QuickBooks 2010 ®
ENSURING YOUR SUCCESS IN THE CLASSROOM yy
Hands-on learning through real-world activities.
yy
Clear, concise, and consistent instructions.
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Time-tested instructional design.
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Comprehensive teaching tools. ISBN-13 978-1-4260-1935-7 ISBN-10 1-4260-1935-1 90000
9 781426 019357
QuickBooks_Axzo_cvr.indd 1
T o p ics I nclu d e : ÂŽ
Managing customers and vendors
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Tracking bank transactions
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Keeping inventory
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Generating reports
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Preparing invoices
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Setting up budgets
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Writing checks
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Protecting your data
St u de n t M a n ua l
3/4/10 2:23:50 PM
QuickBooks 2010 Student Manual
QuickBooks 2010 President, Axzo Press:
Jon Winder
Vice President, Product Development:
Charles G. Blum
Vice President, Operations:
Josh Pincus
Director of Publishing Systems Development:
Dan Quackenbush
Writer:
Jim O’Shea
Copyeditor:
Catherine Albano
Keytester:
Cliff Coryea
COPYRIGHT © 2010 Axzo Press. All rights reserved. No part of this work may be reproduced, transcribed, or used in any form or by any meansgraphic, electronic, or mechanical, including photocopying, recording, taping, Web distribution, or information storage and retrieval systemswithout the prior written permission of the publisher. For more information, go to www.axzopress.com.
Trademarks ILT Series is a trademark of Axzo Press. Some of the product names and company names used in this book have been used for identification purposes only and may be trademarks or registered trademarks of their respective manufacturers and sellers.
Disclaimer We reserve the right to revise this publication and make changes from time to time in its content without notice. Student Manual ISBN 10: 1-4260-1935-1 ISBN 13: 978-1-4260-1935-7 Student Manual with data CD ISBN-10: 1-4260-1937-8 ISBN-13: 978-1-4260-1937-1 Printed in the United States of America 1 2 3 4 5 GL 06 05 04 03
Contents Introduction
iii
Topic A: About the manual............................................................................... iv Topic B: Setting your expectations...................................................................vii Topic C: Re-keying the course ..........................................................................x
Getting started
1-1
Topic A: Introducing QuickBooks 2010.......................................................... 1-2 Topic B: Getting help and closing QuickBooks ............................................. 1-11 Unit summary: Getting started ........................................................................ 1-18
Setting up a new company
2-1
Topic A: Using the EasyStep Interview........................................................... 2-2 Topic B: Using the Chart of Accounts............................................................ 2-18 Unit summary: Setting up a new company ..................................................... 2-31
Working with centers and lists
3-1
Topic A: Managing customers, vendors, and employees ................................ 3-2 Topic B: Working with the Item List.............................................................. 3-23 Topic C: Adding custom fields....................................................................... 3-34 Unit summary: Working with centers and lists ............................................... 3-37
Working with business forms
4-1
Topic A: Invoices and credit memos ............................................................... 4-2 Topic B: Sales receipts and customer payments............................................. 4-18 Topic C: Purchase orders and inventory......................................................... 4-26 Topic D: Finding information quickly ............................................................ 4-31 Unit summary: Working with business forms................................................. 4-35
Banking and billing activities
5-1
Topic A: Writing and printing checks.............................................................. 5-2 Topic B: Managing bank account transactions............................................... 5-12 Topic C: Entering and paying bills ................................................................. 5-25 Topic D: Introduction to payroll ..................................................................... 5-33 Unit summary: Banking and billing activities................................................. 5-35
Reporting and budgeting
6-1
Topic A: Generating reports ............................................................................ 6-2 Topic B: Using Company Snapshot................................................................ 6-15 Topic C: Setting up budgets ........................................................................... 6-19 Unit summary: Reporting and budgeting ........................................................ 6-25
Protecting and backing up data
7-1
Topic A: Protecting and sharing data............................................................... 7-2 Topic B: Backing up data ............................................................................... 7-16 Unit summary: Protecting and backing up data .............................................. 7-22
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QuickBooks 2010
Course summary
S-1
Topic A: Course summary............................................................................... S-2 Topic B: Continued learning after class .......................................................... S-4
Glossary
G-1
Index
I-1
iii
Introduction
After reading this introduction, you will know how to: A Use ILT Series manuals in general. B Use prerequisites, a target student
description, course objectives, and a skills inventory to properly set your expectations for the course. C Re-key this course after class.
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QuickBooks 2010
Topic A: About the manual ILT Series philosophy Our manuals facilitate your learning by providing structured interaction with the software itself. While we provide text to explain difficult concepts, the hands-on activities are the focus of our courses. By paying close attention as your instructor leads you through these activities, you will learn the skills and concepts effectively. We believe strongly in the instructor-led class. During class, focus on your instructor. Our manuals are designed and written to facilitate your interaction with your instructor, and not to call attention to manuals themselves. We believe in the basic approach of setting expectations, delivering instruction, and providing summary and review afterwards. For this reason, lessons begin with objectives and end with summaries. We also provide overall course objectives and a course summary to provide both an introduction to and closure on the entire course.
Manual components The manuals contain these major components: Table of contents Introduction Units Course summary Glossary Index Each element is described below. Table of contents The table of contents acts as a learning roadmap. Introduction The introduction contains information about our training philosophy and our manual components, features, and conventions. It contains target student, prerequisite, objective, and setup information for the specific course. Units Units are the largest structural component of the course content. A unit begins with a title page that lists objectives for each major subdivision, or topic, within the unit. Within each topic, conceptual and explanatory information alternates with hands-on activities. Units conclude with a summary comprising one paragraph for each topic, and an independent practice activity that gives you an opportunity to practice the skills you’ve learned. The conceptual information takes the form of text paragraphs, exhibits, lists, and tables. The activities are structured in two columns, one telling you what to do, the other providing explanations, descriptions, and graphics.
Introduction
v
Course summary This section provides a text summary of the entire course. It is useful for providing closure at the end of the course. The course summary also indicates the next course in this series, if there is one, and lists additional resources you might find useful as you continue to learn about the software. Glossary The glossary provides definitions for all of the key terms used in this course. Index The index at the end of this manual makes it easy for you to find information about a particular software component, feature, or concept.
Manual conventions We’ve tried to keep the number of elements and the types of formatting to a minimum in the manuals. This aids in clarity and makes the manuals more classically elegant looking. But there are some conventions and icons you should know about. Item
Description
Italic text
In conceptual text, indicates a new term or feature.
Bold text
In unit summaries, indicates a key term or concept. In an independent practice activity, indicates an explicit item that you select, choose, or type.
Code font
Indicates code or syntax.
Longer strings of ► code will look ► like this.
In the hands-on activities, any code that’s too long to fit on a single line is divided into segments by one or more continuation characters (►). This code should be entered as a continuous string of text.
Select bold item
In the left column of hands-on activities, bold sans-serif text indicates an explicit item that you select, choose, or type.
Keycaps like e
Indicate a key on the keyboard you must press.
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QuickBooks 2010
Hands-on activities The hands-on activities are the most important parts of our manuals. They are divided into two primary columns. The “Here’s how” column gives short instructions to you about what to do. The “Here’s why” column provides explanations, graphics, and clarifications. Here’s a sample: Do it!
A-1:
Creating a commission formula
Here’s how 1 Open Sales
Here’s why This is an oversimplified sales compensation worksheet. It shows sales totals, commissions, and incentives for five sales reps.
2 Observe the contents of cell F4 The commission rate formulas use the name “C_Rate” instead of a value for the commission rate.
For these activities, we have provided a collection of data files designed to help you learn each skill in a real-world business context. As you work through the activities, you will modify and update these files. Of course, you might make a mistake and therefore want to re-key the activity starting from scratch. To make it easy to start over, you will rename each data file at the end of the first activity in which the file is modified. Our convention for renaming files is to add the word “My” to the beginning of the file name. In the above activity, for example, a file called “Sales” is being used for the first time. At the end of this activity, you would save the file as “My sales,” thus leaving the “Sales” file unchanged. If you make a mistake, you can start over using the original “Sales” file. In some activities, however, it might not be practical to rename the data file. If you want to retry one of these activities, ask your instructor for a fresh copy of the original data file.
Introduction
vii
Topic B: Setting your expectations Properly setting your expectations is essential to your success. This topic will help you do that by providing: Prerequisites for this course A description of the target student A list of the objectives for the course A skills assessment for the course
Course prerequisites Before taking this course, you should be familiar with personal computers and the use of a keyboard and a mouse. Furthermore, this course assumes that you’ve completed the following courses or have equivalent experience: Windows 7: Basic Knowledge of basic bookkeeping principles and terminology
Target student The target student for this course should be comfortable with using a keyboard and mouse and should have basic-level experience with Windows 7 (or another version of the Windows operating system). This course is best suited if you want to use QuickBooks 2010 to track the financial activities of a small business. These include banking, accounts payable/receivable, invoicing, inventory, billing, and customer data management. However, this is not an accounting course, so you should already know the fundamentals of bookkeeping, including basic accounting terminology.
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QuickBooks 2010
Course objectives These overall course objectives will give you an idea about what to expect from the course. It is also possible that they will help you see that this course is not the right one for you. If you think you either lack the prerequisite knowledge or already know most of the subject matter to be covered, you should let your instructor know that you think you are misplaced in the class. After completing this course, you will know how to: Start and close the program, navigate the QuickBooks desktop, open a company file, and get help. Use the EasyStep Interview to set up a new company, explore QuickBooks Coach mode, and modify the Chart of Accounts. Work with the QuickBooks Centers to manage customers, vendors, jobs, notes, and employees; and create inventory and non-inventory items in the Item List. Prepare business forms (including invoices, sales receipts, credit memos, and purchase orders); receive payments; apply credits to a payment; receive items into inventory; and find information quickly. Manage banking and billing activities by writing and printing checks, transferring funds between accounts, editing transactions, reconciling accounts, and paying bills; and explore Intuit’s payroll service options. Get information about how your business is doing by generating and printing reports or by using the Company Snapshot window; and create and modify budgets. Maintain the company file in a multi-user environment by assigning administrator, closing-date, and user passwords, granting user access, and backing up a company file.
ix
Introduction
Skills inventory Use the following form to gauge your skill level entering the class. For each skill listed, rate your familiarity from 1 to 5, with 5 being the most familiar. This is not a test. Rather, it is intended to provide you with an idea of where you’re starting from at the beginning of class. If you’re wholly unfamiliar with all the skills, you might not be ready for the class. If you think you already understand all of the skills, you might need to move on to the next course in the series. In either case, you should let your instructor know as soon as possible. Skill Navigating the QuickBooks desktop Opening company files Creating a company file with the EasyStep Interview Adding accounts, customers, jobs, vendors, items, and other listbased records Editing, deleting, and deactivating list-based records Grouping items Creating custom fields for list-based records Filling out invoices, sales receipts, purchase orders, and other forms Creating a custom invoice template Receiving payments and entering items into inventory Finding information quickly by using QuickFilter Locating specific forms by using the Find feature Writing and printing checks Transferring funds between accounts Modifying, voiding, and deleting transactions Reconciling accounts Entering and paying bills Examining the payroll service options Creating, modifying, memorizing, and printing reports Using the Company Snapshot window
1
2
3
4
5
x
QuickBooks 2010
Topic C: Re-keying the course If you have the proper hardware and software, you can re-key this course after class. This section explains what you’ll need in order to do so, and how to do it.
Hardware requirements Your personal computer should have: A keyboard and a mouse At least 2.0 GHz Pentium 4 processor (2.4 GHz recommended) At least 1 GB RAM At least 3.0 GB of hard-disk space A CD-ROM drive A monitor with at least 1,280×960 resolution at 24-bit color or better
Software requirements You will also need the following software: Windows 7, Windows Vista, or Windows XP (SP2) QuickBooks 2010 Pro or QuickBooks 2010 Premier A printer driver (An actual printer is not required, but if a printer driver is not installed, then you will not be able to complete the printing and previewing activities in the units called “Working with business forms,” “Banking and billing activities,” and “Reporting and budgeting.”)
Network requirements The following network components and connectivity are also required for re-keying this course: Internet access, for the following purposes: – Downloading the latest critical updates and service packs from www.windowsupdate.com – Completing the payroll service activity in the unit titled “Banking and billing activities” – Downloading the student data files from www.axzopress.com (if necessary)
Introduction
xi
Setup instructions to re-key the course Before you re-key the course, you will need to perform the following steps. 1 Download the latest critical updates and service packs from www.windowsupdate.com. 2 From the Control Panel apply the following settings: Open Personalization and select the Windows 7 theme, if necessary.
3 4
5
6
Open Screen Resolution and change it to 1,280 by 960 pixels Note: To avoid a blurred or distorted screen, users of flat panel or widescreen displays should either choose their monitor's native resolution or disable image stretching and scaling if possible. Your screens may look slightly different at other resolutions. Note: You can also use Windows Vista, but the screen shots in this course were taken in Windows 7 so your screens might look somewhat different. Install the print driver of your choice. You must reset any QuickBooks 2010 defaults that have been changed in previous classes. To do so: a Choose Edit, Preferences to open the Preferences dialog box. b In the left pane, select a category and in the right pane select a tab; then click Default. c Repeat step b for each category and tab that you have made changes to. d Click OK to close the Preferences dialog box. Change the system date to February 15, 2010. The student data for this course is date-sensitive, so performing this step correctly is critical. Here’s what you do: a On the taskbar, click the clock to open a window that displays the current date and time. Click the Change date and time settings link to open the Date and Time dialog box. b On the Date and Time tab, click Change date and time to open the Date and Time Settings dialog box. c Under Date, use the scroll arrows to select February, 2010. d In the calendar, select 15. e Click OK to return to the Date and Time dialog box. f Activate the Internet Time tab and click Change settings to open Internet Time Settings dialog box. g Clear “Synchronize with an Internet time server.” This will prevent the clock from resetting automatically. h Click OK twice. Create a folder named Student Data at the root of the hard drive. For a standard hard drive setup, this will be C:\Student Data.
xii
QuickBooks 2010 7 Download the student data files for the course. (If you do not have an Internet connection, you can ask your instructor for a copy of the data files on a disk.) a Connect to www.axzopress.com. b Under Downloads, click Instructor-Led Training. c Browse the subject categories to locate your course. Then click the course title to display a list of available downloads. (You can also access these downloads through our Catalog listings.) d Click the link(s) for downloading the student data files and follow the instructions that appear on your screen. 8 Copy the data files to the Student Data folder.
Cautionary notes When you re-key this course, please keep the following information in mind. Software updates This course should work without your installing the latest updates and patches to the QuickBooks software. If you choose to update the software, be aware that the process might take several minutes. Also, when you open data files that were created in a slightly different version of the software, you might get a message to that effect, though you should be able to open any data file created in any version of QuickBooks 2010. Date-sensitive data We designed this course to be completed in one day. As indicated in the first-time setup instructions, it’s critical that you set your computer’s system date to February 15, 2010 before starting the activities. If you choose to re-key this class over two or more days, be sure to set your computer to the specified date at the beginning of each day. Unexpected dialog boxes Messages boxes will regularly (but unpredictably) open to offer suggestions or to advertise other QuickBooks features. When this happens, check the option not to be asked again (if applicable) and close the message box.
1–1
Unit 1 Getting started Unit time: 50 minutes Complete this unit, and you’ll know how to: A Start QuickBooks, view a sample file,
navigate the QuickBooks desktop, and open a company file. B Use the Help system and close
QuickBooks.
1–2
QuickBooks 2010
Topic A: Introducing QuickBooks 2010 Explanation
QuickBooks 2010 is an accounting program designed for small businesses. The QuickBooks software package can help you organize and monitor all areas of your company’s finances, including accounts payable/receivable, invoicing, payroll, and customer data management. QuickBooks is commonly used to keep track of bank accounts, billing cycles, inventory, and other mission-critical functions. You can also prepare and print checks, automate transactions, create budgets, and generate reports and graphs. The software’s flexible and robust design is well suited to service- and product-based companies. QuickBooks 2010 is available in four versions: Simple Start, Pro, Premier, and Enterprise Solutions. There is also an Online Edition that allows you to access company information via the Web. In this course, you will learn how to use the QuickBooks Pro version, so if you use another version of this software, some of the procedures might be slightly different (or unavailable).
Starting QuickBooks To start QuickBooks from the desktop, click Start and choose All Programs, QuickBooks Pro 2010. The first time you start QuickBooks, the Welcome window will appear, as shown in Exhibit 1-1. From this window, you can do the following: View tutorials. Open a sample file. Create a company file. Open a company file.
Exhibit 1-1: The Welcome window No Company Open The window that you will most likely see when you open QuickBooks is the No Company Open window, shown in Exhibit 1-2. As you’d expect, this window appears when you open QuickBooks with no company file open. This window provides options similar to those in the Welcome window. You can create a company file, open a company file, or open a sample file. You can also restore a backup file from this window.
Getting started
1–3
Exhibit 1-2: The No Company Open window After you’ve opened at least one file, the list of previously opened files will also be displayed when you start QuickBooks. You use a single file to track all of your company’s finances, so the terms file and company are often used interchangeably in QuickBooks.
1–4
QuickBooks 2010
Do it!
A-1:
Starting QuickBooks and viewing a sample file
Here’s how
Here’s why
1 On the desktop, double-click the QuickBooks Pro 2010 icon
To start the program. The Welcome window appears.
2 Observe the Welcome window
As shown in Exhibit 1-1, the Welcome window gives you four options. You can view tutorials, explore a sample file, create a company file, or open a company file.
On the button to the left of Explore QuickBooks, click the down-arrow, as shown
To display a menu of sample files. Examining these files can help you get acquainted with QuickBooks.
Choose Sample productbased business
A dialog box appears, prompting you to update your company file.
Click Yes
To continue updating your company file. A message explaining the Unit of Measure feature appears. With QuickBooks Pro 2010, you can view and use the Unit of Measure feature, but you cannot create or edit units.
Click OK
A message box indicates that the program will temporarily change your computer’s date setting.
3 Click OK
To close the message box and open the sample file.
4 Click No
(If necessary.) If prompted to participate in the QuickBooks Usage Study, click No.
5 Observe the title bar
It shows the company name for this file.
Getting started
1–5
The QuickBooks desktop Explanation
The QuickBooks program window, also known as the desktop, includes many components common to most Windows-based programs. For example, at the top of the desktop, you’ll find a title bar and a menu bar. Directly below the menu bar, you’ll see the navigation bar and the icon bar, as shown in Exhibit 1-3. The navigation bar contains buttons that can be used to easily open the QuickBooks Centers and the Home page. The icon bar contains buttons that can be used to perform commonly used commands.
Exhibit 1-3: The QuickBooks desktop, displaying the Home page
1–6
QuickBooks 2010
The Home page As shown in Exhibit 1-3, the QuickBooks Home page is divided into five primary areas: Vendors Customers Employees Company Banking The Home page provides a diagram showing how finances flow through your business. Information for vendors, customers, and employees is managed in lists called centers. To open the centers, click the buttons containing vertical text on the left side of the Home page. You can also use menu commands and the navigation bar to open centers. For example, to switch to the Customer Center, choose Customers, Customer Center or click Customer Center. Working with centers In each center, you’ll see buttons, icons, and links that can be used to access the information, commands, and features you need. When clicked, some of these items will open dialog boxes, and some will activate other windows. By default, QuickBooks displays only one window at a time, including centers; however, you can have multiple windows open simultaneously. If you’ve opened more than one window, the windows you can’t see will remain active in the background.
Getting started Do it!
A-2:
1–7
Exploring the QuickBooks desktop
Here’s how
Here’s why
1 Maximize the QuickBooks window
(If necessary.) Because the QuickBooks window contains so much detail, it’s helpful to have it fill the entire screen.
2 Click
To open the Customer Center.
3 At the top of the Customer Center window, click
To display a menu for adding customers and jobs to the Customer Center.
New Customer & Job
Choose New Customer
To open the New Customer window.
4 Read the New Feature dialog box
(If necessary.) QuickBooks 2010 now lets you add multiple entries at once.
Check Do not display this message in the future
Click OK
To open the New Customer window, which you can use to add individuals to your customer database.
5 In the upper-right corner of the New Customer window, click
(The Close button.) To close the window and return to the Customer Center.
6 Locate the icon bar
(At the top of the QuickBooks window.) This toolbar contains buttons for some commonly used commands.
Click
To open the Create Invoices window.
Close the Create Invoices window
Click the Close button in the upper-right corner of the window.
7 Click
To go to the Home page.
1–8
QuickBooks 2010 8 In the Customers section, click Create Invoices
To open the Create Invoices window. There is usually more than one way to open a window or execute a command.
Close the Create Invoices window
Click the Close button.
9 In the Banking section, click Reconcile
To open the Begin Reconciliation dialog box. Some icons, links, and buttons—such as the Reconcile icon—open dialog boxes rather than windows.
Click Cancel
To close the dialog box without making any changes.
Getting started
1–9
The Open a Company dialog box Explanation
When you start QuickBooks, the last file you were working on is opened automatically. To open a different file, use the Open a Company dialog box: 1 Choose File, Open or Restore Company. 2 Select “Open a company file and click Next to open the Open a Company dialog box, shown in Exhibit 1-4. 3 Navigate to the folder that contains the file you want to open. 4 Select the desired file. 5 Click Open. You might want to use one file to track your company’s finances. If so, you might not need to use this dialog box very often.
Exhibit 1-4: The Open a Company dialog box The Open Previous Company command If you want to re-open a company file you’ve worked on before, choose File, Open Previous Company and then choose the desired file. This submenu is limited to the four previous files by default. File names vs. company names Though the terms “file” and “company” are often used interchangeably, it doesn’t mean that your file name and your company name have to be the same. Unlike most Windows-based programs, QuickBooks does not display the file name in the title bar. Instead, the title bar displays the company name, which you enter when creating the company file. If you decide to change the company name later, you can do so without changing the file name. The reverse is also true; you can change the file name without changing the company name.
1–10 Do it!
QuickBooks 2010
A-3:
Opening a company file
Here’s how 1 Choose File, Open or Restore Company…
Verify that Open a Company File is selected, and click Next 2 From the Look in list, select Desktop
Here’s why To open the Open or Restore Company dialog box. You want to open a different company file. Notice that the current file was closed immediately. Or click the Desktop icon on the left of the dialog box.
Double-click the Student Data folder
To open it.
Open the current unit folder
To display a list of QuickBooks files in this folder.
3 Select Getting started Click Open
As shown in Exhibit 1-4. To open the selected file.
If prompted, update the file 4 Observe the title bar It shows the company name (Outlander Spices) and not the file name. You enter the company name when you create a file. You can change the company name later without changing the file name.
5 Choose File, Open Previous Company
To display a submenu listing previously opened files.
To re-open a previous file, you can choose its path from this submenu.
6 Click any blank area
(Don’t click an icon.) To close the File menu.
7 Choose File,
The No Company Open dialog box appears (as shown in Exhibit 1-2), showing the same recently used files that were listed in the File menu.
Close Company
8 Verify that Getting started is selected Click Open
To open the Getting started file.
Getting started
1–11
Topic B: Getting help and closing QuickBooks Explanation
Like most Windows programs, QuickBooks provides a comprehensive Help system. You can access the technical information you need by using the Help window. You can also press the F1 key to get context-specific Help from within a center or window.
Live Community Live Community is an interactive Help system that enables you to communicate with other QuickBooks users; you can ask or respond to questions and view the questions and answers of other users. Live Community is built into the QuickBooks Help system. Once you submit a question, QuickBooks automatically alerts you when your question is answered. When you start QuickBooks, Live Community automatically opens in the Help window, as shown in Exhibit 1-5. You can also choose Help, Live Community to open Live Community in the Help window.
Exhibit 1-5: The Live Community Help window
1–12 Do it!
QuickBooks 2010
B-1:
Accessing Live Community
Here’s how
Here’s why
1 Verify that Live Community is activated in the Have a Question? window
(To the right of the application window.) If it isn’t open, choose Help, Live Community.
2 Observe the “Type your question here” box
You can type a question in this box and click the Ask My Question button to send your question.
3 Click a link in the Answered Questions section
(Click the question of your choice.) To open a Live Community window. You’ll find answers that other users have provided.
Close the Live Community window 4 Under Answered Questions, click the See More link
(On the Live Community tab.) To open a window that lists more questions that other users have asked.
Click one of the links
To view answers to the question.
Close the window
The window that lists the question and answers.
5 Click a link in the Give Advice, Answer a Question section
(Click the link of your choice.) To answer a question posed by another QuickBooks user. Click the See More link to display more unanswered questions.
Observe the Live Community window
You can start the process of answering a question by clicking the Submit An Answer button, or you can comment on a question by clicking the Comment button.
Close the window 6 Close the Have a Question? window Uncheck Open Live Community when staring QuickBooks
Click OK
To the right of the application window.
If prompted.
Getting started
1–13
The QuickBooks Learning Center The QuickBooks Learning Center provides multimedia presentations for a variety of topics. To access the Learning Center, you can choose Help, Learning Center Tutorials. The left side of the window contains general topic categories. The right side contains titles of specific presentations and links to additional information.
Exhibit 1-6: The QuickBooks Learning Center Do it!
B-2:
Using the QuickBooks Learning Center
Here’s how 1 Choose Help, Learning Center Tutorials
2 Click Overview & Setup
Here’s why To open the QuickBooks Learning Center window. You can click the general categories on the left side to display a list of corresponding tutorials on the right. (If necessary.) To display information about tutorials that teach QuickBooks fundamentals.
3 Click What’s New
(In the left pane, under Merchant Services.) You can click the Watch Tutorials or Learn More links, depending on what interests you. If you have previous experience with QuickBooks, you might find these tutorials helpful.
4 Click Go to QuickBooks
To go to the Home page.
1–14
QuickBooks 2010
Context-sensitive help Explanation
In addition to using the Learning Center, you can go directly to basic Help information for the active window. For example, if you’re working in the New Customer window and you want to know more about how it works, you can choose Help, QuickBooks Help, press F1, or click the Help button on the icon bar. The QuickBooks Help window will open directly to relevant information. This command is useful when you’re starting to learn about a window. Some Help topics will include links to video presentations that you can watch through the Learning Center.
