Many banks give you the ability to download a data file with your transactions.

click Watch Video. The Description column gives you a clue about the type of transaction it is. to sort similar transactions together. QuickBooks Online analyzes all the information received from the bank and tries to give you the best possible suggestion for accepting the transaction. if an invoice payment matches a downloaded income transaction. 97. if one exists.QuickBooks Online 2013 Lesson 2: Money Out Watch a Demo about Downloaded Transactions 1 On the Banking tab. Assign and Categorize Downloaded Transactions For each downloaded transaction. QuickBooks Online suggests it as payment for the invoice. QuickBooks Online suggests a new customer or vendor name for you. Course 4: Recording Transactions in QuickBooks Online 45 .  QuickBooks Online might show possible matches from existing entries like payments from customers and purchases to vendors. For example. Review the selection in the Assign or Match dropdown list and choose the most appropriate one:  QuickBooks Online may display a matching customer or vendor name. If one doesn't. click Downloaded Transactions. To review a downloaded transaction: 1 On the Downloaded Transactions page. like Description. In the upper right hand corner. QuickBooks Online adds the name when you accept the row.) 98. (TIP: Click a column header. select a row by clicking it. If you don't change the name.

If the entry is either Uncategorized Income or Uncategorized Expense. Click Categorize at the top of the list and select the category you want. Click Accept Selected to accept the transactions. You can create additional categories (called "account" elsewhere in QuickBooks Online) as needed. if these fields appear in the row. choose a more specific category from the list. Review the selection in the Category dropdown to see if it's accurate. NOTE: You can quickly assign a single category to multiple transactions. Course 4: Recording Transactions in QuickBooks Online 46 .QuickBooks Online 2013 Lesson 2: Money Out 99. Click the checkbox for each row you want assigned to a particular category. These fields only appear if you set up classes or locations in company preferences. (Optional) Select a class or location.

Click the Accept button for the row. Transactions that aren't accepted can't be tracked or reported on. The transaction disappears from the list and moves to the Accepted Transactions tab. making choices in the Assign and Category dropdown lists. you accept it into QuickBooks Online so it becomes part of your business finances. To accept a transaction: 1 Select a row and review it. so this is an important task.QuickBooks Online 2013 Lesson 2: Money Out Accept Downloaded Transactions After you assign and categorize a transaction. if you need to. You can make additional changes there. Course 4: Recording Transactions in QuickBooks Online 47 . 100.

but don't accept them.  Assign a single category to multiple transactions.) 102. like Description. Reviewing can be more efficient if you:  Click a column header. Click the checkbox for each row you want assigned to a particular category. Course 4: Recording Transactions in QuickBooks Online 48 . Click the checkbox for each row you want to accept.QuickBooks Online 2013 Lesson 2: Money Out To accept multiple transactions at once: 1 Review and categorize several transactions. to sort similar transactions together. 101. Click Categorize at the top of the list and select the category you want. (TIP: Click the checkbox next to Date at the top of the list to select all rows on the page.

At the top of the list.QuickBooks Online 2013 Lesson 2: Money Out 103. click the Accept Selected button. All the selected transactions disappear from the list and move over to the Accepted Transactions tab. Course 4: Recording Transactions in QuickBooks Online 49 .

click a row to select it.QuickBooks Online 2013 Lesson 2: Money Out Edit a Downloaded Transaction You can make changes to a downloaded transaction. 2 Click the small Details tab underneath the row. You can change them only on the Unaccepted Transactions tab or in the corresponding QuickBooks transaction. You can also undo an acceptance. To change an assignment or category for a transaction: 1 On the Unaccepted Transactions tab. The row expands and details about the transaction and a Notes field appear. 104. To add notes about a transaction: 1 On either the Unaccepted or Accepted Transactions tab. Enter the notes you want to capture about the transaction. They're not available in the corresponding QuickBooks transaction. click a row to select it. Click the Category dropdown list and make your changes. and even exclude a transaction from being included in your business finances. Note: You can't change the assignment or category from the Accepted Transactions tab. NOTE: Any notes you add remain in the Details section of the row. You can add notes or change how you assigned or categorized a transaction. Course 4: Recording Transactions in QuickBooks Online 50 . whether it's unaccepted or accepted. and then click Save. Click the Assign dropdown list and make your changes.

