Case study
Quickbooks Online Accounting Course
Contents
1. Demo Case study 3
2. Contact (all information is an example only) 4
3. Inventory 5
4. Sales invoice with a discount 6
5. Repeating sales invoice 6
6. Sales invoice with a different currency and tax rate 6
7. Sale invoice of the fixed asset 6
8. Sales Quote 7
9. Credit note to Rosie 7
10. Purchase Order for fixed asset 8
11. Purchase Invoice for inventory 8
12. Repeating purchase invoice 8
13. Purchase credit note 8
14. Receipt 9
15. Fixed Asset 9
16. Payroll 9
17. Project 9
All details (contacts, names, addresses, etc.) provided are for learning purposes only.
If you find an error, just message me directly. Thank you and happy studies.
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1. Demo Case study
Happy Celebrations UK Limited
Direct Sales business
Financial Year 31st March
Standard VAT business
Company reg. 106115, VAT reg. GB245 1111 105
Company employees 3 employees, including a director and also subcontractors
We have opened our business on 01.12.2021 and have some conversion balances.
Over 2,000 customers have already enjoyed our services in organising birthday parties, weddings,
anniversaries.
We also make own home celebration supplies, that you can purchase from our online store
(www.happycelebrations.uk).
Services: Prices (in £, plus VAT) per guest:
Birthday 50
Wedding 100
Anniversary 60
Other celebration events – bespoke 200
Products: Prices (in £, plus VAT) per guest:
Birthday home kit for children 10
Birthday home kit for teenagers 12
Wedding must haves 100
Anniversary surprise party kit 50
Theme kits (Dinosaurs, Princess) 40
Our address
Unit 10 Valentines Close, London, E16 1AH
0203 651 11 01
ask@happycelebrations.uk
Our bank details:
Barclays Bank, sort code 00-00-00 account 000000
Tags:
For all of the UK sales and purchases use UK tag, for the US and for EU use Europe tag.
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2. Contact (all information is an example only)
Contact 1:
Mr Gregory Macdonald
2a Bridge Lane, Manchester, SK7 3AW
Gregory’s mobile: +44 800 5516611
gmcdonald@bridge.uk
Credit limit: £5,000
Group UK
Contact 2:
Rubik World LLC (currency $)
5th Avenue
New York
United States
10001
rubik@example.com
Contact Bella: +001 155 66 44
Contact 3:
Little Sunshine Ltd
1 Lavender Street
London
E13 0PR
+44 203 546 11 11
Contact 4:
Rosie Marks
10 Forest Hill
London
E14 0PR
Mobile: 079 120 282 46
rosie@marks.com
Contact 5:
Events Supply Market Manchester
1 Stock Road
Manchester
M1 1BB
info@eventssupply.com
Phone: +44 161 210 11 55
Group UK
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3. Inventory
Services: Prices (in £, plus VAT) per guest:
Birthday 50
Wedding 100
Anniversary 60
Other celebration events – bespoke 200
Products: Prices (in £, plus VAT) Purchase price (in £, plus VAT)
per guest: per guest:
Birthday home kit for children 10 4.5
Birthday home kit for teenagers 12 5
Wedding must haves 100 45
Anniversary surprise party kit 50 25
Theme kits (Dinosaurs, Princess) 40 20
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4. Sales invoice with a discount
Mr Gregory Macdonald purchased below on 5th January 2022:
Anniversary and Dinosaur theme party kit. We offer a 5% discount as his is a loyal customer. The
payment is due within 30 days.
5. Repeating sales invoice
Little Sunshine kindergarten receives a monthly supply of our Little stars Children kits x 5 every month
from 25th January 2022.
Monthly invoice should be sent to:
Little Sunshine Ltd
1 Lavender Street
London
E13 0PR
Monthly invoice is with VAT and due within 30 days.
6. Sales invoice with a different currency and tax rate
Sale to Rubik World on 10.01.2022 with 30 days payment terms consists of:
Wedding must haves x 5
Anniversary surprise party x 5
VAT exempt as it is outside of the UK sale
Customer would like an invoice in US dollars.
Rubik World details:
Rubik World LLC
5th Avenue
New York
United States
10001
rubik@example.com
Contact Bella
7. Sale invoice of the fixed asset
We sold an Apple computer, which was part of our fixed assets to Mr Gregory Macdonald on
1st February 2021 for £1,250. The fixed asset was with a straight line depreciation for 3 years.
