QuickBooks Asia

Why was Freight Charges included in the Sales report?

When you invoice your customer Freight Charges, you should create it as an Income type of account; it will show in your Sales by Customer report as an item sold to the customer.

Although, some user may create Freight Charges as an expense account (usually for reimbursement of expenses incurred), it will still show in your Sales by Customer report.

Example: you invoice your customer Product A for S$1,000.00 with a Freight Charge of $100.00. The double entry for this case will be:

    Debiting Accounts Receivable account: $1,100.00

    Crediting Sales Income account: $1,000.00

    Crediting Freight Charge Expense (In this case, create as an expense account type):  $100.00

In order to add Freight Charge into Invoice, you have to create Freight Charge as either an Other Charge item or Service item. Hence, it will show in the Sales by Customer report. This is because the Default Filter for Sales by Customer is ‘All Sales Item’.

If you do not want to show the Freight Charges item in your Sales by Customer report, you can filter your report, you can set the Filter for Account to ‘All Ordinary Income accounts’. Refresh your report; you should see the Freight Charges excluded from your Sales by Customer report.

May I have a refund?

It is normal sometime you need to refund customer for goods that rejected or an over charge on goods or services. In QuickBooks, how can you record a refund to customer?

Example:

You invoiced your customer on 10 July 2010 for a service of $749.00. Customer made a payment to you, full amount of $749.00, and you applied it to your invoice in QuickBooks. Then, on 20 July 2010, customer complained about the service and you decided to give them a full refund.

Since payment had already done, so how are you going to record this transaction in QuickBooks and give your customer a full refund?

 

To start, you need to create an Adjustment Note (Credit Note). An Adjustment Note is to create a negative balance in the Accounts Receivable account of this customer and to reduce the Sales account amount from your Profit & Loss report. The double entry will be debiting Sales account and crediting Accounts Receivable account. If you are creating an Adjustment Note for an Inventory item, then, Cost of Goods Sold account and Inventory Assets account will affected by this entry.

Once you created the Adjustment Note click the ‘Use Refund To’ button at the top of the Adjustment Note and select Give a Refund. QuickBooks will display an Issue Refund form for you to record the cheque details. This transaction will debit Accounts Receivable account and crediting Cash at Bank account. 

Hope this is useful to you. To know more about QuickBooks; do sign up my QuickBooks Training Class at www.QB.sg.

Can you give me the Sales by Rep report for this quarter?

    “Jane, can you give me the Sales by Rep report for this quarter?”

    “Sure. But Boss, can you give me few days to prepare?”

    “Why you need few days? I need it later for the Sales Meeting.”

    “Sorry, I can’t. I need to sort them out and prepare it in a Spreadsheet.”

    

Do you have the similar problem?

QuickBooks can help.

You can add your employees, the salesperson, as a Rep. Then, in every invoice; you select the Rep for the case into the Rep field. Next, from either ‘Sales by Rep Detail’ or ‘Sales by Rep Summary’ report, you can view the sales generated by individual salesperson (Rep).

Besides, you can set the default Rep for each customer in the Customer Profile page. When creating invoice for the customer, the Rep for this customer will automatically pulled out into the invoice. This method will reduce the mistake of selecting wrong Rep for the invoice.

How you can invoice customer with multiple branches?

I was in a meeting with a client once; we were discussing how he could use QuickBooks to help him in easing his invoicing process. My client was dealing with household products; his customers were mainly big supermarket that had multiple branches.

Purchasing were usually requested by the branch manager, thus, goods will be deliver to the branch but payment will be issue by the headquarters.

His questions were:

1. How can he create invoices to his client with branches indicated in the Ship To address?
2. How can he send the Statement of Account to his client indicating the amount owing by all the branches?

How you can create invoices to your client who has multiple branches?

Some user may consider editing the Ship To address as and when they created an invoice. This method is usable only when occasionally you need to send goods to a different location. It is impractical if constantly you need to ship goods to a different addresses as editing of Ship To address will be a waste of your time.

Although QuickBooks 2009/10 (Asia) allows you to have multiple Ship To address, this method will not allow you to print a Statement indicating the outstanding by Branches (Ship To address will not be consider in Statement of Account).

There are also user suggest to create multiple customer name. That is, every branch will be a customer name by itself. Again, I do not like to use this method, as I cannot present the amount owing in one single Statement of Account.

A better method to consider will be use the Job function in QuickBooks.

How you can use Job in invoicing?

From the Customer Centre, select your customer name and click the Customer:Job button and select Add Job. In this case, you will be able to add Jobs (Branch name) to the selected customer name (Job will be under the customer name). The Invoice To address usually will be the Headquarters address and the Ship To address you can change it to the branch address.

Next, you select this newly created Job (Branch Name) in your invoice, and add the rest of the items in your invoice.

In your Accounts Receivable report you will be able to see the Jobs owing under the main company name, besides, there is a total owing by this customer shows in the report. This method is good as you can clearly see the total amount owing without manually calculated the total.

Consolidate the amount owing from branches in one single Statement of Accounts.

This method allow you to print the Statement of Accounts with all the branches outstanding together in one single Statement. Instead of giving customer multiple Statement (if you create one branch as one customer name), you can print a neat Statement with all the branches clearly stated the amount outstanding and with a total Ageing for all the branches.

Join my QuickBooks training and you can find out more ways in how you can use QuickBooks for your business.