click the checkbox for the row you want to unaccept. QuickBooks Online displays Possible matches found in the row. you select the Match to option and choose from one of the matches in the drop-down list.  If you have no QuickBooks Online transactions yet   QuickBooks Online suggests a new vendor (for debits/withdrawals) or customer (for credits/deposits) and leaves the category as Uncategorized Income or Expense. QuickBooks Online displays the customer or vendor and suggests a category (often Uncategorized Income or Expense)  If you have more than one exact match. How QuickBooks Online Analyzes Matches What QuickBooks Online suggests for each downloaded transaction depends on whether you have existing QuickBooks Online transactions or not. If you already have QuickBooks Online transactions  If you have one exact match. Click the Undo button at the top of the list. When you select that row. The transaction moves back to the Unaccepted Transactions tab. You can change the name or category before accepting. Course 4: Recording Transactions in QuickBooks Online 51 . 105.QuickBooks Online 2013 Lesson 2: Money Out To undo an acceptance: 1 On the Accepted Transactions tab.

you have two choices  If you know you don't have a matching QuickBooks Online transaction. but none of them exactly match the downloaded amount. you can search for a specific QuickBooks Online transaction or even match to multiple QuickBooks Online transactions Course 4: Recording Transactions in QuickBooks Online 52 . or make changes before clicking Accept  If you have QuickBooks Online transactions—or multiple transactions—that belong to that downloaded amount.QuickBooks Online 2013  Lesson 2: Money Out If you have QuickBooks Online transactions. you can accept the name and category QuickBooks Online suggests.

For bank withdrawals and debits. QuickBooks Online automatically creates a receive payment transaction in the background for you.QuickBooks Online 2013 Lesson 2: Money Out Types of Matches for Downloaded Transactions When QuickBooks Online downloads transactions from the bank. or Cash Expenses pages  Expenses or debits you entered directly in the bank or credit card register in QuickBooks Online  Journal entries and other negative or debit transactions you created in QuickBooks Online Course 4: Recording Transactions in QuickBooks Online 53 . it looks at:  Both deposited and undeposited payments  Payments received against invoices (on the Receive Payment page)  Sales receipts  Deposits or payments you entered yourself in the bank or credit card register in QuickBooks Online  Deposits you entered from the Banking > Deposits page  Journal entries and other positive or credit transactions you created in QuickBooks Online  Open invoices and partially paid invoices NOTE:If you match and accept a transaction to an open or partially paid invoice. as on the Pay One Vendor or Pay Bills pages)  Expenses you entered using the Write Checks. Credit Card Expense. For bank deposits and credits. but the payment you entered for the bill. it looks at:  Payments you've entered for a vendor (not the bill itself. it analyzes the bank data against your QuickBooks Online data.

click Accept. Then. You grouped them with other undeposited funds and made you made one deposit for $300 at your bank. Then. In this case. In that case. 6 If the total amount is the same as the downloaded transaction amount. To match a downloaded transaction to multiple QuickBooks Online transactions: 1 On the Downloaded Transactions page. click its checkbox in the list on the left. 3 In the Match Transactions window. select a transaction that you know represents multiple QuickBooks Online transactions. 3 In the Match Transactions window. 5 When you find the item you're looking for. Say you received payment for three invoices with three separate checks for $100 each. 7 When you're satisfied with the match. or it finds one that isn't the right one. If the amounts are different. select a transaction.QuickBooks Online 2013 Lesson 2: Money Out Find Matching Transactions Sometimes QuickBooks Online can't find a matching QuickBooks Online item for a downloaded transaction. click Find. 2 Click Find matching transactions. and so on. 4 Click Add. If you don't see this option. Match to Multiple Transactions You can match a downloaded transaction amount to more than one QuickBooks Online transaction. type text to help you find the transaction: a name. 2 Select the Match to option and select Find matching transactions from the list. change the dates to help find the transaction you're looking for. 4 If the transaction you want to match to is outside the date range displayed. 5 Course 4: Recording Transactions in QuickBooks Online 54 . Select the to and from dates and click Apply. you can match to multiple transactions to make the amount equal. select the transactions on the left that add up to the downloaded transaction amount. Click Match to and select Find matching transactions from the list. click Save. The items you selected move to the Selected matches list on the right. part of a name. an amount. The transaction moves to the Accepted Transactions tab. click Add. you can search to find a better match. you'd want to match the $300 downloaded amount to the three $100 payments you received against those invoices. To find a match: 1 On the Downloaded Transactions page.

