©2012 Pearson Education, Inc. publishing as Prentice Hall 3-1 QUICKBOOKS 2011: A COMPLETE COURSE CHAPTER 3—LECTURE PAYABLES AND PURCHASES: SERVICE BUSINESS.

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-3 Chapter Focus: Payables and Purchases Record a purchase on account by completing a bill  A bill functions as a replacement for the Purchases Journal  Use a Vendor list for the Accounts Payable Ledger  Balance of the Vendor list will be equal to the balance of Accounts Payable in the Chart of Accounts Record a cash purchase by creating a check or using Petty Cash  Checks function as a replacement of the Cash Disbursements Journal  Petty Cash is used when paying cash for a small item, such as postage due

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-4 Prepare a Bill Record a bill:  Supply Station  Date of 01/18/11  Invoice 1035A  Terms Net 10  Bill is for: a one month rental of a fax machine for $25 fax supplies of $20 that will be used during the month  Memo: Fax Rental and Supplies Click the icon

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-6 Vendor Section of a Bill  Vendor section Used to identify the vendor The date of the transaction Reference number (usually the invoice number from the vendor’s invoice) Amount Due Terms of the transaction Memo

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-7 Complete the Vendor Section of a Bill Complete the Vendor section of the bill  Click the drop-down list arrow for Vendor  Click Supply Station

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-8 Complete the Vendor Section of a Bill Tab to Date and enter the date 01/18/11 Tab to Ref. No. and enter 1035A Tab to Amount Due Enter $45.00

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-9 Add New Terms While Completing the Vendor Section of a Bill Enter Net 10 on the line for Terms Press Tab Click the Set Up button on Terms Not Found

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-10 Add New Terms While Completing the Vendor Section of a Bill Standard should be selected Net due in 10 days Discount information remains 0 Click the OK button

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-12 Detail Section of a Bill The Detail Section of a bill contains  The accounts used  The amount attributable to each account used for the bill

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-13 Complete the Detail Section of a Bill Note that the Expenses tab shows $45.00 as the total amount of expenses in the transaction Click the drop-down list for Account Scroll through the accounts Since the first part of the bill is for a fax rental, click Equipment Rental

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-15 Complete the Detail Section of a Bill Click the drop-down list arrow on the next line down Click Office Supplies Expense as the account  The expense account is used for the transaction because the supplies will be used up during the month  If the supplies were purchased to have on hand, the asset account Office Supplies would be used QuickBooks should automatically enter the amount of $20.00 Tab to Memo and enter Fax Supplies for the Month

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-17 Complete the Bill Terms of Net 10 were added when completing the bill QuickBooks asks if the terms should be used for this vendor Click Yes

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-18 Complete the Bill Look at Recent Transactions in the History section Note that the Bill for 01/18/11 has been added Click Save & New to go to a New Bill

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-19 Add a New Vendor when Entering a Bill A new vendor may be added at the time a bill is recorded One way to do this is to click the drop-down list arrow for Vendor, and click Add New Another way to do this is to type the vendor name, and click Set Up (shown below)

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-20 Add a New Vendor while Entering a Bill The Vendor Name is entered in the New Vendor Screen If there is an opening balance, it would be entered at this time The only time an opening balance can be entered is when the vendor is added New vendors rarely have an opening balance The most common opening balance entries occur when setting up QuickBooks and entering vendors

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-21 Add a New Vendor while Entering a Bill Type Computer Technologies Magazine for the Company Name Automatically the name will be entered into the  Name and Address section  Print on Check as section

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-22 Add a New Vendor while Entering a Bill Click at the end of the company name in the Name and Address section, press Enter Type in the street address, press Enter Type in the city, state and Zip; press Tab until you get to Phone Enter the telephone number

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-23 Add a New Vendor while Entering a Bill Click the Additional Info tab Select the Terms that you want QuickBooks to use automatically for this vendor Enter the Credit Limit, if there is one, you were given by the vendor Click OK to add the new vendor to the Vendor List then complete the bill

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-24 Accounts Payable Register Accounts Payable register shows all the transactions in which the account was used Transactions may be entered into the Accounts Payable register rather than entering the information on a bill

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-25 View Accounts Payable Register Click the Chart of Accounts icon on the Home Page Click Accounts Payable Click the Activities button Click Use Register

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-27 View a Transaction in the Accounts Payable Register Double-click the bill from Supply Station that was recorded on 01/18/11 or click the bill and click Go To The bill appears on the screen

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-28 View a Transaction in the Accounts Payable Register Click Save & Close to close the bill and return to the Accounts Payable (A/P) Register

