quickbooks 2012 · 2017-12-13 · quickbooks ® 2012 topics include ... you will learn the skills...

ST U DE N T M A N UA L

� Managing customers and vendors

� Keeping inventory

� Preparing invoices

� Writing checks

� Tracking bank transactions

� Generating reports

� Setting up budgets

� Protecting your data

QuickBooks® 2012

T O P I C S I N C L U D E :

Q u i c k B o o k s 2 0 1 2 Student Manual

QuickBooks 2012

CEO, Axzo Press: Ken Wasnock

Vice President, Content and Delivery: Josh Pincus

Director of Publishing Systems Development: Dan Quackenbush

Writer: Chris Hale

Developmental Editor: Jim O’Shea

Copyeditor: Cathy Albano

Keytester: Cliff Coryea

COPYRIGHT © 2012 Axzo Press. All rights reserved.

No part of this work may be reproduced, transcribed, or used in any form or by any meansgraphic, electronic, or mechanical, including photocopying, recording, taping, Web distribution, or information storage and retrieval systemswithout the prior written permission of the publisher.

Trademarks ILT Series is a trademark of Axzo Press.

Some of the product names and company names used in this book have been used for identification purposes only and may be trademarks or registered trademarks of their respective manufacturers and sellers.

Disclaimer We reserve the right to revise this publication and make changes from time to time in its content without notice.

Student Manual ISBN 10: 1-4260-3392-3 ISBN 13: 978-1-4260-3392-6

Printed in the United States of America

1 2 3 4 5 GL 06 05 04 03

www.logicaloperations.comFor more information, go to

Contents

Introduction iii Topic A: About the manual ............................................................................... iv Topic B: Setting your expectations ................................................................... vii Topic C: Re-keying the course ......................................................................... xi

Getting started 1-1 Topic A: Introducing QuickBooks 2012 .......................................................... 1-2 Topic B: Getting help and closing QuickBooks ............................................. 1-10 Unit summary: Getting started ........................................................................ 1-18

Setting up a new company 2-1 Topic A: Using the EasyStep Interview ........................................................... 2-2 Topic B: Using the Chart of Accounts ............................................................ 2-18 Unit summary: Setting up a new company ..................................................... 2-32

Working with centers and lists 3-1 Topic A: Managing customers, vendors, and employees ................................ 3-2 Topic B: Working with the Item List .............................................................. 3-22 Topic C: Adding custom fields ....................................................................... 3-33 Unit summary: Working with centers and lists ............................................... 3-36

Working with business forms 4-1 Topic A: Invoices and credit memos ............................................................... 4-2 Topic B: Sales receipts and customer payments ............................................. 4-18 Topic C: Purchase orders and inventory ......................................................... 4-26 Topic D: Finding information quickly ............................................................ 4-31 Unit summary: Working with business forms ................................................. 4-35

Banking and billing activities 5-1 Topic A: Writing and printing checks .............................................................. 5-2 Topic B: Managing bank account transactions ............................................... 5-12 Topic C: Entering and paying bills ................................................................. 5-23 Topic D: Introduction to payroll ..................................................................... 5-31 Unit summary: Banking and billing activities ................................................. 5-33

Reporting and budgeting 6-1 Topic A: Generating reports ............................................................................ 6-2 Topic B: Using Company Snapshot ................................................................ 6-15 Topic C: Setting up budgets ........................................................................... 6-20 Unit summary: Reporting and budgeting ........................................................ 6-26

Protecting and backing up data 7-1 Topic A: Protecting and sharing data ............................................................... 7-2 Topic B: Backing up data ............................................................................... 7-16 Unit summary: Protecting and backing up data .............................................. 7-22

ii QuickBooks 2012

Course summary S-1 Topic A: Course summary ............................................................................... S-2 Topic B: Continued learning after class .......................................................... S-4

Glossary G-1

Index I-1

iii

Introduction

After reading this introduction, you will know how to:

A Use ILT Series manuals in general.

B Use prerequisites, a target student description, course objectives, and a skills inventory to properly set your expectations for the course.