If you let QuickBooks Online create a new QuickBooks transaction for the match. It doesn't matter whether you matched to a single QuickBooks Online item or multiple items. and so on. When you're satisfied with the match. The transaction moves to the Accepted Transactions tab. Just click Unmatch near the top of the page. remove some of the matches until the difference is 0. NOTE: You can also undo a match to a single QuickBooks transaction directly from that transaction. description.QuickBooks Online 2013 6 Lesson 2: Money Out Be sure the total amount matches the downloaded amount by doing one of the following  If the total amount matches the downloaded amount. that's good. To undo a match for an accepted transaction: 1 On the Downloaded Transactions page. Click Undo. 2 Find and select the downloaded transaction you want to unmatch. or go adjust the QuickBooks Online transaction amounts and then try matching again 106. click a column header to sort up or down by amount. Unmatch a Downloaded Transaction You might sometime want to undo the matches you made to a downloaded transaction. date. (TIP: To find your transaction more easily. those items are "freed up" to be matched again. 107.) 3 Select the checkbox for the row. select more matches. No further action needed. The downloaded transaction moves back to the Unaccepted Transaction tab.  If the total amount is more than the downloaded amount. or go adjust the QuickBooks Online transaction amounts and then try matching again  If the total amount is less than the downloaded amount. click the Accepted Transactions tab. If you matched the downloaded amount to existing QuickBooks transactions. click Accept. Click Save. that new item is deleted. Course 4: Recording Transactions in QuickBooks Online 55 .

2 At the top of the list. track your personal expenses by adding yourself as a vendor and assigning the transactions to an owner's equity account (often called an owner's draw).  You exclude unaccepted duplicates from the Downloaded Transactions page  You delete accepted duplicates from the bank register Before doing either. 108. this is fine. and repeat these steps for the other transaction. exclude it  If you already accepted the duplicate. Click Details again to close the pane. If you do reconcile your bank registers (or your accountant makes you). You'll need to exclude or delete the duplicates. select a transaction and click its Details tab (directly beneath). and so on. amount. you might encounter duplicate downloaded transactions from your financial institutions. click the checkboxes for the rows you want to exclude.QuickBooks Online 2013 Lesson 2: Money Out Handle Duplicate Downloaded Transactions Occasionally. To exclude a transaction: 1 On the Unaccepted Transactions tab. do one of the following:  For nonduplicate transactions. your bank register won't reconcile because the bank balance and QuickBooks Online balance won't match. If you don't reconcile your bank statements with QuickBooks Online. Once you're certain you have duplicates:  If you haven't accepted the downloaded duplicate yet. Note: If you use excluding to remove duplicate downloaded transactions. click Exclude and select Exclude as Duplicate from the list Course 4: Recording Transactions in QuickBooks Online 56 . Make a note of the details: transaction ID. your balances will match and you'll be able to reconcile. click Exclude and select Exclude from the list  For duplicate transactions. description. delete it from the register Exclude Downloaded Transactions Excluding a downloaded transaction is an easy way to keep a personal expense out of your business finances. date. compare two transactions to verify they're duplicates: 1 On either the Unaccepted or Accepted tab of the Downloaded Transactions page. If you exclude a transaction.