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-29 Enter a Transaction in the Accounts Payable Register Record a bill received when supplies were delivered  Enter the date 01/19/11 Click on the calendar icon next to the date Click 19, press tab  Enter the Ref. No. 88764, press tab  Click the drop-down list arrow for vendor, click Speedy Delivery Service  Terms are Net 10: The due date should show 01/29/2011  Tab to Billed, enter $175  Click the drop-down list arrow for account, click Postage and Delivery  Tab to the Memo section and enter: January Delivery Expense  QuickBooks will insert BILL under the Ref. No. 88764  Click Record to save the transaction

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-30 Credit Memos Credit Memos are prepared when a return is made or when an allowance is given for damaged items The amount of credit given should be deducted when paying the bill

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-32 Enter a Credit Memo Enter information for the Credit Memo  Vendor: Supply Station  Date: 01/19/11  Ref. No.: 789  Credit Amount: 5.00  Account: Office Supplies Expense Used because the account was used when recording the purchase of Fax paper to use during the month  Memo: Returned Damaged Fax Paper

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-34 Customize Report Format To make a permanent change to a report format, change QuickBooks’ Preferences Click Edit on the Menu bar Click Preferences

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-37 Customize Report Format On the Header/Footer tab, remove the check mark by clicking:  Date Prepared  Time Prepared  Report Basis Removing the check mark means these headings will no longer show as part of the Header information

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-38 Customize Report Format Click OK on the Report Format Preferences screen Click OK on the Preferences screen Reports will automatically refresh after a change has been made The date prepared, time prepared, and report basis will no longer appear in reports

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-39 Prepare Daily Backup File A backup file is prepared as a safe guard in case you make an error. After a number of transactions have been recorded, it is wise to prepare a backup file. The Daily Backup file is an appropriate file to create for saving your work as you progress through a chapter. This backup should be made at the end of every work session.

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-40 Prepare Daily Backup File If you create a daily backup file while you are working in a chapter and make an error later in your training and cannot figure out how to correct it, you may restore the backup file.. Restoring your daily backup file will restore your work from the previous training session and eliminate the work completed in the current session. By creating the backup file now, it will contain your work for Chapters 1, 2 and up through entering the Customizing Report Formats in Chapter 3.

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-41 Prepare Daily Backup File Click the File Menu Click Create Backup Click Local Backup Save to your USB drive Use the location and Save it Now3 Name the file Computer (Daily Backup) This will replace the previous information in the file This file will contain all of your work from Chapters 1, 2 and up through Customize Report Formats in Chapter 3

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-42 Prepare Vendor Balance Summary Vendor Balance Summary gives balances for each vendor Click Report Center on the icon bar using the List view Click Vendors & Payables as the category Click Vendor Balance Summary

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-43 Prepare Vendor Balance Summary Click the Display Report button Enter the dates From 01/01/11 To 01/19/11 Press Tab to generate the report  Notice that there is no date prepared, time prepared, or report basis shown in the heading

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-45 Prepare Unpaid Bills Report Unpaid Bills Report lists each unpaid bill grouped and subtotaled by vendor Double-click Unpaid Bills Detail in the Vendors & Payables section of the Report Center Enter the date of 01/19/11, press Tab

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-46 Prepare Unpaid Bills Report Supply Station shows the $5 credit, the beginning balance, and the bill recorded for the fax rental and supplies on 01/18/11 Speedy Delivery Service shows the bill we recorded in the Accounts Payable Register The number shown for Aging, if any, depends on the date of the computer and may be different from the text

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-47 Paying Bills and Writing Checks Pay Bills feature  When a bill is recorded without being paid, Enter Bills is used  When the bill is paid and the bill payment check is prepared, Pay Bills is used  Pay Bills marks the bill as Paid  It generates a check for printing and mailing Writing checks  Used for “Cash” purchases or when a bill has not been recorded

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-48 Pay Bills Pay the bill to Creative Advertising for $500 Pay the 01/18/11 bill to and Supply Station for $45 Click Pay Bills icon Click Show All Bills to see all the bills Click Due on or before and enter 01/30/11 Filter By All vendors and Sort By Due Date

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-49 Pay Bills Click Creative Advertising to select the bill Enter the Payment Date of 01/26/11 Verify  Payment Method: Check  Payment Account: Checking Click Pay Selected Bills

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-53 Pay Bills and Apply a Credit Notice the Amt. Due shows 45.00, the Credits Used shows 5.00, the Amt. To Pay is 40.00 Click Pay Selected Bills

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-54 Print Checks for Bills Paid QuickBooks automatically prepares the checks for the bills paid through pay bills Click Print Checks on the Payment Summary

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-55 Print Checks for Bills Paid On the Select Checks to Print, both checks prepared should be checked The First Check Number should be 1, change if necessary Click OK

