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.

Where is my discount button?

This week I received few support calls on Discount Info button missing in both the Receive Payments and Pay Bills form in QuickBooks 2009/10 Asia edition.

For QuickBooks user who uses version 6 or 8, they are use to a Discount Info button in either the Receive Payment or Pay Bills form. Discount Info feature allows user to give or receive a discount upon recording a payment received from customer or paying a bill to a supplier. This is a “convenient” way of providing discount.

However, since QuickBooks 2002 (Asia edition), Reckon has removed this feature off from Receive Payments, and since QuickBooks 2003 (Asia edition), Reckon has further removed the Discount Info feature off from Pay Bills. 

Am not sure why Reckon removed this feature from Asia version. However, you still able to provide a discount to your customer after invoice was created via General Journal, Credit Note or at depositing Undeposited Fund.

Easier method is to use depositing of Undeposited Fund feature.  

Example:

Invoice to ABC co: $1,000.00. You give them a 5% off when they make payment to you within 30 days payment term. Thus, amount received from ABC co. is $950.00 and $50.00 will post into Discount Allow account.

In Receive Payment form, you record the full amount, which is $1,000.00 from ABC co into the Undeposited Fund account. This will clear your Accounts Receivable account for ABC co.

Then, in Make Deposit, you select your transaction ($1,000.00 received from ABC co) and proceed to next screen. In the following screen, select your Bank account to deposit this amount and add an extra line below of your $1,000.00 received:

    From Account: Discount Allowed account

    Amount: -50.00

You need to have a negative symbol in front of your $50.00 discount amount and the total deposit into your bank will be $950.00

From your Profit and Loss report, you can see the Sales remained as $1,000.00 with a discount of $50.00 in Discount Allowed account. As for Balance Sheet, Cash at Bank account will record as $950.00.

You can apply this method for either discount given to customer or Bank Service Charge from TT received. This is an easier method comparing using a General Journal or a Credit Note.

Join my QuickBooks training class to have a better understanding on how you can use QuickBooks for your business.

How to record a TT Charges into QuickBooks?

When customer makes payment to you via Bank TT, the Bank deducted a TT Charges from the payment. Thus, the physical amount received will be lesser than the invoiced amount.

How to record this TT Charges (Bank Service Charge expense account) into QuickBooks?

There are a few methods of recording this TT Charges.

Example: 

You invoiced your customer $1,000.00

Customer make a payment of $1,000.00 via TT.

Bank deducted a TT Charge of $20.00

Amount deposited into the Bank is $980.00 ($1,000.00 - $20.00).

By Make a General Journal Entry method.

During Receive Payment from Customer, you can receive as $1,000.00. Then, created a General Journal to Debiting TT Charge expense account $20.00 and Crediting Bank account $20.00.

During your Bank Reconciliation you will see $1,000.00 in your Deposit page and $20.00 in your Payment page. You need to select both during your bank reconciliation.

By Write Cheque method.

This method is similar to Make General Journal method; the different is that you use a Write Cheque instead of recording a General Journal.

In the Write Cheque form, the payee will be the Bank (Supplier name), the account use will be the TT Charge expense account and the amount will be $20.00.

During Bank Reconciliation, like the above Make General Journal method, you are required to select both $1,000.00 from the Deposit page and $20.00 from the Payment page.

By Undeposited Fund method.

This method is a better method comparing to the above two methods. You receive payment from customer as $1,000.00 (full amount) into the Undeposited Fund account (for QuickBooks 2007/08 and above, you select ‘Group with other undeposited fund account’ radio button.

Then, select Make Deposit from Banking menu; you will see the amount received from customer ($1,000.00). Select this $1,000.00 received from the customer and click the Next button to continue with the next page.

In the following page, add an extra line item below this $1,000.00 received from customer. In the ‘Receive From’ field (optional), select Bank (Supplier name), and the ‘From Account’ field select TT Charges (expenses account) and enter ‘-$20.00’ in the amount field.

In this case, $980.00 ($1,000.00 - $20.00) will be debited into the Bank. In your Profit and Loss report, you should see a $20.00 in TT Charge expense account. Besides, in Bank Reconciliation you will only see $980.00 under the deposit page.