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8. Sales Quote
Mr Gregory Macdonald (our new customer) has asked to organise a birthday party celebration with
20 guests at his home in Manchester. Address for billing and for delivery of the services is 2a Bridge
Lane, Manchester, SK7 3AW. If you need to contact about this event, telephone Gregory on 0800
5516611 or email to gmcdonald@bridge.uk.
We need to send first a sales quote to confirm the amount and conditions. The information will be
the same as per invoice, see below:
Billing information:
20 guests - Birthday services plus Value added tax
We also add £500 as refundable secure deposit, without VAT.
Description:
50th Birthday Party celebration 20 guests on 27th February 2022
Payment terms - 50% deposit to be paid by 31st January 2022 and final by 28th February 2022.
Make a note on the quote.
Quote should expire within 5 working days. Send the quote by post and save it as "sent" on a system.
9. Credit note to Rosie
One birthday kit arrived damaged and therefore we will credit this item in full.
Delayed Charge:
A non-posting record on Quickbooks, that allow to save billing information in advance and when
required converting it to the sales invoice.
Delayed credit:
As opposite to the immediate posting of credit note on the customer's account, the delayed credit as
non-posting item until a future date will not affect sales report.
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10. Purchase Order for fixed asset
We are sending a purchase order to Apple UK computers, valid until 28th February 2022.
APPLE iMac 2020 (21.5", Intel Core i5, 8 GB, 256 GB SSD)
Reference for this: Office2022
Unit price: £995 plus VAT. Account office equipment.
Location: UK
If price falls below £1,500, accept and proceed to a full invoice.
After adding the item, edit and add depreciation for the fixed asset is based on 5 years straight line.
Depreciation starts on 1th April 2022.
After that, convert purchase order into purchase invoice.
Purchase order for inventory:
Create a purchase order for inventory from Events Wholesale, dated 1st January 2022, for 10 units of
each product.
Products: Purchase price (in £, plus VAT) per guest:
Birthday home kit for children 4.5
Birthday home kit for teenagers 5
Wedding must haves 45
Anniversary surprise party kit 25
Theme kits (Dinosaurs, Princess) 20
11. Purchase Invoice for inventory
Earlier, entered the purchase order to inventory.
Enter the received purchase invoice directly or convert from a purchase order to an invoice, see a
separate file Events Wholesale.
12. Repeating purchase invoice
Invoice for Xero subscription service of £25 plus VAT on 15th of every month, starting from March.
13. Purchase credit note
Credit the Xero invoice for January subscription £25 plus VAT in full.
See a file for an invoice.
Expense vs receipt:
Care must be taken when booking a business receipt, i.e. stationery, subsistence, and expense. If we
raised a receipt, an expense and then downloaded a bank, it could create a potential duplication!
Expense can be used for an immediate purchase or addition in fixed assets.
For receipts, upload and allocate receipt when necessary and match to bank transaction directly.
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14. Receipt
Add Curry's receipt under general expense nominal code and assign to Mr Gregory Macdonald
(customer).
Let's create a mileage on Quickbooks for a trip to meet a client from E16 1AH to WC1N 2AB.
Expense:
Create a new nominal code under Computer additions and call it Huawei server. Use an expense
option. Record the transaction on 15th March 2022, amount with VAT £750.
15. Fixed Asset
Dell PC price purchased for £550 inclusive VAT (net £458) on 5th January 2022.
Depreciation straight line 5 years, depreciation starts on 1st April 2022.
Location UK.
Note you will not be able to add asset type and approve under current Xero role, only at advisor level.
16. Payroll
Mr Richard Thomas
Date of Birth: 11th January 1960
1 Dock Road E16 1AH
Regular hours, monthly payment
Start date: 1st January 2022
Paid Monthly on 25th
Regular hours and £25,000 per year
Tax code: 1250L
Assign time off at the beginning of a year, maximum to accrue 120 hours per year.
Richard will take a holiday from 5th April 2022 to 7th April 2022.
Account HMRC reference: 475/NC12345.
17. Project
The Project is created for Easter advert.
The budget is set at £5,000 plus VAT and deadline to create is 12th April 2022.
Create an expense for the telephone company O2, then bill is added with 10% mark up for £50 per
hour, billable to Rosie.
Send an invoice to a customer for contractor work: 1 hour at rate of £25 per hour, worked 5th April,
6th April and 7th April from 8 a.m. to 12 p.m. every day.
The most important element here is to understand the profitability tab and how to plan the budget
without making a loss.
