INTERNATIONAL WINDOW COVERINGS EXPO Educational Summit May 13–16, 2009 Atlanta, Ga. Georgia World Congress Center windowcoveringexpo.com 8:00-12:00 V. Ayres/D. Green QuickBooks RoadMap: Your Guide from Start to Finish 2AA Room C106 Sponsored by GRACEMCNAMARAINC "QuickBooks Roadmap" Your guide from start to finish of a job in QuickBooks (Super Session - 3 Hours) ~ (Debbie Green & Vickie Ayres Co-Teaching) Do you have a plan to get where you want to go? Just like any road trip you have to get ready and have a route planned to reach your destination. This class will lay out the route you should take in QuickBooks to take a job from the Estimate to the final Payment. We will create an Estimate, Apply Upfront Deposits, Generate Purchase Orders, and with the click of button create a Final Invoice. At the end of our journey we will accept the final payment all the while showing you how these procedures help you accumulate information that will create accurate Job Profitability Reports. Sometimes you need Summary Estimates and sometimes you need more detail, we will show you how to make this available either way in an Estimate or an Invoice. Preparation Organize your lists Chart of Accounts Item List Vendor List/ Other Name List The Matching Rule: Match accounts when creating items Inventory or Non-Inventory Items Definitions Inventory parts are items that you purchase in bulk and then stock for a while before selling. QuickBooks tracks the quantity on hand, the current inventory value, and the average cost of your inventory items. It also tracks some accounting information like “cost of goods sold“for inventory items that you have sold. Non-inventory parts are items that you purchase (usually on behalf of a specific customer) and then immediately sell or install, or items that you sell without ever buying. For non-inventory parts, QuickBooks will only track how much you have spent or taken in. Some people use non-inventory parts even for items that they stock because they prefer a simpler approach—even though it gives them less information. The Estimate • Start with a Group – “G-“ & “GP-“(Baskets of items) • “CTRL Delete” deletes one line (1 item) at a time or (right-click “delete line”) • “CTRL Insert” inserts one line so you can add an item to your group on this estimate • Highlight text and “delete” to remove text not needed for this estimate on any item • “On the Fly” Edits are temporary, for this Proposal only (Quantity, Pricing, Description) Vertical Quoting • Area 1 The Header • Area 2 Item Column • Area 3 Descriptions • Area 4 Quantities • Area 5 Pricing (last 5 columns) Apply a Down Payment Correctly When accepting a Down payments you have two objectives: You don’t want to create income or sales tax liability until the job is finished and created an invoice. Create an item in your item list called "Down payments", make "Other Charge"for the type, non-taxable and its associated account is "Customer Down payments". If you need to create this account it needs to be an "Other Liability account". Also make sure your preferences are set up correctly: "Edit", "Preferences", "Sales & Customers", "Company Preferences", click "Use Undeposited Funds as a default deposit to account", this must have a checkmark in it. First: Create an estimate. Collect a down payment on the job. Come back to your office and open up the estimate. Below the Group item description, choose the item, "Down payments", in the description line, type a note about the check number, the total of the check and type the amount being applied as a NEGATIVE number. Second: Create a sales receipt to record the down payment money. Remember, an estimate is non-posting, therefore, the Down payment item code on the estimate will not affect any banking accounts. Open the "Deposit" screen, for making deposits to the bank. When you open it up will ask you if you want to deposit the payments you have collected (the cash receipt down payment will be listed) of course you do! Save and close the deposit and now your money is in the bank account in QuickBooks. Third: You are ready to deliver the job to the customer and collect the balance due. Open your estimate, click on create the invoice and let it create the invoice just like the estimate. You can now make any edits to your invoice here, add items, delete items, etc. Your note about the deposit pops right onto the invoice without you having to remember how much was applied. Collect money from your client. Note: this is the point at which income and sales tax liability was created, but only for the portion of the invoice that you collected money. So depending on your sales tax rate, a portion of the down payment will show up as income and a portion will be sales tax collected. Fourth: Open your "payments" screen, fill in the particulars about the payment