C Re-key this course after class.

iv QuickBooks 2012

Topic A: About the manual

ILT Series philosophy Our manuals facilitate your learning by providing structured interaction with the software itself. While we provide text to explain difficult concepts, the hands-on activities are the focus of our courses. By paying close attention as your instructor leads you through these activities, you will learn the skills and concepts effectively.

We believe strongly in the instructor-led class. During class, focus on your instructor. Our manuals are designed and written to facilitate your interaction with your instructor, and not to call attention to manuals themselves.

We believe in the basic approach of setting expectations, delivering instruction, and providing summary and review afterwards. For this reason, lessons begin with objectives and end with summaries. We also provide overall course objectives and a course summary to provide both an introduction to and closure on the entire course.

Manual components The manuals contain these major components:

Table of contents

Introduction

Units

Course summary

Glossary

Index

Each element is described below.

Table of contents

The table of contents acts as a learning roadmap.

Introduction

The introduction contains information about our training philosophy and our manual components, features, and conventions. It contains target student, prerequisite, objective, and setup information for the specific course.

Units

Units are the largest structural component of the course content. A unit begins with a title page that lists objectives for each major subdivision, or topic, within the unit. Within each topic, conceptual and explanatory information alternates with hands-on activities. Units conclude with a summary comprising one paragraph for each topic, and an independent practice activity that gives you an opportunity to practice the skills you’ve learned.

The conceptual information takes the form of text paragraphs, exhibits, lists, and tables. The activities are structured in two columns, one telling you what to do, the other providing explanations, descriptions, and graphics.

Introduction v

Course summary

This section provides a text summary of the entire course. It is useful for providing closure at the end of the course. The course summary also indicates the next course in this series, if there is one, and lists additional resources you might find useful as you continue to learn about the software.

Glossary

The glossary provides definitions for all of the key terms used in this course.

Index

The index at the end of this manual makes it easy for you to find information about a particular software component, feature, or concept.

Manual conventions We’ve tried to keep the number of elements and the types of formatting to a minimum in the manuals. This aids in clarity and makes the manuals more classically elegant looking. But there are some conventions and icons you should know about.

Item Description

Italic text In conceptual text, indicates a new term or feature.

Bold text In unit summaries, indicates a key term or concept. In an independent practice activity, indicates an explicit item that you select, choose, or type.

Code font Indicates code or syntax.

Longer strings of ► code will look ► like this.

In the hands-on activities, any code that’s too long to fit on a single line is divided into segments by one or more continuation characters (►). This code should be entered as a continuous string of text.

Select bold item In the left column of hands-on activities, bold sans-serif text indicates an explicit item that you select, choose, or type.

Keycaps like e Indicate a key on the keyboard you must press.

vi QuickBooks 2012

Hands-on activities The hands-on activities are the most important parts of our manuals. They are divided into two primary columns. The “Here’s how” column gives short instructions to you about what to do. The “Here’s why” column provides explanations, graphics, and clarifications. Here’s a sample:

Do it! A-1: Creating a commission formula

Here’s how Here’s why 1 Open Sales This is an oversimplified sales compensation

worksheet. It shows sales totals, commissions, and incentives for five sales reps.

2 Observe the contents of cell F4

The commission rate formulas use the name “C_Rate” instead of a value for the commission rate.

For these activities, we have provided a collection of data files designed to help you learn each skill in a real-world business context. As you work through the activities, you will modify and update these files. Of course, you might make a mistake and therefore want to re-key the activity starting from scratch. To make it easy to start over, you will rename each data file at the end of the first activity in which the file is modified. Our convention for renaming files is to add the word “My” to the beginning of the file name. In the above activity, for example, a file called “Sales” is being used for the first time. At the end of this activity, you would save the file as “My sales,” thus leaving the “Sales” file unchanged. If you make a mistake, you can start over using the original “Sales” file.

In some activities, however, it might not be practical to rename the data file. If you want to retry one of these activities, ask your instructor for a fresh copy of the original data file.

