Access Your Sample Vendor Invoice PDF for Accounting Effortlessly

Sample vendor invoice pdf for Accounting

only mode hello everyone and Welcome to our webinar today on vendor invoices my name is Brad and I'll be hosting the webinar today as always if you feel need to uh leave the webinar early or you have missed any of our webinars in the past you can always go to our brand new help center knowledge. designman manager.com right here where you can easily access all of our previously recorded webinars and review them at your leisure if you have any questions today during the webinar feel free to input them into your questions p panel on your we goto webinar pane along side of your computer if it's a question that doesn't pertain to vendor invoices or outside of the scope of our discussion today feel free to email them to support design manager.com so let's go ahead and get started today we're going to be discussing entering one of the most important if not the most important transactions for your vendors the vendor invoices for completed goods and services the other prominent vendor transactions vendor deposits which are prepayments to the vendor necessary for them to begin uh processing an order or progress Pac progress payments as the order is being placed and operating expenses which are used to record General company expenditure such as rent or mortgage payments phone and internet Etc will both be discussed under separate webinars to give each type of transaction the proper attention as usual we're going to be uh using examples in both design manager and design manager professional and if you'd like to see a function in one platform or the other feel free to input that into the questions Pane and I'll be happy to do so at a stopping period so vendor invoices in acral accounting which is the recommended accounting model for interior design firms and the model that design manager employs invoices both the invoice you generate for your client and the ones you receive from your vendor are the force that powers the whole accounting model the vendor invoice or the bill you receive from the vendor for goods and services requested via purchase order are the transactions that ultimately record the cost of the purchase products into your Company accounting the vendor invoice is also the physical phys schal and conceptual representation of the transfer of ownership of the goods from the vendor to your company let's take a brief moment to explore the accounting Concepts behind the vendor invoice when we have a vendor invoice for goods on a purchase order by default The Goods the cost of these Goods first go in to the workin process asset account if we look at our account glossery here's our chart of accounts we can see we have our work in process asset account it's an asset because technically our company owns or possesses those goods and services likewise the company information window on our other account tab you can actually Define what account you would like to use for your working process account if it is something other than the one uh the design manager comes preconfigured with in this case the 17100 work in process account the activity of that work in process account is also monitored on the work in process report as we can see these are the goods merchandise in this case free in the case above that I have recorded the bills uh from the vendor but I have not yet invoiced my client the cost of these goods are going to remain on the work in process report and in the work in process account until I do that in fact until I invoice the client for those goods at the moment the client invoice is generated which in turn represents the transfer of ownership of the goods from our company to the client The Goods the cost of the goods move out of working process into the appropriate cost of good sold account which we can actually see on the work in process report well which cost cost of good sold account is used that's determined by the combination of the sales category of the item the component type and the company default cost of good sold accounts let's take a look at um the Hilson project home item five the sofa for example we can see that the sofa is utilized the furniture sales category and my sofa itself is being classified as merchandise as the component type if I look at my furniture sales category I can see that the merchandise cost of good sold account is indeed going to be my 51900 furniture account which is precisely what's listed on the report so I can see exactly what account I will be processing the activity into um upon invoicing the client for the sofa if I did not have a sales category associated with my item if I in turn left that blank design manager then defaults back to the company settings to determine what uh C cost of good sold account to use if we look at our company settings cost of good sold accounts there's a default account for each of our component types and my merchandise is also set to the 51900 furniture cost of good sold account in this case as well but I always have a backup or a a default to rely upon to determine what cost of a good Sol account I should utilize we do have an entire uh webinar on sales categories and how all those accounts are utilized and configured and uh if that is something you would like to review again go to our knowledge. design manager.com and review that sales category webinar okay with all the accounting Preamble behind us let's turn our attention to the mechanics of actually recording or entering vendor invoices of course in a real world scenario we first need to have entered our specifications and made our purchase order prior to recording the bills for those goods and services but as we've had uh we have previously recorded webinars and tutorials from both of those topics let's use some specifications and purchase orders that I've already created uh for our examples today to keep