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Electronic invoice for Inventory

quickbooks online 2022 invoice selling inventory get ready because it's go time with quickbooks online 2022. here we are in our get great guitars practice file we set up with our 30-day free trial holding control scrolling up just a bit to get to that one two five percent we're currently in the home page otherwise known as the get things done page in the business view as opposed to the account in view if you wanted to change to the accounting view it's something you can do by going to the cog up top and switching to the accounting view we will be toggling back and forth between the business and accounting view either here or by jumping over to the sample file which in essence is in the accounting view to practice the navigations in both of those views let's open a few tabs up top by right clicking on the tab up top duplicate that tab go back to the tab to the left right click on it again duplicate it again back to the tab the left again right click on it and duplicate again we're going to open up some reports let's take a look at where the reports are located in the accounting view which is located in the report which is quite straightforward over here in the accounting view a little less straightforward but not too bad back in the business view the reports are located in the business overview section and then they're in the reports here so then they are in the reports and then we're going to go down to the favorite couple of reports that we want to look at which of course are the balance sheet first the balance sheet we're going to close up the hamburger and do a range change from 0101 to 22 to 12 31 2 2 and then that's not 12 31 12 31 2 2 and then run that report run it and then we're gonna go to the tab to the right and let's open up the p and l here go into the business overview the p and l the profit and loss otherwise known as the income statement doing the range change up top here from 01.0122 to 12 31 22 and running that one closing up the hamburger nothing's in it thus far that's that's what we would expect at this point we haven't had anything in there yet we're going to the third tab now and we're going to go into the business view again we want to get used to using that trial balance because it's a great tool to be working with as you do data input as we will see so i'm going to just type in trial balance to find it because they stuffed it way at the bottom of the reports which isn't really fair because it's a super important report i'm going to close up the hamburger [Music] and then do a range change up top from 0101222312 and run that one there we have it now we're going to be entering an invoice standard kind of data input process to enter the invoice but if you have inventory involved and you're tracking the inventory in the system as well as having sales tax it's actually a quite complex transaction to do the data input for the invoice so it's it's something that you want to be able to have someone to do the data input quickly but something that you want to make sure that you're setting up properly so that the data input can be done quickly and so that the financial statements will be properly impacted and there's a lot of things going on that we'll we'll talk about with the invoice let's go to the first tab we set up in the prior presentations our inventory items so we should be ready to go with our invoice so we'll go to the uh drop down up top now no we're not going to be entering the invoice that was kind of linked to the purchasing process that we see in the prior presentations where we had a purchase order and then we paid for the inventory that we received and we had a couple customers that we were going to be invoicing for that particular purchase that we were tracking through the process we will get to them but right now we're just going to do a standard invoice so we're just imagining a standard sale of the guitar and we're going to receive the payment in the future we're going to collect on it in the future therefore invoice means accounts receivable is going to be going up we're going to type in anderson guitars which is a customer we have already been working with before anderson guitars is then going to populate for us because it is a customer we've been working with before we've got the billing address the terms are automatic at this point in time we're going to keep the net 30 at the terms that means if the due date or the date of the invoice which we're going to say is 01 16 22 that means the due date will be 30 days out at 2 15 22 and the invoice number populating location of sale is here that's going to help us with the sales tax calculation and then we're going to go on down and say that our things that we're selling we're going to sell some elp guitars elps and those are epiphone les pauls we're going to say that we're going to sell five of those five of the les pauls and that would be at five five hundred dollars each that's the sales price not the cost so when we entered the purchase order i believe we had like 400 was driven there notice the item knows the difference between what we're selling them for and what we're purchasing them for driven by the item so then we've got the 2 500 it's going to be subject to the sales tax so the next item that we're going to have here we're going to say that we're going to sell some eprs which is going to be the epiphone rivieras so we're going to say that we're selling one of those let's say at the 550 sales price populated by the item that we have set up and it is also a taxable item so that looks good it's doing that properly which is nice and then we've got the epsh and that's going to be then the epiphone semi hollow body let's sell one of those we're going to say at 400. it's also subject to the sales tax so scrolling down what is this going to do when we actually report it so when we report this then it because it's an invoice and when you see invoice you think accounts receivable accounts receivable is going up by the full amount including the sales tax of the three seven seven seven point seven five but the sales are only going to be going up by the uh three four five zero the difference of the sales tax is going to go to the