Introduction vii

Topic B: Setting your expectations Properly setting your expectations is essential to your success. This topic will help you do that by providing:

Prerequisites for this course

A description of the target student

A list of the objectives for the course

A skills assessment for the course

Course prerequisites Before taking this course, you should be familiar with personal computers and the use of a keyboard and a mouse. Furthermore, this course assumes that you’ve completed the following courses or have equivalent experience:

Windows 7: Basic

Knowledge of basic bookkeeping principles and terminology

Target student The target student for this course should be comfortable with using a keyboard and mouse and should have basic experience with Windows 7 (or another version of the Windows operating system). This course is best suited for you if you want to use QuickBooks 2012 to track the financial activities of a small business. These include banking, accounts payable/receivable, invoicing, inventory, billing, and customer data management. However, this is not an accounting course, so you should already know the fundamentals of bookkeeping, including basic accounting terminology.

viii QuickBooks 2012

Course objectives These overall course objectives will give you an idea about what to expect from the course. It is also possible that they will help you see that this course is not the right one for you. If you think you either lack the prerequisite knowledge or already know most of the subject matter to be covered, you should let your instructor know that you think you are misplaced in the class.

After completing this course, you will know how to:

Start and close the program, navigate the QuickBooks desktop, open a company file, and get help.

Set up a new company by using the EasyStep Interview, explore the QuickBooks Setup window and the Quick Start Center, and modify the Chart of Accounts.

Work with the QuickBooks Centers to manage customers, vendors, attachments, jobs, notes, and employees; and create inventory and non-inventory items in the Item List.

Prepare business forms (including invoices, sales receipts, credit memos, and purchase orders), receive payments, apply credits to a payment, receive items into inventory, and find information quickly.

Manage banking and billing activities by writing and printing checks, transferring funds between accounts, editing transactions, reconciling accounts, and paying bills; and explore Intuit’s payroll service options.

Get information about how the business is doing by generating and printing reports or by using the Company Snapshot window, and create and modify budgets.

Maintain the company file in a multi-user environment by assigning administrator, closing-date, and user passwords; granting user access; and backing up a company file.

Introduction ix

Skills inventory Use the following form to gauge your skill level entering the class. For each skill listed, rate your familiarity from 1 to 5, with 5 being the most familiar. This is not a test. Rather, it is intended to provide you with an idea of where you’re starting from at the beginning of class. If you’re wholly unfamiliar with all the skills, you might not be ready for the class. If you think you already understand all of the skills, you might need to move on to the next course in the series. In either case, you should let your instructor know as soon as possible.

Skill 1 2 3 4 5

Navigating the QuickBooks desktop

Opening company files

Creating a company file with the EasyStep Interview

Adding accounts, customers, jobs, vendors, items, and other list-based records

Adding attachments with the Doc Center

Editing, deleting, and deactivating list-based records

Grouping items

Creating custom fields for list-based records

Filling out invoices, sales receipts, purchase orders, and other forms

Creating a custom invoice template

Receiving payments and entering items into inventory

Finding information quickly by using QuickFilter

Locating specific forms by using the Find window

Writing and printing checks

Transferring funds between accounts

Modifying, voiding, and deleting transactions

Reconciling accounts

Entering and paying bills

Examining the payroll service options

x QuickBooks 2012

Skill 1 2 3 4 5

Creating, modifying, memorizing, and printing reports

Using the Company Snapshot window

Introduction xi

Topic C: Re-keying the course If you have the proper hardware and software, you can re-key this course after class. This section explains what you’ll need in order to do so, and how to do it.

Hardware requirements Your personal computer should have:

A keyboard and a mouse

At least 2 GHz Pentium 4 processor (2.4 GHz recommended)

At least 1 GB RAM

At least 3 GB of hard-disk space

A CD-ROM drive

A monitor with at least 1,280×800 resolution and 24-bit color

Software requirements You will also need the following software:

Windows 7 (You can also use Windows Vista, but the screenshots in this course were taken in Windows 7, so your screens might look somewhat different.)