you collected from the client, let it go to "Undeposited Funds", very important, and apply it to the proper invoice. When you open your "Deposits" screen, QB will ask you again if you want to deposit your payments from "Undeposited Funds", of course you do, Save the deposit form and your money is in the bank! Once you apply the payment to the invoice the entire entire invoice is now taxable. Purchase Orders Remember the Matching Rule? Match accounts when creating items You also want to match items on sales forms (estimates & invoices) to items used on purchase forms (Purchase Orders and Bills) we will see how this works as we create a PO for our job. Creating Purchase Orders Method 1- Creating Purchase Orders from an Estimate (available in Premier Contractor’s version) Open your estimate, click on the drop down menu arrow Create Invoice, choose “create PO”. The screen that opens is very important; choose “Create PO for selected items” The next screen that opens lets you select items for the PO. Choose only items for one Vendor at a time. For example our Main Fabric and Contrast Fabric are both from Kasmir. The PO opens and we must select the Vendor “Kasmir” as we don‘t have a “Preferred Vendor” chosen for these items. We use several fabric vendors so we don’t want one to automatically fill in for us. Some items you will want to have a “Preferred Vendor and this will auto-fill for you. Here is our Purchase Order all filled out for us. Print, Save and Fax to the Vendor Notice how by allowing QB to create the PO from the Proposal/Estimate it used the EXACT SAME ITEM as we used on our Proposal? That’s the matching rule. This is very important if you want your cost and revenue from each item to show up on your Job Profitability report beside each other. Method 2 You will need to open the Purchase Order screen “Vendors Create Purchase Orders” and enter all of your information manually. It’s not hard you just have to make sure you remember to apply the matching rule and use the same items on your Purchase Orders that you used on the Estimate. Receiving Items When you create PO’s you need to “Receive the Items”. We are going to use the one- step method, “Receive Items and Enter Bill”; you will find this under the Vendors menu. The Bill Posting Screen will come up and after you type “Kasmir”, QB will tell you that you have open PO’s with that vendor would you like to choose one? Like Magic, QB creates the bill and employing “the matching rule” uses the EXACT same items again……its so easy! Now you will want to edit the bill at this point for any price changes and add an item for shipping charges for the client. Make sure the billable column is unchecked, you have already charged the customer on the estimate for all of these items. Save & Close…. Paying Bills - Let QuickBooks Do the Work You do not have to post bills in order to write a check and pay bills, but we do recommend it. Do the things the same way, every time and you don’t have to think so hard, things become routine and easy. So let’s assume when you get bills you post them and then you pay them. You are doing it with PO’s so let’s use the same process for all bills. Under Vendors, Choose “Enter Bills” We are going to enter a bill for our cell phone, when we start typing the vendor name, QB auto-fills the name and the amounts from our last bill posting. Very Handy! We are using the Expenses tab because these are business expenses and not items we have ordered for a customer. The second screen shows the bill that we entered for our customer previously. Now we have all of our bills entered and we want to pay some bills. Choose “Pay Bills” under your Vendor menu. Place a check mark beside any bills you want to pay. You can choose to pay them by check or by Credit Card. You can print your checks or you can assign check numbers to them based on checks you have hand written. The Invoice Generate the Invoice & Apply the Final Payment Open your Estimate and click on the Create Invoice button. At this point you can make any changes that came up in the course of the job, fabric or trim that changed. Remember that items inside the “Group” won’t print, if you want an item to print to show the change you must add that item outside of the “Group”, below the description line. Notice how QB “remembered” the down payment we collected for this job? Clients really like seeing this information on the final invoice, including the check number and date. Best of all, I didn’t have to remember any of the details regarding the down payment everything was already there! Now all that is left is to deliver the job and collect your money. Back in the office, post the final payment by using the Payment screen and apply the money to an invoice, and fill out the deposit screen.
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