Exhibit 1-7: The QuickBooks Help window The QuickBooks Help window opens on the right side of the QuickBooks window so you can continue to work in your company file. The Help tab is divided into two panes. The top pane contains two buttons: Relevant Topics and Search. The Relevant Topics button is active by default. When you click a topic in the top pane, the information is displayed in the bottom pane. Use the Search button to search for Help documents containing a specific keyword or phrase. To resize the panes in the Help window, drag the divider bar up or down.
Getting started Do it!
B-3:
1–15
Using the QuickBooks Help window
Here’s how 1 Choose Help, QuickBooks Help
Observe the Help tab
2 Open the Customer Center
Here’s why To open the Have a Question? window with the Help tab activated. There are two toggle buttons: Relevant Topics and Search. The Relevant Topics button is toggled on. The content currently displayed is about the home page, because that’s where you were when you opened Help. Click the vertical Customers button on the Home page.
Close the New Feature dialog box
(If necessary.)
Observe the Relevant Topics
(On the Have a Question? window.) The Relevant Topics now relate to the Customer Center and include a link to a tutorial movie.
3 Click Delete a Customer
Observe the Help document
Information for the selected topic is displayed in the bottom pane of the Help window.
1–16
QuickBooks 2010 4 Drag the divider up
To resize the panes.
5 Click the Search button
You can use Search to look for Help topics by keyword. The insertion point is in the text box.
In the text box, enter customers and then press e
To display the Help topics that relate to customers.
Resize the top pane
To see more search results.
6 Close the Have a Question? window 7 Return to the Home page
On the icon bar, click Home.
Getting started
1–17
The File menu and closing QuickBooks Explanation
QuickBooks is different from most other Windows programs in that you can have only one file open at a time. The QuickBooks File menu doesn’t include a Save command because the program continuously updates the active file as you work. To further protect your data, you can create backup copies. Closing the program To close QuickBooks, choose File, Exit. You can also press Alt+F4 or click the Close button in the upper-right corner of the program window. The next time you start QuickBooks, the last company file you were working on will open automatically, and the Company Center will be displayed. If any windows were open when you closed the file, they might not be active when you re-open it, depending on the window type.
Do it!
B-4:
Closing QuickBooks
Here’s how
Here’s why
1 Which file is open? 2 Display the File menu
Choose Exit
3 Start QuickBooks
Close the open message window 4 Choose File,
(Choose File.) This menu has a Save Copy or Backup command. The menu does not have a Save command because QuickBooks continuously updates the active file as you work. To close the file and close QuickBooks. When you restart the program, the current file will be re-opened automatically. (Double-click the desktop icon or use the Start menu.) The last file you were working on is opened automatically. If necessary.
Close Company
To close the company file and leave QuickBooks open. The No Company Open dialog box appears.
Click No
If prompted to back up your data.
1–18
QuickBooks 2010
Unit summary: Getting started Topic A
In this topic, you learned that QuickBooks 2010 is an accounting program designed for small businesses. You learned how to start the program, and you viewed a sample file. Then you learned about the QuickBooks desktop, including the navigation bar (used to open the Customer and Vendor Centers) and the icon bar. You also learned how to open a QuickBooks file.
Topic B
In this topic, you learned how to use the QuickBooks Help system, including Live Community, the Learning Center, and the Help window. Finally, you learned how to close a file and QuickBooks.
Independent practice activity In this activity, you will practice opening and closing QuickBooks files and using the QuickBooks Help system. 1 From the current unit folder, open Practice basics. (Hint: You are opening an existing company file. If any Alerts appear, click Mark as Done.) 2 If necessary, maximize the Home page. 3 Open the Employee Center by using the icon bar. Close any new feature windows that might open. 4 Go to the Home page. 5 Open the Vendor Center. 6 Get context-sensitive help on using the Vendor Center. 7 Close the Help window and the Vendor Center. 8 Use the File menu to open the previous file (Getting started). 9 Close the company file. 10 Exit QuickBooks.
Getting started
1–19
Review questions 11 When you open QuickBooks for the first time, what are your options in the Welcome window? [Choose all that apply.] A Start Live Community. B Open a sample company file. C Create a new company file. D Open an existing company file. 12 On the QuickBooks desktop, which component is specifically used to open a QuickBooks Center? A Menu bar B Icon bar C Navigation bar D Home page 13 The QuickBooks _________ Center provides tutorials in the form of presentations that demonstrate the ways to work in QuickBooks. Learning
14 When you press the F1 key, QuickBooks window opens with ________ Topics displayed. Relevant
15 True or false? Before you close QuickBooks, you save your file by choosing File, Save. False. QuickBooks automatically saves, or updates, your file as you work. There is no separate Save action required.
1–20
QuickBooks 2010
2–1
Unit 2 Setting up a new company Unit time: 50 minutes Complete this unit, and you’ll know how to: A Start the EasyStep Interview and create a
company file. B Open your Chart of Accounts, create and
delete accounts, make an account inactive, and apply account numbers.
2–2
QuickBooks 2010
Topic A: Using the EasyStep Interview Explanation
To create a file for your company, you’ll complete the EasyStep Interview—a dialog box with a series of sequential screens (this kind of feature is also called a “wizard”). As you work your way through the interview, QuickBooks prompts you for information while providing guidelines and recommendations for your type of business. The amount of time it takes to complete the interview depends on the complexity of your company and the amount of initial data you need to enter. The content of the EasyStep Interview is dynamic and variable; the screens you see will depend on the type of business you operate, the answers you provide, and the options you select. This unit is not intended to provide in-depth coverage of every possible screen in the interview. Rather, this unit will help you get acquainted with the general process of setting up a new company file and introduce you to important QuickBooks concepts and terminology.
Getting ready Before you get started, you’ll need to gather some information, which means a lot of financial paperwork, as well as computerized records if you’re converting from another program. The following is a simplified list of what you will need: Last year’s federal tax return Copies of all unpaid invoices that your customers owe Copies of all unpaid invoices that you owe to other businesses or individuals A detailed list of inventory items you’re holding for resale Balances for your active accounts, including checking, credit card, loan, and line-of-credit accounts The values of all of your assets Equity information The type of information you need depends on the size and nature of your business. Most of the information you’re prompted to enter during the interview can also be entered or modified after the interview is done. QuickBooks will warn you about the entries that are difficult or impossible to change later. Starting the interview To start the interview, choose File, New Company. In the No Company Open dialog box, you can click the “Create a new company” button. If you’re starting QuickBooks for the first time, you can also start the interview from the Welcome screen by clicking “Create a new company file.” QuickBooks will display the Get Started screen of the EasyStep Interview, shown in Exhibit 2-1. To start the interview process, click the Start Interview button. To navigate in the interview, click the Next and Back buttons. You can click the Convert Data button to convert Quicken or Peachtree data to your QuickBooks file. If you are an expert QuickBooks user, you can click Skip Interview to go directly to QuickBooks and manually set up your company. If you need to exit the interview before completing it, click the Leave button. QuickBooks will save all the information you’ve entered up to that point. The EasyStep Interview will restart the next time you open this file.
Setting up a new company
Exhibit 2-1: The opening screen of the EasyStep Interview
2–3
2–4
QuickBooks 2010
Do it!
A-1:
Starting the EasyStep Interview
Here’s how
Here’s why
1 Start QuickBooks
Because you closed the company file before exiting, the No Company Open dialog box appears.
2 Click Create a new
To start the EasyStep Interview, which will guide you through the process of setting up a new company. Your screen should resemble Exhibit 2-1.
company
3 Click the down-arrow on the Convert Data button and observe the list
Notice that you can convert files created with the Quicken, Peachtree, Small Business Accounting, or Office Accounting applications.
4 Observe the Skip Interview button
Instead of completing the interview, you can click Skip Interview to create a company based on minimal starting information.
5 Click Start Interview
To begin entering your company information. You can change your previous answers by clicking the Back button. If a decision cannot be reversed easily, a warning symbol will be displayed.
Setting up a new company
2–5
Company information Explanation
When you’re entering company information, the only required field is Company name. The following information can be added now or later: Legal name Your federal tax ID number Company address and phone and fax numbers Company e-mail address and Web site address The following information is helpful to know, although you don’t need to provide it to complete the interview: Type of industry The first month of your income-tax year (the 12-month taxation period you choose for reporting income taxes) The first month of your fiscal year (the 12-month period for which you calculate profits) The federal income tax form filed by your company Using an administrator password If multiple users will be accessing the company file, it’s recommended that you assign an administrator password. This password will prevent unauthorized users from accessing the file.
Exhibit 2-2: Entering your company information in the EasyStep Interview
2–6
QuickBooks 2010 Saving your file When saving the new file, QuickBooks uses your company name as the file name by default, and the file is saved in the program folder. For QuickBooks Pro, the default program folder path is C:\Program Files\Intuit\QuickBooks 2010. It’s a good idea to accept the default file name and storage location. If you choose to enter a different file name, remember that the company name will still be displayed in the title bar. QuickBooks 2010 files are saved with a .QBW extension.
Do it!
A-2:
Entering company information and saving your file
Here’s how
Here’s why
1 In the Company name box, type Outlander Spices
Press t
To move to the Legal name box, in which the company name is entered automatically.
Edit the Legal name box to read
This is how the company name should appear on legal documents.
Outlander Spices, Inc.
2 In the Tax ID box, enter 99-3005000 This is your federal tax ID number, which is required for various government forms.
3 Continue to enter the company information
Address: 46 Main St. City: Portland State: OR Zip: 97205 Country: U.S. Phone: 555-234-9700 Fax: 555-234-9701 E-mail address:
[email protected] Web site: www.outlanderspices.com You can change this information later by choosing Company, Company Information.
Click Next 4 Select Retail Shop or Online Commerce
Click Next
To move to the next screen, which prompts you to select a business type.
Setting up a new company
2–7
5 Select Corporation
Click Next 6 Verify that January is selected and click Next
7 Observe the password screen
Click Next
You are now prompted to enter an administrator password. It is highly recommended that you assign an administrator password for your QuickBooks file. However, for this class, you will not set a password. You’re ready to create your company file.
8 Click Next
To open the Filename for New Company dialog box.
9 Observe the File name box
By default, QuickBooks uses the company name as the file name.
Edit the File name box to read My new company Even if you change the file name, the company name will be displayed in the title bar.
Observe the Save as type list
10 Navigate to the current unit folder Click Save
QuickBooks files have a .QBW extension. The .QBA extension is used for the accountant’s copy. (In Desktop\Student Data.) You’ll save the file here. To save the file and return to the interview. This might take a few moments. The next screen continues the interview so you can customize QuickBooks for your business.
2–8
QuickBooks 2010
Company preferences Explanation
In the customizing section, you are prompted to specify the following information about your company: What industry it’s in What you sell: products, services, or both How customers pay you; this includes collecting sales tax, invoicing, creating estimates, and tracking job time How you pay bills Whether you have W-2 employees or 1099 contractors
Exhibit 2-3: Customizing QuickBooks for your business during the interview Specifying your industry As you work through the interview, QuickBooks recommends features and accounts based on your selected industry and your previous answers to questions. If none of the industries matches your business, select the one that is the closest in terms of how you work with customers and vendors. If you select Other/None, QuickBooks will not provide any recommendations during the interview. Although the industry cannot be changed, you can change many of the settings during the interview process by using the Back button. The preferences you specify will affect only your new company file and not the program in general. Getting additional help Many of the EasyStep Interview screens provide links to Help documents for additional information. You can also get help on specific questions by clicking the “Get answers” link in the upper-right corner of the EasyStep Interview window.
Setting up a new company Do it!
A-3:
2–9
Customizing QuickBooks for your business
Here’s how 1 Observe the Customizing QuickBooks screen
Click Next 2 Observe the Leave button
Here’s why In this portion of the EasyStep Interview, you will specify what your industry is and what you sell, how your customers pay you, and how you pay your bills, as shown in Exhibit 2-3. Next, you’ll indicate what you sell. If you want to exit the interview at any time, you can click this button. QuickBooks will save all of the information you’ve entered up to that point. Then the next time you open the company file, QuickBooks will resume the interview.
3 Select Products only
Click Next
You are asked how you will enter your sales.
4 Select Record each sale individually
Click Next
You are asked about online sales.
5 Select I currently sell online
Click Next
QuickBooks asks if you charge sales tax. You’ll accept the default answer (Yes).
6 Click Next
QuickBooks asks if you prepare estimates for your customers.
7 Click Next
To accept the default answer (No). Outlander Spices does not use estimates. QuickBooks asks if you will use sales receipts.
8 Click Next
To accept the default answer (Yes). Next, QuickBooks asks about billing statements.
9 Click Next
To accept the default answer (No). Next, you are asked about invoices.
10 Click Next
To accept the default answer (Yes). Next, you are asked if you use progress invoicing.
2–10
QuickBooks 2010 11 Click Next
To accept the default answer (No). QuickBooks asks if you want to keep track of bills you owe.
12 Verify that Yes is selected
This is recommended for your business.
Click Next
QuickBooks asks if you print checks.
13 Select I print checks Click Next
QuickBooks asks if you want to track inventory.
14 Select Yes
Click Next
QuickBooks asks if you accept credit cards.
15 Verify that the indicated option is selected
Click Next 16 Verify that No is selected Click Next
QuickBooks asks whether you track job or project time in your business. Outlander Spices does not use time tracking. QuickBooks asks whether the business has employees.
17 Select Yes Check We have W-2 employees
Click Next 18 Verify that No is selected Click Next
QuickBooks asks whether you track multiple currencies. Outlander Spices does not use other currencies. To move to the next steps of setting up your starting date and bank account balances.
Setting up a new company
2–11
The Chart of Accounts Explanation
This section of the EasyStep Interview involves providing information to set up the Chart of Accounts. You will need to provide the following information: The date on which you want to start tracking your finances Bank account information, including the balance and date of the last statement The income and expense accounts you want to use Specifying a start date Your start date, or conversion date, is the date on which you want to begin using QuickBooks for your financial record keeping. Your choice of start date is critical because it dramatically affects the work needed to get up and running, as well as the initial usefulness of the data you collect and record in QuickBooks. You can specify any date as your start date. The following table describes the advantages and disadvantages of common start date choices: Start date
Advantages
Disadvantages
Today’s date
Least time-consuming option because there is no historical data to enter.
With no historical data, you will have limited tracking abilities, and you’ll need more time to prepare for taxes.
Beginning of calendar year (January 1)
Requires the least amount of work if the current date is close to January 1. You’ll have all of the current year’s information in one place for tax preparation.
If the current date is later than April, entering historical data can be timeconsuming.
Beginning of company fiscal year
If the current date is within a month or two of the fiscal year’s start, the advantages are the same as with a January 1 start date.
Depending on the current date, this might require a large amount of historical data to be entered.
Date your company began
If the company recently started, this is a good option because it can provide a thorough financial summary.
If the company is more than one year old, entering the historical data can be time-consuming.
For example, let’s say today’s date is February 15, 2010. It’s early enough in the year, so it’s probably a good idea to specify January 1, 2010, as your start date. In this scenario, all of your 2010 data would be in one place, but you would have to go back and redo your financial record keeping for the first month and a half of 2010 by entering sales, purchases, and so on directly in QuickBooks. This would mean a bit of redundant work on your part, but the advantages would outweigh the disadvantages.
2–12
QuickBooks 2010
Exhibit 2-4: Continuing with the EasyStep Interview Bank account information QuickBooks recommends that you create an account for each checking, savings, and money market account. During the interview, you can set up at least one, if not all, of the bank accounts. You can use the Chart of Accounts to add more accounts later.
Setting up a new company Do it!
A-4:
2–13
Specifying a start date and bank account
Here’s how 1 Observe the interview screen Click Next 2 Select Beginning of this
Here’s why As shown in Exhibit 2-4, it explains what you will be doing next. To specify a Start Date. If necessary.
fiscal year
Click Next
QuickBooks asks whether you’d like to add a bank account.
3 Click Next
To accept the default answer (Yes) and add a bank account.
4 In the Bank account name box, enter Company checking Only the bank account name is required. You can enter the bank account number later.
Select Before
To indicate that you opened this bank account before January 1, 2010.
Click Next
QuickBooks prompts you for the account balance on your last bank statement.
5 Verify that the statement ending date is 12/31/2009 Enter 5000 as the ending balance
Click Next
6 Click Next
A summary of your bank account information appears. You can add another account now, if you wish. To accept the default answer (No). QuickBooks is now ready to set up your accounts.
2–14
QuickBooks 2010
Reviewing QuickBooks accounts Explanation
QuickBooks displays a list of income and expense accounts that it recommends for your business. These accounts represent ways of tracking the money that comes into and goes out of your company. For example, QuickBooks might set up expense accounts such as Car/Truck Expenses, Dues and Subscriptions, and Repairs and Maintenance. Although you probably pay all of these expenses out of your checking account, you won’t be able to analyze how you’re spending your money unless you categorize each expense accordingly. The account that QuickBooks creates will help you do that. If you need to create additional accounts for tracking purposes, you can do so during or after the interview. During the interview, you have two choices. You can start with the suggested accounts and edit them later, or you can create accounts later. Of course, the first choice requires less work. Exhibit 2-5 shows the income and expense accounts that QuickBooks recommends for the wholesale business used as an example in this unit.
Exhibit 2-5: The suggested income and expense accounts
Setting up a new company
2–15
The QuickBooks Coach After you create a new company, the QuickBooks Coach dialog box opens, as shown in Exhibit 2-6.
Exhibit 2-6: The QuickBooks Coach dialog box You can click Start Working to work in QuickBooks Coach mode. The background of the Home page will become gray, and spotlight icons will appear next to the task icons, such as the icon for Purchase Orders. These spotlight icons indicate that Coach tips are available. For example, to see how Purchase Orders are handled, click the icon next to Purchase Orders; the Purchasing workflow will then be illuminated, as shown in Exhibit 2-7. To close Coach mode, click Hide Coach Tips. You can always return to Coach mode by clicking Show Coach Tips.
2–16
QuickBooks 2010
Exhibit 2-7: QuickBooks Coach mode
Setting up a new company Do it!
A-5:
2–17
Completing the EasyStep Interview
Here’s how 1 Observe the income and expense account information
Observe the Restore Recommendations button
Here’s why As shown in Exhibit 2-5, these are the recommended income and expense accounts that QuickBooks has created for you based on your business. (You can create additional accounts after you complete the EasyStep Interview.) QuickBooks asks whether you want to use these expense accounts. If you change things and want to get back to the QuickBooks recommendations, click this button.
2 Click Next
The “Congratulations!” screen appears.
3 Click Finish
To complete the EasyStep Interview. You might be prompted to create an online Intuit account.
4 Observe the Intuit window
The QuickBooks Coach window, shown in Exhibit 2-6, appears.
5 Click Start Working
To minimize the QuickBooks Coach window and open the Home page for the company file you’ve created.
6 Observe the Coach spotlight icons
Small, round spotlight icons appear next to the major tasks on the Home page. You can click these spotlight icons to see the workflow for the corresponding process.
7 Click the spotlight icon next to Purchase Orders
As shown in Exhibit 2-7, the steps of the Purchasing Workflow are illuminated. This diagram can help you get acquainted with how to accomplish tasks in QuickBooks.
8 On the right side of the window, click Hide Coach Tips
To exit Coach mode.
9 Close the QuickBooks Coach window
The Coach window returns to the right side of the QuickBooks window.
2–18
QuickBooks 2010
Topic B: Using the Chart of Accounts Explanation
The Chart of Accounts is a list that contains your balance-sheet accounts (assets, liabilities, and equity) and your income and expense accounts. You can use the accounts in this list to track how the money flows into and out of your business. You can also use the Chart of Accounts to see how your business is doing. The Chart of Accounts is just one of many lists you’ll work with in QuickBooks. Other lists are used to manage detailed information about your customers, vendors, inventory, employees, and so on. These lists, also called centers, are the backbone of QuickBooks—you use them to complete all types of forms, including checks, invoices, and purchase orders, and to categorize your finances.
Opening the Chart of Accounts You can open the Chart of Accounts in several ways: On the Home page, click the Chart of Accounts icon. Press Ctrl+A. Choose Lists, Chart of Accounts. Choose Company, Chart of Accounts. By default, the Chart of Accounts is arranged by account type, with your balance-sheet accounts listed at the top, as shown in Exhibit 2-8. These accounts include your company bank accounts, equity accounts, accounts payable/receivable, and other assets and liabilities. Following the balance-sheet accounts, you’ll see the income and expense accounts that QuickBooks set up and any that you have added manually. Sorting your Chart of Accounts To sort the Chart of Accounts by a particular column, click the column’s heading. You can return the list to the default sort order by clicking the diamond in the far left column. You can also use the Account menu at the bottom of the window. To do so: 1 At the bottom of the window, click Account to display the shortcut menu. 2 Choose Re-sort List. A message box will prompt you to verify that you want to return the list to its original order. 3 Click OK.
Setting up a new company
Exhibit 2-8: A Chart of Accounts
2–19
2–20 Do it!
QuickBooks 2010
B-1:
Exploring the Chart of Accounts
Here’s how
Here’s why
1 In the Company section of the Home page, click Chart of Accounts
Resize and move the window
If necessary.
2 Observe the accounts, as shown in Exhibit 2-8
Your balance-sheet accounts appear at the top of the list, followed by your income and expense accounts. You’ll use these accounts to categorize your company’s transactions. QuickBooks creates most of these accounts for you based on your business type—in this case, wholesaler.
3 Scroll up to the top of the list
If necessary.
Click the Name column, as shown
To sort the list alphabetically by account name.
4 Sort the list by account balance
Click the Balance Total column heading.
5 Click the diamond in the leftmost column heading To return the list to its original sort order.
Setting up a new company
2–21
Creating accounts Explanation
To create a new account or subaccount, you’ll use the Add New Account window, shown in Exhibit 2-9. Here’s how: 1 At the bottom of the Chart of Accounts window, click Account to display the shortcut menu. 2 Choose New to open the Add New Account window. 3 Select the type of account you want to create and click Continue. The Add New Account window changes to the one shown in Exhibit 2-9. 4 Enter the remaining information as needed. If you are creating a subaccount, check “Subaccount of” and then select the desired account from the list. 5 Click Save & Close.
Exhibit 2-9: The Add New Account window
2–22 Do it!
QuickBooks 2010
B-2:
Adding credit card and income accounts
Here’s how
Here’s why
1 At the bottom of the window, click Account To display the shortcut menu.
Choose New
To open the Add New Account window.
2 Select Credit Card
You can use this window to create all types of accounts. You’ll add a credit card account.
Click Continue 3 In the Account Name box, enter
This account is for Jack Thomas’s Visa card.
Visa card, VP Jack Thomas
In the Description box, enter Sales division expenses
In the Credit Card No. box, enter 1234567812345678
Jack is Vice President in charge of the company’s Sales division. For class purposes, it’s not critical that you enter this exact account number.
4 Click Enter Opening Balance… Edit the Statement Ending Balance to be 625 as of
There is an opening balance of $625 as of 1/31/2010.
1/31/2010
Click OK
To return to the Add New Account window. Compare your screen to Exhibit 2-9.
Setting up a new company 5 Click Save & Close Click No
6 Observe the balance for the new account
2–23
To finish creating the account. To skip setting up online services, close the message box, and return to the Chart of Accounts. The new account is selected automatically. It is $625.
Even though this balance indicates an amount owed to the issuing bank, the balance is displayed as a positive amount.
7 Click Account and choose New
To open the Add New Account window. You’ll set up an income account for retail sales made through the Outlander Spices Web site.
8 From the type options, select Income
Click Continue 9 In the Account Name box, enter Online sales (Retail)
Click Save & Close
The new account has been added to the Chart of Accounts list.
2–24
QuickBooks 2010
Adding a loan account Explanation
Your balance-sheet accounts—the real, working accounts that you use to make and accept payments—are different from the accounts that QuickBooks sets up for you. Those are used solely for categorizing and analyzing your cash flow. To add a loan to a Chart of Accounts, you need to create a liability account. Use the Long Term Liability type for loans that require more than a year to repay. Loans of a year or less are identified as Other Current Liability.
Do it!
B-3:
Adding an outstanding loan balance
Here’s how 1 Open the Add New Account window
Here’s why (Click Account and choose New.) You will create an account for the loan.
Select Loan Click Continue 2 Observe the account type
The loan will be paid off within a year, so it is a current, not long-term, liability.
3 In the Account Name box, enter Loan for office equipment
4 Set the opening balance to 7500 as of 2/15/2010
Click Enter Opening Balance, enter the values, and click OK.
The original loan balance was $10,000. Of this total, $2,500 was paid off by the start date. This leaves an unpaid balance of $7,500.
Click Save & Close
The account for the office equipment loan appears in the Chart of Accounts.
Setting up a new company
2–25
Editing account information Explanation
After you create an account, you might need to go back and edit some information. Here’s how: 1 In the Chart of Accounts window, select the account whose information you want to edit. 2 At the bottom of the Chart of Accounts window, click Account and choose Edit Account to open the Edit Account window. 3 Modify the account information as necessary. 4 Click Save & Close. If you have made any changes that might cause problems in the program, QuickBooks will notify you.
Do it!
B-4:
Editing an account
Here’s how
Here’s why
1 Scroll up to the top of the list
You’ll edit some account information.
2 In the Name column, click Company checking
To select this bank account, which was created during the EasyStep Interview.
Click Account
At the bottom of the window.
Choose Edit Account
To open the Edit Account window for the selected account. Most of the fields are empty because you entered only minimal information about this account during the EasyStep Interview.
3 In the Description box, enter Main account
In the Bank Acct. No. box, enter 80002500-4
4 Click Save & Close
2–26
QuickBooks 2010
Deleting accounts Explanation
You’ll probably find that some of the default accounts that QuickBooks creates for you are not needed for your business, and you can delete them. To delete an account: 1 Select the account you want to delete. 2 In the Chart of Accounts window, click Account to display the shortcut menu. 3 Choose Delete Account. A message box appears, prompting you to confirm that you want to delete the selected account. If deleting the selected account will cause a problem elsewhere in QuickBooks, the program will not allow you to proceed. Instead, it will prompt you to cancel the action or make the account inactive. 4 Click OK. Making accounts inactive When you try to delete an account, you may find that QuickBooks won’t let you do so. This is to prevent you from deleting accounts that have balances or are used in transactions or items or in your payroll setup. If you rarely use an account, you can make it inactive, instead of deleting it. When you make an account inactive (also known as “hiding” an account), QuickBooks keeps the information associated with the account, but hides the account in the Chart of Accounts and removes it from any drop-down lists that use accounts. To make an account inactive: 1 Select the account you want to make inactive. 2 Click Account and choose Make Account Inactive. To reactivate a hidden account: 1 Click Account and choose Show Inactive Accounts. Inactive accounts will be marked with an X. 2 Select the account you want to reactivate. 3 Click Account and choose Make Account Active.