QuickBooks 2012 Pro or QuickBooks 2012 Premier

A printer driver (An actual printer is not required, but if a printer driver is not installed, you will not be able to complete the printing and previewing activities in the units called “Working with business forms,” “Banking and billing activities,” and “Reporting and budgeting.”)

Network requirements The following network components and connectivity are also required for re-keying this course:

Internet access, for the following purposes:

– Downloading the latest critical updates and service packs

– Completing the payroll service activity in the unit titled “Banking and billing activities”

– Downloading the Student Data files (if necessary)

xii QuickBooks 2012

Setup instructions to re-key the course Before you re-key the course, you will need to perform the following steps.

1 Use Windows Update to install all available critical updates and Service Packs.

2 With flat-panel displays, we recommend using the panel’s native resolution for best results. Color depth/quality should be set to High (24 bit) or higher.

Please note that your display settings or resolution may differ from the author’s, so your screens might not exactly match the screen shots in this manual.

3 Change the system date to February 15, 2012. The student data for this course is date-sensitive, so performing this step correctly is critical. Here’s what you do:

a On the taskbar, click the clock to open a window that displays the current date and time. Click the “Change date and time settings” link to open the Date and Time dialog box.

b On the Date and Time tab, click “Change date and time” to open the Date and Time Settings dialog box.

c Under Date, use the scroll arrows to select February, 2012. In the calendar, select 15.

d Click OK to return to the Date and Time dialog box.

e Click the Internet Time tab and click Change settings to open the Internet Time Settings dialog box.

f Clear “Synchronize with an Internet time server.” This will prevent the clock from resetting automatically.

g Click OK twice.

4 If necessary, reset any QuickBooks 2012 defaults that you have changed. If you do not wish to reset the defaults, you can still re-key the course, but some activities might not work exactly as documented.

a With a company file open, choose Edit, Preferences to open the Preferences dialog box.

b In the left pane, select a category; in the right pane, select a tab. Then click Default.

c Repeat step b for each category and for each tab on which you have changed settings.

d Click OK to close the Preferences dialog box.

5 If you have the data disc that came with this manual, locate the Student Data folder on it and copy it to the desktop of your computer.

If you don’t have the data disc, you can download the student data files for the course:

a Connect to http://downloads.logicaloperations.com. b Enter the course title or search by part to locate this course. c Click the course title to display a list of available downloads.

Note: Data Files are located under the Instructor Edition of the course. d Click the link(s) for downloading the Student Data files. e Create a folder named Student Data on the desktop of your computer. f Double-click the downloaded zip file(s) and drag the contents into the

Student Data folder.

Introduction xiii

Cautionary notes When you re-key this course, please keep the following information in mind.

Software updates

This course should work without your installing the latest updates and patches to the QuickBooks software. If you choose to update the software, be aware that the process might take several minutes. Also, when you open data files that were created in a slightly different version of the software, you might get a message to that effect, though you should be able to open any data file created in any version of QuickBooks 2012.

Date-sensitive data

We designed this course to be completed in one day. As indicated in the setup instructions, it’s critical that you set your computer’s system date to February 15, 2012 before starting the activities. If you choose to re-key this class over two or more days, be sure to set your computer to the specified date at the beginning of each day.

xiv QuickBooks 2012

1–1

U n i t 1 Getting started

Unit time: 50 minutes

Complete this unit, and you’ll know how to:

A Start QuickBooks, view a sample file, navigate the QuickBooks desktop, and open a company file.

B Use the Help system and close QuickBooks.

1–2 QuickBooks 2012

Topic A: Introducing QuickBooks 2012 Explanation

QuickBooks 2012 is an accounting program designed for small businesses. The QuickBooks software package can help you organize and monitor all areas of your company’s finances, including accounts payable/receivable, invoicing, payroll, and customer data management. QuickBooks is commonly used to keep track of bank accounts, billing cycles, inventory, and other mission-critical functions. You can also prepare and print checks, automate transactions, create budgets, and generate reports and graphs. The software’s flexible and robust design is well suited to service- and product-based companies.