but isn't automatically updated with downloaded transactions. click Delete Connection (on the right). Choose Banking > Downloaded Transactions to return to the Downloaded Transactions page. which stops QuickBooks Online from downloading your transactions from your financial institution. To disconnect an account: 1 From the Banking > Downloaded Transactions page. The transactions aren't tracked or reported as part of your business finances. if needed. You can set up a new connection. and then click the Edit button at the bottom of the accounts list. You can also completely delete an account from QuickBooks Online. On the Account Information page. NOTE: There is a checkbox to show excluded transactions from appearing on the Accepted tab. select the account you want to change. 109. for any accounts you disconnect. Confirm that you want to delete the connection and stop downloading transactions. Course 4: Recording Transactions in QuickBooks Online 57 . check with your accounting professional before deleting an account. If you're unsure. The account stays in QuickBooks Online. Disconnect or Delete Bank or Credit Card Accounts You can delete (disconnect) an account's connection. But exercise caution! You can't restore a deleted account. 110.QuickBooks Online 2013 Lesson 2: Money Out The transactions move to the Accepted Transactions tab and show — Excluded or Duplicate — in the Assign or Match column. and it may have unintended consequences. They won't appear in any associated account registers or reports.

Enter a Template Name. start from the Recurring Transactions  To start from an existing transaction and create a template from it. and then click the Edit button at the bottom of the accounts list. find the transaction and then make it recurring Creating Just a Template 1 Open the Recurring Transactions.Click New. click Delete (on the left). 4 Confirm that you want to delete the account. and then confirm again. 113. RECURRING TRANSACTIONS Creating a recurring template Why create recurring templates? There are two ways to start creating a template:  To just create a template. 115. Choose a Template Type. Select the type of transaction to create. or. If you are creating a scheduled or reminder type of recurring template.QuickBooks Online 2013 Lesson 2: Money Out To delete an account: 1 Be sure you understand the consequences of completing deleting an account. click Edit Schedule and fill out the schedule. Course 4: Recording Transactions in QuickBooks Online 58 . 111. 114. What are unbilled charges? 116. 117. 2 From the Banking > Downloaded Transactions page. 3 On the Account Information page. 112. 5 Choose Banking > Downloaded Transactions to return to the Downloaded Transactions page. and click OK. If you are creating an invoice template. choose Recurring Transactions. you can specify that it should include unbilled charges. from the Company menu. select the account you want to change.

QuickBooks Online 2013 118. you don't have to fill out every field. as usual:  For a scheduled type of template. Course 4: Recording Transactions in QuickBooks Online 59 . Lesson 2: Money Out Fill out the rest of the transaction. You can enter just the data that you know will need to be repeated in each occurrence. because you can edit each occurrence before it is actually created. 119. Click Save Template. fill out all the details of the transaction because you won't have a chance to edit each occurrence of a real transaction before it is created  TIP: For a reminder or unscheduled type of template.

QuickBooks Online 2013 Lesson 2: Money Out PRINTING You can also enter the Print Checks queue at any time from the Banking menu. 1 Enter your Starting Check #. Now that you are actually printing the checks (using print stock purchased from Intuit!) you will need to tell QuickBooks Online the current check number to use. All checks that have been marked to be printed bill will be listed here. Course 4: Recording Transactions in QuickBooks Online 60 . Click Print. If you look at the list you will see the check you created for Ellis Equipment Rental and the checks that you created using Pay One Vendor and now Pay Bills. Click the Select All button at the bottom so that you can print all the checks in the queue. 121. Click the Hide Instructions checkbox to collapse the instructions section. The top part of the screen contains instructions for printing alignment and setup. You are now in the Print Checks queue. 120.

IMPORTANT: Notice the reminder at the bottom of the Adobe Reader Screen – Did you remember to click the Print icon? In order to print the check. you will have to pretend that your checks did print. Click the Finished button at the bottom of the Adobe Reader window. Course 4: Recording Transactions in QuickBooks Online 61 .QuickBooks Online 2013 Lesson 2: Money Out Adobe Acrobat Reader An Adobe Acrobat Reader window will open with a preview of all the checks that are to be printed. 122. you must click the Print icon at the top of the window. 1 Since we do not want to actually print checks.