Do it!
B-5:
Deleting an account and making an account inactive
Here’s how
Here’s why
1 Select the Capital Stock account
You’ll delete this account.
2 Click Account
At the bottom of the window.
Choose Delete Account
A message box prompts you to confirm that you want to delete the selected account.
Click OK
To delete the selected account. It is immediately removed from the Chart of Accounts.
Setting up a new company 3 Select the Visa card account Press c + D
2–27
The account you created in the previous activity. To try to delete the account.
Observe the message
The message states that you can’t delete the account. In this case, it’s because the account has a balance. Instead, you’ll make the account inactive.
Click Make Inactive
4 Click Account
The account no longer appears in the Chart of Accounts. When you make an account inactive, QuickBooks keeps the information associated with the account, but hides the account in the Chart of Accounts and removes it from any drop-down lists that use accounts. You’ll reactivate the account.
Choose Show Inactive Accounts
The Visa card account reappears. It’s marked with a gray X to indicate that it’s inactive.
5 Select the Visa card account Reactivate the account
Click Account and choose Make Account Active.
2–28
QuickBooks 2010
Account numbers Explanation
Using an account numbering system can help you identify the various types of accounts. This will speed up account selection when you’re completing forms and performing other tasks. There are two ways to apply account numbering. One way is to manually add the account number at the beginning of each account name. To do this, you use the Edit Account window. A more efficient approach is to apply automatic account numbering. To turn on this feature, you’ll need to use the Preferences dialog box. Here’s how: 1 Choose Edit, Preferences to open the Preferences dialog box. 2 Activate the Company Preferences tab. 3 On the left side of the dialog box, click the Accounting icon to activate the accounting options for the current company file. 4 Under Account Number, check Use account numbers. 5 Click OK. With automatic account numbering turned on, default account numbers will be assigned to any accounts that QuickBooks created automatically. (You can change these default account numbers if necessary.) A Number box will appear in the Add New Account and Edit Account windows. No matter who assigns the account number—you or QuickBooks—it will always appear in the Chart of Accounts, in all Account fields, and on all relevant reports and graphs.
Exhibit 2-10: Using the Company Preferences tab to activate account numbering
Setting up a new company Do it!
B-6:
2–29
Applying account numbers
Here’s how 1 Choose Edit, Preferences…
Here’s why To open the Preferences dialog box, which you’ll use to activate the account numbering feature. There are two tabs: My Preferences and Company Preferences.
2 Activate the Company Preferences tab On the left side of the dialog box, select Accounting
To activate the accounting options for the current company file.
3 Under Accounts, check Use
As shown in Exhibit 2-10.
account numbers
Click OK
To close the dialog box and return to the Chart of Accounts. You’ll see that most accounts have been assigned an account number automatically.
4 Observe the names of your balance-sheet accounts
(At the top of the list.) Account numbers were not applied to any accounts that you created manually, such as the Company checking, Visa card, and Loan accounts.
5 Select Loan for office equipment
Open the Edit Account window
This account was created manually, so it does not have an account number. (Press Ctrl+E.) A Number box appears next to the Account Type list.
6 In the Number box, enter 24000 Click Save & Close
7 Click No
A message box states that account number 24000 is already being used by another account. QuickBooks offers to merge the two accounts. To return to the Edit Account window.
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QuickBooks 2010 8 Edit the Number box to read 27000
Click Save & Close
To assign the specified account number and close the Edit Account window.
9 Observe the selected account
Account number 27000 is now listed between 25500 and 30000.
10 Close the Chart of Accounts 11 Close the company file
Click the Close button.
Setting up a new company
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Unit summary: Setting up a new company Topic A
In this topic, you learned about the EasyStep Interview, which guides you through the process of setting up a new company file. You started the interview and entered basic information about your business (company name and address, business type, federal tax ID, and so on), and then saved the file. You also set preferences, such as your preferred invoice format. Then you set the start date and opening balance to complete the interview.
Topic B
In this topic, you reviewed and accepted the income and expense accounts that QuickBooks created based on your industry. You opened the Chart of Accounts, which contains your income, expense, and balance-sheet accounts. You also added and edited accounts. Then you deleted an account and made an account inactive. You also learned how to apply an account numbering system.
Independent practice activity In this activity, you will use the EasyStep Interview to create a company file. 1 You operate a carpet cleaning business out of your home. Your company’s name is Spotless Services. Set up a QuickBooks file for your company. Start the EasyStep Interview, and enter the name and a Federal tax ID of 99-0213400 (you can skip the company address and phone information). 2 Use the following information to customize your company file. If specific preferences are not mentioned, accept the answer that QuickBooks recommends. The industry is a General Service-based Business. You are a sole proprietor. The fiscal year starts in January. Don’t add a password to the file. Save the file as My practice company in the current unit folder. You provide only services. You don’t collect sales tax. You do create estimates. You do use billing statements. You do progress invoicing. You do want to track bills you owe. You print checks. You accept credit cards. You want to track the time spent on each cleaning job. You have W-2 employees. You don’t want to track multiple currencies. 3 Specify a start date of January 1, 2010. 4 Add a checking account with a balance of $6,000 as of 12/31/2009. Make up a name and account number. You opened the account before January 1, 2010. 5 Accept the default income and expense accounts set up by QuickBooks.
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QuickBooks 2010 6 Finish the EasyStep Interview and close the QuickBooks Coach. 7 In the Chart of Accounts, add an account for your corporate American Express credit card with a balance of $500 as of 1/1/2010. 8 Don’t set up online services. 9 Close the company file.
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2–33
Review questions 10 Which of the following statements is true about the EasyStep Interview? A It is the only way to create a new company file. B You must provide complete information for each screen before you can finish the interview. C The Leave button will exit the interview, but you will have to start again from the beginning. D You can convert Quicken or Peachtree data to QuickBooks during the interview. 11 True or false? A password is recommended if multiple users will be accessing the company file. True
12 What is the file extension for a QuickBooks company file? A QBW B QBB C QBM D QBC 13 What is the significance of the start date? [Choose all that apply.] A It is the date on which you will begin tracking your finances. B It must begin at the beginning of your fiscal year. C For a complete picture of your finances, you need to enter balances and all transactions for the period between the start date and the current date. 14 The Chart of Accounts is a list that contains the following. [Choose all that apply] A Assets B Liabilities C Debt D Equity 15 A loan is a(n) _________ account. Liability. A loan that will require more than a year to repay is classified as a Long Term Liability. A loan that can be paid off in less than a year is an Other Current Liability.
16 Instead of deleting an account, you can make the account _______. Inactive. Deleting an account might cause a problem elsewhere in QuickBooks.
17 How do you display account numbers in the Chart of Accounts window? [Choose all that apply.] A Click the Show Account Numbers button. B Manually add the account number in the Edit Account window. C Turn on automatic account numbering on the Company Preferences tab in the Preferences dialog box. D Press Ctrl+A while opening the Chart of Accounts window.
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QuickBooks 2010
3–1
Unit 3 Working with centers and lists Unit time: 60 minutes Complete this unit, and you’ll know how to: A Enter and edit customer and vendor
information, and create job records. B Create all types of items, including
inventory, subtotal, discount, and shipping cost items. C Create a custom field and apply it to
records in a list.
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QuickBooks 2010
Topic A: Managing customers, vendors, and employees Explanation
In QuickBooks, a customer is anyone who pays you for goods or services. A vendor is anyone you pay for goods or services; therefore, the phone company is a vendor, as is the landlord to whom you pay rent for office space. The information you enter for each customer and vendor is used to automatically complete fields and other options when you’re completing forms, such as checks, invoices, purchase orders, and so on.
The Customer Center QuickBooks uses the Customer Center to store information about the people and companies who buy your products and services. You can add customers to the list at any time. You can open the Customer Center in several ways: On the navigation bar, click the Customer Center icon. On the Home page, click the Customers button. Press Ctrl+J. Choose Customers, Customer Center. Adding customers with an opening balance The first time you open the Customer Center, it will be empty. You can add a customer with an opening balance by following these steps: 1 Click the New Customer & Job button and choose New Customer to open the New Customer window. 2 In the Customer Name box, enter the customer’s name. 3 In the Opening Balance box, enter the amount that the customer owes you. Verify that the “as of” date is correct. 4 Click OK. The new customer will appear on the Customers & Jobs tab in the Customer Center.
Exhibit 3-1: The Customer Center after a customer is added
Working with centers and lists Do it!
A-1:
3–3
Adding a customer to the Customer Center
Here’s how 1 Open Lists Update the file
Here’s why From the current unit folder. (If prompted.)
2 On the navigation bar, click
To open the Customer Center. In QuickBooks, a customer is anyone who pays you for goods or services. You won’t enter all of your customers now—you’ll enter only those who owed you money as of your start date.
3 Select the Customers & Jobs tab
(If necessary.) This tab has two columns: Name and Balance Total.
Observe the right pane 4 Click New Customer & Job
It shows details about the customer, including any notes and jobs for the customer. To display the shortcut menu. You’ll add a customer.
Choose New Customer Close the New Feature window
(If necessary.) Check Do not display this message in the future.
5 In the Customer Name box, enter Big Don’s Steakhouse
In the Opening Balance box, enter 250 as of 1/1/2010
This is a large restaurant that regularly orders products from Outlander Spices. As of 1/1/2010, Big Don’s Steakhouse owed your company $250.
6 Click OK
To add the new customer with an opening balance. In the Transaction list, a new invoice appears for this customer.
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QuickBooks 2010
Adding customers with detailed information Explanation
To add a new customer with additional details, follow these steps: 1 In the Customer Center, click the New Customer & Job button and choose New Customer to open the New Customer window, shown in Exhibit 3-2. 2 At the top of the window, enter the customer information: name, opening balance, and date. 3 Use the following four tabs to enter the relevant customer details. Address Info — Stores contact information, including the company name, shipping/billing address, phone number, and so on. Additional Info — Stores credit terms, sales tax, and other information, including the customer type. Assigning customer types allows you to generate reports that indicate your company’s performance in various market segments. For example, Outlander Spices might use the following customer types: Restaurant (chain), Restaurant (individual), Grocery store (chain), Grocery store (individual), and Online/retail. Payment Info — Stores information about the customer’s preferred payment method and credit limit. When you receive a payment from a customer, QuickBooks uses the preferred payment method to fill selected fields and options. Job Info — Lets you enter job-related information when you are performing a single job for a customer. 4 Click OK. Creating customer types and subtypes You can create new customer types “on the fly” by choosing
from the Type list. If you want to use subtypes, create the subtype first by checking Subtype and entering the desired name. Then enter the desired type name in the Customer Type box and click OK.
Working with centers and lists
Exhibit 3-2: The New Customer window
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QuickBooks 2010
Do it!
A-2:
Creating a customer type
Here’s how
Here’s why
1 Click New Customer & Job and choose New Customer
To open the New Customer window so you can add another customer.
2 In the Customer Name box, enter
Food City is a supermarket in Reno, Nevada. The name you enter in this box will be used on official forms, so it’s a good idea to enter the company’s legal name here.
Food City, Inc.
3 On the Address Info tab, in the Company Name box, enter
This name will be used in the Bill To address.
Food City
Enter the indicated contact information
4 Under Addresses, complete the Bill To box as indicated
5 Click Copy
To open the Add Ship To Address Information dialog box.
Click OK
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6 Activate the Additional Info tab Under Categorizing and Defaults, display the Type list
You can use customer types to track your various market segments.
Select
To open the New Customer Type dialog box.
7 Check Subtype of
You’ll create a new customer type, and then create a subtype for stores like Food City.
From the Subtype of list, select
To open another New Customer Type dialog box.
8 In the Customer Type box, enter Grocery store
Click OK
To create the new customer type and return to the first New Customer Type dialog box. Notice that “Grocery store” is entered automatically in the Subtype of box.
9 In the Customer Type box, enter Independent grocer
Outlander Spices wants to track sales to both independent grocers and supermarket chains.
Click OK
To return to the Additional Info tab. You’ll see that the customer type is entered as “Grocery store: Independent grocer.”
10 From the Terms list, select Due on receipt
Payments for wholesale orders are due upon receipt.
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QuickBooks 2010 11 Activate the Payment Info tab 11560
This is your internal account number for tracking this customer.
Under Preferred Payment Method, from the list, select Check
Notice that you can also enter credit card information for your customer.
In the Account No. box, enter
12 Click OK
To close the New Customer window and return to the Customer Center. Food City now appears on the Customers & Jobs tab.
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Jobs Explanation
Many companies, especially service-oriented businesses, track their work as jobs. For example, a construction company would view each building project as a job with a time frame, a budget, materials costs, and so on. In QuickBooks, you can track multiple jobs for each customer. Each job is listed under the customer’s name in the Customer Center. If you are going to set up jobs for a customer, do not enter an opening balance for that customer. QuickBooks will calculate and track the overall balance for the customer from the balances you enter for the individual jobs. The New Job window To add a job, you’ll use the New Job window: 1 Select the customer for whom you want to create a job. 2 Click New Customer & Job and choose Add Job to open the New Job window. 3 Enter the job name, opening balance, and opening balance date. 4 Activate the Job Info tab and enter the following information: Job status (options include Pending, Awarded, In progress, Closed, and Not awarded) Start date Projected end date End date (actual) Job description Job type Similar to customer types, job types help you keep track of the types of work you do and how profitable each type is for your company. If your company performs only one job at a time for each customer, you can record jobs by using the Job Info tab in the New Customer or Edit Customer window. When you use this method, only the job’s status is indicated in the Customer Center.
Exhibit 3-3: The Food City, Inc., customer with a new job
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QuickBooks 2010
Document Management System Explanation
With QuickBooks 2010 you can now attach documents to customers, vendors, employees, items, accounts, as well as transactions. Documents can be scanned directly into QuickBooks or you can use images that are already on your hard drive. You can use this feature to attach electronic copies of: Bank Statements Bills Checks Credit card transactions Deposits transactions Estimates Invoices Photos Purchase orders Receipts To set up a QuickBooks Document Management account: 1 Choose Company, Document Management, Learn About Document Management to open the QuickBooks Document Management window. 2 Click the Sign Me Up button and create an account. 3 Select a Business Profile and click Next. 4 Choose a plan and click Next. There are four plans; three have a monthly fee and one is free. The free plan includes 100 MB of space. 5 Enter you billing information, check that you agree to the license agreement, and click Subscribe. 6 Click Start Using QuickBooks Document Management. After you’ve set up your account, you can click the Attach button from any dialog box or window that has one to open the Add Attachment window. You use this window to select files and upload it to your online storage space. Once you’ve uploaded files, you can easily search and share them.
Working with centers and lists Do it!
A-3:
3–11
Adding a job
Here’s how 1 In the Customer Center, verify that Food City, Inc., is selected
Here’s why You’ll create a job for this customer.
2 Click New Customer & Job Choose Add Job
To open the New Job window. It’s almost identical to the New Customer window.
3 In the Job Name box, enter Design job 1
In the Opening Balance box, enter 1000
Outlander Spices is charging Food City $1,000 to design a gourmet foods section for their store.
Change the “as of” date to 02/01/2010
4 Activate the Job Info tab 5 From the Job Status list, select
The job has already started.
In progress
6 In the Start Date box, enter 02/01/2010
In the Projected End box, enter 02/28/2010
Observe the End Date box
The job is projected to take about a month to complete. You should leave this box empty until you actually complete the job.
7 In the Job description box, enter Design gourmet foods section
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QuickBooks 2010 8 From the Job Type list, select
To open the New Job Type dialog box.
In the Job Type Name box, enter Retail consulting
Click OK
To return to the Edit Customer window.
“Retail consulting” has been entered in the Job Type box.
9 Click OK
10 Observe the overall balance for Food City, Inc. Close the Customer Center
To return to the Customer Center. The new job is listed under Food City, Inc. The job details are displayed in the Details area of the Customer Center. It has changed from $0 to $1,000. Compare your screen to Exhibit 3-3.
Working with centers and lists
3–13
The Vendor Center Explanation
Remember that a vendor is anyone you pay for goods or services. You use the Vendor Center to store important information about your vendors. This information is used to complete checks and other types of forms. You can open the Vendor Center in several ways, including the following: On the navigation bar, click Vendor Center. On the Home page, click the Vendors button. Choose Vendors, Vendor Center. On the left side of the Vendor Center, there are two tabs: Vendors and Transactions. As shown in Exhibit 3-4, the Vendors tab displays the balance total for each vendor. In this list, a positive balance indicates the amount you owe to the vendor. The Vendor Information section displays detailed information about the selected vendor, including notes and transactions in the lower half of the window. Adding vendors with an opening balance The first time you open the Vendor Center, it will be empty. You can add a new vendor with an opening balance by following these steps: 1 Click the New Vendor button and choose New Vendor to open the New Vendor window. 2 In the Vendor Name box, enter the vendor’s name. 3 In the Opening Balance box, enter the amount you owe the vendor. Verify that the “as of” date is correct. 4 Click OK. The new vendor will appear on the Vendors tab in the Vendor Center. Editing vendor information You can edit vendor information by selecting the vendor name on the Vendors tab and then clicking the Edit Vendor button in the Details section.
Exhibit 3-4: The Vendor Center after a new vendor is added
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QuickBooks 2010
A-4:
Adding a vendor with an opening balance
Here’s how
Here’s why
1 Click
To open the Vendor Center. You can also choose Vendors, Vendor Center.
2 On the Vendor Center icon bar, click New Vendor…
To display the shortcut menu.
Choose New Vendor
To open the New Vendor window. You’ll add a vendor.
3 In the Vendor Name box, enter Global Spice Importers
In the Opening Balance box, enter 750
In the “as of” box, enter 1/1/2010 As of 1/1/2010, you owed Global Spice Importers $750.
4 Click OK
To add the vendor with an opening balance and close the New Vendor window. Compare your screen to Exhibit 3-4.
Working with centers and lists
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Adding a vendor and a vendor type Explanation
To add a new vendor with additional details, follow these steps: 1 On the Vendor Center icon bar, click New Vendor and choose New Vendor to open the New Vendor window, shown in Exhibit 3-5. 2 Enter the vendor information, such as name, opening balance, and date. 3 Use the following tabs to enter the relevant vendor details: Address Info — Stores contact information for the vendor, including the company name, address, and phone number, and the vendor’s name as you want it to appear on checks. Additional Info — Stores your account number and credit terms, as well as the vendor’s tax ID and vendor type. Assigning vendor types allows you to generate reports that indicate how much money you’re paying to particular types of vendors. For example, Outlander Spices might use the following vendor types: Spice importer, Warehousing provider, Shipping company, and Display/kiosk manufacturer. 4 Click OK. Creating vendor types You can create a vendor type “on the fly” by choosing from the Type list. After you create the type, it will be available in the Type list.
Exhibit 3-5: The New Vendor window
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QuickBooks 2010
Exhibit 3-6: The Vendor Center Do it!
A-5:
Creating a vendor type
Here’s how
Here’s why
1 Observe the Vendors tab
You’ll see just one vendor listed: Global Spice Importers. On the Vendors tab, a positive balance indicates the amount you owe to the vendor. Vendor details are displayed on the right side of the Vendor Center.
2 Click New Vendor… and choose New Vendor
To open the New Vendor window and add another vendor.
3 In the Vendor Name box, enter
Outlander Spices just switched to National Packaging as its main shipping provider.
National Packaging
In the Opening Balance box, enter 500
Edit the “as of” box to read 02/10/2010
4 In the Company Name box, enter National Packaging
Enter the indicated contact information
5 Complete the Name and Address box as indicated
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3–17
6 Activate the Additional Info tab 7 In the Account box, enter 9720-1000-50
8 Display the Type list
Select
This account number will appear on all checks payable to this vendor. The appropriate vendor type for National Packaging is not available, so you’ll create a type. To open the New Vendor Type dialog box.
9 In the Vendor Type box, enter Shipping company
Click OK 10 From the Terms list, select Due on receipt
Select the Address Info tab 11 Click OK
To close the dialog box and return to the New Vendor window. Payments for all National Packaging orders are due when the invoices are received. Compare your New Vendor window to Exhibit 3-5. To close the New Vendor window and add National Packaging to your Vendor Center. Compare your screen to Exhibit 3-6.
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QuickBooks 2010
Notes Explanation
In both the Customer Center and the Vendor Center, you can add notes about customers, jobs, and vendors. These notes can be used as reminders or to store information not normally saved in a customer, vendor, or job record. Notes appear in the Details section just above the transactions list. To add a note to a record: 1 Select the customer, vendor, or job to which you want to add a note. 2 Click Edit Notes to open the Notepad dialog box. 3 If desired, click Date Stamp to enter the current date in the text area. 4 In the text area, enter the desired text. 5 Click OK to close the dialog box.
Exhibit 3-7: Viewing a note in the Vendor Center
Working with centers and lists Do it!
A-6:
3–19
Adding a note
Here’s how
Here’s why
1 In the Vendor list, verify that the National Packaging entry is selected
You’ll create a note for this vendor.
2 Click Edit Notes…
To open the Notepad dialog box for the selected vendor.
3 Click Date Stamp
To enter today’s date in the text area.
4 Type New rates take effect 4/1/2010
As of April 1st, National Packaging will charge new shipping rates.
5 Click OK
To close the dialog box and save the note.
6 Observe the new note in the Details section
(If necessary, select National Packaging on the Vendors tab.) Compare your screen to Exhibit 3-7. You can easily change the note text by clicking Edit Notes.
7 Close the Vendor Center
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QuickBooks 2010
The Employee Center Explanation
The Employee Center provides a centralized location to track employee information, such as payroll, time off, and tax-related details. The layout and features of this center are similar to those of the Customer Center and Vendor Center. You can edit employee information and add notes by clicking the appropriate buttons in the Employee Information section. To open the Employee Center, do any of the following: On the Home page, click Employees (the button with vertical text near the bottom of the window). On the navigation bar, click Employee Center. Choose Employees, Employee Center. Adding an employee The Employee Center will be empty the first time you open it. To add an employee, follow these steps: 1 In the Employee Center, click New Employee to open the New Employee window. 2 Use the following tabs to enter the relevant employee details: Personal — Stores the employee’s name, Social Security number, and birthday, and the name to be printed on the paycheck. Address and Contact — Stores the home address, phone numbers, e-mail address, and pager number. Additional Info — Stores the employee account number (ID) and any custom fields. 3 If necessary, use the Change tabs list to display the following tabs and enter the applicable information: Payroll and Compensation Info — Stores the salary rates, pay period, sick/vacation time, direct deposit details, and tax details, including additions, deductions, company contributions, and federal and state withholding information. Employment Info — Stores the hire date, release date, and employment type (Regular, Officer, Statutory, Owner). 4 Click OK.
Working with centers and lists
Exhibit 3-8: The Employee Center
3–21
3–22 Do it!
QuickBooks 2010
A-7:
Adding an employee to the Employee Center
Here’s how
Here’s why
1 Click
To open the Employee Center, shown in Exhibit 3-8. Currently, only one employee, Jack Thomas, is listed on the Employees tab.
2 Click New Employee…
To open the New Employee window.
3 On the Personal tab, in the First Name and Last Name boxes, enter your name
To add yourself as an employee.
4 Activate the Address and Contact tab
This tab contains employee information, such as the home address, phone and fax numbers, e-mail address, and pager numbers.
5 In the Home address fields, enter your address 6 From the Change tabs list, select Employment Info
From the Type list, select Owner 7 Click OK
To close the New Employee window.
8 Observe the Employee Center
Your name appears on the Employees tab and your home address appears in the Employee Information area.
Close the Employee Center
Working with centers and lists
3–23
Topic B: Working with the Item List Explanation
Items are a key component of your QuickBooks file. An item is anything that you would list on an invoice or other sales form. For example, a typical Outlander Spices invoice would include a line for each product and a line for shipping charges. Each of these is an item. Other possible items include sales tax, discounts, and even subtotals; therefore, it would be an oversimplification to define an item as anything you sell or charge for. If you want to include something in an invoice, you’ll need to create an item for it in QuickBooks. The only exception to this rule is the invoice total, which the program calculates and enters automatically. QuickBooks does not create any items for you. The Item List is empty by default, and you must set up each item manually. You use the Item List for things such as noninventory parts and miscellaneous charges, such as shipping, postage, and other reimbursable expenses, such as travel expenses.
Opening the Item List There are many ways to open the Item List. Here are a few: On the icon bar, click Item. Choose Customers, Item List. Choose Lists, Item List. On the Home page, click Items & Services. This list has seven columns: Name, Description, Type, Account, On Hand, On Sale, and Price. The On Hand column indicates the quantity you have in stock for each item. The Price column indicates how much you charge your customers for each item.
3–24
QuickBooks 2010 The New Item window The first time you open the Item List, it will be empty. To add a new item: 1 At the bottom of the Item List window, click Item to display the shortcut menu, and then choose New to open the New Item window, shown in Exhibit 3-9. 2 From the Type list, select the appropriate item type. The window’s remaining contents will vary depending on the item type you select. 3 Enter the required item information. 4 Click OK. You can edit items at any time by selecting them in the Item List window, clicking Item, and choosing Edit Item. After making the desired changes, click OK.
Exhibit 3-9: The New Item window
Exhibit 3-10: Adding a non-inventory item to the Item List
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B-1:
3–25
Adding a non-inventory item
Here’s how
Here’s why
1 On the Home page, click Items & Services
To open the Item List window. In QuickBooks, anything you include in an invoice is an item. For example, in a typical Outlander Spices order, each spice is an item, as is the shipping cost. You’ll create an item for the kiosk displays that Outlander Spices provides to grocery stores free of charge.
2 At the bottom of the Item List window, click Item Choose New
If necessary, close the New Feature dialog box.
