QuickBooks Pro Online Intermediate (2023): Special Cases

Name: QuickBooks Pro Online Intermediate (2023): Special Cases
Author: Takeisha Strong

Learn how to handle special business cases using QuickBooks Online

Preview the first lesson free — get full access to all 5 lessons.

Course: On-Demand

Hello, my name is Tequisha Strong. In these lessons, you will learn to manage special cases using your QBO file. You'll learn the difference between voiding and writing off invoices, how to manually enter bank activity independent of a bank integration, learn how to handle batch actions for customers, how to add finance charges to your transactions, and how to make products and services inactive. We'll be using our sample company Kreg's Design and Landscaping for the lesson. Let's get started. You'll only want to completely void an invoice if your customer did not receive the products or services that your company has built them for. If the customer received a portion of the products or services or made a partial payment, your company may decide to void a portion of the invoice by providing the customer with a credit memo. Finally, for invoices that are older and the company does not believe the customer will make payment, the company may choose to write off those invoices. Let's take a look at how to process each. Select Get Paid and Pay, then Invoices. For our first example, we'll assume that this invoice to cookies by Kathy did not deliver the products or services noted in the invoice. There are three ways to void the invoice. Using the drop-down menu at the far right, you can select void, you can select the invoice number to view the invoice. Under More Actions at the bottom left, you can select void, or you can open the invoice by pressing Edit Invoice. This allows you to view the details of the invoice to make sure that it's something that you'd like to completely void. After confirming the customer did not receive the products or services listed, you can select more at the bottom, and void the invoice. QuickBooks asks if you're sure you want to void the entire transaction, and you can select Yes. The transaction has then been successfully voided. Typically, invoices are used with companies that have an accrual basis of accounting. Avoiding this transaction will reduce the company's revenue by the amount of the invoice, and also remove the accounts receivable noted for that customer by the same amount. Select OK to continue. Let's take a look at John Melton's invoice, where he's partially paid and still has a balanced due of $450. In this case, let's assume we want to void the remaining $450 by issuing the customer a credit memo. The first thing we'll want to do is take a look at the invoice. When reviewing an invoice and you'd like to provide the customer with the credit memo, it's very important to note where the original invoice is billing, products, or services. When you provide the customer with a credit memo, you'll want to make sure that you're including that same product or service on the credit memo that was issued on the original invoice. In this case, the invoice was for a custom design service for a total of 10 hours at a rate of $75 per hour. We'll be issuing a credit memo for $450. Credit memos cannot be issued directly from the invoice form, so we'll need to visit the customer screen in order to initiate a credit memo. Let's select close and go to our customer list. We'll scroll down to John Melton. Let's take a look at John Melton's customer list. The customer list shows the original invoice of $750. It knows that it's partially paid with the $450 balance due, and we also have the payment for $300. Now, before creating a credit memo, you have two options. You can manually apply the credit memo to an open invoice, or you can have QuickBooks automatically apply the credit memo for you. Let's take a look at how to do so. Choose the gear icon at the top right hand of your screen. Under your company, select Account and Settings. On the left side, we'll scroll down to Advanced. In Automation, you'll see the second option says Automatically Apply Credits. It's currently toggled to Off. Let's select the pencil and half QuickBooks automatically apply the credits and select Save. Then done. Now that we're back on the customer screen to initiate a credit memo from the top right, select the drop-down menu, and then credit memo. This is where you would need to know the product or service you're providing the credit for. The customer's information is automatically populated along with the credit memo date. We know that the original invoice was for custom design services, so we'll select that from the drop-down menu. We're looking to give the customer a credit for six hours at a rate of $75 for a total of $450. Near the top, you'll note that the credit memo's description is Amount to Refund. Even though the customer has not paid, the credit memo will function the same. If you were looking to refund the customer, you could apply a credit memo. Or in our example, when we're looking to void a portion of the invoice, we can do the same. Let's select Save and Close. You'll see now since we've had QBO to automatically apply the credit memo, our invoice has now been closed. Taking a look at John Milton's screen, we can see the original invoice for $750. The payment we received from the customer for $300. The credit memo we created for $450. And the automatic closure from QuickBooks to apply the credit to the invoice and close the entire transaction, leaving the customer with a zero open balance. Now let's take a look at how to write off invoices. Open the Accountant Tool Briefcase at the top of your screen. Under Tools, select Write Off Invoices. There are three ways to filter the invoices you'd like to write off. You can go by invoice age, such as invoices over 120 days, over 180 days, in a certain accounting period, for example, the previous accounting period, or you can specify a custom date range. You can enter the date for that custom date range, and you can also look at balances less than a certain amount. For example, invoices aged over 180 days, with a balance less than $10, based on your company's policy. We have one invoice within a date range that we've selected, and we'll choose to write this off, because we do not expect to receive the $85 payment from this customer. Select Write Off to continue. In this example, correct design and landscaping uses an uncollectable GL account under discounts and refunds given to write off bad debts. Let's choose the account from the drop-down menu. We'll select Apply, and QuickBooks has completed the transaction for us. Similar to voiding an invoice, QuickBooks reduces the revenue by applying the amount to the uncollectable account's GL account that we chose, and QuickBooks will also remove that amount from the customer's account's receivable balance. In the next lesson, we'll learn how to manually enter bank activity independent of a bank integration. Thanks for watching.

Intermediate Provider : Takeisha Strong 5 Lessons · 31m in English

Course Description

Not all banks or credit card companies have the functionality to integrate with QuickBooks Online to enter company activity into the file automatically. Because of this, it’s important to know how to enter your company’s bank or credit card activity manually without an integration. There are also times when certain actions must be completed for several customers. In these instances, you can use batch actions for customer transactions and reporting. It’s also essential to know how to add finance charges, make products and services inactive, and identify inefficiencies.

In this course, you will learn how to manage certain situations that are common to all entities. You will learn to void or write off an invoice, enter bank activity manually without a bank integration, add finance charges to a customer’s invoice, and make the company’s products or services inactive. By the end of this course, you will be able to identify efficiencies within the QBO file to help business operations.

What You'll Learn

Create bank transactions manually without a bank integration
Void or write off an invoice
Add finance charges to a customer's invoice
Use batch actions for customer transactions and reporting
Make the company's products or services inactive
Identify efficiencies within the QBO file to support business operations

Key Takeaways

Not all banks or credit card companies can integrate with QuickBooks Online, so company bank or credit card activity sometimes must be entered manually.
Batch actions can be used for customer transactions and reporting when certain actions must be completed for several customers.
Managing invoices includes voiding or writing off an invoice and adding finance charges to a customer's invoice.
Making products and services inactive and identifying inefficiencies are part of managing the QBO file.
By the end of the course, learners can identify efficiencies within the QBO file to help business operations.

Frequently Asked Questions

What does this course cover?

It covers managing situations common to all entities in QuickBooks Online: voiding or writing off an invoice, manually entering bank activity without a bank integration, adding finance charges to a customer's invoice, using batch actions for customers, and making products or services inactive.

Why would I need to enter bank activity manually?

Not all banks or credit card companies have the functionality to integrate with QuickBooks Online to enter company activity automatically, so it's important to know how to enter bank or credit card activity manually without an integration.

What skills will I gain from this course?

The course develops skills in Business Operations and Competency Assessment, and by the end you will be able to identify efficiencies within the QBO file to help business operations.

What topics are taught in the lessons?

The lessons cover Voiding Invoices, Manually Entering Bank Activity, Batch Actions for Customers, Adding Finance Charges, and Inactive Products and Services.