ourselves on schedule let's start with a very simple example first let's go to our documents and accounting go down to our Carter bringer te Beach CH Let's see we have a purchase order from Philip Jeffrey some for some Arrow root fabric let's imagine that we just received the bill and we want to record it so we can remit payment in design manager to record the vendor invoice I could highight the purchase order and hit the vendor invoice button or I can conveniently rightclick and do new invoice or Bill from vendor either way it brings me right to the vendor in inv voice for project po window and as you can see a lot of the information is already recorded for us all we need to do is finalize it I already have my purchase order listed I have my vendor displayed and I ready to enter the invoice number the invoice number is required so if one was not provided by Philip Jeff you could use the purchase order number you could use today's date you could even use a description of the order anything to uniquely identify the bill I'll imagine that we got some random invoice number the invoice date I can search and select today's date upon tabing out notice that my due date is automatically calculated all the way to the 29th for me well if I look at our Philip Jeff's vendor on our defaults tab I can see that I've already configured a payment due date of 25 days so my terms with Philip Jeff are a payment of approximately 3 and a half weeks so by filling it in on my vendor I automatically calculate a due date for the bill and that's very convenient at our checking window I can see my payment due date listed right on the list of bills that I still need a record payment for and I can even tag or automatically select uh a variety of bills based upon the due date so in this case I would select anything uh that is due on or before today you can see I quickly tagged them as well so the due date is a very convenient way to one monitor the bills and make sure you're paying them on time and easily select the ones that are due on a given day the transaction description entirely optional if you've uh attended one of our webinars in the past you know that I am a a strong supporter of them as I find them to be a invaluable tool when I go to review information that I may have recorded uh months or even years prior and it could be something as simple as final bill for Arrow Route now all the qualitative information for the bill is entered so we're going to turn our attention to ensuring that the cost information on the merchandise and Services themselves precisely ma match what the vendor has charged we'll review this information using the purchase order component grid and the vendor invoice totals in the bottom right corner let's take a look at our purchase order components grid we have the reference number within the project the type merchandise Freight Etc brief description manufacturer's catalog number if one was entered the purchase order quantity the purchase order cost the cost to date this is going to list any uh the sum of all vendor invoices that I may have recorded in the past for this particular fabric so if I received a partial Bill Etc any vendor invoices uh the cost of all vendor invoices previously recorded would appear right in my cost to dat field I even have some receiving information shown and now I'm being displayed what design manager assumes will be recorded on this bill and it always defaults uh the full purchase order quantity and uh and cost on invoice basically the PO cost less any cost to date will be the cost on invoice my first reaction when I'm recording a vendor invoice is to look at the totals themselves if the total does not equal the amount on the actual invoice from the vendor we must make the appropriate changes on the vendor invoice window to make the amounts match let's imagine that the actual bill from Philip Jeff is showing a total of I don't know 445 as the cost for both as the cost because both the fabric and the freight came in a little higher than anticipated I need to reflect that on my vendor invoice window and doing so is quite easy first I want to change the cost on my on my fabric I simply have it highlighted on my purchase order component grid and I use the edit Button as indicated by the pencil to bring me to the vendor invoice distribution window and now I simply need to change the merchandise cost appropriately and let's say it's an even 420 if I click okay the cost on invoice increases appropriately let's say the freight came in a little higher as well at $25 exact same methodology edit the freight change the amount hit okay and my cost on invoice is reflecting that change further my totals are now matching with the vendor um what Philip Jeff has charged me identically and as they are we're almost done entering our vendor invoice all we need to do now is to indicate how we are how we are planning to pay uh or if payment was already processed how we did pay we do so with the pay with menu we always have the option to pay via check to write a check for Philip Jeff it's the default manner but I could also select any credit card accounts that I may have configured if we look at our charted accounts again under our liabilities we can see a very special type of liability for our American Express called liability credit card I can create an account for each credit card account that I may have a a uh credit with select the specialized liability credit card type associate the vendor who with I will eventually have to repay and I can even optionally record the credit card number uh just for my use only for each of those special liability credit card types you'll have an option on your pay with to utilize them when pay with check is selected also notice that the pay now button is enabled so I can use the pay now button to indicate any payments that I may have used uh via handwritten check if I didn't have time to want to