.. Click OK. I clicked on the Print icon. They know in the real world the vendor was paid. Why do you think QuickBooks Online needs to ask these questions? 124. yet the next time they run the Unpaid Bills report or open the Pay Bills screen QuickBooks Online tells them the Bill has not been paid. Course 4: Recording Transactions in QuickBooks Online 62 .QuickBooks Online 2013 Lesson 2: Money Out 123. Click Yes. IMPORTANT: Customers sometimes ignore the above prompt and still use the Write Check screen when they should have used Pay Bills.

QuickBooks Online 2013 Lesson 4: Inventory and Purchase Orders LESSON 4: INVENTORY AND PURCHASE ORDERS A feature unique to QuickBooks Online Plus can track the quantity. The COGS account is an expense account. and cost of goods sold for your inventory items.  At times. When this happens. FIFO stands for First-In. FirstOut  Recording this sale also increases the Cost of Goods Sold account (COGS) by the original cost of the item and increases the Sales of Product Income account by the amount your customer paid you for the item. a sales of product income account and a cost of goods sold account  The balance of the inventory asset account appears on the Balance Sheet report  Recording the purchase of an inventory item increases the Inventory Asset account on your Balance Sheet report by the cost of the item and increases the Quantity on Hand units for that item  Recording the sale of an inventory item decreases the Inventory Asset account by the original cost of the item and decreases the Quantity on Hand units for that item  The Cost of Goods Sold (COGS) represents the cost incurred by your company for purchasing goods to resell  The COGS is not realized until a product is sold. Homogeneous means – of the same or similar in nature. purchase costs. The difference between the income amount and the COGS amount is your gross profit on that item. QuickBooks Online uses FIFO to manage the cost accounting as you sell units of that product. their costs are removed from the Balance Sheet report and transferred to the COGS account on the Profit & Loss report  QuickBooks Online uses the FIFO accounting method to figure the COGS. all trees in that product category must be the same.  FIFO requires that products being tracked for inventory in a particular product group must be homogeneous in nature. Course 4: Recording Transactions in QuickBooks Online 63 . sales revenue. For example. you might pay more for some units of a given product than for other units due to price fluctuations. if you are tracking 5’ Orange Trees in your inventory. The difference between revenue from the sale of a product and the product’s COGS is called the Gross Profit  As products are sold from inventory. Here are some key points:  The value of an inventory item in your books is the amount you paid for it  Products using inventory tracking must be assigned an inventory asset account.

choose Preferences. Course 4: Recording Transactions in QuickBooks Online 64 . 3 Select the Products and services checkbox for sales and/or purchases. or. the QuickBooks Online Products and Services List needs explanation. from the Company menu. Why use products and services? Products and services let you:  Create products and services  Create subs Items and Jobs  Enter charges on invoices and use in estimates  Quickly enter a consistent description and price/rate in transactions  Report on income and/or expenses from different products or services  Set up products or services that are either taxable or non-taxable by default To turn on products and services If you don't see a Product/Service column on sales screens (like invoices) and/or purchasing screens (like bills and checks): 1 Open Preferences.QuickBooks Online 2013 PRODUCT AND Lesson 4: Inventory and Purchase Orders SERVICES LIST Before setting up inventory and working with purchase orders. and click Save. 2 Click the Products and Services section.

7 Enter a sales Rate of $30. 5 Create a new Inventory Asset sub-account with 2 ft Plastic Gnome in the name. 6 Leave the initial quantity at zero. Click Save. you need to set up this product for inventory cost accounting. Products & Services List. Inc. 12 Save your new product. Course 4: Recording Transactions in QuickBooks Online 65 . Product Setup for Inventory 1 Go to the Customers tab and select from the More dropdown. 4 Notice that the default account types change after you turn on QOH to Inventory Asset. Sales of Product Income.QuickBooks Online 2013 SET UP A PRODUCT Lesson 4: Inventory and Purchase Orders FOR INVENTORY TRACKING Your best selling product is the 2’ Garden Gnome that is manufactured by Gnome’s R Us. 8 Create a new Sales of Product Income sub-account with 2 ft Plastic Gnome in the name. Before you can purchase any of these Gnomes for your inventory. If this option doesn’t appear. 9 Turn on Purchase Information. You have three vendors that can supply you with this product. go to Company>Preferences>Products and Services>Quantity on Hand and select Quantity on Hand (Inventory Tracking). and COGS. 2 Create a new product named Garden Gnome. 10 Enter a purchase cost of $15. 11 Create a new COGS sub-account with 2 ft Plastic Gnome” in the name. 3 Turn on tracking for Quantity on Hand (for Inventory items).