payable account now i'm actually going to change the sales tax because i want to make it a generic problem and just make a generic five percent sales tax here so i'm going to change the sales tax just to a generic five percent and you could do so by going in here overriding this amount and then i'm just going to say the rate is going to be 5 percent and then confirm it's going to say well why and i'm going to say because it's a practice problem that's why because i want to make a generic practice problem just just do it man and so now it's going to be three six two two fifty so again the sales tax is calculated by the location but five percent i'm just going to make a generic type of problem in the u.s sales tax is going to differ from state to state locale to locale okay so that means that the invoice is going up by 3622.50 sales is going up by 3550 and then the payable is going up by the 1 000 i mean the 172 dollars and 50 cents notice we're not having sales increase by the amount of the sales tax and then recording an expense related to the tax expense because that would indicate that the sales were the expense is our business expense and in reality we're imagining the situation is that we are just the tool that the government is using to collect the sales tax that they're trying to impose on the purchaser and therefore it's not income to us even though we're collecting on it because we have to then pay it to the government and in theory it's it's basically the tax from the government directly to the customer you can think of it as and we're just the tool that he has to collect on it right where the we've been made the tax collector so it's not going to increase revenue and we're not going to get an expense for it goes directly to the payable account doesn't hit the income statement and then we've got the accounts receive the inventory is going to go down by an amount not driven by anything on the invoice but known by the items because we set up the items and the perpetual inventory system cost of goods sold and expense related to us expelling the inventory is going to go up which is an expense account and the sub accounts related to the customer will be impacted as well tracking the accounts receivable by customer and the sub account for the inventory tracking inventory not only by dollar amount but by unit okay so let's post it and check all that out we're going to say let's save and close that and see if that is indeed what happens and this is really a good idea every time you post a transaction to go to your financial statements see what the impact is on them and the major two financial statements of course will be the balance sheet and the income statement and the easiest way to do that is to go to the trial balance because it is the balance sheet on top of the income statement you have just one report that you can practice drilling back down on to the source documents in the accounts but for now let's start with the balance sheet so i'm going to hold down control going to scroll up just a bit and the accounts receivable should have gone up so let's drill down on the ar accounts receivable and drill down on the 362 250 there's the invoice just as it should be and then that's the total amount that 362 250 closing that back out and going back then to our balance sheet the other side is going to be in essence on the income statement let's jump on over to the next tab because that's where our income statement is located run it to refresh it we should actually have some activity in it now which is exciting there's the three four five oh the three four five oh notice it breaks it out for each line item in here although all three of them are on the same invoice that three four five zero there is not the amount including sales tax but only the amount that we basically charged our sales not including the sales tax the difference closing this back out scrolling back up going back to our income statement or the pnl going back to the tab to the left of the balance sheet is on the balance sheet account scrolling down to the liabilities area so that then they put it under other current liabilities you would think they would put it under sales tax payable but they make an account by who you're paying and in california we're paying the california department of tax and fees and so on blah blah blah so there's the there's the 172.50 and the sales tax it's the only thing there so we don't really need to drill down on it and then we've got the inventory which is an asset account which is going down going up to the inventory going up to the inventory to see how it went down so we'll go into it and then we've got the invoices down here so there are the invoices it put them in line item by line item it went down by these amounts which aren't actually on the invoice because if i drill down to the invoice we see that the amounts shown on it are the sales amounts not the not the uh cost amounts so that's because uh we're not going to show it to the inventor invoice because we're going to give that to the customer but the system knows what the cost amounts are and are decreasing in ance with the cost amounts so i'm going to close that back out so then i'm going to go back on up top again let's go back to our our financial statement and jump over to the to the income statement again and then the cost of goods sold is the other side of us selling the those items so here's the other side of the inventory items over here for the sale item and again if i drill down on these these are not the items that are actually on the invoice but driven by the invoice now you might ask the question you might say hey look i only see three line items here and if i close this out i'm seeing four line items here for that one invoice why do i have four line items when there's only three on the actual invoice and you'll see that here we have the epiphone les paul was broken out into two lines as opposed to it being on one line in the invoice and i believe that's because of the inventory tracking system that is being used in the system they're using first in first out so although for this circumstance the cost is the same we didn't have a change in price they're trying to apply the first and first out and to determine which of the guitars that we're