process a computer check through design manager if I did a wire transfer or I used my um my banking institution's automated bill pay or if I used an ATM or debit card I can record all those types of payments with the uh invoice payment window and simply indicate the date the payment occurred and from which account uh I've have I've reduced those funds but in our case let's actually process a check for Philip Jeff so to click okay and now we can see we have an invoice listed underneath our purchase order that's our invoice number our convenient transaction description the date and the total amount we go to our checking window on our pay bills print checks lo and behold we see our Philip Jeff vendor invoice waiting for us to generate a check let's take a look at what happened behind the scenes briefly let's pop over to our transaction search window where we can see a lot of the accounting that transpired with our vendor in go ahead and select vendor invoices enter today there it is notice we have a credit or increase to our accounts payable by the full 445 and we also have the cost of the fabric itself and the freight resting or residing in our work in process account if we look at our work in process report we can see those costs listed there as well and if we look under Carter's bringer tetine beach home there is our $420 for the aror route and for the freight resting in our work and process account until we invoice the Carters when the cost will then move out uh for the wall treatment into pardon me the error rote into wall treatment account and the freight into the freight cost of good sold account our accounts pay report is a listing of all of our unpaid vendor invoice operating expenses vendor deposits notice four entries here America's Mattress uh Baker M the tubs FedEx Philip Jeff that matches our checking window precisely so our aged accounts payable report is always an indication or mirroring of the entries on our pay bills print check tab of our checking window let's go ahead and generate a check for Philip Jeff and to do so is quite easy simply tag or select it and hit the checks button in the bottom of the checking window if you have multiple checking accounts or banking institution accounts select the appropriate one on the checking account menu I simply have a single cash checking account when I select it does design manager grabs the next available check num for me and allows us to then go to the print checks window where I could physically print my check position my check form onto my printer I man gets all of its um pre-printed forms through a company called New England business supply or nebs and you can contact them or contact us to get the information if we hit the okay button I'm going to generate a print preview of the check form itself and I'm utilizing the middle check form where the check would actually print in the middle of the check document with a stub on the bottom and on the top one for me and one for Philip Jeff and i' print this actually on to the check once everything prints out successfully I'm ready to go I simply close accept the check run and our entry for Philip Jeff now drops off our paybill print checks and is listed in the checkbook very simple procedure and it's a quick summation of how we process checks and design manager as well and if we look back at our accounts payable report we can see that indeed our Philip Jeffrey entry is gone from here as well very simple first run of a vendor invoice so let's start throwing in some more complexities into the scenarios let's take another example that has just a small twist and let's use a purchase order that already has a vendor deposit recorded against it as the vendor required some initial funds prior to processing the order let's hop over to the professional platform and let's go ahead and say we have a purchase order for one of our Carter projects again from Philip Jeff from uh some hemp uh wall coverings notice that I've already sent a deposit of $360 paid to my American Express and I'm expecting to have a balance due uh on uh the invoice from Philip Jeff of $400 in professional all of the uh payables vendor invoices operating expenses deposits Etc all go through under accounting bills and invoices sort of One-Stop shopping for all of our vendor transaction uh entry here make this a little larger we go down to the add button and simply indicate what type of Bill are we paying and here all of our Selections in our case we're doing a invoice on Project purchase order input the appropriate Po and I could search for it off my purchase order uh uh glossery search and there it is and select I could of course type it in manually as well and just like in design manager vast majority of the work is already done for me I've got my vendor displayed got the purchase order displayed invoice number it's of course uh required go ahead and pop one in here invoice date today's date again is fine due date appropriately updates transaction description final bill hemp all covering again any cost changes updates installation charges Etc can all be entered using our purchase order uh component grid let's say that the costs for both the uh Fabric and the freight are exactly correct but notice that I'm applying a deposit in my totals region now I'm reflecting that $360 that we saw on our purchase order window if I had a reduction in cost or if I had uh the freight for example was not being included on the purchase order I always want to ensure just like the cost themselves that I'm applying or utilizing the exact amount of deposit as well again the concept here being make sure that the costs of the goods and services and just as importantly the totals themselves match the bill in our hand precisely in this case let's say that we pay Philip Jeff with our American Express upon selecting American Express notice our pay with hand check wire transfer button is disabled of course