3 Enter PO# number CL1001. 5 Enter a quantity of 100. Buying Inventory with a PO 1 Select Purchase Orders from under the Vendors tab. NOTE: At this time. 2 Choose Hicks Hardware and Supplies as the Vendor. 4 Choose Garden Gnome under Product/Service. It is time to create a Purchase order for more Gnomes. 6 Leave the rate at 15. 7 Save PO# CL1001. QuickBooks Online will not process and receive partial Purchase Orders.QuickBooks Online 2013 PURCHASE PRODUCTS Lesson 4: Inventory and Purchase Orders FOR INVENTORY WITH A PO You have had a successful few months selling your Garden Gnomes. Course 4: Recording Transactions in QuickBooks Online 66 .

3 Click the Add Purchase Order button for PO# CL1001. The quantity on hand for the Garden Gnome is still at zero. The 100 Gnomes will not be placed in inventory until the PO is closed and the vendor paid. 126.00. Now that the PO has been closed the inventory appears in the QOH. 128. 127. The Inventory Asset account for Gnomes will also show a zero balance.QuickBooks Online 2013 125. Course 4: Recording Transactions in QuickBooks Online 67 . Return to the Products & Services list. The Inventory Asset account for Garden Gnomes now shows a balance of $1. This is the current asset value of the 100 Gnomes you purchased at $15 each (100 X 15 = 1500). Enter a Vendor Bill with a PO 1 Go to the Enter Bills screen (under the Vendor menu) leave the default settings for the mini interview window click next until finished. 2 Choose Hicks Hardware and Supplies as the vendor. POs are non-posting. Now. Lesson 4: Inventory and Purchase Orders Go back to the Products and Services list.500. That is because the PO is still open. Save the bill. the QOH for Garden Gnomes is 100. they do not post to any general ledger accounts.

00)  FIFO dictates that we must sell the 100 Gnomes in Lot #1 first. Course 4: Recording Transactions in QuickBooks Online 68 .00.00)  Lot #3 . NOTE: The cash flow dictates that you must figure your inventory cost accounting using cost of FIFO lot #1 first. However. 2 Select the Show all bills radio button.100 Gnomes @ $15 each (Hicks Hardware and Supplies PO# CL1001 at $1500)  Lot #2 .QuickBooks Online 2013 Lesson 4: Inventory and Purchase Orders Pay Vendor with PO 1 Go to Vendors tab and select Pay Bills. you do not have to physically remove inventory from your business in that order. you would have to purchase additional Gnome inventory for FIFO to predict “first in first out”. As an example:  Lot #1 . 4 Click Pay Bills. 3 Click the Hicks Hardware and Supplies bill for $1500. Since QuickBooks Online uses the FIFO method of inventory cost accounting. First-Out inventory cost accounting method that QuickBooks Online uses.50 Gnomes @ $25 each (Gnomes R Us PO#CL1003 at $1250.50 Gnomes @ $20 each (Gnomes Etcetera PO# CL1002 at $1000. Note the amount to pay. You have now made a purchase of Gnomes from a vendor. Since all the Gnomes are the same (or homogenous). FIFO LOTS FIFO stands for First-In.