selling and the flow assumption and i believe that's the difference or why they broke this out into basically two line items just in case you're wondering about that so let's go back up top and go back in to our profit and loss and then let's jump back on over to the first tab and now let's take a look at the sub reports for the accounts receivable so let's go into an accounts receivable sub report i'm going to go to the tab to the right i'm going to right click on it and duplicate this tab and so we're going to open another report that's going to be broken out in terms of the accounts receivable by who owes us the money and we're going to go then to the reports on the left-hand side to do so let's close up the hamburger let's go into the who owes you reports and i just want not an aging report but just the customer balance let's do a detail customer balance detail report and then this is looks good so if i scroll down there's anderson uh for the invoices two invoices one is the beginning balance there's the new invoice the total amount of the receivables at the 24 122.50 which ties out to the to the balance sheet hopefully and that looks good let's also take a look at the sub report for inventory breaking it out by both unit and price so i'm going to right click on the tab to the right again and open up another one hopefully my browser my computer can handle this it's an old computer be patient with it don't get mad at the computer it's thinking it's thinking so let's go into the report here and let's see if we can get an inventory report inventory valuation summary let's check that out if we could so there we have it and so now this is what we have thus far in terms of our inventory items and the quantity and the dollar amount then adding up to the 44 180 which should tie out to the balance sheet as well in terms of the balance sheet for the inventory 44 180 and of course if we went to the first tab and we took a look at what i would call like the customer center for mr anderson which is in the get paid and pay area if you were in the accounting view you're talking the sales area and then i'm going to go into the customer information we can then take a look at our customer in the get paid section of the business view and then we're going to say let's close up the hamburger and go into mr anderson activity mr anderson has we've got there's the there's the invoice that we've put in place there as well and we're hoping we're going to receive a payment at some point in the future wow that was fun let's do it again let's do it again okay let's we'll do it again here we go let's go to the this time we're going to we're going to use the trial balance to track the information on this invoice so i'm gonna hit another plus button up top plus button and we're gonna say invoice let's make another invoice and this one then we're gonna say is for the customer let's i think we got a new cut no this is going to be the same customer jones guitar so we've done business with jones before jones are good people we trust them so let's do business with jones here guitars terms net 30. so let's put the date on the 17th this time and that means 30 days out would be on 216 when we expect to get paid by that point invoice number populating automatically same location and then what are we selling down here mr jones wants a gi usa that's going to be at gibson usa he wants how many of those one of those so that pulls in the sales price at the 380 sales tax is implemented no problem and then we got the elp one of our faves one of our best sellers the epiphone les paul we're going to have eight of those that we're going to sell at 500 each that comes out to 4 000 so that we got a total down here of the four three eight zero they're all subject to the sales tax notice sometimes i have to kind of click down here to to get the sales tax to calculate so just be aware of that you might have to click and again if you're zoomed in then it's messing stuff up i'm at one two five and it's working well it's working well they're getting a lot better at it but if it's messing stuff up you gotta log out and go back into it and it should be good okay so what so now i'm gonna i'm gonna adjust the sales tax for my generic problem to five percent why because generic problem that's why generic problem five percent so i'm just gonna change it to five percent here that'll be uh 219 confirm and then it's going to ask me why because i said so quickbooks that's why and then we're going to say close it okay so there it is so then what's going to happen well it's an invoice so the accounts receivable it's good to think through this as you enter the data input form so you can kind of get an understanding of not just the data input but what's the impact in the financial statement that typically gives you more value within a company allows you then to fix problems when problems happen that are a bit more complex so we're going to say okay accounts receivable is going to go up by the 45.99 including the sales tax the other side is going to go to revenue of the 4380 not including the sales tax the difference of the sales tax the 219 is going to go to not an income statement account but a balance sheet account a payable that we're going to have to pay to the government the sales tax payable which they put in terms of the name of the vendor for some reason we also know that the inventory is going to be going down by an amount that's not on the actual form here and the cost of goods sold is going to be going up but the form knows about this or quickbooks knows about it because of the items and the way that we have set up the items the sub ledgers will also be affected with regards to the accounts receivable breaking it out by who owes us the money as well as the inventory breaking it out by unit as well as cost so let's go down and then save it and close it check that out this time we'll do it the faster way by going to the trusty trial balance over here which is basically the balance sheet on top of the income statement it's like this tab way over like the third to last tab i got a lot of tabs you got kind of a lot of tabs open it's hard to it's hard to tell what's going on but that's okay here we go accounts receivable the twenty thousand five hundred if i