To open the New Item window, as shown in Exhibit 3-9.
From the Type list, select Non-inventory Part
3 In the Item Name/Number box, enter Kiosk display In the Description box, enter Holds 50 spices
Observe the Price box
The default entry is 0.00, which you’ll accept because Outlander Spices does not charge customers for this item.
4 From the Account list, select Sales
Even though Outlander Spices does not actually sell this item, you must assign it to an income account. The Sales account will do.
3–26
QuickBooks 2010 5 Check This item is used in assemblies or is purchased for a specific customer:job
A Purchase Information section is added to the New Item dialog box.
6 In the Description on Purchase Transactions box, enter Kiosk display, Outlander Spices
Edit the Cost box to read 375
Each display costs Outlander Spices $375, including shipping directly from the manufacturer to the grocery store.
7 From the Expense Account list, select Marketing
The Marketing account is account number 6780. Compare your New Item window to Exhibit 3-9.
8 Click OK
The new kiosk display item appears in the Item List, as shown in Exhibit 3-10.
Working with centers and lists
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Inventory Explanation
Inventory is anything you purchase, hold in stock, and then sell. In order to include these goods on your invoices, purchase orders, and so on, you have to create the appropriate items in QuickBooks. These are also called inventory part items. When you create an inventory part item, specify the following: Item name and description to appear on invoices Selling price per unit Income account for tracking sales of the item Item description to appear on purchase orders, checks, or bills for the item Your cost per unit The reorder point (QuickBooks will automatically remind you to reorder the item when inventory is at or below the specified quantity.) Quantity on hand as of your start date Based on the cost per unit and the quantity on hand, QuickBooks calculates the total inventory value for the item as of your start date. If necessary, you can change this value manually.
Exhibit 3-11: Creating an inventory item in the New Item window
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QuickBooks 2010
Exhibit 3-12: The Item List
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3–29
Adding an inventory item
Here’s how
Here’s why
1 Verify that the Item List is open
If necessary, click Items & Services on the Home page.
2 Click Item and choose New
To open the New Item window. The Type list is selected by default.
3 From the Type list, select
The window’s contents change according to your selection.
Inventory Part
4 In the Item Name/Number box, enter Dill weed, bulk 5 In the Description on Purchase Transactions box, enter
This text will appear on purchase orders issued by your company.
Dill weed, 16 oz. bag
In the Cost box, enter 4.50
Outlander Spices pays $4.50 for each one-pound bag of dill weed.
Observe the COGS Account box
Your main Cost of Goods Sold expense account is entered by default.
From the Preferred Vendor list, select Global Spice Importers
As soon as you type the letter “G,” QuickBooks completes the entry with Global Spice Importers. If this wasn’t the correct vendor name, you could simply select another vendor or add a new one.
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QuickBooks 2010 6 Edit the Sales Information section as shown
The sales price is the amount you charge your customers for the item.
7 Under Inventory Information, in the Reorder Point box, enter 200
QuickBooks will prompt you to reorder this item when inventory is at or below 200 bags.
8 In the On Hand box, enter 400 Press t
The Total Value ($1,800) is automatically calculated with item cost and quantity on hand.
9 Click OK
To close the New Item window. The inventory item is added to the Item List, as shown in Exhibit 3-12.
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Grouped items Explanation
If you regularly sell several items together as a set, you can group them. By creating a grouped item, you save yourself the trouble of entering each item individually. To group items: 1 Open the New Item window. 2 From the Type list, select Group. 3 Enter a name or number and a description for the group. 4 In the table at the bottom of the window, click anywhere in the Item column to activate the drop-down list. 5 From the Item List, select the first item you want to include in the group. 6 Press Tab to place the insertion point in the Qty column. If necessary, enter the desired quantity for the first item. 7 Press Tab to move the insertion point to the next line in the Item column and activate the drop-down list. Repeat steps 5 and 6 for each additional item in the group. 8 Click OK. Grouping items is useful when you want to offer a special discount on a particular product you sell. In cases like this, you’ll need to create three items: An inventory or non-inventory part for the product being sold A discount item for the amount of the discount A grouped item that combines the product item with the discount item
Exhibit 3-13: A grouped item in the Item List
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QuickBooks 2010
B-3:
Grouping items
Here’s how 1 Open the New Item window
Here’s why Click Item and choose New.
2 From the Type list, select Discount
You’ll create a discount item.
3 In the Item name/Number box, enter Super special
Outlander Spices offers this discount when the company wants to sell a large amount of a particular spice quickly.
4 In the Description box, enter Half-price discount
5 In the Amount or % box, enter 50%
From the Account list, select 6130 Cash Discounts
6 Click OK
To close the New Item window.
7 Open the New Item window
You’ll group the discount item with an existing product item.
8 From the Type list, select Group
9 In the Group Name/Number box, enter Dill weed special 10 At the bottom of the window, in the table, click anywhere in the Item column
To activate the drop-down list.
From the Item list, select Dill weed, bulk
The item’s description is entered automatically.
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11 Press t
To move the insertion point to the Qty (Quantity) column. If necessary, you can enter a specific quantity for each product item in the group.
12 Press t
To move the insertion point to the next line in the Item column and activate the drop-down list.
From the Item list, select Super special This is the discount.
13 Click OK
14 Close the Item List
To close the New Item window. The grouped item is added to the list. Notice that the grouped item’s price is not displayed. Compare your screen to Exhibit 3-13.
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QuickBooks 2010
Topic C: Adding custom fields Explanation
You can add your own customized fields to the windows where you set up customers, vendors, and items. The information you enter in the fields can be intended just for your use, or it can be used to automatically fill in certain forms when you enter a name or item on them. Customized fields are also useful for generating reports.
Defining custom fields Let’s say you want to track your company’s sales by geographic region. You can add a custom field named “Sales Region” to the New Customer and Edit Customer windows. Here’s how: 1 Open the New Customer or Edit Customer window and activate the Additional Info tab. 2 Click Define Fields to open the Define Fields dialog box. 3 Under Label, in the first box, enter a name for the new field (such as “Sales Region”). 4 Under “To be used for,” check the list(s) you want the new field to be applied to. (In this example, you’d check Customers:Jobs.) 5 Click OK. An Information box appears, stating that you can use custom fields in transactions. 6 Click OK. The new field is added to the Additional Info tab under Custom Fields. Keep in mind that any custom fields you create will not be added to your forms automatically. You must add the corresponding fields manually. For example, you would add the new Sales Region field to your invoice form. From then on, a customer’s sales region would be filled in automatically when you entered a sale. You could filter a report so that it showed only sales for a particular region. You can use a similar procedure to add custom fields for vendors, items, and other listbased records in QuickBooks.
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Exhibit 3-14: The custom Sales Region field in the Edit Customer window Do it!
C-1:
Creating a custom field
Here’s how
Here’s why
1 Open the Customer Center
You’ll add a Sales Region field to your customer records.
2 Double-click Food City, Inc.
To open the Edit Customer window. You can also select the Food City entry, right-click, and choose Edit Customer from the shortcut menu.
Activate the Additional Info tab 3 Under Custom Fields, click
To open the Define Fields dialog box.
Define Fields
4 Under Label, in the first box, enter Sales Region
Under Use for:, check the first box
The Sales Region field will be available only in customer and job records.
Click OK
The Information box explains that you can also use custom fields in transactions.
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QuickBooks 2010 5 Click OK
To return to the Edit Customer window. On the Additional Info tab, under Custom fields, a Sales Region box has been added.
6 In the Sales Region box, enter West Food City is in the West region. Compare your screen to Exhibit 3-14.
7 Click OK
To close the Edit Customer window.
8 Open a New Customer window and activate the Additional Info tab
To verify that the new field appears on the Customer form.
9 Close the New Customer window and the Customer Center Close the company file
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Unit summary: Working with centers and lists Topic A
In this topic, you learned how to use the Customer Center. You added a customer and created a customer type. You also learned how to add jobs and create job types. Then you opened the Vendor Center, added a vendor, and created a vendor type. You also learned how to attach a note to a list entry.
Topic B
In this topic, you opened the Item List and added an inventory item. You also learned how to add other types of items, including sales tax, subtotal, and discount items. Then you learned how to group items.
Topic C
In this topic, you learned how to add custom fields to your customer, vendor, and item records.
Independent practice activity In this activity, you will edit the Chart of Accounts, modify customer and vendor records, and create a new entry in the Item List. 1 Open Practice lists (from the current unit folder). 2 In the Chart of Accounts, create an account as follows: Type: Income Number: 4025 Name: Retail consulting Tax-Line Mapping: Income: Gross receipts or sales 3 Delete the Automobile Expense account. When you’re done, close the Chart of Accounts. 4 Edit the customer information for Big Don’s Steakhouse by adding the following information: Bill To/Ship To address: Big Don’s Steakhouse, 8 Elm Street, Chicago, IL, 60604 Customer Type: Restaurant (you’ll need to create this customer type) Account Number: 12300 5 Add a new job for Food City, Inc., as follows: Job Name: Design job 2 Opening Balance: $500 (as of today’s date) Job Status: Pending Start Date: March 3, 2010 Projected End Date: March 17, 2010 Job Description: Redesign dry goods storage area Job Type: Retail consulting 6 When you’re done, verify that the new balance for Food City is $1,500. Compare your Customer Center to Exhibit 3-15. Close the Customer Center.
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QuickBooks 2010 7 Add a new vendor as follows: Vendor Name/Company Name: Superior Properties Address: Superior Properties, 495 Lake Ave., Portland, OR 97220 Print on Check as: Superior Properties, Inc. Contact name: Grace Lee Contact’s phone number: (555) 253-0600 Vendor Type: Office space rental (You’ll need to create this vendor type.) 8 Attach a note to the Superior Properties vendor record. Stamp the note with today’s date and enter the following text: Spoke to Grace; new lease due next week. When you’re done, close the Vendor Center. 9 Create an item that will allow you to enter subtotals on your business forms. In the Item Name/Number box, enter Subtotal. There’s no need to enter a description. When you’re done, close the Item List. 10 Close the company file.
Exhibit 3-15: The Customer Center after Step 5 of the independent practice activity
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Review questions 1 A customer pays you for goods or services, and you pay _______ for their goods or services. Vendors
2 How do you open the Customer Center? [Choose all that apply.] A On the navigation bar, click the Customer Center icon. B On the Home page, click the Customers button. C Press Ctrl+C. D Choose Customers, Customer Center. 3 True or false? The Transactions tab in the Customer Center window lists all of your customers and their balances. False. The Customers & Jobs tab lists all of your customers and their balances.
4 How do you add a new job for a customer? a On the Customer & Job tab, select the customer. b Click New Customer & Job and choose Add Job. c Enter the job name, opening balance, and opening balance date. d On the Job Info tab, enter the job status, start date, projected end date, and other job details. e Click OK twice to save the job and close the customer window.
5 What is the advantage of learning how to use the Customer Center and the customer window? The same techniques that are used to add and edit customer accounts can also be used to manage vendors and employees.
6 Where do Notes appear in the Customer and Vendor Centers? In the Details section just above the transactions list
7 What is an item? An item is anything that you would list on an invoice or other sales form. Items can include inventory, non-inventory parts, and miscellaneous charges such as shipping and postage.
8 How many items appear in the Item List by default? None
9 Which of the following are described as anything you purchase, hold in stock, and then sell? A Items B Inventory C Non-inventory D Assets 10 What is an advantage of creating a grouped item? When you regularly sell several items together, combining them in a group allows you to avoid entering each item individually, which would be less efficient.
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QuickBooks 2010
4–1
Unit 4 Working with business forms Unit time: 60 minutes Complete this unit, and you’ll know how to: A Prepare, print, modify, and customize
invoices, and prepare a credit memo. B Prepare and print a sales receipt, record a
customer payment, and deposit customer payments into your checking account. C Prepare and print purchase orders, and
enter items into inventory. D Locate information quickly by using the
QuickFilter and Find features.
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QuickBooks 2010
Topic A: Invoices and credit memos Explanation
By entering complete and accurate information about your customers, vendors, inventory, and other items in your various lists, you’ll make it easier to complete all types of business forms, including invoices and credit memos. Your list data is used to fill in particular fields automatically, leaving you to fill in the remaining fields manually. QuickBooks uses an invoice form based on the type of business you selected—services, products, or both—during the EasyStep Interview. These default invoice forms are based on templates, each of which has a predefined field structure and print layout. You can create a custom invoice form tailored to your company’s specific needs.
The Create Invoices window To create an invoice, you’ll use the Create Invoices window, shown in Exhibit 4-1. The contents of this window depend on the selected invoice form. Here’s how it works: 1 On the icon bar, click Invoice to open the Create Invoices window. 2 From the Customer:Job list, select the desired customer. Some fields, such as the customer’s address and terms of sale, will be filled in automatically. 3 Fill in the remaining fields, or accept the default values. In the main table, you activate a field by clicking it. For example, to activate the drop-down list for entering an item, click anywhere in the Item Code column. To move the insertion point to the next field, press Tab; to move back, press Shift+Tab. 4 At the bottom of the window, use the check boxes to specify whether the invoice is to be printed, sent via e-mail, or both. 5 If you want to save the invoice and close the Create Invoices window, click Save & Close. If you want to continue preparing invoices, click Save & New.
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Exhibit 4-1: The Create Invoices window with the Food City invoice Reminders The Reminders window reminds you about bills to pay, overdue invoices, and items to print. By default, the reminders are turned off, but you can turn them on. Choose Edit, Preferences and select the Reminders category. Check the option to show the Reminders list when opening a company file, and click OK.
Exhibit 4-2: The Reminders window
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QuickBooks 2010
Do it!
A-1:
Preparing an invoice
Here’s how 1 Open Forms Update the file 2 On the icon bar, click
Here’s why From the current unit folder. If prompted. To open the Reminders window, shown in Exhibit 4-2. This window reminds you about invoices, bills, and other things you need to take action on soon.
Resize the Reminders window
If necessary.
Double-click Invoices/Credit
To expand the list of invoices that are due (or overdue) for printing.
Memos to Print
3 On the icon bar, click
To open the Create Invoices window.
Display the Template list
The Intuit Product Invoice template is selected. You can use this list to select a different invoice form.
Press g 4 From the Customer:Job list, select Food City, Inc.
5 Observe the Date and Invoice # fields
To close the Template list. The Bill To and Ship To addresses are filled in automatically. Today’s date is entered by default. This is the first time you’re using the Create Invoices window, so the invoice number is 1.
6 Select the invoice number Drag to select the number 1.
Type 785 7 Click anywhere in the P.O. Number field
To change the invoice number. To place the insertion point in this field.
Type 6201 This is your customer’s purchase-order number.
Working with business forms 8 Observe the Terms field Observe the Ship field 9 From the Via list, select UPS
4–5
The standard terms for this customer (Due on receipt) are filled in automatically. Today’s date is entered automatically. This indicates the shipping method.
10 In the Quantity column, click the first line To place the insertion point in the first line of this column. The Item Code list is activated.
Type 3
This is the order quantity.
From the Item Code list, select
This is the item being ordered by Food City. The Description, Price Each, and Amount fields are filled in automatically.
Nutmeg, ground, bulk
11 Press t
Press t three times 12 From the Item Code list, select UPS Ground, level 1
To move the insertion point to the Description field for the current item. You can modify the description. To move the insertion point to the beginning of the next line and activate the Item Code list. To enter the standard UPS shipping charge for orders totaling less than $50. The Description, Price Each, and Amount fields are filled in automatically.
13 At the bottom of the invoice, observe the Total and Balance Due values
QuickBooks calculates these values for you.
From the Customer Message list, select Thank you for your
To enter this message in the field. Compare your screen to Exhibit 4-1.
business.
14 Click Save & New
(In the lower-right area of the form.) To save the current invoice and start a new one.
Observe the Invoice # field QuickBooks continues numbering from the previous invoice number.
15 Close the Create Invoices window
To return to the Home page.
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QuickBooks 2010 16 View the Reminders window with Invoices/Credit Memos to Print expanded
17 Close the Reminders window
(If necessary, click Rmnd and expand Invoices/Cred Memos to Print.) The new invoice (#785) is in the list of invoices to print.
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Modifying invoices Explanation
Do it!
To modify an invoice: 1 Open the Create Invoices window. 2 Use the Previous and Next buttons to page through your saved invoices and display the one you want to modify. 3 Change the desired field entries. To insert a new item line in the middle of the table, place the insertion point in the line that you want the new line to appear above, and choose Edit, Insert Line. To delete a line, place the insertion point anywhere in the line you want to delete and choose Edit, Delete Line. 4 Click Save & Close.
A-2:
Modifying an invoice
Here’s how
Here’s why
1 Open the Create Invoices window
(Press Ctrl+I.) A new, blank invoice is created. The invoice number is 786. You want to change invoice number 785.
2 At the top of the window, click
To display the previous invoice (785).
Previous
3 In the Quantity column, select 3
Use the mouse.
Type 2
To change the quantity of nutmeg items to 2.
Press t
To enter the new quantity and update the calculations.
4 Place the insertion point anywhere in the second item line
You’ll insert a new line above this item.
Right-click and choose Insert Line
To insert a new, blank line above the shipping charge item.
5 In the new line, enter an order for three 16-ounce bags of dill weed
(Resize the Create Invoice window, if necessary.) Type 3 and press Tab. From the Item Code list, select “Dill weed, bulk.”
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QuickBooks 2010 6 Insert a blank item line between the second and third items
Place the insertion point anywhere in the third item line (UPS shipping), and choose Edit, Insert Line.
7 In the new line, enter the Subtotal item
Use the Item Code list.
8 Observe the Amount column
It shows the subtotal of the two previous items ($39.50). The new invoice total, including shipping, is $48.45.
9 Click Save & Close Click Yes 10 View the reminder for invoice #785 Close the Reminders window
A message box prompts you to record your changes. To save your changes, close the Create Invoices window and return to the Home page. (Open the Reminders window and expand Invoice/Credit Memos to Print.) The invoice amount has been updated to $48.45.
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Printing invoices Explanation
Before you print an invoice or any other form, use the Printer setup dialog box (shown in Exhibit 4-3) to enter the appropriate settings. To open this dialog box, choose File, Printer Setup. From the Form Name list, select the type of form for which you want to set up your printer. The contents of this dialog box will vary according to the selected form and the printer drivers on your computer. After entering your settings, click Align to make sure the selected form will print correctly. When finished, click OK.
Exhibit 4-3: The Printer setup dialog box Printing from the Create Invoices window To print the current invoice from the Create Invoices window: 1 Click the Print button to open the Print One Invoice dialog box, which is nearly identical to the Printer setup dialog box. This gives you a chance to change any of your previously entered settings before printing. 2 In the Number of copies box, enter the number of copies you want to print. 3 If desired, click Preview to preview the invoice before printing. When you’re done, click Close to close the Print Preview window. You can also preview an invoice from the Create Invoices window by clicking the arrow next to the Print button and choosing Preview. 4 Click Print.
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QuickBooks 2010 Printing multiple invoices If you want to print a batch of invoices, you should use the Select Invoices to Print dialog box, shown in Exhibit 4-4. Here’s how: 1 Choose File, Print Forms, Invoices to open the Select Invoices to Print dialog box. The invoices associated with your main accounts-receivable (A/R) account are displayed and selected (checked) by default. To display the invoices for a different A/R account, use the A/R Account list. 2 Deselect (uncheck) the invoices you don’t want to print. To deselect all invoices, click Select None. To select all invoices, click Select All. 3 Click OK to open the Print Invoice dialog box, which is nearly identical to the Printer setup dialog box. This gives you a chance to change any of your previously entered settings before printing. 4 In the Number of copies box, enter the number of copies of each invoice you want to print. 5 Click Print.
Exhibit 4-4: The Select Invoices to Print dialog box Do it!
A-3:
Printing an invoice
Here’s how 1 Choose File, Printer Setup…
From the Form Name list, select Invoice
2 On the Settings tab, observe the Printer name and Printer type lists
Here’s why To open the Printer setup dialog box. The Form Name list is displayed by default. Before you print any type of form, you should apply the appropriate printer settings in this dialog box. The contents of this dialog box will vary depending on the selected form type. For invoices, there are two tabs: Settings and Fonts. You use these lists to specify the output device and its type (continuous or page-oriented).
3 Observe the Print on options
You can print invoices on any of these three types of paper. You can also specify whether lines should appear around each field.
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4 Observe the Align button
You click this button to test and adjust your printer’s alignment for the selected form.
5 Activate the Fonts tab
It indicates that you need to use the Template list to change the fonts on this form, and it provides the steps to do so.
6 Click OK
To close the Printer setup dialog box.
7 Choose File, Print Forms,
To open the Select Invoices to Print dialog box. All invoices are selected for printing by default.
Invoices…
Observe the A/R Account list
If you have more than one accounts-receivable account, you can display the invoices for a different account by selecting it from this list.
8 Click Select None In the No. column, click 785 9 Click OK
In the Number of copies box, enter 2 10 Click Cancel
To deselect (uncheck) all invoices. To select invoice number 785 for printing. To open the Print Invoices dialog box. This gives you a chance to change the settings before printing. It’s a good idea to print an extra copy of each invoice for your records or files. To close the dialog box without printing the selected invoice.
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QuickBooks 2010
Custom invoice forms Explanation
If none of the default invoice templates are adequate for your needs, you can create a custom invoice form. You can modify a standard invoice template to some extent, or you can create a copy of a template and modify the copy. No matter which approach you use, you can start with the Basic Customization dialog box, shown in Exhibit 4-5. To create a custom invoice form: 1 Open the Create Invoices window. 2 Click the Customize button on the icon bar to open the Basic Customization dialog box. 3 Click Manage Templates, select a template from the list, click Copy, and click OK. 4 Change the logo and fonts as needed, and determine what company information should appear on the template. 5 Click Layout Designer to adjust the placement of items on the invoice. 6 When you are satisfied with the layout, click OK.
Exhibit 4-5: The Basic Customization dialog box for invoices To further customize the invoice form, you can use the Additional Customization dialog box. It has four tabs: Header, Columns, Footer, and Print. By selecting options and entering text on these tabs, you can add, delete, and customize various components of your invoice form. For advanced layout options, click the Layout Designer button. You use the same general procedure to customize any type of form in QuickBooks, including credit memos, sales receipts, and purchase orders.
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Adding your company logo For a professional look, many companies include a logo on their invoice forms. In QuickBooks, your logo file must be in bitmap (.bmp) format. To add your logo: 1 Open the Basic Customization dialog box. 2 Under Logo & Fonts, check Use logo. The Select Image dialog box opens. 3 Navigate to and select your logo file; then click Open to return to the Logo dialog box, which displays a preview of the selected logo. 4 Click Open. 5 Click OK to copy the bitmap image. Do it!
A-4:
Creating and previewing a custom invoice form
Here’s how
Here’s why
1 Open the Create Invoices window 2 On the Create Invoices icon bar, click the down arrow next to the Customize button
(If the window is too small, the Customize button will be hidden. Resize the window.)
Choose Manage Templates…
The Manage Templates window opens with the Intuit Product Invoice template selected. You’ll make a copy of the template and use that, because you can make only limited changes to the standard templates.
3 Click Copy
This makes a copy of the template and selects it.
4 Under Preview, edit the template name to read My custom invoice
Click OK
To open the Basic Customization dialog box.
5 Check Use Logo
The Select Image dialog box opens.
Navigate to the current unit folder Select Logo
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QuickBooks 2010 6 Click Open
A warning box prompts you to copy the file to the Forms - Images folder.
Click OK
To return to the Basic Customization dialog box. The logo is now in the upper-left corner of the invoice.
7 Click Layout Designer
You’ll make a minor layout adjustment.
8 Select the pepper logo Drag the logo to the middle of the top of the form
9 Click OK
10 Click Additional Customization…
11 Next to REP, clear the check box in the Screen column
The mouse pointer changes to a four-headed arrow, indicating that the logo can be moved.
To close the Layout Designer and return to the Basic Customization dialog box. The pepper now appears in the center of the form in the preview. To open the Additional Customization dialog box. To remove the Rep (sales representative) field from your invoice in the screen view. A message appears, warning you that you might have to rearrange fields in the Layout Designer.
Specify that you don’t want to see the message again and click OK Observe the options on the other tabs
You can choose to include or omit many pieces of information on the invoice.
12 Click OK
To close the Additional Customization dialog box and return to the Basic Customization dialog box.
13 Under Company and Transaction Information, check
These options are like the ones in the Additional Customization dialog box, but they are here because they are more commonly used. The address appears at the bottom of the invoice, as shown in Exhibit 4-5.
E-mail Address
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14 Click OK
To close the Basic Customization dialog box and return to the Create Invoices window.
15 Click Print Preview…
To open the Print Preview window. If a message about shipping labels appears, check “Do not display this message in the future” and click OK.
16 Click the upper-left corner of the invoice
To zoom in on this area. You’ll see the company logo and mailing address.
Look at the bottom of the invoice
Your company’s e-mail address has been added.
17 Click Close 18 Close the Create Invoices window
To close the Print Preview window.
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QuickBooks 2010
Preparing credit memos Explanation
Credit memos are often used to handle customer returns and refunds. Credit memos also provide a handy way to correct data entry mistakes. QuickBooks provides different kinds of credit memos for different kinds of companies. To start creating a credit memo, choose Customers, Create Credit Memos/Refunds to open the Create Credit Memos/Refunds window. This window is similar to the Create Invoices window, and you complete it in much the same way. When you’re preparing a credit memo, it’s a good idea to refer to the original invoice number in the Memo box.
Exhibit 4-6: The Create Credit Memos/Refunds window Do it!
A-5:
Preparing a credit memo
Here’s how
Here’s why
1 On the Home page, click Refunds & Credits
To open the Create Credit Memos/Refunds window. It’s similar to the Create Invoices window.
2 From the Customer:Job list, select Big Don’s Steakhouse
You’ll credit this customer for returned merchandise.
3 Observe the Credit No. field Credit memos follow the same numbering as invoices by default.
Working with business forms 4 Click the Item column From the Item list, select Nutmeg, ground, bulk
5 Press t twice
4–17
(Anywhere will do.) To activate the Item list. This is the type of item the customer returned. As in an invoice, the Description, Rate, and Amount fields are filled in automatically. To place the insertion point in the Qty field.