you are not sure how QuickBooks Online will track these sales and purchases for your business. the announcement of “Landscaper of the Month” has increased sales. Course 4: Recording Transactions in QuickBooks Online 69 . NOTE: the customer may find it confusing to see an invoice listed but not see the sales amount for the invoice. the purchase cost).00. 4 Sale price is $30 each Click Save. From a Balance Sheet report. People are ordering large numbers of Gnomes for home and business. However. 3 Enter a quantity of 10.QuickBooks Online 2013 Lesson 4: Inventory and Purchase Orders SELLING INVENTORY PRODUCTS Just as you suspected. 2 Select Garden Gnome for a Product/Service. $150. But. The amount listed with the invoice is the decrease in inventory costs that occurred when you made a sale out of your inventory. you will see that the income for the sale of Garden Gnomes is $300. Selling Inventory Products 1 Create an invoice for customer Brenda Adnerb.00 (10 X $30 each) while the COGS is the same as what you saw in the Balance sheet. the invoice will be listed showing that the inventory account has decreased by the amount of $150 (10 Gnomes @ $15.00. Remember that the COGS are not realized until a sale is made. The $150 increase in COGS offsets the decrease in inventory assets. this is a positive number. From a Profit and Loss report.

unearned income and prepaid asset adjustments  You prefer the traditional system of accounting – entering debits and credits in a general journal or ledger WHAT DOES A JOURNAL ENTRY LOOK LIKE?  Account – Any account on the chart of accounts  Debit or Credit – Often the first line is Debit. find it in the Recent Transactions report to see if the Debit had the desired effect  Memo – (Optional) This memo appears on the account reports in the Memo/Description field and will show the transaction details  Name – Choose a customer. QuickBooks Online labels the transaction as Journal in a register and General Journal on reports that list transactions. After you save the transaction. WHY MAKE JOURNAL ENTRIES? QuickBooks Online users would use Journal Entries:  To record non-monetary adjustments – make accruals. or employee associated with the line. the Debit line must have a vendor name associated with it  If the account is Accounts Receivable. Enter Bills. a journal entry is a transaction in which:  There are at least two parts – a Debit and a Credit – called distribution lines  Each distribution line has an account from the Chart of Accounts  The total of the Debit column equals the total of the Credit column When you record a transaction with Make Journal Entry. if any  If the account is Accounts Payable. deferrals. WHAT IS A JOURNAL ENTRY? In traditional accounting. Most commonly the Journal is used to record transactions that cannot be recorded in one of the specialized forms such as Write Checks. the Debit line must have a customer name associated with it Course 4: Recording Transactions in QuickBooks Online 70 . etc.QuickBooks Online 2013 Lesson 5: Journal Entries LESSON 5: JOURNAL ENTRIES The Journal is an account ledger where all types of entries are recorded. amortization. and corrections. Examples include recording depreciation. vendor. Receive Payments.

QuickBooks Online 2013 Course 4: Recording Transactions in QuickBooks Online Lesson 5: Journal Entries 71 .

in the Name column. 137. Note the transaction date for today. If needed. a customer needs a journal entry for an account credit. QuickBooks Online will mark the change of date of the original transaction. 130. On that same.QuickBooks Online 2013 Lesson 5: Journal Entries In some situations. 129. 136. Click Save. 1 Go to the Reports tab and select Customer Balance Detail. enter the Checking Account with a credit of $75. find Kate Whelan. Enter the Date the transaction took place. Based on the date of the transaction and it’s posting. Go to the Banking tab and More then select Journal Entry from the dropdown. a journal entry can keep the reporting correct to whatever date you choose. To be able to post on a specific date other than the original transaction date. Making a Journal Entry Pull a Customer Balance Detail report for today. 135. Enter the Design Income account on the first line with a Debit of $75. 133.00. In some cases. 131. Select today’s date. On the second line.00. Enter an Entry Number to help you identify the transaction in reports. 132. 134. customers want to post amounts to specific dates to match accountant or bank reports. scroll down to Kate Whelan’s account. they need to make a journal entry. Course 4: Recording Transactions in QuickBooks Online 72 .

spend cash and enter bills.QuickBooks Online 2013 Course Conclusion COURSE CONCLUSION This is a large training module with many concepts and topics discussed. You explored the creating of transaction that brings money into company. Business created with a customer can be accounted for using QuickBooks Online. You discovered how to create receipts. Course 4: Recording Transactions in QuickBooks Online 73 . The Vendor section of this training made the important difference of paying vendors and writing checks.