since we are indic or paying via American Express another handy feature all of our information is correct I'm ready to save our a vendor invoice if I have a stack of vendor invoices that I want to enter rapidly rather than just clicking okay and then clicking add again to create a new one I can use the Okay add function which would save our current vendor invoice but also leave the vendor invoice window up for me so I can rapidly enter bills so now I can select another purchase order to record the bill Etc we can see the one that I have recorded is listed on our new tab waiting for review and posting in professional we always have to enter our bills and then post them as well do you wish to post purchases into 12 2014 indeed we do and upon selecting yes we drop off the new tab that are now being displayed in our existing tab which lists all of our vendor payables that we've entered for history and from here I can make edits in case I have an error in my cost or uh invoice number Etc or I can even void the vender invoice if necessary and even view some accounting details I can see which accounts I affected again we're hitting work in process we are alleviating or reducing our vendor deposit account and we're putting $400 onto our American Express account if we look at our reports we can also see our work in process and there is our hemp walk covering and our freight again residing and work in process until we do indeed invoice the client and lastly since we paid via credit card if we look at our pay print tab of our checkbook we don't have an entry for Philip Jeff why we are now listed immediately on our credit card tab so we never we never go through accounts a payable r rather that liability goes directly onto the credit card account uh 20 uh 2100 for our American Express so similar uh concept all we're doing in this case is showing how the vendor deposit can get utilized and manipulated appropriately when recording our vendor invoice so now let's really get a little bit more complicated in a much more uh real world scenario let's move on to an example where we force to bill for only a portion of the order which is commonly the case let's jump back over to design manager and let's say that we have looking at our Pennington home purchase orders we have purchase order for kravit that we've only received um the hardware for this window treatment not uh uh not the fabric itself so if I rightclick and do new invoice or I could use the vendor invoice button either way again we go right to our vendor invoice for project purchase order window and I've got lots and lots of entries on this purchase order for Kit tons of fabric uh tons of freight tons of Hardware but in our example let's say that uh we only got the bill originally for uh the fabri part me for the hardware itself so we'll use let's go ahead and use the purchase order number as the invoice number for our example today dat is just fine transaction description final bill for window treatment Hardware now I'm looking at my subtotals right away in amount due and this is much higher than the bill that I've actually received because I'm only receiving a bill for the hardware as it shipped first so I need to remove the costs from all of the components that I'm not receiving the bill for yet still have the costs up for the hardware the quickest and most convenient way is to use the clear cost button with a little broom icon on there if I click it I'll first be warned are you sure you wish to call clear all the amounts for the items on the grid yes and notice that our Kon invoice column drops to zero for all of our components and I can then simply put back the cost for the hardware so I'll go ahead and put in $72 for the brackets 46 for the 46 for the knobs and oops 45 for the pole and as I do notice that our subtotal increases appropriately lastly notice that on our vendor invoice window there's an optional tracking information here as well the tracking information can be reviewed and entered as frequently the user who's entering the vendor invoices receives the shipments or at least knows the shipments have been received so they have the ability to both monitor the a tracking information and even enter it themselves now now that my subtotal and amount due of 163 match the um the vender the bill from krabit precisely I'm ready to proceed go ahead click okay and there is our vendor invoice recorded and awaiting payment let's say that a few days pass the fabric actually ships and some of the freight and another comes in from krabit well you can enter as many vendor invoices as necessary on a purchase order to complete the order with the vendor so I can simply add another vendor invoice and notice for our Hardware our cost to date is indicated already so our cost on invoice is zero in all of the cases so now all recording of the cost for the Goods that we have not yet recorded a vendor invoice for and if we go ahead and do so final bill for fabric Freight and click okay ah design manager is warning us it's saying this invoice deposit was previously entered on 124 etc etc why is that arising I have intentionally used the same invoice number uh as I did when I recorded the um the hardware design manager will always warn you if an invoice number for a particular vendor has already been entered to ensure that you're not entering in duplicate invoices so if you know that you're not in this case I do I can simply click okay to proceed if I'm not sure that I've entered for I can hit cancel and review my work and there is our second invoice for our kravit Fabric and hardware for the window treatment so as you can see as many vendor invoices as necessary can be recorded for a particular uh purchase order in order to complete uh the transactions with the vendor let's consider now the addition of secondary charges such as frame shipping or installation that may accompany a purchase order in all of our