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-56 Print Checks for Bills Paid Print Checks screen should have the correct printer selected Use Standard as the Check Style Print company name and address should be selected Click Print

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-57 Print Checks for Bills Paid If the checks print correctly, click OK on the Confirmation screen If checks do not print correctly, click in the Reprint column to select the check

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-58 Write a Check Certain transactions, such as Rent, are not recorded as bills. They may be paid every month by writing a check Since a bill was not recorded for rent, click the Write Checks icon Check Face contains the information for the actual check The Detail Section of the check provides the transaction information

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-59 Write a Check Complete the check face:  Bank Account: Checking  Payee: California Realtors  Date: 01/26/11  Amount: $1,500  Memo: Monthly Rent

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-61 Print a Check Click the Print icon at the top of the check Print Check 3  If 3 isn’t the check number, highlight the number shown and type in 3 Complete the Print Checks screen Click Print

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-62 Voiding and Deleting Checks A check may be voided or deleted by accessing the check or by using the Checking account register When a check is voided  The amount of the check will change to $0.00  The memo will show void  The check will remain in the company records When a check is deleted  The check will be removed from the company records completely

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-67 Access the Checking Account Register Use Ctrl+A to open the Chart of Accounts Click the Checking account to highlight Click Activities button Click Use Register

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-69 Delete a Check Using the Checking Account Register Click Check 3 transaction in the Register Click Edit on the Menu Bar Click Delete Check

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-70 Delete a Check Using the Checking Account Register Click OK on the Delete Transaction dialog box Check 3 no longer shows in the Checking Account Register

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-71 Petty Cash A business may need a small amount of cash on hand Used to pay minor expenses, such as postage due Use of Petty Cash is recorded in the Petty Cash Account Register

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-72 Create a Petty Cash Account Open the Chart of Accounts Use keyboard shortcut Ctrl+N to create a new account Click Bank to select the account type, click Continue

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-74 Edit Account Click Petty Cast in the Chart of Accounts Use keyboard shortcut Ctrl + E to edit the account Change Cast to Cash, click Save & Close

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-75 Establish a Petty Cash Fund Once the Account is created, it needs to have money transferred into the account  The Chart of Accounts should be open  Click Checking in the Chart of Accounts  Ctrl+R to use the Checking Account Register  Date: 01/26/11  Number column: Cash  Payment: 100  Account: Petty Cash  Memo: Establish Petty Cash Fund  Click the Record button

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-76 Establish a Petty Cash Fund Petty Cash now has $100.00 for use Balance of Checking account was reduced by $100.00 Close the Checking register

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-77 Pay Expenses with Petty Cash Use Petty Cash to pay for postage and office supplies Double-click Petty Cash in the Chart of Accounts to open Petty Cash Register Verify Balance of $100.00

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-79 Pay Expenses with Petty Cash Splits is used to separate a payment among two or more accounts Enter the accounts and amounts:  Postage and Delivery $.34  Office Supplies Expense $3.57 This account is used because the supplies are going to be used this month. If the supplies were purchased to have on hand, you would use the asset account Office Supplies  Automobile Expense $13.88

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-80 Pay Expenses with Petty Cash Click the Close button on the Splits screen Click Record The Account will show –split- The balance of the Petty Cash Account will be shown

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-81 Accounts Payable Graph by Aging Period Accounts Payable Graph by Aging Period shows: A bar chart with the age of all accounts payable A pie chart with the percentage of accounts payable by vendor Click Reports on the Menu bar Point to Vendors & Payables Click Accounts Payable Graph Enter the date 01/30/11

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-82 End of Chapter Procedures Remember to backup your work for the chapter Back up to:  Computer (Backup Ch. 3).qbb This contains all of your work for Chapters 1, 2 and 3 If you make a mistake in Chapter 4 and restoring your Daily Backup doesn’t solve your problem, restore this file so you can so you can begin Chapter 4 at the beginning without having to redo Chapters 1, 2, and 3

©2012 Pearson Education, Inc. publishing as Prentice Hall 3-1 QUICKBOOKS 2011: A COMPLETE COURSE CHAPTER 3—LECTURE PAYABLES AND PURCHASES: SERVICE BUSINESS.

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©2012 Pearson Education, Inc. publishing as Prentice Hall 3-1 QUICKBOOKS 2011: A COMPLETE COURSE CHAPTER 3—LECTURE PAYABLES AND PURCHASES: SERVICE BUSINESS.

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Presentation on theme: "©2012 Pearson Education, Inc. publishing as Prentice Hall 3-1 QUICKBOOKS 2011: A COMPLETE COURSE CHAPTER 3—LECTURE PAYABLES AND PURCHASES: SERVICE BUSINESS."— Presentation transcript:

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