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Quickbooks estimate template for Research and Development

we're going to go through a high level overview  of sales transactions so estimates sales orders   invoices and sales receipts now if you don't see  one of these on your screen on your home screen   here and you feel like you do need to enable  them we can go up to edit and preferences and   then to desktop view and company preferences  and see i can enable sales receipts here   and if i want to turn on estimates if i click  there it'll take me down to jobs and estimates or   sales orders i can click there  and i can enable sales orders   okay so just a high level overview starting  off with a quote or an estimate this is just   what it sounds like we're getting information  to the customer so they can make a decision   okay this is a non-posting transaction  it does not affect your financials at all   it does not affect your inventory at all okay  however an estimate is a budget for your job   so quickbooks does have budgets right planning  and budgeting we can set up budgets when you   set up budgets at the customer level here you're  setting up budgets at the general ledger level   so you could say set up a budget for customer one  two three but when you set it up it's setting it   up based on your chart of accounts okay on an  estimate we can set it up still at the customer   level let me expand still at the customer level  but i can do it at the task level okay so i can   say how much weld work do i expect us to do how  much in inventory parts do we expect us to use   okay so it creates when we create this estimate  we now have a report that is our estimates versus   actuals so again it's kind of like a budget for  a job that we're working or for a customer okay now we have a lot of customers who actually create  their estimates and outside systems they have a   cad system or some kind of quoting estimating  system right because it's design and dimensions   and all sorts of intricate extra things that  quickbooks won't do but they still will put the   estimate into quickbooks because they want to be  able to run those estimate versus actual reports so you should plan to use estimates if you quote  your customer before they move forward or if   you're trying to set up some budget at the task  level for your jobs estimates are not required   you do not have to start here you can just go  right into invoices or go right into sales orders   okay a lot of our customers don't use estimates at  all so if you have an online web store that people   purchase through or all of your customers have  price lists then they don't need an estimate they   already you know the price list is their quote  so they're just calling you when they're ready to   order okay and when they're ready to proceed not  just when they're trying to get pricing so when   they're ready to proceed and we haven't shipped  it yet that's where we move into a sales order   all right in a sales order this is unique to  quickbooks desktop so quickbooks online does   not have a sales order step in there currently  maybe they will in the future but a sales order   looks just like any other sales transaction it  is a non-posting transaction it will not affect   your financials but it does drive demand  for inventory if you are using inventory   so when i explain this to my customers i like  to say a quote or an estimate right that's just   giving information to your customer the sales  order is when the customer commits they're going   to move forward and we internally now have to  do something okay so at the sales order stage   when i put something on a sales order so i'm  going to add some vanity fixtures here bath   vanity fixtures so before i save it if i look at  my quantity available i have negative 54 available   which i need to order right but i'm going to  go ahead and add 100 here and once i save it and i go back and look at my quantity available  now i have negative 154 available it didn't change   my quantity on hand but it did change my quantity  available so a sales order type of transaction   is basically like this is what needs to be filled   okay so this is a commitment from a customer  we have a commitment from a customer they're   going to purchase this now we need to go  fill it okay so it it affects our quantity   available now if you had non-inventory  parts on here or service items or anything   you know they don't hold a quantity available but  it does still right even if it's a non-inventory   part or a service item a sales order still would  function as this needs to be completed okay now again you don't have to do an estimate first  you can go from an estimate to a sales order but   you don't have to you can go just to the  sales order stage so again a lot of our   customers who have online stores we import into  quickbooks the sales order so they can fulfill   but again non-posting does not affect financials  just helps to drive demand for product okay next we have an invoice the invoice is the  first one that we're going to talk about   that is a posted transaction so what does  that mean at the invoice stage that's when   your accounts receivable is affected right  so if your customer owes you money invoice   that's when your sales numbers are affected if  you're using inventory parts your cost of goods   sold and your inventory numbers are affected your  financials are affected so your profit and loss   is affected when you create an invoice as  long as you're on an accrual basis of course   cash basis it affects when they pay you that's  when your financials are affected but on an   accrual basis which most of our customers are on  some sort of modified accrual at the invoice stage   it affects your financials it relieves  inventory so instead of just affecting   quantity available like a sales order it affects  quantity on hand right that inventory is now gone   now again you'd want to create an invoice if  you're planning on allowing customers to buy on   account right because it's going to hit accounts  receivable so if you're just receiving cash   ahead of time probably invoice well invoice may  or may not be the best one to use and the example   of somebody who is coming into your store and  picking product up or you know counter service   sales type of sales a sales receipt is better  because they're paying at the time of purchase   now if we go back to the online sales area  generally when we set up customers with online   sales right they purchase online they pay at  the time of purchase so we receive a payment   and then we also enter a sales order that we  cr you know move to the invoice stage and apply   the payment to the invoice but we still run  those sales through accounts receivable because   they have that prepayment so i want to show it  as a negative accounts receivable since they   paid until we actually shipped the product and  then it clears that negative accounts receivable   okay but again in invoices if they're going to  purchase on account or if you need to function   through an accounts receivable account a sales  receipt so if i again if i look at an invoice   here right it's hitting accounts receivable on a  sales receipt it's different on sales receipt you   can choose to hit a bank account you can choose  to hit a other current asset account so if you had   some kind of undeposited funds or i don't know  some kind of clearing account you know four lane   visa clearing something like that you can use you  don't have to hit accounts receivable basically   you're not hitting accounts receivable it's a  cash type of transaction so payment at the time   that the transaction's happening okay  but besides the payment side right so   everything else one is the same in  regards to a sales receipt and an invoice   so if you're selling an inventory part inventory  goes down cost of goods sold goes up sales goes   up at the time you post your sales receipt the  only difference is right the offset to sales   is accounts receivable on an invoice the  offset to sales on a sales receipt is whatever   account you choose up here generally it's a bank  account or an undeposited funds type of account   okay but everything else functions  the same on a sales receipt now going back to the home screen  here you can see right a sales receipt   comes in our little pathway after the receipt  of payment because they're expecting that you're   receiving payment at the time you're creating the  sales receipt so you don't have to have this step   you just go from sales receipt straight to record  deposits okay so that is a high level overview   on the sales type of transactions in quickbooks  and of course we have more detailed videos to come

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