drill down on that then we've got invoice number two there's the four five nine nine for jones guitars right there drilling down on it that's the total amount at the bottom the bottom line including the sales tax on the invoice so that we're gonna close that out the four seven that's going to be hold on a second that was the full amount there right let's go back into it one more time the four five nine nine at the bottom line the four five nine nine it adjusted the sales tax again it tried to change my override i think but four five nine nine save it and close it and that's what it should be so be careful of that if it tries to change your change your override and you're working with the practice problem and then i'm going to go back up top and go back then and then the other side is going to be on the income statement which is on the same form because we're in the trustee trial balance so the balance sheet stops down here in the equity area and then we've got the income statement line right there so we can go right into it and then scroll down we're looking on here and put it in two separate line items because those are the two line items on the income statement going into it let's see if it does that funny thing trying to mess up my it does it did it again does it save but it doesn't save it so it tries to change it like automatically when i go in there but i'm not saving the change so then i'm just going to close out but anyways that's at the 4380 so that is good and then i'm going to go back up top and say the difference is going to be in the sales tax so the sales tax table is in the liability area so we got assets and then liabilities and then this thing that's who we pay it's in there so if i go into that one we've got the sales tax payable that it broke out into the three line items here which i if i drill down on it it's going to try to change it but don't let it do it don't let it fool you so if i go down it tries to change it but it doesn't save it so if i go in here i said i told you thing i told you that i overrode this to five percent why because i said so and then close it so that's going to be an irritation in our practice problem but there's the 219 on the sales tax i'm going to close that out i don't think it's saving it if you if you change it or not when you drill down on it and then i'm going to go back on over and the next item is going to be in the inventory inventory goes down assets going down drilling down on that one holding control scrolling down a little bit so we can see it this was invoice number two or 1002 got two line items here those amounts are not actually going to be on the invoice because the invoice is only showing the sales price not the cost but that amount is known by the items in the invoice so we're going to close that back out the other side of that scrolling back up is on the income statement and the cost of the goods that are sold cost a good sold down below here it is it's going to be in there scrolling into that one and there we have there we have that those items as well going back up top going back up top and back then to our trial balance let's also check the sub ledger for accounts receivable is now at the 28 720 150. if i go to the tab to the right uh that's is this the right one yeah customer balance summary let's make sure it's been run it run it again and so this one was for jones jones here it is there it is the totals adding up to that 28 uh 7 21.50 that should tie out to the trial balance there it is inventory let's check that to the sub ledger report going to the right sub ledger report we have currently if we run it again let's make sure it's fresh make sure it's fresh 40 you got to squeeze the fruit and see if it indents or something i don't know how to do that i'm not i but anyways forty thousand six seven six going back then we've got the forty thousand six seven six so that looks good if i was to go to the income statement notice the impact on the income statement if we refresh this report running it is the income that we sold it for that's the amount we often see as the sales price when we ring something up say at the grocery store but the perpetual inventory system is also recording the cost so the net impact is is going to be the difference between the two for the two invoices we have now processed 1566 in this case if we go back to the first tab also note that you can track this information and we expect to be paid in the future and you might track it in the business overview area which if you were in the accounting view would be under the sales and customers if you're in this view you would be in the i'm sorry not the business overview the get paid and paid area and the customers and then you can go into jones guitars and you can see now we've got these invoices from jones guitars here you also might want to just search for your open invoices which is no longer in the same area in the business view but rather in the bookkeeping area down here and in the transactions up top and you would then go to the sales transactions and then i can sort by the open invoices scrolling down and saying let's go down and filter the transactions by invoices and possibly the open ones are the ones i'd be concerned with and there's our invoices these are the three beginning balance invoices that were put in place and the two that we just made here if you were in the other view the accounting view that same area is located under the sales tab next to like the customer center you can kind of think of it as and then the transactions are here so they're they're in the same they're both there under both views but it's just words quickbooks you know they're a b test and what people like i think that's so so that's good for them good for them so we're going to go back on over to the trial balance this is where we stand at this point in time if your numbers if you're working along with us and your numbers line up great if they don't try changing the date range because it's often a date issue and then you can drill down if there's any problems to the source documents to see if you can better assess the problem and then at the end of each of these sections we'll try to go into the transaction detail list which is another way we can kind of diagnose any differences