previous examples I included Freight on the purchase order but this most certainly does not have to be the case you may simply make the purchase order for the merchandise and uh choose to record the freight um as it comes in on the bills from the vendors at a much later date let's hop over to the professional platform and take a look at some of these examples let's take a look at our purchase orders for our Pennington home and let's review purchase order four again on the professional platform in this case I have no frame with all of my uh Fabric and Hardware so when I go to record the invoice bills and invoices add click I for invoice for project po again I could search if I wanted to or I could type in the purchase order directly quite conveniently and here's all of my information so if I received the bill from kravit and uh all of the uh charges for the cost of all the fabric and Hardware are listed but I may also have some Freight charges as well how can I enter those let's get our invoice number in today's date final bill for window treatment materials if krabit has uh broken out the freight on each of the pieces uh of the fabric and Hardware I could certainly enter in each one by highlighting and entering in the charged Freight amount as such notice that my cost un invoice increased by the $21 appropriately that would be quite handy but more commonly I may get a simple Freight total for all of um the pieces on this purchase order let's say that um all the freight came to $80 well I could manually go in and split it up for each of the items or I can lump all of the freight onto one of the components but design manager also has a feature that allows me to distribute that Freight so I could click on our distribute cost button I could input our $80 what is the uh cost for what is the charge for is it Freight creating installation Etc use Freight in our example I don't have any Freight listed but I could add it to any Freight or I could replace the freight that's being shown and how do I want to distribute it do I want it evenly when where it would take the $80 and uh take a portion for each of our uh nine components or could I weight it against something or proportionally distribute it so let's say that I'm going to proportionally distribute it or weight it against the merchandise cost so if we go ahead and hit okay notice that our cost on invoice increases and each component now has has an additional proportional freight charge for us so a very very handy way to distribute a single freight charge against uh multiple components on the purchase order one other point to notice on our vendor invoice window for krabit is I'm showing a discount amount and a days to take that discount I look at the cravit vendor on my defaults I can see that I have a discount percentage of 2% if I pay via check within 15 days um some vendors still certainly do that these days they'd rather pay uh get your money via check than uh put it on a credit card so they might give you a a little bit of a percentage off um so they'd rather take 2% off than lose 4% to to American Express so that can be input into your vendor paye and design manager will automatically calculate that amount when we're entering in the vendor invoice taking a step further on our company information window there is even a vendor discount account that I can configure and uh have Associated on our other account Tab and this is a cost of goods sold account which will actually um be stored as a negative value indicating that my costs are coming in less because of my discount let's see how that works so if we go ahead click okay for our vendor invoice go ahead and post and drop off our new tab and go to our existing tab there it is listed nicely now it's awaiting us on our checking window pay print Tab and there it is and if I generate the check within the 15 days so basically the check date is less than uh today's date or the invoice date plus the 15 days in other words by the 19th in this case I'm going to receive a discount you can see do design managers listing that discount right on our uh uh checking window and we can see our check amount is for 84427 when the original amount was 86150 so design manager is automatically applying that discount for me and you can actually enter in that discount yourself right through the checking window if the vendor is giving you um a particular uh discount for easy order or they're applying um a credit or a promotion you can use that manually as well when we accept the check let's take a look the accounting behind that transaction we'll look at our dispersements or checks for today you can see we are alleviating or uh debiting our accounts payable we're crediting or reducing our cash but we're also crediting or reducing this vendor deposit account so by cost of goods sold uh for the entire company is going down and that yields to a corresponding increase in my net income so we just went through several of the most common scenarios in Vendor invoicing and vendor invoicing really is the driving force behind recording all of our companies cost of could sold and recording them properly is fundamentally important to keeping proper and accurate accounting most of the scenarios we went through are very very common I also tried to review some of the more underutilized features as well to ensure that um we're not missing any of the Hidden tips and tricks within the process so stay tuned for additional webinars on the other transactions vendor deposits and operating expenses and again feel free to peruse all the recorded webinars at knowledge. design manager.com as they're always out there for your uh convenience and your reviewing pleasure and as there are no uh final questions I'm going to thank everyone for joining our webinar today I hope to hear I hope to see you again uh on future webinars and I wish everyone a wonderful afternoon thank you and have a great day