Type 2 Press t 6 In the Memo box, enter Return, invoice #775
7 Save and close the credit memo
The Amount, Total, and Remaining Credit values are recalculated based on the quantity. (In the bottom-left area of the form.) When you’re preparing a credit memo, it’s a good idea to refer to the original invoice number. Compare your screen to Exhibit 4-6. Click Save & Close.
Observe the Available Credit message
QuickBooks asks how you want to handle the remaining balance. You’ll accept the default to retain the remainder as available credit.
Click OK
To close the Available Credit message.
8 Open Reminders Expand Invoices/Credit Memos to Print
Close Reminders
The credit memo you just created is listed. The credit amount is indicated as a negative number.
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QuickBooks 2010
Topic B: Sales receipts and customer payments Explanation
When you make a sale or complete a job, you’ll need to provide your customer with a receipt and process the payment. You record a sales receipt when a customer pays you in full for goods at the point of sale. Sales receipts are recorded in a way that changes your cash balance. However, if your customers don’t always pay you up front for their purchases, you’ll need to record another type of payment—the ones that customers make to pay off or pay down what they owe.
The Enter Sales Receipts window To create a sales receipt, you’ll use the Enter Sales Receipts window, which is similar to the Create Invoices window. To open this window (shown in Exhibit 4-7), choose Customers, Enter Sales Receipts.
Exhibit 4-7: The Enter Sales Receipts window Printing sales receipts You print a sales receipt the same way you print an invoice or credit memo.
Working with business forms Do it!
B-1:
4–19
Preparing and printing a sales receipt
Here’s how
Here’s why
1 On the Home page, click Create Sales Receipts
To open the Enter Sales Receipts window, which is similar to the Create Invoices window.
Close the Get More From Quickbooks window 2 From the Customer:Job list, select
If necessary.
You’ll prepare a sales receipt for this customer.
Huller, Elizabeth
3 Observe the Sale No. box Sales receipts follow a numbering sequence that is different from invoices and credit memos.
4 Activate the Item list
Click anywhere in the Item column.
From the Item list, select Rack-o-spices 3
In Qty, enter 2 5 In the next line, enter an item for
Compare your screen to Exhibit 4-7.
UPS Ground, level 3
6 Click the arrow on the Print button and choose Print…
To open the Print One Sales Receipt dialog box. If necessary, you can change your output settings before printing.
Click Cancel
7 Save and close the sales receipt
To close the dialog box without printing. (Ordinarily, you would click Print to send the receipt to the printer.) Click Save & Close.
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QuickBooks 2010
The Receive Payments window Explanation
To receive a payment and apply it to a previously issued invoice, you’ll use the Receive Payments window. This window looks slightly different from the other windows you’ve learned about in this unit, but you complete it in much the same way. To receive a payment: 1 Choose Customers, Receive Payments to open the Receive Payments window, shown in Exhibit 4-8. You can also click Receive Payments on the Home page. 2 From the Received From list, select the customer’s name. The customer’s current balance is indicated, and all of the customer’s outstanding invoices are listed in the table. 3 From the Pmt. Method list, select the payment method. Based on your selection, the contents of the window’s upper section will vary. 4 Complete the upper section of the window. For check payments, this will include the date of payment, amount, check number, and memo. 5 In the table, select the invoice to which you want to apply the payment. 6 Click Save & Close (or Save & New). Applying a credit When receiving a payment, you might want to apply a previously issued credit. To do this from the Receive Payments window: 1 Click Discounts & Credits to open the Discounts and Credits dialog box. The Credits tab is activated by default. 2 Select the credit(s) that you want to apply to the current payment. 3 Click Done to return to the Receive Payments window.
Exhibit 4-8: The Receive Payments window
Working with business forms Do it!
B-2:
4–21
Recording a customer payment and applying a credit
Here’s how
Here’s why
1 On the Home page, click Receive Payments
To open the Receive Payments window.
Close the Get More From Quickbooks window
If necessary.
2 From the Received From list, select Big Don’s Steakhouse Observe the Customer Balance value
3 Edit the Amount field to read 231.50
The selected customer owes you $250.
Big Don’s Steakhouse is paying you this amount.
4 From the Pmt. Method list, select Check 5 In the Check # field, enter 0370
This is the number on the check.
6 In the lower-right corner, under Amounts for Selected Invoices, observe the values
The current check amount ($231.50) has been copied from the Amount field and pasted in the Payment column. No credits have been applied.
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QuickBooks 2010 7 In the lower-left corner, observe the options for underpayment and the Available Credits
You’ll apply the credit to the underpayment.
Click Discount & Credits…
To open the Discount and Credits dialog box. The Credits tab is activated, and credit memo #786 ($18.50) is selected.
Click Done
To apply the selected credit to the current customer payment and close the dialog box. Compare your screen to Exhibit 4-8.
8 Click Save & New
To save the payment and start a new one.
9 Go back to the previous payment
Click Previous.
Observe the Amount Due value
By applying the $18.50 credit, you reduced the customer’s balance from $250 to $231.50. The check you just received covers the entire amount owed by Big Don’s Steakhouse.
Close the Receive Payments window 10 Open the Customer Center
At the top of the list, you’ll see that the balance for Big Don’s Steakhouse is now zero (0.00).
Close the Customer Center
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Recording deposits Explanation
As you record sales receipts and customer payments, QuickBooks adds the cash to its list of undeposited funds. These funds could be a batch of checks you haven’t deposited, or they could be some currency and coins. You’ll want to put this money in the bank. To record these deposits in QuickBooks, use the Payments to Deposit and Make Deposits dialog boxes. To record deposits: 1 Choose Banking, Make Deposits to open the Payments to Deposit dialog box, shown in Exhibit 4-9. 2 Select the payments you want to deposit, and then click OK to open the Make Deposits window, shown in Exhibit 4-10. 3 From the Deposit To list, select the account into which you want to deposit the selected payments. 4 Enter the deposit date and a memo (if desired). 5 If you’re getting cash back on the deposit, use the fields at the bottom of the window to enter the cash-back information. 6 Click Save & Close.
Exhibit 4-9: The Payments to Deposit dialog box
4–24
QuickBooks 2010
Exhibit 4-10: The Make Deposits window
Working with business forms Do it!
B-3:
4–25
Depositing payments in your checking account
Here’s how
Here’s why
1 On the Home page, click Record Deposits
To open the Payments to Deposit dialog box.
2 Click Select All Click OK
To select both payments for depositing. Compare your screen to Exhibit 4-9. To open the Make Deposits window.
3 Display the Deposit To list
The Company checking account is selected by default. You’ll deposit both payments into this account.
Close the Deposit To list 4 Click Save & Close
Click any blank spot outside the list. Compare your screen to Exhibit 4-10. To record the deposit.
4–26
QuickBooks 2010
Topic C: Purchase orders and inventory Explanation
Many companies use purchase orders to record and track items they order, receive, and then pay for in the future. Filling out purchase orders enables you to tell which items you have on order and when the items will arrive. When the items arrive, all you have to do is tell QuickBooks, and the items will be added to your inventory list.
The Create Purchase Orders window To create a purchase order, you’ll use the Create Purchase Orders window, which you open by choosing Vendors, Create Purchase Orders. You can also click Purchase Orders on the Home page. This window is quite similar to the Create Invoices window, and you enter information in the Create Purchase Orders window by using the same procedures. One key difference, however, is that you can use a purchase order to order an item to be shipped directly to one of your customers. To specify this third-party recipient, use the Ship To list. Another difference is that if you’re ordering several items that are for various customers but will be shipped to you, you can indicate which item is for which customer by using the Customer column.
Exhibit 4-11: The Create Purchase Orders window
Working with business forms Do it!
C-1:
4–27
Preparing a purchase order
Here’s how
Here’s why
1 On the Home page, click Purchase Orders
To open the Create Purchase Orders window.
2 From the Vendor list, select A-1 Signs & Displays On the purchase-order form, the vendor’s address is filled in automatically.
From the Ship To list, select Food City, Inc. To enter this customer’s address in the Ship To field.
3 Activate the Item list
Click anywhere in the Item column.
Kiosk display
You are ordering one kiosk display to be sent directly from the manufacturer to Food City. The Rate field indicates your cost per item. The Customer field is also filled in.
In the Qty field, enter 1
Compare your screen to Exhibit 4-11.
From the Item list, select
4 Save and close the purchase order
Click Save & Close.
4–28
QuickBooks 2010
The Create Item Receipts window Explanation
If you receive purchase-order items without a vendor bill, you can enter them into inventory by using the Create Item Receipts window. Here’s how: 1 Choose Vendors, Receive Items to open the Create Item Receipts window. 2 From the Vendor list, select the appropriate vendor. The Open PO’s Exist box will appear, stating that at least one open purchase order exists for the selected vendor. QuickBooks asks if you want to receive against one or more of these orders. 3 Click Yes to open the Open Purchase Orders dialog box. 4 Select the purchase order(s) against which you want to receive the items. 5 Click OK to return to the Create Item Receipts window. QuickBooks will fill the Items tab with the information from the purchase order. 6 Click Save & Close. When you save the item receipt, the purchase order is automatically stamped “RECEIVED IN FULL.” In your Item list, the On Hand column is updated to reflect the new inventory amount.
Exhibit 4-12: The Create Item Receipts window
Working with business forms Do it!
C-2:
4–29
Entering items into inventory
Here’s how 1 Display your Item List Observe the On Hand quantities for the dill weed and nutmeg items
2 Choose Vendors,
Here’s why Click Items & Services. You currently have 397 one-pound bags of dill weed and 300 one-pound bags of ground nutmeg. You’ll update these inventory numbers.
To open the Create Item Receipts window.
Receive Items
Observe the indicated option You haven’t yet received the vendor’s invoice, so you should not check this option.
3 From the Vendor list, select Global Spice Importers
Click Yes
The Open PO’s Exist box appears, indicating that at least one open purchase order exists for the selected vendor. QuickBooks asks if you want to receive against one or more of these orders. To open the Open Purchase Orders dialog box.
4 Select the purchase order
Click in any column to select PO No. 1.
Click OK
To close the dialog box. In the Create Item Receipts window, the Items tab has been filled in with the information from the purchase order. You ordered 50 bags of each spice. Compare your screen to Exhibit 4-12.
5 Save and close the item receipt
(Click Save & Close.) To return to the Item list.
6 In the Item List, observe the On Hand quantities for the first two items
You now have 447 one-pound bags of dill weed and 350 one-pound bags of ground nutmeg.
Close the Item List
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QuickBooks 2010 7 Open the Create Purchase Orders window
On the Home page, click Purchase Orders.
Display purchase order #1
(Click Previous twice.) It has been stamped “RECEIVED IN FULL.”
Close the Create Purchase Orders window
Working with business forms
4–31
Topic D: Finding information quickly Explanation
As you store more and more data in your QuickBooks file, you’re going to need easy ways to find specific information when you need it. You can use the QuickFilter feature and the Find window.
QuickFilter To save time when scrolling through a list of customer or vendor information, you can use QuickFilter to show only certain list items. You can filter a list to show all items, active items, or items with open balances, or you can create a custom filter. You can also perform an initial search and then filter the search results list as much as you’d like until the desired item or list is displayed. To quickly filter customer or vendor information: 1 Open the Customer or Vendor Center. 2 From the View list, select Custom Filter to open the Custom Filter window, shown in Exhibit 4-13. 3 From the Search list, select the list you want to search. It can be one of the following: All Customers/Vendors Active Customers/Vendors Customers/Vendors with Open Balances Search Within Results (use this option to further narrow your search results) 4 In the For field, enter the text or numeric information that you want to see. 5 From the In list, select a field by which to filter. 6 Click Go.
Exhibit 4-13: The Custom Filter window
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QuickBooks 2010
D-1:
Using QuickFilter
Here’s how
Here’s why
1 Open the Customer Center
On the Home Page, click Customers.
2 From the View list, select
To open the Custom Filter window. You’ll filter the Customers & Jobs list to show only items where the city is Reno.
Custom Filter…
3 From the Search list, select Active Customers
(If necessary.) You’ll filter the Customers & Jobs list to show only the active customers whose city is Reno.
4 In the For box, enter Reno
To filter by only those Customers & Jobs within the city of Reno.
5 From the In list, select City
To filter based on only the City field.
6 Click Go
To close the Custom Filter window and filter the Customers & Jobs list to show only items with the city of Reno.
7 Close the Customer Center window
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4–33
Finding completed forms Explanation
At some point, you’ll have so many saved forms that paging through them to find a particular form will be inefficient. A faster approach is to use the Find window, which allows you to find forms and transactions based on search criteria, including the date, customer/vendor name, form number, and transaction amount. The Find window To open the Find window, click Find on the icon bar. The Simple tab is activated by default, as shown in Exhibit 4-14. This tab is flexible and you might never need to use the Advanced tab. To find a form: 1 From the Transaction Type list, select the type of transaction you want to find. Based on your selection, the contents of the rest of the tab will vary slightly. 2 Enter your search criteria. These can be one or more of the following: Customer/vendor name Date range (to search for a particular date, enter the same date in both fields) Form number Transaction amount 3 Click Find. The results of your search are displayed in the table. When you find the form you’re looking for, you can open it by selecting its entry in the table and clicking Go To. If you want to start another search from scratch, click Reset to clear all of the fields in the window.
Exhibit 4-14: The Simple tab in the Find window
4–34 Do it!
QuickBooks 2010
D-2:
Using the Find window
Here’s how
Here’s why
1 On the icon bar, click
To open the Find window. The Simple tab is activated by default.
2 From the Transaction Type list, select Sales Receipt
You’ll find all of the sales receipts for a particular customer.
From the Customer:Job list, select Huller, Elizabeth
Click Find 3 In the table, select the sales receipt
To perform the search. The program found one sales receipt, as shown in Exhibit 4-14. Click in any column to select it.
Click Go To
(If necessary, close the Get More From QuickBooks window.) To open the selected sales receipt.
Close the Enter Sales Receipts window
To return to the Find window.
4 Click Reset
To clear all fields.
5 From the Transaction Type list, select Invoice In the Invoice # box, enter 785
You can also search by form number.
Click Find
To find invoice #785 for Food City, Inc.
6 Open the invoice Close the Create Invoices window 7 Close the Find window 8 Close the company file
Double-click it.
Working with business forms
4–35
Unit summary: Working with business forms Topic A
In this topic, you learned how to create, modify, and print invoices. You also created a custom invoice form that includes a company logo. Then you learned how to create a credit memo.
Topic B
In this topic, you created a sales receipt, used when a customer pays in full for goods at the point of sale. You also learned how to receive payments against previously issued invoices. At the same time, you learned how to apply a credit when receiving a payment. Then you recorded a deposit for a batch of previously undeposited funds.
Topic C
In this topic, you created a purchase order and entered received items into inventory.
Topic D
In this topic, you used the QuickFilter feature to display only certain items in the Customers & Jobs list. You also used the Find feature to search for completed forms based on search criteria, including form type, customer/vendor name, date, form number, and amount
Independent practice activity In this activity, you will customize the invoice template, create and modify invoices, and create a sales receipt and a purchase order. 1 Open Practice forms (from the current unit folder). 2 Edit the My custom invoice template. Add the Account Number field, and remove the F.O.B. field. (Hint: Open the Create Invoices window and the Basic Customization dialog box.) 3 Prepare an invoice as follows: Invoice form: My custom invoice Customer: The Gourmet Grocer Invoice number: 787 Customer’s purchase-order number: 5200 Items (quantity): Allspice, ground, bulk (4); Cinnamon, ground, bulk (5); Cloves, ground, bulk (3) Shipping: UPS Ground, level 4 Customer message: Thank you for your business. 4 Before you save the invoice, compare it to Exhibit 4-15. Then save and close the invoice. 5 Modify invoice #787 so it includes a subtotal line. Insert the Subtotal item between the Cloves item and the shipping cost. The subtotal should be $102.40. Save the changes and close the invoice.
4–36
QuickBooks 2010 6 Prepare a sales receipt with the following details. When you’re done, save and close the sales receipt. Customer: Alex Quigley Item (quantity): Rack-o-spices 2 (3) Shipping: UPS Ground, level 3 Customer message: Thanks for using our Web site! (You’ll need to add this message.) Payment handling: Deposit directly into the company checking account. (Hint: Close Alex’s sales receipt first and then choose Banking, Make Deposits.) 7 You just received a shipment from Global Spice Importers, but you haven’t received a bill from the vendor. The shipment fulfills all items on purchase order #3. Use the Create Item Receipts window to receive the items into inventory. When you’re done, save and close the item receipt. 8 Use the Custom Filter to locate the vendors in the state of New Jersey (NJ). Verify the Item Receipt you just created and close the Vendor Center. 9 Use the Find feature to locate and open purchase order #3. Verify that it has been stamped “RECEIVED IN FULL.” Close the Create Purchase Orders window, and close the Find window. 10 Close the company file.
Exhibit 4-15: Invoice #787 after Step 3 of the independent practice activity
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Review questions 1 When you’re creating an invoice, how do you fill in the main table with items? Click in the Item column to display a drop-down list, and then select the appropriate item. Press Tab and Shift+Tab to move between fields.
2 How do you modify an invoice? Open the Create Invoices window and use the Previous and Next buttons to page through the saved invoices. When the invoice you want to modify appears, make the necessary changes and click Save & Close.
3 Which command is used to print multiple invoices? A File, Print B File, Print All C File, Print, Invoices D File, Print Forms, Invoices 4 How do you add your company logo to invoices? Open the Basic Customization dialog box and check Use Logo. Then select a bitmap file to be used as the logo and click Open.
5 Which item is used to handle a customer return or refund? A Sales receipt B Credit memo C Bank deposit D Sales expense 6 When is a sales receipt created? When a customer pays you in full for goods at the point of sale
7 When is a Receive Payments item created? When a customer pays for a previously issued invoice
8 When you’re receiving a payment, how do you apply a previously issued credit to the payment? a In the Receive Payments window, click Set Credits to open the Discounts and Credits dialog box. The Credits tab is activated by default. b Select the credit(s) that you want to apply to the current payment. c Click Done.
9 What is the difference between a sales receipt and a purchase order? A sales receipt records items that a customer buys. A purchase order records items that you buy from a vendor. However, the two windows are similar and the same techniques can be used in each.
10 What is the difference between the Find and QuickFilter features? The Find feature is used to search for completed forms based on criteria such as form type, customer name, or amount. The QuickFilter feature is used to show only certain items in the Customer or Vendor lists.
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QuickBooks 2010
5–1
Unit 5 Banking and billing activities Unit time: 60 minutes Complete this unit, and you’ll know how to: A Write and print checks. B Transfer funds between accounts, edit
transactions, and reconcile a bank account. C Enter and pay bills. D Examine the QuickBooks payroll service
options.
5–2
QuickBooks 2010
Topic A: Writing and printing checks Explanation
As with many other tasks in QuickBooks, there are several ways to prepare checks. The method you choose will depend on several factors, including whether you’ve received a bill for the item, how closely you want to track items, and how much time you want to spend. In this topic, you’ll learn how to use the Write Checks window, how to write checks from your check register, and how to print checks.
The Write Checks window If your company uses cash-basis accounting, then you should write checks by using the Write Checks window, shown in Exhibit 5-1. This method is the best option when you’re: Paying for an inventory item Paying for something for which you issued a purchase order Planning to be reimbursed for the bill you’re paying Paying a bill that includes items you want to assign to a particular job
Exhibit 5-1: The Write Checks window
Banking and billing activities
5–3
Using this window is more time-consuming than using the check register method, but it allows you to record the expenses and items you’re paying for. Here’s how: 1 On the icon bar, click Check to open the Write Checks window. 2 From the Bank Account list, select the checking account from which you want to write the check. 3 Verify that the check date is correct. By default, the current date is entered. 4 From the “Pay to the Order of” list, select the payee. The Address and Memo fields will be filled in automatically based on information from the payee’s record. 5 Enter the payment amount. 6 The “To be printed” option is checked by default. With this setting, the check number will be assigned later, when you print the check. If you want to assign a specific check number, clear this option and enter the check number in the No. field. 7 On the Expenses and Items tabs, enter the things you’re paying for. On both tabs, the rightmost column is the Billable column. A checkmark in this field indicates that the expense or item is reimbursable by your customer. If this is not the case, click the checkmark to remove the Billable status. 8 Click Save & Close or Save & New.
5–4
QuickBooks 2010
Do it!
A-1:
Using the Write Checks window
Here’s how 1 Open Transactions Update the file 2 On the icon bar, click
Here’s why From the current unit folder. If necessary. To open the Write Checks window. You use this window when a payment covers multiple expenses or items that you want to track.
Observe the Bank Account list
The Company checking account is selected. If you wanted to write checks from a different account, you would select it from this list.
Observe the Ending Balance value
This is the selected account’s ending balance.
3 Observe the check number
It’s entered as “To Print.” This means that the check number will be assigned automatically when you print the check later. Below the check, the “To be printed” option is checked.
Observe the Date field 4 From the “Pay to the Order of” list, select First National Bank
5 Press t
The current date is entered by default. This is the issuing bank for the Visa card held by VP Jack Thomas. You’ll write a check to pay Jack’s January balance. To select the amount value.
Type 500
This is the total amount of Jack’s Visa bill.
Press t
To enter the check amount. The Dollars text field is filled in automatically.
6 Observe the Address and Memo fields
These fields are filled in automatically based on information in the payee’s vendor record.
Banking and billing activities 7 Observe the tabs
5–5
(Below the check.) This payment is for reimbursable expenses, so you’ll use the Expenses tab, which is already active.
8 In the table, click in the first line of the Account column
To activate the Account list.
9 From the Account list, select 6380 Travel
Press t
To select the value in the Amount field.
Type 385
Jack’s plane ticket cost $385.
In the Memo field, enter
Press Tab and type the specified text.
Airfare to Reno
10 Press t From the Customer:Job list, select Design job 1
To move the insertion point to the Customer:Job field. Jack flew to Reno to consult with Food City’s management on this design job.
Observe the last column
This is the Billable column. The checkmark indicates that the expense can be billed to the customer.
11 Press t twice
To start a new line in the Expenses table and activate the Account list.
From the Account list, select 6370 Meals
Verify that the amount is 115
This amount was calculated by subtracting the airfare ($385) from the total amount ($500).
Under Memo, enter Meals in Reno
From the Customer:Job list, select
Compare your screen to Exhibit 5-1.
Design job 1
12 Click Save & Close
To save the check and close the Write Checks window.
5–6
QuickBooks 2010
The checking account register Explanation
Compared to using the Write Checks window, writing checks from your checking account register can be faster and easier. This method is recommended if: You’re paying a bill that isn’t for inventory. You’re paying for non-reimbursable expenses. You don’t need to track the items you’re paying for. To write a check from a checking account register: 1 On the icon bar, click Reg to open the Use Register dialog box. (You can also click the Check Register icon on the Home page, or choose Banking, Use Register.) 2 From the Select Account list, select the desired checking account, and then click OK to open the register. Your check register contains a separate entry for each transaction, just as in a checkbook. Each transaction is made up of a series of fields, as shown in Exhibit 5-2. After the last completed transaction, a new, blank transaction is started and its date value is selected. 3 If necessary, change the date. Press Tab to place the insertion point in the Number field. By default, the next check number in the established sequence is assigned to the check. If you want the number to be assigned upon printing, enter To Print in this field. 4 Complete the remaining fields in the transaction. These include Payee, Payment (amount), Account, and Memo. In the Type field, CHK is entered automatically. 5 Click Record or press Enter to record the transaction. A new, blank transaction is started, and the completed transaction is positioned in the register by date. QuickBooks recalculates the running balances and the ending balance.
Exhibit 5-2: The Company checking account register
Banking and billing activities Do it!
A-2:
5–7
Writing checks from a checking account register
Here’s how
Here’s why
1 On the icon bar, click
To open the Use Register dialog box. In the Select Account list, Company checking is selected. If you wanted to write checks from a different account, you’d select it from this list.
Click OK
To open the Company checking account register. A new, blank transaction with today’s date is started automatically. The date value is selected.
2 Observe the First National Bank transaction
(Directly above the new transaction.) In the Account field, this check is labeled as “-split-.” This means that the payment covers multiple expenses or items, each of which is assigned to a separate account.
3 Press t
To move the insertion point to the Number field. The next available check number is assigned to the check.
Type T QuickBooks completes your entry as “To Print.”
4 Press t From the Payee list, select Superior Properties
5 Move the insertion point to the Payment field Enter 1300 6 Press t
From the Account list, select 6290
Rent
7 In the Memo field, enter January rent
To move the insertion point to the Payee field. You can type “s” and Superior Properties will be selected automatically. Press Tab.
The comma and the decimal point with zero cents are added automatically. To move the insertion point to the Account field. In the Type field, notice that CHK (check) is entered automatically. (If necessary.) To assign the check to this expense account. Press Tab and type the specified text.
5–8
QuickBooks 2010 8 Click Record
9 Close the register
To record the current transaction and start a new one. The ending balance is updated automatically. Compare your screen to Exhibit 5-2.
Banking and billing activities
5–9
Printing checks Explanation
Before you print checks for the first time, you should use the Printer setup dialog box to select the appropriate settings. Checks are usually printed in batches, with several checks on a page. You’ll need to obtain preprinted check forms that will work with your printer. To print a batch of checks: 1 Choose File, Print Forms, Checks to open the Select Checks to Print dialog box, shown in Exhibit 5-3. 2 From the Bank Account list, select the desired checking account. 3 In the table, select the checks you want to print. 4 In the First Check Number box, enter the starting number for the current batch of checks. 5 Click OK to open the Print Checks dialog box, which is similar to the Printer setup dialog box. 6 Modify your printer settings as needed, and then click Print to send your checks to the printer. After a moment, the “Did check(s) print OK?” box appears. 7 If all checks were printed successfully, click OK. If not, enter the number of the first incorrectly printed check and click OK. You can try printing the checks again later.
Exhibit 5-3: The Select Checks to Print dialog box
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QuickBooks 2010
A-3:
Printing checks
Here’s how
Here’s why
1 Open the Printer setup dialog box
(Choose File, Printer Setup.) Before you print checks for the first time, you should configure your printer appropriately, just as you would for any other type of form.
2 From the Form Name list, select
To activate the options for printing checks. This version of the dialog box has three tabs: Settings, Fonts, and Partial Page.
Check/PayCheck
3 Under Check Style, observe the options
There are three printing styles, and Voucher is selected by default.
Click OK 4 Choose File, Print Forms, Checks…
5 In the First Check Number box, enter 401 6 At the top of the dialog box, observe the indicated statement
7 Click OK
To close the dialog box and accept the default settings. To open the Select Checks to Print dialog box, shown in Exhibit 5-3. In the Bank Account list, the Company checking account is selected. In the table, the checks for this account are displayed and selected for printing. The selected checks will be numbered sequentially, starting with 401.
QuickBooks tells you how many checks you are about to print and what their combined value is. To open the Print Checks dialog box, which is similar to the Printer setup dialog box. This gives you a chance to change printer settings.
Observe the top of the Print Checks dialog box The total amount for the checks is displayed here.
Banking and billing activities 8 Click Cancel
Click Cancel
5–11
To close the Print Checks dialog box (without printing any checks) and return to the Select Checks to Print dialog box. To close the Select Checks to Print dialog box.
5–12
QuickBooks 2010
Topic B: Managing bank account transactions Explanation
In the process of writing checks and making deposits, you’ll need to correct errors any you’ve made. As with so many other QuickBooks tasks, there are multiple methods for editing transactions. You can also delete and void transactions, so when the monthly bank statement arrives, you’ll need to reconcile your account against the statement. Reconciling a checking account is commonly referred to as balancing your checkbook. Another common banking activity is transferring funds between accounts. A funds transfer is often used to create a starting balance in a new account. In QuickBooks, there’s a separate window for transferring funds.
Funds transfers To transfer funds, you’ll use the Transfer Funds Between Accounts window, shown in Exhibit 5-4. Here’s how: 1 Choose Banking, Transfer Funds to open the Transfer Funds Between Accounts window. By default, the current date is entered in the Date field. 2 From the Transfer Funds From list, select the source account. 3 From the Transfer Funds To list, select the destination account. 4 In the Transfer Amount field, enter the amount you want to transfer. 5 Click Save & Close or Save & New. QuickBooks automatically records the transaction in both accounts.
Exhibit 5-4: The Transfer Funds Between Accounts window
Banking and billing activities Do it!
B-1:
5–13
Transferring funds between accounts
Here’s how 1 Choose Banking, Transfer Funds
2 From the Transfer Funds From list, select Company checking Observe the balance
Here’s why To open the Transfer Funds Between Accounts window. Today’s date is entered in the date field by default. You’ll transfer funds from this account to the company’s new savings account. It is $47,785.15.
3 From the Transfer Funds To list, select Company savings
The account balance for this account is zero (0.00).
4 Press t
To move to the Transfer Amount field.
Type 10000
To create an opening balance for the selected savings account, you’ll transfer $10,000 from the selected checking account.
5 Observe the Memo box Each transaction of this type has a memo that reads “Funds Transfer” (you can change this text). Compare your screen to Exhibit 5-4.
6 Click Save & Close
To save the funds transfer and close the window.
7 Open the Chart of Accounts In the Name column, double-click Company savings
To open the register for this account, which has one transaction—the incoming transfer you just recorded. The transaction type is TRANSFR.
Close the register
To return to the Chart of Accounts.
5–14
QuickBooks 2010 8 Open the Company checking register
The corresponding outgoing transfer has been recorded. In this register, the destination account is indicated.
Banking and billing activities
5–15
Editing transactions Explanation
There are several ways to edit a transaction. Here are just a few approaches: Open the window in which you originally entered the transaction—for example, the Write Checks window. Click Previous until the transaction you want to edit is displayed. Make the required changes and save the transaction. Open the register that contains the transaction. Select the transaction you want to edit and click Edit Transaction. The transaction will open in the appropriate window for editing. Open the register that contains the transaction. Select the transaction and edit its field values directly. The word “split” in the Account field indicates that multiple expenses were assigned to this check. To see the individual expenses that make up this transaction, click the Splits button. The Splits window appears, as shown in Exhibit 5-5.
Exhibit 5-5: Displaying the Splits window in the check register
5–16 Do it!
QuickBooks 2010
B-2:
Editing transactions
Here’s how 1 Verify that the Company checking register is open
Here’s why You can resize the window, if necessary, to see more register entries.
Scroll to the top of the register 2 Click the National Packaging transaction (check #395)
To select it. You’ll correct the payment amount for this transaction.
Select the Payment value Type 250 Press e
To record the edited transaction.
Click Yes
If asked whether to record your changes.
3 Click Cancel
If prompted to set the reminder to order checks.
4 Select the First National Bank transaction ($500)
(You might need to scroll down.) If you want to edit a split transaction, you can use the Edit Transaction button.
At the top of the register window, click Edit Transaction
To open the selected transaction in the Write Checks window.
5 On the Expenses tab, point to the Billable column
(Anywhere will do.) The pointer changes to a checkmark.
In the Billable field for the second expense line, clear the check box 6 Click Save & Close Click Yes
This means that the expense is not reimbursable by the customer. The Recording Transaction box prompts you to confirm that you want to record your changes. To close the Write Checks window and return to the Company checking register. The transaction you just modified is still selected.
Banking and billing activities 7 Click the Splits button
5–17
(Located in the bottom-left corner of the window.) To display the Splits window for the selected check. This window shows the individual expenses that make up this transaction, as shown in Exhibit 5-5.
Click Close
(In the Splits window.) To close the window.
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QuickBooks 2010
Voiding and deleting transactions Explanation
If you need to cancel out the amount of a check or other transaction, you have two options: You can void the transaction or delete it. Voiding changes the amount of the transaction to zero, but keeps a record of the transaction in QuickBooks. Deleting removes the transaction altogether. Voiding is recommended when a payee returns a check or when a check is lost in transit. By voiding the transaction, you maintain its check number in QuickBooks, so there won’t be a gap in your account register. If a check hasn’t been printed or sent yet, it’s safe to delete it. To void a check: 1 Open your checking account register. 2 Select the check you want to void. 3 Choose Edit, Void Check. The procedure for deleting a check is the same, except that you choose Edit, Delete Check. In most cases, QuickBooks will ask you to confirm that you really want to delete the transaction, and it will point out any problems this action might cause.
Banking and billing activities Do it!
B-3:
5–19
Voiding and deleting transactions
Here’s how
Here’s why
1 Verify that the Company checking register is open 2 Select the Ace Avenue Graphics transaction (check #400)
This check was returned by the payee, so you’ll void it.
3 Choose Edit, Void Check
To void the selected transaction.
Notice that VOID has been added to the Memo field and the payment amount has been reduced to zero. A checkmark has been added, indicating that the check has cleared.
Record the voided check
(Press Enter and click Yes.) The next transaction is selected. This payment from the Maple Tree Eatery should not have been entered, so you’ll delete it.
4 Verify that the Maple Tree Eatery payment transaction is selected
It’s located just below the voided transaction.
Choose Edit, Delete Payment
A message box warns you that the selected payment was used to pay invoice/statement charges, so deleting it might cause problems.
Click OK
To delete the transaction. It is removed from the register and all related accounts.
5 Close the register Close the Chart of Accounts
The Home page is displayed.
5–20
QuickBooks 2010
Account reconciliation Explanation
If you have a personal checking account, then you are familiar with the process of balancing your checkbook. This means comparing your bank statement to your own records to make sure everything adds up. This process is known as reconciling an account.
Exhibit 5-6: The Begin Reconciliation dialog box Before you start the following procedure, make sure that you have your most recent bank statement in hand. To reconcile an account, do the following: 1 On the Home page, click Reconcile to open the Begin Reconciliation dialog box, shown in Exhibit 5-6. 2 From the Account list, select the account you want to reconcile. 3 Enter the following information from your bank statement: Statement date Ending balance Service charge (if applicable), the date the charge was incurred, and the expense account to which you want to assign the charge
4 5
6
7
Interest earned (if applicable), the date the interest was applied, and the income account to which you want to assign these earnings Click Continue to open the Reconcile window, shown in Exhibit 5-7. Select the transactions that appear on your bank statement. When you’re done, the Difference value should be zero. If it isn’t, you’ll need to track down the problem in QuickBooks or contact your bank. Click Reconcile Now. If your account balanced perfectly, the Select Reconciliation Report dialog box will appear immediately. If it didn’t, the Reconcile Adjustment box will appear. Enter the adjustment date and click Enter Adjustment to open the Select Reconciliation Report dialog box. Select the desired report type (Detail or Summary) and click Display. Exhibit 5-8 shows a reconciliation summary report.
Reconciled transactions appear with checkmarks in the register, as shown in Exhibit 59.
Banking and billing activities
Exhibit 5-7: The Reconcile window
Exhibit 5-8: The Reconciliation Summary window
5–21
5–22
QuickBooks 2010
Exhibit 5-9: The Company checking account, showing reconciled transactions
Banking and billing activities Do it!
B-4:
5–23
Reconciling a checking account
Here’s how
Here’s why
1 On the Home page, click Reconcile
To open the Begin Reconciliation dialog box. In the Account list, Company checking is selected. If you wanted to reconcile a different account, you would select it from this list.
2 Observe the Statement date box
In this box, you enter the ending date from your bank statement. In this case, you are reconciling your January 2010 statement, so 01/31/2010 is correct.
3 In the Ending Balance box, enter
This is the ending balance from your statement.
49380 10
Last month, your account incurred $10 in service charges. These charges were recorded on January 31.
From the Account list, select
On the Service Charge line.
4 In the Service Charge box, enter
6120 Bank Service Charges
5 In the Interest Earned Box, enter 45
From the Account list, select 7010 Interest Income
6 Click Continue
Last month, the account earned $45 in interest, which was recorded on January 31. (On the Interest Earned line.) Compare your Begin Reconciliation dialog box with Exhibit 5-6. To open the Reconcile window. To reconcile your account, you compare the transactions listed here with those on your bank statement.
7 In the lower-right corner of the window, observe the indicated values You entered the first three values in the Begin Reconciliation dialog box. The Cleared Balance and Difference values will be updated automatically as you clear transactions. When the difference value reaches zero, your account is reconciled.
5–24
QuickBooks 2010 8 Under Checks and Payments, check all entries that have January dates
Click each transaction to mark these transactions as cleared.
Under Deposits and Other Credits, mark the first transaction as cleared 9 Observe the Difference value
(In the lower-right corner of the window.) It is now zero. You have successfully balanced your checkbook. Compare your screen to Exhibit 5-7.
10 Click Reconcile Now Observe and close the onlinebanking tip
To open the Select Reconciliation Report dialog box. You can run a detailed report, a summary report, or both.
11 Select Summary
Click Display
A message box states that the selected report displays current data and shows all transactions that were reconciled on a given date.
Click OK
To display the Reconciliation Summary report, as shown in Exhibit 5-8.
12 Close the report 13 Open the Company checking register Scroll up to the top of the register
Notice that each cleared transaction has a checkmark between the Payment and Deposit columns, as shown in Exhibit 5-9.
Close the register
Return to the Home page.
Banking and billing activities
5–25
Topic C: Entering and paying bills Explanation
Some companies use a two-step process to handle bills: enter bills first and write the corresponding checks later. This is commonly known as the accounts payable approach. If you use this approach with QuickBooks, you should record bills by using either the Enter Bills window or your Accounts Payable register. To pay these bills, you can use the Pay Bills window.
The Enter Bills window If you plan to track bills by expense and item, you’ll need to use the Enter Bills window, shown in Exhibit 5-10. This window is nearly identical to the Create Item Receipts window. The key difference is that the Bill Received option is checked. You enter information in both windows by using the same basic steps. (The Enter Bills window is also similar to the Write Checks window.)
Exhibit 5-10: The Enter Bills window
5–26 Do it!
QuickBooks 2010
C-1:
Using the Enter Bills window
Here’s how 1 On the icon bar, click
Here’s why To open the Enter Bills window, which is very similar to the Create Item Receipts window. The main difference is that the Bill Received option is checked in the Enter Bills window.
2 Observe the Date and Bill Due fields
The bill date is automatically set to January 31st, and the due date is 10 days later.
Edit the Date field to read 02/08/2010
Press t
3 From the Vendor List, select Global Spice Importers
Click Yes
To enter the correct bill date. The Bill Due field is updated automatically, and the due date is now 02/18/2010. This will change again based on the payment terms associated with the vendor. The Open PO’s Exist box appears, stating that at least one open purchase order exists for the selected vendor. You’ll complete the bill based on a purchase order. To open the Open Purchase Orders dialog box. Only one purchase order is listed for Global Spice Importers.
4 Select the purchase order
Click OK
The Amount Due field and the Items tab are filled in automatically based on information from the purchase order.
Banking and billing activities
5–27
5 Observe the Terms field This field is filled in automatically based on the specified terms in the vendor’s record. According to these terms, you’ll receive a 2% discount if you pay the bill within 10 days of the bill date, with the total amount due 30 days from the bill date.
Observe the Discount Date
To receive the 2% discount, you must pay by this date.
Observe the Bill Due date
It is 30 days from the bill date.
6 In the Ref. No. field, enter Invoice #4444
This is the vendor’s invoice number.
In the Memo box, enter P.O. #4
7 Save and close the bill
This is the purchase-order number. Compare your screen to Exhibit 5-10. Click Save & Close.
5–28
QuickBooks 2010
The Accounts Payable register Explanation
You can also enter bills directly in the Accounts Payable register. This method is faster than using the Enter Bills window, but makes it more difficult to track expenses and items. To enter bills in the Accounts Payable register: 1 Open your Chart of Accounts. 2 In the Name column, double-click your Accounts Payable account to open its register, as shown in Exhibit 5-11. QuickBooks starts a new transaction, in which the date value is selected. 3 Enter the bill information the same way you would enter check information (but you can leave the Number field blank). This information includes: Bill date Vendor Due date Amount billed Account to which you want to assign the expense or item (to split the bill, click Splits) Memo 4 Click Record or press Enter. In the Type field, BILL is entered automatically.
Exhibit 5-11: The Accounts Payable register
Banking and billing activities Do it!
C-2:
5–29
Entering bills in the Accounts Payable register
Here’s how
Here’s why
1 Open the Chart of Accounts In the Name column, double-click 2000 Accounts Payable
To open the Accounts Payable register. A new transaction is started, and the date value is selected.
2 Observe the bill dated 02/08/2010
This is the bill you entered in the previous activity. Notice that “-split-” is entered in the Account field.
3 In the new transaction, edit the selected date to read
This is the date of the utility bill you are entering.
02/11/2010
4 From the Vendor list, select
The Due Date field is filled in automatically.
Portland Power
5 In the Billed field, enter 350
(Press Tab twice and type 350.) This is the amount of the utility bill. Notice that BILL is entered in the Type field.
6 From the Account list, select
If necessary.
6400 Gas and Electric
In the Memo field, enter January bill
7 Record the bill
8 Close the Accounts Payable register and the Chart of Accounts
Click Record or press Enter. The bill is added to the register in order by date. Compare your screen to Exhibit 5-11.
5–30
QuickBooks 2010
The Pay Bills window Explanation
No matter which method you use to record your bills, the procedure for paying them is the same. Here’s what you do: 1 Choose Vendors, Pay Bills to open the Pay Bills window. By default, it displays only those bills that are due within the next 10 days. To display additional bills, change the “Due on or before” date or select “Show all bills.” 2 In the table, select the bills you want to pay. To do so, you’ll need to click the checkmark column. You can also click Select All Bills. 3 From the list under Payment Account, select the checking account from which you want to pay the selected bills. 4 Under Payment Method, verify that Check is selected. Then select the desired check numbering option (“To be printed” or “Assign check number”). 5 If necessary, change the date under Payment Date. 6 Click Pay Selected Bills. In the Accounts Payable register, a separate transaction is recorded for each bill you’ve paid. In this register, all bills are represented twice: once as the incoming bill (Type = BILL) and once as the outgoing payment (Type = BILLPMT). In the Enter Bills window, paid bills are stamped PAID.
Exhibit 5-12: The Pay Bills window
Banking and billing activities Do it!
C-3:
5–31
Paying bills
Here’s how
Here’s why
1 On the Home page, click Pay Bills
To open the Pay Bills window.
2 Observe the indicated option
This window displays all bills.
3 At the bottom of the bill list, click the Select All Bills button
To select all of the bills in the table. The Amt. To Pay values are entered automatically.
4 Observe the Payment Account section
The Company checking account is selected, and its ending balance is indicated. If you wanted to pay bills from a different account, you would select it from this list.
5 Observe the Payment Method section
You’ll pay by check. You’ll print both checks later, at which point the check numbers will be assigned.
6 Observe the Payment Date section
February 11 is entered by default because it was the date of the most recently entered bill. You can change this entry, if necessary. Compare your screen to Exhibit 5-12.
7 Click Pay Selected Bills
To pay the selected bills and close the Pay Bills window. A summary opens.
8 Click Done
To close the summary.
5–32
QuickBooks 2010 9 Open the Enter Bills window
Click Previous three times
To display the Portland Power bill dated 02/11/2010. You’ll see that it is stamped PAID.
Click Previous Close the Enter Bills window
To see that the National Packaging and Global Spice Importers bills are also stamped PAID.
Banking and billing activities
5–33
Topic D: Introduction to payroll Explanation
If your company has a staff of one (yourself), then you don’t have to worry much about payroll. Even if you have just a few employees, however, you’ll need to deal with this important and complex business function. Some companies hire an outside service, such as Paychex, to handle all payroll activities; this can be expensive. By using one of QuickBooks’ payroll services, you can do much of the work yourself while taking advantage of Intuit’s online processing and updates. This topic provides an introduction to using the payroll function in QuickBooks. Consult the program documentation for details and further guidance, and be sure to consult your accountant or financial advisor.
Subscribing to a payroll option QuickBooks offers a variety of payroll options that you can subscribe to, depending on your needs. All of the payroll options calculate the earnings, deductions, and taxes for your employees. These are the options: Basic Payroll — Provides the tools you need to process the payroll yourself. To maintain compliance with tax laws, you can download current tax tables and federal forms. Using this option, you (or your accountant) manage your payroll in QuickBooks. Earnings and deductions are calculated based on your QuickBooks data. In addition, you can print your own payroll checks or set up Direct Deposit for a fee. Enhanced Payroll — Provides the same features as Basic payroll, plus the ability to print, sign, and mail federal tax forms. This option also provides additional service features that include tracking Worker’s Compensation codes and rates and automatically handling quarterly federal and state tax forms. Assisted Payroll — Allows you to transmit your payroll data from within QuickBooks over the Internet at any time. The service handles the rest of the payroll requirements, such as calculating payroll taxes and deductions, handling federal and state tax deposits and filing, creating and mailing W-2 forms, and printing paychecks or setting up Direct Deposit. If you don’t want to sign up for any of these services, you can process payroll in QuickBooks manually. Given the complexity of payroll and its applicable laws and standards, this approach is not recommended. Disabling the payroll feature If you don’t plan to use the QuickBooks and Intuit payroll services—for example, if your company is a sole proprietorship—then you can disable the payroll feature. To do so: 1 Choose Edit, Preferences and activate the Company Preferences tab. 2 Click the Payroll & Employees category in the left panel, and select the No payroll option. 3 Click OK to close the Preferences dialog box.
5–34 Do it!
QuickBooks 2010
D-1:
Exploring the payroll service options
Here’s how 1 Choose Employees, Payroll,
Here’s why The QuickBooks Payroll window appears.
Learn About Payroll Options
2 Locate the Manage payroll & tax filings yourself section Click Learn More 3 Observe the Assisted Payroll and Basic Payroll options 4 Close the Intuit QuickBooks Payroll window 5 Close the company file
The Manage payroll & tax fillings yourself screen appears. You can click the Watch Demo icon to play a video clip.
Banking and billing activities
5–35
Unit summary: Banking and billing activities Topic A
In this topic, you used the Write Checks window, and you wrote a check directly from the checking account register. You also learned how to print checks.
Topic B
In this topic, you learned how to transfer funds between accounts. You also learned several methods of editing transactions. Then you learned how to void and delete transactions. You also learned how to reconcile a checking account.
Topic C
In this topic, you used the Enter Bills window and you entered a bill directly in the Accounts Payable register. Then you paid bills by using the Pay Bills window.
Topic D
In this topic, you learned about QuickBooks payroll services.
Independent practice activity In this activity, you will write checks, transfer funds between accounts, and pay bills. 1 Open Practice banking (from the current unit folder). 2 Using the Company checking register, write and record the following check: Date: 02/15/2010 Check number: 408 Payee: Roger Williams, Esq. Payment: $750 Expense account: 6280 Legal Fees Memo: Consultation, 01/20/10 3 Change the payment amount for check number 404 to $1250. 4 Void check number 407. Close the Company checking register. 5 Transfer $2,000 from the Company savings account to the Company checking account. 6 Enter a bill for Ace Avenue Graphics dated 02/06/10. This bill is for the items in purchase order #5. The vendor’s invoice number is 890. (Use the Enter Bills window. Enter the invoice number in the Ref. No. field, and enter the purchaseorder number in the Memo box.) 7 Pay the Ace Avenue Graphics bill that you created in step 6. (Use the Pay Bills window. Accept the default settings under Payment Account, Payment Method, and Payment Date. You might need to select Show All Bills.) 8 Verify that the Ace Avenue Graphics bill is stamped PAID. If the bill is not stamped PAID, repeat step 7. When you’re done, close the Enter Bills window. 9 Close the company file.
5–36
QuickBooks 2010
Review questions 1 When you’re paying bills, what is the advantage of using the Write Checks window instead of the check register? The Write Checks window enables you to record the expenses and items that are being purchased.
2 When is using the check register recommended? Use the check register to pay a bill containing non-inventory items or non-reimbursable expenses, or when you don’t need to track the items being purchased.
3 What is the menu command to print a batch of checks? File, Print Forms, Checks
4 Which of the following tasks can be used to create a starting balance in a new bank account? A Reconciling an account B Balancing an account C Transferring funds D Writing checks 5 When is it better to void a bank transaction instead of deleting it? Voiding a check is recommended when a payee returns a check or when a check is lost in transit. The transaction amount is changed to zero, but you still have a record of it and the check numbers are maintained.
6 When is it better to delete a check instead of voiding it? Deleting a check is recommended when the check hasn’t been printed or sent yet. If deleting a specific check might cause problems, QuickBooks will display a warning message when you attempt to delete the check.
7 What are the two ways to record bills?
Use the Enter Bills window. Use the Accounts Payable register. 8 How do you pay bills? Choose Vendors, Pay Bills. Select the bill(s) you want to pay. Complete the payment information, and click Pay & Close.
9 How are paid bills identified? In the Enter Bills window, paid bills are stamped PAID. In the Accounts Payable register, a separate entry marked BILLPMT appears.
6–1
Unit 6 Reporting and budgeting Unit time: 40 minutes Complete this unit, and you’ll know how to: A Create reports by using the QuickReport
feature and the Report Center; use the QuickZoom feature; and modify and memorize reports. B Use Company Snapshot. C Create and edit budgets.
6–2
QuickBooks 2010
Topic A: Generating reports Explanation
At some point, you’ll need to generate reports based on the financial information you maintain in QuickBooks. For example, you might want to create an annual sales report by region and product type, or you might want to create a spending graph. There are many ways to create reports and graphs in QuickBooks. The program provides more than 100 reports you can modify to suit your particular business situation. After you make the necessary changes, you can save your customized report for later use and further modification, and you can print reports.
QuickReports A QuickReport displays year-to-date transactions for the selected income or expense account. To generate a QuickReport, open the Chart of Accounts and double-click the desired account. A sample QuickReport is shown in Exhibit 6-1.
Exhibit 6-1: A sample QuickReport QuickZoom In QuickBooks, you can do more with reports than just displaying and printing them. With the QuickZoom feature, on-screen reports are interactive: you can double-click various parts of a report to dig deeper into the data behind it. Not every part of a report is interactive, however. To find out which parts are, move the mouse pointer over the report; when the pointer turns into a magnifying glass with a “Z,” that means the QuickZoom feature is active for that item. The results of QuickZoom depend on the level of report you’re working with. If you’re working with a summary report, double-clicking an item will show you a detailed report for that item. In a detailed report, such as a QuickReport, double-clicking an item usually displays the associated transaction or record. If you’re working with a graph, QuickZoom works the same way.
Reporting and budgeting Do it!
A-1:
6–3
Using the QuickReport and QuickZoom features
Here’s how
Here’s why
1 Open Reports
(From the current unit folder.) And update the file.
2 Open the Chart of Accounts
You can display a QuickReport for any income or expense account by double-clicking the account’s name.
3 In the Name column, double-click
To display a QuickReport for this income account, as shown in Exhibit 6-1.
4015 Online sales (Retail)
4 Observe the Dates list
By default, a QuickReport displays transactions ranging from the beginning of the current fiscal year to the current date.
5 At the bottom of the Name column, point to Quigley, Alex The mouse pointer changes to a magnifying glass with a “Z.” By using the QuickZoom feature, you can open a transaction directly from a report. The arrows indicate the selected transaction.
Double-click Quigley, Alex
(If necessary, close the information window by clicking No Thanks.) To open the Sales Receipt transaction in the Enter Sales Receipts window.
Close the Enter Sales Receipts window 6 From the QuickReport, open the sales receipt dated 02/01/2010 Close the Enter Sales Receipts window 7 Close the QuickReport Close the Chart of Accounts
Double-click any part of Marge Gunner’s transaction. You can press Esc.
6–4
QuickBooks 2010
The Report Center Explanation
QuickBooks enables you to create dozens of report types. To access these reports, you can use the Reports menu or the Report Center, shown in Exhibit 6-2. The Report Center is a powerful tool, but it’s easy to use. Here’s how: 1 On the navigation bar, click Report Center to display the Report Center. (You can also choose Reports, Report Center.) 2 From the list of report categories, select the appropriate category. 3 From the list of available reports, select the one you want to create. You can see a preview of the report by pointing to the icon below the report sample. 4 If necessary, modify the report to meet your needs. You can do this by using the Dates list to change the date values before you even open the report, or you can click the Display report button to open the report and then use the more advanced options. 5 To print the report immediately, click Print. To save it in another format, click the E-mail button and choose either Send report as Excel or Send report as PDF.
Exhibit 6-2: The Report Center
Reporting and budgeting Do it!
A-2:
6–5
Using the Report Center
Here’s how 1 Click
Here’s why To open the Report Center. You can use this window to generate more than a hundred types of reports, graphs, and lists. QuickBooks reports are divided into 12 categories. Company & Financial is selected by default.
2 In the list of categories, click Customers & Receivables
3 In the right pane, select A/R Aging Detail
(In the right pane.) To activate this report.
4 Under A/R Aging Detail, point to the preview icon, as shown
To preview a sample of the report.
5 In the category list, click Sales
In the left window pane.
6 Under Sales, select Sales by
(In the right pane.) To activate this report.
Customer Summary
Preview the report Close the preview
This type of report answers the question “What is the total sales for each customer?”
6–6
QuickBooks 2010 7 Display and observe the Dates list
You can quickly customize this report by selecting one of the 25 date options.
Close the Dates list 8 Under Sales by Customer Summary, click Display report
To open the report.
9 Observe the sales figures
The report shows a summary of all sales listed by customer and then a grand total.
At the top of the window, open the Columns list and select Week
To view the sales summary by week.
Reporting and budgeting 10 In Feb 14-15, 10 column, double click -18.50 Observe the report
6–7
To use the QuickZoom feature to find out why Big Don’s Steakhouse has a negative number. A more detailed report opens. Big Don’s Steakhouse returned two 16 oz. bags of nutmeg.
11 Under the Name column, point to Big Don’s Steakhouse
Double-click
To open the Create Credit Memos/Refunds dialog box. Earlier today, Big Don’s Steakhouse returned invoice #775.
12 Close the Create Credit Memos/Refunds dialog box Close the Sales by Customer Detail report
To return to the Sales by Customer Summary report.
6–8
QuickBooks 2010
Modifying reports Explanation
The method you use to modify a report depends on the type of changes you want to make. Most simple changes can be made directly in the report’s window; for example, you can change the date range, change the table sort order, or adjust the column structure. For more complex changes, you’ll use the Modify Report dialog box, which you open by clicking Modify Report at the top of the Report window. The contents of this dialog box will vary depending on the type of report you’re working with. The dialog box always has four tabs, described in the following table. Tab
Use this tab to…
Display
Change the date range, change the reporting basis (accrual or cash), and change the column structure.
Filters
Change the scope of a report, and filter out any information you don’t need. For example, let’s say your sales report includes all customer types (wholesale and retail), but you want only retail sales information. You can apply a filter that eliminates all wholesale customers from the report.
Header/Footer
Change header and footer components, company name, report title and subtitle, page numbers, and so on, and adjust their alignment on the page.
Fonts & Numbers
Change fonts, specify how negative numbers should be displayed (for example, in red), and show or hide cents in dollar amounts.
Exhibit 6-3: Modifying a report
Reporting and budgeting Do it!
A-3:
6–9
Modifying a report
Here’s how
Here’s why
1 Verify that the Sales by Customer Summary report is displayed From the Columns list, select Total only
To return the report to just a summary for this month-to-date.
2 From the Dates list, select Last Month
To display only January’s income figures.
3 From the Columns list, select Half month
To divide the report into two half-month periods: January 1–15 and January 16–31.
4 From the Sort by list, select Total
To re-sort the list in ascending order by total sales for the month.
5 In the report, observe the last two entries
These two entries include a wholesale customer (a restaurant) and person by the name of Claudia Kelly. Let’s say you want the report to include only online retail customers. For that, you’ll need to use the Modify Report dialog box.
6 At the top of the window, click
To open the Modify Report dialog box. The Display tab is active by default.
Modify Report
Activate the Filters tab
6–10
QuickBooks 2010 7 Under Choose Filter, scroll through the Filter list From the Filter list, select
You can filter your report based on any of these variables. To activate the Customer Type list.
Customer Type
From the Customer Type list, select Retail (online)
With this filter applied, the report will include only retail customers. Compare your screen to Exhibit 6-3
8 Click OK
To close the Modify Report dialog box and return to the report. The Maple Tree Eatery is no longer listed.
Reporting and budgeting
6–11
Memorized reports Explanation
After you’ve changed a basic report, you’ll probably want to save it for future use. In QuickBooks, this is known as memorizing a report. Memorizing a report doesn’t limit you; you can still make more changes. You can open a memorized report, modify it, and re-memorize it by overwriting the previous report or saving it with a new name. As with all other reports, memorized reports always reflect your current data. (The data is not “frozen” at the time you memorize the report.) To memorize a report: 1 At the top of the Report window, click Memorize to open the Memorize Report dialog box. 2 In the Name box, enter the desired report name. 3 (Optional) Check Save in Memorized Report Group and select the desired group from the list. There are six report groups: Accountant, Banking, Company, Customers, Employees, or Vendors. 4 Click OK. You can access your memorized reports by choosing Reports, Memorized Reports and selecting the report from the appropriate category. You can also choose Reports, Memorized Reports, Memorized Reports List and select the desired report from the Memorized Report List window, shown in Exhibit 6-4.
Exhibit 6-4: The Memorized Report List window
6–12 Do it!
QuickBooks 2010
A-4:
Memorizing a report
Here’s how
Here’s why
1 Choose Reports, Memorized Reports, Customers To view the memorized customer reports. These predefined reports were added when QuickBooks was installed. You’ll add another report to this list.
Close the menu 2 At the top of the report window, click Memorize
To return to the Income by Customer Summary report. To open the Memorize Report dialog box.
3 Edit the Name box to read My Retail Report
4 Check Save in Memorized
To activate the list.
Report Group
From the list, select Customers
5 Click OK
To close the dialog box and memorize the report.
6 Close the report 7 Choose Reports, Memorized Reports, Customers, My Retail Report To re-open the memorized report. You can also open the report from the Memorized Report List, shown in Exhibit 6-4.
Reporting and budgeting
6–13
Printing reports Explanation
To print a report: 1 At the top of the Report window, click Print to open the Print Reports dialog box, shown in Exhibit 6-5. 2 Specify the desired print settings. 3 You can preview the report by clicking Preview. To close the Print Preview window, click Close. 4 Click Print.
Exhibit 6-5: The Print Reports dialog box
6–14 Do it!
QuickBooks 2010
A-5:
Printing a report
Here’s how
Here’s why
1 Verify that My Retail Report is open 2 At the top of the report window, click Print
To open the Print Reports dialog box. It has two tabs: Settings and Margins. (See Exhibit 6-5.)
3 Under Orientation, select
So your report will print horizontally on the page.
Landscape
Observe the remaining options
On the Settings tab, you can also select options for setting page breaks, fitting reports on a specific number of pages, and printing in color.
4 In the Number of copies box, enter 2 5 Activate the Margins tab
You can adjust the page margins by entering the desired dimensions in these four boxes.
6 Click Preview
To preview the report. In the Preview window, the magnifying glass is used to zoom in on items; it doesn’t open additional windows.
Close the Print Preview window 7 Click Cancel 8 Close the report Close the Report Center
Click Close. To close the dialog box without printing.
Reporting and budgeting
6–15
Topic B: Using Company Snapshot Explanation
With the QuickBooks Company Snapshot, you can get a real-time view of company information, and you can perform tasks from a single place. To open the Company Snapshot window, choose Company Snapshot from the Reports menu. The Company Snapshot window has multiple sections displayed by default. The following table describes five of them. Section
Description
Income and Expense Trend
Shows how money goes in and out of your business over a specified period of time, with a comparison of income and expenses.
Customers Who Owe Money
Shows all balances owed by customers, with the due dates.
Account Balances
Shows all bank, accounts receivable, accounts payable, credit card, asset, liability, and equity accounts.
Top Customers by Sales
Shows your top five customers based on sales for the specified time frame.
Expense Breakdown
Shows your company’s expenses in a pie chart.
Customizing the Snapshot window If the Company Snapshot window does not show the information you require, you can customize the window by changing which sections are displayed. Here’s how: 1 In the top, left corner of the Company Snapshot window, click Add Content to display the available options. 2 Use the arrows at the bottom of the Add content to your Company Snapshot section to view all the content. 3 Once you find content to add, click the Add button. 4 Click Add Content to hide the available content. You can also remove content by clicking the Close button in the top, right corner of any section. When you do, you will be prompted to confirm the deletion. Once all the content is on the window, you can rearrange it by dragging the section title to a new location.
6–16
QuickBooks 2010
Exhibit 6-6: The Company Snapshot window with customized content.
Using the Company Snapshot window You may notice that content sections have options that give you access to reports, customize that particular section, or perform specific tasks. For example: Date Range – The content sections that display charts have a Dates list that you can use to quickly customize the data. Links – Some sections have links that you can use to open dialog boxes or perform specific tasks. For example, the Customers Who Owe Money section has a link that you can use to open the Receive Payments dialog box. QuickZoom – Point to a chart element and a Tooltip is displayed with a dollar amount in it. Double-click on a list item or chart element to display a customized report.
Reporting and budgeting Do it!
B-1:
6–17
Customizing the Company Snapshot window
Here’s how
Here’s why
1 Click
To open the Company Snapshot window. You can use this window to see the current state of your business.
2 For the Income and Expense Trend, observe the date range
By default, this is set to Year-to-date.
3 Change the date range to This
From the date range list. The Income and Expense Trend Graph changes to show a comparison of the current month, which is February 2010.
Month
4 Double-click the Income Bar
For Feb 2010. The Custom Transaction Detail Report opens and shows all income for the month of February.
5 Close the report
If you are asked whether to memorize this report, click No.
6 In the Prev Year Expense Comparison section, click the Close button
(In the top, right corner.) The Remove Content dialog box opens and asks “Are you sure you want to remove this content from your Company Snapshot?”
Click OK 7 Close the Prev Year Income Comparison section
To remove the section. Click the Close button and then click OK to confirm the removal.
8 Click Add Content
(In the top, left corner of the Company Snapshot window.) To display other content options.
View all the content
At the bottom of the Add content to your Company Snapshot section, click the right arrow twice to view all the content choices.
Add the Income Breakdown section
Click the left arrow twice to view the section. Then, click the Add button to the right of the Income Breakdown sample.
Click Add Content
To hide the Add Content options.
6–18
QuickBooks 2010 9 Point to the Income Breakdown section title The mouse pointer changes to a four-way arrow. This indicates that you can move the section.
Click, hold, and drag
To move the section to a new location of your choice.
Release the mouse button
To complete the move.
10 Rearrange the Company Snapshot content
Move each section to the location of your choice and then compare your screen to Exhibit 6-6.
11 In the Account Balances section, click the Select Accounts link
To open the Select Accounts to View window.
12 Clear Payroll Liabilities
You’ll remove Payroll Liabilities from the Account Balances list in the Company Snapshot window.
Click Update
Payroll Liabilities is removed from the list.
13 Choose Edit, Preferences… 14 On the left, click the Desktop View icon In the Desktop section, select Save Current Desktop
Clear Show Home page when opening a company file
15 Click Cancel 16 Close the Company Snapshot window
To use the Company Snapshot, instead of the Home page, as your default page.
We’ll leave the Home page as the default for this course.
Reporting and budgeting
6–19
Topic C: Setting up budgets Explanation
By setting up budgets, you can see how much you’re spending and earning in various areas and compare those figures to how much you want (or expect) to spend or earn. In QuickBooks, you don’t create a single, unified budget; instead, you set up budgets for individual accounts, customers, or jobs. You can generate reports that tell you how well you’ve done compared to your budgeted amounts.
The Set Up Budgets window To create a budget, follow these steps: 1 Choose Company, Planning & Budgeting, Set Up Budgets to open the Set Up Budgets window. If this is the first time you’ve created a company budget, the Create New Budget Wizard will start. 2 Select the year for which you want to set up budgets. The next year is selected by default. Choose the type of budget you want to create: Profit and Loss or Balance Sheet. All budgets must be account-based. Click Next to proceed. 3 If you want to create budgets for particular customers or jobs, select the option to add Customer:Job criteria. Then click Next. 4 Choose how you want to create a budget: either from scratch or from the previous year’s data. Click Finish. The Set Up Budget window appears with your accounts listed in the first column, the Annual Total in the second column, and the months of the year in the remaining columns, as shown in Exhibit 6-7. 5 For each account, enter the desired budgeted amount in the month columns. 6 Click Save to save the current budget. To create another budget, click the Create New Budget button. 7 Click OK to close the Set Up Budgets window.
Exhibit 6-7: The Set Up Budgets window
6–20 Do it!
QuickBooks 2010
C-1:
Creating a budget
Here’s how 1 Choose Company, Planning & Budgeting, Set Up Budgets
2 Observe the selected year for the new budget
Here’s why Your company doesn’t have a budget set up, so the Create New Budget Wizard starts.
The next year is entered by default.
Use the spinner control to select 2010
You want to create a budget for this year.
3 Observe the types of budgets you can create Click Next 4 Observe the budget criteria options Click Next 5 Observe the creation options
Click Finish 6 Observe the Set Up Budgets window
You can choose between a Profit and Loss budget and a Balance Sheet budget. You’ll create a Profit and Loss budget. To advance to the next wizard screen. You can add Customer:Job criteria if you want to create budgets for particular customers or jobs. To accept the default setting and not add more criteria. You can create the budget from scratch or use the actual data from the previous year. It’s easier to use the previous year’s data to create your budget. You can always change the budget amounts. Your Profit and Loss budget for 2010 is created and displayed in the Set Up Budgets window. Compare your screen to Exhibit 6-7. The budget name appears at the top. (To view a different budget, select it from the Budget list.) The first column contains the account list. Then there is a column for each month of the year. You’d enter your budget amounts in these monthly columns.
Reporting and budgeting
6–21
Editing budgets Explanation
Unlike other QuickBooks entries, budgets are not stored in a list. Each budget, account, customer, or job is a separate entity. QuickBooks doesn’t keep a combined “master” budget. To edit a budget, use the Set Up Budgets window. Open the window, select the account whose budget you want to edit, and modify the previously entered amounts as needed. When you’re done, click Save. You can edit as many accounts as you want. When you’re finished editing, click OK to close the Set Up Budgets window. The Copy Across button To save data entry time, you can use the Copy Across button to quickly fill in the remaining months of the year with a specified amount. Here’s how: 1 In the selected account row, enter the budget amount in the January column. 2 Click Copy Across to copy the amount to the remaining months. Any existing budget amounts will be overwritten when you use the Copy Across button. 3 Click Save to save your budget. The Adjust Row Amounts button You can increase the monthly budget by an exact amount or percentage by using the Adjust Row Amounts button. For example, say you’ve budgeted $450 for telephone costs in January. You expect telephone costs to rise 5% each month, beginning in February. QuickBooks can quickly calculate the increase and enter the appropriate amounts. The following procedure uses the telephone budget example. 1 In the Telephone account row, enter 450 in the January box. 2 Verify that the January amount is selected. 3 Click Adjust Row Amounts. (See Exhibit 6-8.) 4 From the Start at list, select “Currently selected month.” This option must be selected in order to enable compounding. 5 Select “Increase each remaining monthly amount” and enter 5% in the box. 6 Check “Enable compounding” so that every month is a 5% increase from the previous month. 7 Click OK.
Exhibit 6-8: Adjusting row amounts
6–22 Do it!
QuickBooks 2010
C-2:
Editing a budget
Here’s how 1 In the Set Up Budgets window, observe the Account list Scroll to view 6340 Telephone
2 In the Jan10 box, enter 450
Press t
3 Select the Jan10 box Click Copy Across
Here’s why You can set up a budget for any kind of account, including income, expense, and balance-sheet accounts. You’ll set up the current year’s budget for company telephone charges. Select the 6340 Telephone row; click in the Jan10 column to place the insertion point; and enter 450. This is your telephone budget for January 2010. To accept the change and move the insertion point to Feb10. (If you press Enter, the change will be accepted and the Set Up Budgets window will close.) You want to quickly enter this amount for the remaining months. To copy the $450 amount to the remaining monthly budget columns.
4 Verify that Jan10 is selected
You expect telephone expenses to rise approximately 5% per month as business picks up. The increase will start in February.
Click Adjust Row Amounts 5 In the Start at box, select
To open the Adjust Row Amounts dialog box. To begin the incremental increase in Feb10.
Currently selected month
Select the option to increase each monthly amount
If necessary.
In the box, enter 5%
You need to enter the percent sign, or the 5 will be interpreted as five dollars.
6 Check Enable compounding
This option is available because you chose to start at the selected month. Compare your Adjust Row dialog box to Exhibit 6-8.
Reporting and budgeting
6–23
7 Click OK
To fill in the remaining monthly budget amounts. Notice that the amounts go up by the specified percentage every month. February is $472.50, March is $496.13, and so on.
8 Click Save
To save your telephone budget.
Edit the Jul10 box to read 600
(Type 600 and press Tab.) You’ll enter the same amount for August through December.
Copy 600 to the remaining five months
(Select Jul10 and click Copy Across.) Your monthly telephone budget for the second half of the year is now $600 per month.
9 Save your revised budget Click OK
Click Save. To close the Set Up Budgets window.
6–24
QuickBooks 2010
Budget reports Explanation
To see how your business is doing compared to your established budgets, you can generate several types of reports. To access these reports, choose Reports, Budgets, or select the Budget category in the Report Center.
Exhibit 6-9: Budget reports in the Report Center. Do it!
C-3:
Viewing budget reports
Here’s how
Here’s why
1 Open the Report Center 2 In the category list, click Budgets
Observe the budgets
3 Close the Report Center 4 Close the company file
(On the left side.) To display a list of budgetrelated reports and graphs. (As shown in Exhibit 6-9.) You can use these tools to find out how your company is doing compared to the budget amounts you’ve set.
Reporting and budgeting
6–25
Unit summary: Reporting and budgeting Topic A
In this topic, you used the Report Center and the QuickReport feature to create a yearto-date income account report. You also used QuickZoom to open transactions from a report and get more detailed information. Then you modified a report directly in its window and by using the Modify Report dialog box. Finally, you saved, or memorized, a report and learned how to print reports.
Topic B
In this topic, you learned how to use the Company Snapshot to view real-time company information. You learned how to perform tasks and customize the Company Snapshot window.
Topic C
In this topic, you learned how to set up and modify a budget.
Independent practice activity In this activity, you will create, modify, and memorize reports. You’ll also set up a budget. 1 Open Practice reports (from the current unit folder). 2 Display a QuickReport for the expense account named “6280 · Legal Fees.” 3 From the QuickReport, open check number 408. (Use the QuickZoom feature.) Then close the Write Checks window, and close the QuickReport. 4 Using the Report Center, generate a Purchases by Item Summary report. Use the default date range. You’ll find this report type in the Purchases category. 5 Change the date range of the report so it displays this fiscal year-to-date sales figures. 6 Use the Modify Report dialog box to make the following changes in the report: Add the subcolumn named % of Column. Filter the report so that it displays only those items with total sales greater than or equal to 250. (Hint: From the Filter list, select Amount.) Change the report title to Sales Summary, $250+ (use the Header/Footer tab). 7 Memorize the report, accept the default name, and save it in the Company report group. Close the report. 8 To verify that you memorized the report correctly, open the memorized report by choosing Reports, Memorized Reports, Company. (If the report is not available, repeat steps 4–7.) Close the report and the Report Center. 9 Set up a budget for Postage and Delivery expenses (account number 6250). For this account, your January 2010 expenses were $300, and you expect this amount to increase by $20 per month through the end of the year. (Use the Copy Across and Adjust Row Amounts buttons.) When you’re done, save the budget and close the Set Up Budgets window. 10 Close all windows and the company file.
6–26
QuickBooks 2010
Review questions 1 In addition to using the QuickReport feature, how else can you create reports in QuickBooks? By using the Report Center
2 Which feature is indicated when the mouse pointer changes to a magnifying glass with a Z? This means that the QuickZoom feature is active and you can double-click that component of the report to dig deeper into the figures.
3 What are the two ways to make changes in a report?
Make the changes directly in the Report window. Click Modify Report and use the Modify Report dialog box. 4 What does it mean to “memorize” a report? Saving a report so it can be used repeatedly
5 What types of budgets can you create?
Profit and Loss Balance Sheet 6 Which budget feature is used to increase a monthly budget by an exact amount or percentage? A Enable compounding B Copy Across C Adjust Row Amounts D Fill In Amounts
7–1
Unit 7 Protecting and backing up data Unit time: 40 minutes Complete this unit, and you’ll know how to: A Apply and remove password protection, set
the closing date for a file, set up user permissions, and switch between singleuser and multi-user mode. B Back up and restore company files.
7–2
QuickBooks 2010
Topic A: Protecting and sharing data Explanation
It’s a good idea to apply password protection to your company file, especially if it’s stored on a network. You can protect your data on many levels. For maximum security, you can require users to log in with a user name and password every time the file is opened. Before you can create user accounts, you must designate the QuickBooks administrator. Most security-related settings can be entered or modified only by the administrator. You can also set a closing date for your file, preventing users from changing transactions that occurred before the specified date unless they know the password. If you want more than one person to be able to work on the file simultaneously, you’ll need to switch to multi-user mode.
The QuickBooks administrator To control most of the security settings, you must log in as the QuickBooks administrator. When you set up QuickBooks, an administrator account named Admin is created, and you can assign an administrator password during the EasyStep Interview. You can assign or change a password at any time. To change the QuickBooks administrator’s password: 1 Choose Company, Set Up Users and Passwords, Change Your Password to open the Change QuickBooks Password dialog box, shown in Exhibit 7-1. Admin is entered in the User Name box by default. 2 In the New Password box, enter the desired password. Passwords must be between 6 and 16 characters long. Passwords are case-sensitive. For example, QuickBooks interprets the following as different passwords: password, Password, PASSWORD, PassWord. 3 In the Confirm New Password box, re-enter the password. 4 From the Challenge Question list, select a question. 5 In the Answer box, enter your answer. 6 Click OK. Important notes about forgotten passwords If a user forgets his or her password, the administrator can reset it. If the administrator forgets the password, he or she can reset it after entering the correct answer to the challenge question. The challenge question and answer The Challenge Question and Answer boxes provide a way for administrators to reset their forgotten passwords. First, you need to select a challenge question from the list; then type the answer. Unlike passwords, the answer is not case sensitive. Spaces are also allowed. In the QuickBooks Login dialog box, a Reset Password button appears when you have set up a challenge question and answer. You can click this button to remove the forgotten password and create a new one. However, if you forget the answer to the challenge question, you will need to download the automatic password reset tool from the Intuit Web site.
Protecting and backing up data
Exhibit 7-1: The Change QuickBooks Password dialog box
7–3
7–4
QuickBooks 2010
Do it!
A-1:
Setting an administrator password
Here’s how 1 Open Protection
Here’s why (From the current unit folder.) And update the file.
Choose Company, Set Up Users and Passwords, Set Up Users… To open the User List and see that you are currently logged on as Admin.
Click Close 2 Choose Company, Set Up
To open the Change QuickBooks Password dialog box. Admin is entered in the User Name box by default.
3 In the New Password box, enter outlander
This will be the administrator’s password for the current file. To protect your password against theft, QuickBooks displays your entry as a series of asterisks.
4 Press t
To place the insertion point in the Confirm New Password box.
Users and Passwords, Change Your Password…
Type outlander 5 From the Challenge Question list, scroll to see the options
Select Name of your high school
In the Answer box, enter East
6 Click OK
It’s important to remember your answer to the selected challenge question. If you forget your answer, you will need to download a reset tool from the Intuit Web site. Compare your screen to Exhibit 7-1. To save your password settings and close the dialog box.
Protecting and backing up data
7–5
7 Click OK again
To close the message confirming the password change and encouraging you to change the admin password every 90 days.
8 Close the file
Choose File, Close Company.
Re-open the file
(Select Protection.QBW and click Open.) The QuickBooks Login dialog box appears, prompting you to enter a password.
9 In the Password box, enter outlander
The Reset Password button can be used if you forget the admin password. When you click Reset Password, you will be prompted for the answer to your challenge question.
Click OK
To submit the administrator’s password and open the company file.
7–6
QuickBooks 2010
The closing date Explanation
At the end of an accounting period, it’s a good idea to set a closing date for your file. Doing so protects your records against changes that would alter balances for the closed accounting period. You can set a closing date with or without password protection. If password protection is not enabled, a warning box will appear when someone tries to edit the amount of a transaction that occurred before the closing date; the transaction can still be edited, however. If password protection is enabled, all users (even the QuickBooks administrator) will be prevented from editing the transaction amount unless they know the closing-date password. This password is separate from all other passwords in QuickBooks. To set a closing date and enable password protection: 1 Choose Edit, Preferences to open the Preferences dialog box. 2 Activate the Company Preferences tab. (To change settings on this tab, you must log in as the QuickBooks administrator.) 3 Click the Accounting icon to activate the accounting options for the current file. 4 Under Closing Date, enter the desired closing date in the date box. 5 Click Set Password to open the Set Closing Date Password dialog box. 6 Enter and confirm the desired password. Then click OK to close the Set Closing Date Password dialog box. 7 Click OK to close the Preferences dialog box.
Do it!
A-2:
(Optional) Specifying a closing date
Here’s how 1 Choose Edit, Preferences…
Here’s why To open the Preferences dialog box. The My Preferences tab is active by default.
2 Activate the Company Preferences tab Click the Accounting icon
To display the accounting options for the current file.
3 Under Closing Date, click Set Date/Password
To open the Set Closing Date and Password dialog box.
Protecting and backing up data 4 Edit the Closing Date box to read 01/31/2010
5 In the Closing Date Password box, enter spices
7–7
To close your books through the end of last month. Applying a closing date protects your records against changes that would alter balances for closed accounting periods. This closing-date password will be required whenever users create, enter, or edit transactions that occurred on or before the specified closing date. In addition, any actions that will cause a change in closed periods will require this password.
In the Confirm Password box, enter spices Click OK
To close the Set Closing Date Password dialog box and return to the Preferences dialog box.
6 Click OK
To save your settings and close the Preferences dialog box.
7 Open the Company checking register 8 Select the transaction dated 01/14/2010 (check #397)
You’ll attempt to edit the transaction amount.
Change the payment amount to $30
Click Record and then Yes
To accept the change. A warning box appears, stating that the selected transaction’s date is earlier than the specified closing date. QuickBooks asks you for a password to make the change.
Click Yes 9 In the Password box, enter spices
Click OK 10 Close the Company checking register
To finish editing the transaction.
7–8
QuickBooks 2010
User permissions Explanation
If other users will be working with your company file, you should set up a user name and password for each person. When setting user permissions, you can give different people different levels of access. In QuickBooks, access areas are classified as follows: Sales and Accounts Receivable Purchases and Accounts Payable Checking and Credit Cards Inventory Payroll and Employees Sensitive Accounting Activities (such as funds transfers and online banking) Sensitive Financial Reports Changing or Deleting Transactions Changing Closed Transactions In each area, you can grant or restrict permissions as needed. For example, in the Sales and Accounts Receivable area, you can allow a user to create transactions only, create and print transactions, or create transactions and create reports, as shown in Exhibit 7-2.
Exhibit 7-2: Controlling user access for QuickBooks areas To set up a user account: 1 Choose Company, Set Up Users and Passwords, Set Up Users to open the User List dialog box. When prompted, enter the administrator’s password. 2 Click Add User to start the User Setup Wizard, which will guide you through a series of screens. 3 Enter a user name and password, and then click Next. 4 Follow the on-screen instructions until you complete the wizard. 5 Click Finish.
Protecting and backing up data Do it!
A-3:
7–9
Setting up users and passwords
Here’s how 1 Choose Company, Set Up Users and Passwords,
Here’s why You are prompted for the administrator’s password.
Set Up Users…
In the Password box, enter outlander
Click OK 2 Click Add User
The User List dialog box opens. To start the wizard for setting up a new user.
3 In the User Name box, enter New User
In the Password box, enter nutmeg
In the Confirm Password box, enter nutmeg 4 Click Next
To proceed to the next screen, in which you specify the access level for the new user. Selected areas of QuickBooks are selected by default.
5 Select All areas of QuickBooks
So the new user will have access to all of your QuickBooks data.
Click Next
A warning box appears, asking you to confirm that you want to give New User unlimited access to payroll, check writing, and other sensitive information.
Click Yes
To return to the wizard, which displays an areaby-area permissions summary for New User, as shown in Exhibit 7-2.
7–10
QuickBooks 2010 6 Click Finish
To close the wizard and return to the User List dialog box.
Observe the User List
New User has been added to the list.
7 Click Close
To close the dialog box.
8 Choose File,
To close the file. Notice that the menu command has changed because there are now multiple users.
Close Company/Logoff
Re-open the file
(Select Protection.QBW and click Open.) The QuickBooks Login dialog box appears.
9 Edit the User Name box to read New User
In the Password box, enter nutmeg
Click OK
To log in as New User and open the file.
10 Close the QuickBooks Learning Center and the QuickBooks Coach window
Click the Close button.
11 Open the Preferences dialog box
Choose Edit, Preferences.
Activate the Company Preferences tab
A warning box states that only the administrator can modify company preferences.
Click OK
To close the warning box.
Close the Preferences dialog box
Click Cancel.
Protecting and backing up data
7–11
Multi-user mode Explanation
If you use QuickBooks in a networked environment, up to five people can work on the same file simultaneously. The first person to open the file must activate multi-user mode by choosing File, Switch to Multi-user Mode. (To switch back to single-user mode, choose File, Switch to Single-user Mode.) Any user can activate multi-user mode. Multi-user mode is available in only the Pro, Premier, and Enterprise versions of QuickBooks. Using QuickBooks on a network QuickBooks is a multi-user program, as opposed to a “true” network program. Network programs are typically installed on a single server or workstation. In contrast, every QuickBooks user on the network must have a separate, licensed copy of QuickBooks installed on his or her local workstation. The company file, however, can be stored on a single server or workstation. QuickBooks allows up to five users to have simultaneous access to the file across the network. With multi-user mode, you can use QuickBooks Messenger to communicate with other users who are logged into the same file. To use QuickBooks Messenger, choose “Chat with a coworker” from the Company menu. Select a user from the list of logged-in users, and click the Start Chat button. Enter your message and click Send to start a chat session with another logged-in user. You can also communicate with all logged-in users by choosing Send Message to Logged In Users from the Actions menu.
7–12 Do it!
QuickBooks 2010
A-4:
Switching between single- and multi-user modes
Here’s how 1 Choose File, Switch to Multi-user Mode
Here’s why A message box appears, asking if you would like to host multi-user access.
Click Yes
The company file closes and a new message box appears, explaining multi-user mode. The first person who opens the file needs to choose this command in order for other users to be able to work with the file at the same time.
Click OK
To close the dialog box. Windows asks if you would like to give administrator permissions for this action.
2 Click Continue
To give Windows administrator permissions.
Click Yes
In the User Account Control dialog box.
Click OK
To close the dialog box.
3 Click OK Observe the title bar
4 Choose File, Switch to
To close the message about using a file in multiuser mode. New User is logged in with multi-user mode active.
Single-user Mode
A message box appears, stating that you can now use the file in single-user mode.
Click OK
To open the file in single-user mode.
Protecting and backing up data
7–13
Removing data protection Explanation
The procedures you’ll use to remove data protection depend on the types of security measures you’ve set up. Deleting user accounts To delete a user: 1 Open the User List dialog box. 2 Select the user you want to delete. 3 Click Delete User. In the Delete User box, you are prompted to confirm the deletion. 4 Click Yes. You can also use the User List dialog box to view and modify user settings. Removing the closing-date password To remove password protection from the closing date: 1 In the User List dialog box, click Closing Date to open the Set Closing Date and Password dialog box. 2 Delete the asterisks from both Password boxes. 3 Click OK to close the Set Closing Date and Password dialog box and return to the User List dialog box. 4 Click OK to close the User List dialog box. Removing the closing-date password does not disable the closing date itself. A warning box will still appear if a user tries to change the amount of a pre-closing-date transaction. The difference is that a password is no longer required to change the amount. To disable the closing date itself, simply delete it in the Preferences dialog box. Removing the QuickBooks administrator’s password To remove the QuickBooks administrator’s password: 1 Log in as the QuickBooks administrator. 2 Choose Company, Set Up Users and Passwords, Change Your Password to open the Change Password dialog box. 3 Delete the contents of the New Password and Confirm New Password boxes. 4 Click OK.
7–14 Do it!
QuickBooks 2010
A-5:
Deleting users and removing passwords
Here’s how 1 Close the file
Here’s why To modify user and password protection settings, you must log in as the QuickBooks administrator.
2 Re-open the file 3 Log in as the QuickBooks administrator
Enter “Admin” in the User Name box, enter “outlander” in the Password box, and click OK.
4 Open the User List dialog box
(Choose Company, Set Up Users and Passwords, Set Up Users. Enter the administrator’s password when prompted.) You’ll delete New User.
5 In the list, select New User Click Delete User
The Delete User box prompts you to confirm that you want to delete the selected user.
Click Yes
To delete New User from the list.
6 Click Closing Date
To open the Set Closing Date and Password dialog box.
Delete the dots from both password boxes
If you want to disable password protection for transactions before the closing date, you simply remove the password.
Click OK
To close the Set Closing Date and Password dialog box. A message box appears, asking if you want to add or edit users.
Click No
(If necessary.) To close the message box and return to the User List dialog box.
7 Close the User List dialog box
Click Close.
Protecting and backing up data 8 Choose Company, Set Up Users and Passwords,
7–15
To open the Change Password dialog box.
Change Your Password…
In the Current password box, enter
This is the current admin password.
outlander
Verify that the New Password and Confirm New Password boxes are empty
By leaving these two password boxes blank, you remove the administrator’s password.
From the Challenge Question list, select <Select>
To remove the challenge question and answer.
Click OK
To close the dialog box.
Click OK
To close the QuickBooks Information dialog box.
9 Choose File, Close Company
10 Re-open the file
To close the file. Notice that Logoff is no longer part of the menu command because there is only one user. This time, the QuickBooks Login dialog box does not appear. Because you removed all passwords, your file is no longer passwordprotected in any way.
7–16
QuickBooks 2010
Topic B: Backing up data Explanation
The data you store in QuickBooks is critical to your business, so you should back up your company file regularly. How often you do so is up to you, but once or twice a week is recommended. You might even want to back up your data at the end of every business day. You can back up your file to a floppy disk or CD, to a hard drive, or to a network location. Intuit offers a fee-based service for backing up your data online. If your original file becomes damaged or inaccessible, you can restore your data from the backup copy. QuickBooks 2010 also allows you to save what it calls a portable company file. This file is highly compressed and much smaller than a backup copy, so it’s easier to e-mail or save on portable media such as a USB drive. These files take longer to open, though, because they have to be uncompressed.
The Save Copy or Backup dialog box You can start the backup process by using either of the following methods: Choose File, Save Copy or Backup. On the icon bar, click the Backup icon. Either way, the Save Copy or Backup dialog box will appear, as shown in Exhibit 7-3. To make a regular backup file, follow these steps: 1 Select Backup copy in the Save Copy or Backup dialog box, and click Next. 2 Choose whether you’ll save the file locally or through the online service. On this screen, you can also click Options to select a folder location and set other options. As shown in Exhibit 7-4, additional options include reminding you to back up and verifying the data in the file before backing it up. Click Next to proceed. 3 Specify whether to save the backup now, schedule it for the future, or both. (If you choose an option that includes scheduling a backup, there will be an extra step for creating a schedule.) Click Next. Confirm the file name and the location in the Save Backup Copy dialog box and click Save. A Working box will indicate the progress of the backup. After a few moments, an information box will tell you that the backup was successful. 4 Click OK to close the information box and return to the original file.
Protecting and backing up data
Exhibit 7-3: The Save Copy or Backup dialog box
Exhibit 7-4: The Backup Options dialog box
7–17
7–18 Do it!
QuickBooks 2010
B-1:
Backing up your company file
Here’s how
Here’s why
1 On the right side of the Icon Bar, click as shown
Click the more button to display other icons.
Select Backup
To open the Save Copy or Backup dialog box.
2 Verify that Backup copy is selected Click Next
A warning message might appear, saying that the default backup location is not available. You can ignore this message because you will be changing the location in the next steps.
Click OK
(If necessary.) To close the warning message.
3 Verify that Local Backup is selected Click Options Click Browse Navigate to the current unit folder and select the Backup folder
You’ll choose where to save the file. Observe the other options.
Protecting and backing up data 4 Observe the additional options
Click OK
5 Click Use this Location Click Next twice 6 Verify that you are in the Backup folder in the current unit folder
7–19
As shown in Exhibit 7-4, you can specify when to be reminded to back up a file and which type of verification to use on the data. We’ll accept the default settings. A warning message appears, telling you that it’s risky to save backups on the same hard disk as the company file. For class purposes, we’ll take the risk. To open the Save Backup Copy dialog box. You set this location earlier. If you had not opened the options earlier, you could still choose a location here.
Observe the File name box
Your backup file will have the same name as the original file by default, plus a date and time.
Observe the Save as type list QuickBooks backup files have a .QBB extension.
Click Save
7 Click OK
To save the backup file in the Backup folder in the current unit folder. A Working box appears, indicating the progress of the backup. After a few moments, an information box tells you that the backup was successful. To return to the original file.
7–20
QuickBooks 2010
Restoring backups Explanation
To restore a regular backup file: 1 Choose File, Open or Restore Company to open the Open or Restore Company dialog box, shown in Exhibit 7-5. 2 Select Restore a Backup Copy and click Next. 3 Specify whether you are restoring from a local file or from the online service. Click Next. 4 Select the backup file you want to restore. Click Open and then click Next. 5 Specify a location and file name for the restored file. Click Save. 6 The restore will take a moment. When a message tells you that your data has been restored successfully, click OK.
Exhibit 7-5: The Open or Restore Company dialog box
Protecting and backing up data Do it!
B-2:
7–21
Restoring your company file from a backup
Here’s how 1 Choose File, Open or Restore Company…
2 Select Restore a Backup Copy
Here’s why To open the Open or Restore Company dialog box. You will restore the company file from the backup file you just created.
Click Next 3 Verify that Local Backup is selected Click Next 4 Select the backup file you created Click Open 5 Click Next
The Open Backup Copy dialog box opens. Browse to the folder, if necessary. A message appears, stating that you now need to select a location for the restored company file. To open the Save Company File As dialog box.
Verify that the current unit folder is selected Edit the file name to read Protection restored
Click Save 6 Click OK 7 Close the company file
You change the name to avoid overwriting the previous file. To restore the file. A message tells you the operation was successful. To open the restored file.
7–22
QuickBooks 2010
Unit summary: Protecting and backing up data Topic A
In this topic, you learned how to apply password protection to a file. First, you changed the administrator’s password. Then you set the closing date for a file, and you enabled password protection for modifying transactions that occurred before the closing date. You set up a new user. You also learned how to switch between single-user mode and multi-user mode. Then, you learned how to delete a user and disable password protection for a file.
Topic B
In this topic, you learned how to back up your data and how to restore your data from a backup file.
Independent practice activity In this activity, you will work with passwords, activate multi-user mode, and back up and restore your QuickBooks data. 1 Open Practice protection (from the current unit folder). 2 Designate the QuickBooks administrator for this file as follows: Administrator’s name: Admin Administrator’s password: practice Use the Challenge Question and Challenge Answer of your choice. 3 Add a new user as follows: User Name: User1 Password: cloves Access level: all areas 4 Set the closing date for the current file as follows: Date: January 15, 2010 Password: sesame 5 Close the file. Re-open the file and log in as User1. 6 In the Company checking register, change the amount of check number 395 (dated 01/03/2010) to $300. When you’re done, close the checking register. 7 Delete User1. (You’ll need to log in as the QuickBooks administrator.) 8 Remove the password for editing transactions that occurred before the closing date. 9 Remove the QuickBooks administrator’s password and set the Challenge Question to <Select>. 10 To verify that you performed steps 7 and 9 correctly, close the file and then re-open it. You should not be prompted to enter a user name and password. 11 Back up the current file to the Backup folder in the current unit folder. Accept the default file name for the backup. 12 Restore the file from the backup you created in step 11. Name the restored file Practice restored.QBW and save it in the current unit folder. 13 Close QuickBooks.
Protecting and backing up data
7–23
Review questions 1 Which of the following statements about QuickBooks passwords are false? [Choose all that apply.] A Passwords can be up to 20 characters long. B Passwords are not case-sensitive. C The administrator password can be assigned or changed at any time. D Forgotten administrator passwords cannot be reset. 2 Which of the following statements are true about the challenge question and answer? [Choose all that apply.] A This feature is optional for users and administrators. B The answer is case-sensitive. C You must answer the challenge question correctly to reset a forgotten password. D Without a challenge question, a password can be reset only by downloading a tool from Intuit. 3 What is a closing date? The specific date for the end of the accounting period. If users try to edit transactions that occurred before the closing date, a warning box will appear.
4 Are the administrator password and the closing date password the same? No. The two passwords serve different functions and should not be the same.
5 When creating new users, you can grant or deny permissions to different areas of QuickBooks. Name some of those areas. Answers can include any of the following areas:
Sales and Accounts Receivable Purchases and Accounts Payable Checking and Credit Cards Inventory Payroll and Employees Sensitive Accounting Activities (such as funds transfers and online banking) Sensitive Financial Reports Changing or Deleting Transactions Changing Closed Transactions 6 What is the advantage of working in multi-user mode? In a networked environment, up to five people can work on the same file simultaneously.
7–24
QuickBooks 2010
S–1
Course summary
This summary contains information to help you bring the course to a successful conclusion. Using this information, you will be able to: A Use the summary text to reinforce what
you’ve learned in class. B Determine the next courses in this series (if
any), as well as any other resources that might help you continue to learn about QuickBooks 2010.
S–2
QuickBooks 2010
Topic A: Course summary Use the following summary text to reinforce what you’ve learned in class.
Unit summaries Unit 1 In this unit, you learned that QuickBooks 2010 is an accounting program designed for small businesses. You learned how to start the program and view a sample file. Then you learned about the QuickBooks desktop, the navigation and icon bars, and the Customer, Vendor, and Employee Centers. You also opened a company file. Finally, you learned how to use the QuickBooks Help system, which includes Live Community and the Learning Center. Unit 2 In this unit, you used the EasyStep Interview to set up a new company file. You started the interview, entered basic information about the business, and saved the file. Next, you customized QuickBooks to suit the business, set the start date, and completed the interview. Then you opened the Chart of Accounts, which contains the income, expense, and balance-sheet accounts. You added and edited accounts, deleted an account, and made an account inactive. You also learned how to apply an account numbering system. Unit 3 In this unit, you learned how to use the Customer Center. You added a customer and created a customer type. You also learned how to add jobs and create job types. Then you opened the Vendor Center, added a vendor, and created a vendor type. You also learned how to attach a note to a list entry. You added an employee to the Employee Center. Next, you opened the Item List and added an inventory item. You also learned how to add other types of items, including sales tax, subtotal, and discount items. Then you learned how to group items. Finally, you learned how to add custom fields to customer, vendor, and item records. Unit 4 In this unit, you learned how to create, modify, and print invoices. You also created a custom invoice form that includes a company logo. You then learned how to create a credit memo. You created a sales receipt (used when a customer pays in full for goods at the point of sale), received payments against previously issued invoices, and applied a credit when receiving a payment. You recorded a deposit for a batch of previously undeposited funds. You also created a purchase order and entered received items into inventory. Finally, you used the QuickFilter feature to display only certain items in the Customer & Jobs list, and you used the Find feature to search for completed forms based on search criteria.
Course summary
S–3
Unit 5 In this unit, you used the Write Checks window, wrote checks directly from the checking account register, and printed checks. You learned how to transfer funds between accounts. You also learned how to edit, void, and delete transactions. You then reconciled a checking account. Next, you used the Enter Bills window, entered a bill directly in the Accounts Payable register, and paid bills in the Pay Bills window. Finally, you explored the QuickBooks payroll service options. Unit 6 In this unit, you used the Report Center and the QuickReport feature to create a yearto-date income account report. You also used QuickZoom to open transactions from a report and get more detailed information. Then you modified, memorized, and printed reports. You also used the Company Snapshot window to get a real-time view of company information and to perform tasks from a single place. Finally, you learned how to set up and modify a budget. Unit 7 In this unit, you learned how to apply password protection to a file. First, you changed the administrator’s password. Then you set the closing date for a file and enabled password protection for modifying transactions that occurred before the closing date. You set up a new user and switched to multi-user mode. Finally, you learned how to back up and restore data.
S–4
QuickBooks 2010
Topic B: Continued learning after class It is impossible to learn how to use any software effectively in a single day. To get the most out of this class, you should begin working with QuickBooks 2010 to perform real tasks as soon as possible. We also offer resources for continued learning.
Other resources For more information, visit www.axzopress.com.
G–1
Glossary Budget A feature that enables you to track how much money you spend or earn and compare it to what you expected to spend or earn. Centers Windows that are used to manage information about vendors, customers, and employees. For example, the Customer Center contains all pertinent information about customers, such as name, address, phone numbers, transactions, and jobs. Chart of Accounts A list that contains the balance-sheet accounts (assets, liabilities, and equity) and the income and expense accounts. Closing date The date when the books are officially finished. You can assign a closing-date password to prevent users from editing transactions that have been closed. Company Snapshot A window from which you can view trends, reminders, account balances, and lists of customers who owe you money and vendors you need to pay. Credit memos Notes used to handle customer returns and refunds. Credit memos can also be used to correct data entry mistakes. Customer Anyone who pays you for goods or services. Customer Center A window that contains detailed information about customers, including company name, address, phone numbers, amount owed, transactions, and payment and job information. Deleting Removing a transaction altogether from QuickBooks. EasyStep Interview The wizard that guides you through the process of creating a company file. Employee Center A window that contains detailed information about employees, including their personal information, salary, and tax-related details.
Funds transfer The process of moving money from a source account to a destination account. Grouped item A set of several items that are saved together and handled as a single item in the Item List. Icon bar A toolbar containing buttons that are used to perform commonly used commands. Inventory part Anything you purchase, hold in stock, and then sell. Invoice A document that records and tracks the amounts your customers owe you for products or services. Item Anything that the company would list on an invoice or sales form, such as a product, service, or shipping charge. Item List A list that contains inventory parts, non-inventory parts, shipping charges, postage costs, and other reimbursable expenses. Job An item that is tracked and recorded for a specific customer or vendor. For example, a construction company would view each building project as a job. Live Community An interactive help system that provides the normal “help” function but also gives you direct access to other QuickBooks users, enabling you to ask questions, answer questions, and search previously asked-andanswered questions. Memorizing a report The process of saving a customized report so you can open it again. Multi-user mode A mode that enables up to five users to simultaneously access the company file across a network. Navigation bar A bar containing buttons that are used to open the QuickBooks Centers and the Home page.
G–2
QuickBooks 2010
Non-inventory items Items that you purchase to use in the business but do not resell to customers. A display case is an example of a non-inventory item. Purchase order A document used to record and track items that the company orders, receives, and pays vendors for. QuickBooks Coach mode A feature that enables you to explore the Home page and the sequential steps in a workflow, such as the Purchasing Workflow. When you click a spotlight icon, the associated workflow is illuminated.
Report Center A window that contains more than a hundred types of reports, graphs, and lists that can be generated from your QuickBooks data. Reports are divided into categories to make it easier for you to find the exact report you want. Sales receipt A document created when a customer pays you in full for goods at the point of sale. Single-user mode A mode in which only one user at a time is allowed to access the company file.
QuickBooks desktop The main program window, which contains many components that are common to most Windows-based programs.
Start date The date on which you want to begin using QuickBooks for your financial record keeping. (Also known as the conversion date.)
QuickBooks Learning Center A feature that provides multimedia presentations for a variety of help topics, as well as links to help documents for additional information.
Template A document that provides the underlying structure of invoice forms, but can be customized to suit your business requirements.
QuickReport A feature that displays year-to-date transactions for the selected income or expense account. You can generate a QuickReport by double-clicking an account name in the Chart of Accounts.
Vendor Anyone whom you pay for goods or services.
QuickZoom A feature that enables you to double-click parts of a report to view the specific form that is represented in the report. When the mouse pointer changes to a magnifying glass with a “Z,” the QuickZoom feature is available for that item. Reconciling The process of comparing your bank statement to your own records to make sure everything adds up. Reconciling a checking account is commonly referred to as “balancing your checkbook.” Reminders Documents that are stored in the Reminders window and used to remind you about bills to pay, overdue invoices, and items to print.
Vendor Center A window that contains detailed information about vendors, including company name, total balance owed, address, phone numbers, transactions, payment terms, and credit limit. Voiding The process of changing the amount of a transaction to zero, but keeping the record of the transaction in QuickBooks. Voiding transactions is recommended when a payee returns a check or when a check is lost in transit; voiding prevents check-number gaps in the register.
I–1
Index A Accounts Creating, 2-21 Deleting, 2-26 Editing, 2-25 Loans, 2-24 Making inactive, 2-26 Numbering, 2-28 Reconciling, 5-20 Setting up, 2-14 Transferring funds between, 5-12 Administrator passwords, 2-5, 7-2
B Bills Entering in the Accounts Payable register, 5-28 Entering in the Enter Bills window, 5-25 Paying, 5-30 Budgets Creating, 6-19 Editing, 6-21 Reports for, 6-24
C Centers Components of, 1-6 Customer, 3-2 Employee, 3-20 Report, 6-4 Vendor, 3-13 Challenge Question and Answer, 7-2 Chart of Accounts, 2-11 Opening, 2-18 Sorting, 2-18 Checks Printing, 5-9 Voiding, 5-18 Writing in the checking account register, 5-6 Writing in the Write Checks window, 5-2 Closing dates Setting, 7-6 Companies Setting preferences for, 2-8 Company files Creating, 2-2 Opening, 1-9 Saving, 2-6 Company Snapshot, 6-15
Conversion dates, 2-11 Create Invoices window, 4-2 Printing from, 4-9 Credit memos, 4-16 Credits, applying, 4-20 Custom fields Creating, 3-34 Customers Adding, 3-2, 3-4 Creating types of, 3-4
D Data Backing up, 7-16 Protecting, 7-2, 7-6 Removing protection from, 7-13 Restoring from backup, 7-20 Deposits Recording, 4-23 Desktop, 1-5 Document Management System, 3-10
E EasyStep Interview Entering information in, 2-5 Setting start date in, 2-11 Starting, 2-2 Employees Adding, 3-20
F Fields Custom, 3-34 File menu, 1-17 Files Opening, 1-9 Saving, 2-6 Forms Finding, 4-33 Funds Transferring, 5-12
H Help system Context-sensitive help, 1-14 Learning Center, 1-13 Live Community, 1-11 Help window, 1-14 Home page, 1-6
I–2
QuickBooks 2010
I Icon bar, 1-5 Invoices Creating, 4-2 Customizing, 4-12 Modifying, 4-7 Printing, 4-9 Item List, 3-23 Items Adding, 3-24 Defined, 3-23 Entering into inventory, 4-28 Grouping, 3-31 Inventory, 3-27
J Jobs Creating, 3-9
L Learning Center, 1-13 Live Community, 1-11 Loan accounts, 2-24 Logging into QuickBooks, 7-2 Logos Adding to invoice form, 4-13
M Multi-user mode, 7-11
N Navigation bar, 1-5 No Company Open window, 1-2, 1-3 Notes Adding, 3-18
O Open Previous Company command, 1-9
P Passwords Administrator, 2-5, 7-2 Removing, 7-13 User, 7-8 Payments Receiving, 4-20
Recording, 4-23 Payroll feature Disabling, 5-33 Payroll options, 5-33 Purchase orders Creating, 4-26
Q QuickBooks Coach, 2-15 QuickFilter, 4-31 QuickReports, 6-2 QuickZoom, 6-2
R Reconciling accounts, 5-20 Reminders window, 4-3 Reorder points, 3-27 Reports Creating, 6-4 For budgets, 6-24 Memorizing, 6-11 Modifying, 6-8 Printing, 6-13 QuickReports, 6-2
S Sales receipts Creating, 4-18 Start dates, 2-11
T Templates, 4-2 Transactions Editing, 5-15 Voiding and deleting, 5-18
U User accounts Creating, 7-8 Deleting, 7-13 User permissions, 7-8
V Vendors Adding, 3-13, 3-15 Creating types for, 3-15