QuickBooks 2012 is available in four versions: Online, Pro, Premier, and Enterprise Solutions. In this course, you will learn how to use the QuickBooks Pro version, so if you use another version of this software, some of the procedures might be slightly different (or unavailable).

Starting QuickBooks To start QuickBooks, click the Start button and choose All Programs, QuickBooks, QuickBooks Pro 2012. You can also click the QuickBooks desktop icon, if available. The first time you start QuickBooks, the QuickBooks Setup window will appear, as shown in Exhibit 1-1. In this window, you can enter some basic information about your company to start using QuickBooks. You can also click Advanced Setup to enter more details or Other Options to open an existing file or convert data from Quicken or other accounting software. Or, you can click the Close button to close this window and start working in the main QuickBooks 2012 window.

Exhibit 1-1: The QuickBooks Setup window

Getting started 1–3

No Company Open

The window that you will most likely see when you open QuickBooks is the No Company Open window, shown in Exhibit 1-2. As you’d expect, this window appears when you open QuickBooks with no company file open. (This window appears instead of the QuickBooks Setup window after the first time you open QuickBooks 2012.) This window provides options similar to those in the QuickBooks Setup window. You can create a company file, open a company file, or open a sample file. You can also restore a backup file from this window.

Exhibit 1-2: The No Company Open window

After you’ve opened at least one file, the list of previously opened files will also be displayed when you start QuickBooks. You use a single file to track all of your company’s finances, so the terms file and company are often used interchangeably in QuickBooks.


Do it! A-1: Starting QuickBooks and viewing a sample file

Here’s how Here’s why 1 Click (The Start button.) To display the Start menu.

Click All Programs To display the All Programs submenu.

Choose QuickBooks, QuickBooks Pro 2012

To start QuickBooks Pro.

2 Observe the QuickBooks Setup window

The window, which appears the first time you open QuickBooks, contains three buttons: Express Start, Advanced Setup, and Other Options.

At the top-right corner of the window, click

(The Close button.) To close the QuickBooks Setup window and view the No Company Open window.

3 Click Open a sample file

To display a menu. Examining these sample files can help you get acquainted with QuickBooks.

Choose Sample product-based businesses

A dialog box appears, prompting you to update your company file.

Click Yes (If necessary.) To update the company file. A warning box appears, explaining the Unit of Measure feature. With QuickBooks Pro 2012, you can view and use the Unit of Measure feature, but you cannot create or edit units.

Click OK A message box states that the program will temporarily change your computer’s date setting.

Click OK To close the message box and open the sample file.

4 Observe the title bar It shows the company name for this file.


The QuickBooks desktop Explanation The QuickBooks program window, also known as the desktop, includes many

components common to most Windows-based programs. For example, at the top of the desktop, you’ll find a title bar and a menu bar. Directly below the menu bar, you’ll see the icon bar, as shown in Exhibit 1-3. The icon bar contains buttons that can be used to perform commonly used commands.

Exhibit 1-3: The QuickBooks desktop, displaying the Home page

The Home page As shown in Exhibit 1-3, the QuickBooks Home page is divided into five primary areas:

Vendors

Customers

Employees

Company

Banking

The Home page provides a diagram showing how finances flow through a business. Information for vendors, customers, and employees is managed in lists called centers. To open the centers, click the buttons containing vertical text on the left side of the Home page (for example, “Vendors”).

You can also use menu commands and the icon bar to open centers. For example, to switch to the Customer Center, choose Customers, Customer Center or click Customers on the icon bar.


Working with centers

In each center, you’ll see buttons, icons, and links that can be used to access the information, commands, and features you need. When clicked, some of these items will open dialog boxes, and some will open other windows. By default, QuickBooks displays only one window at a time, including centers; however, you can have multiple windows open simultaneously. If you’ve opened more than one window, the windows you can’t see will remain active in the background.

Do it! A-2: Exploring the QuickBooks desktop

Here’s how Here’s why 1 Maximize the QuickBooks

window (If necessary.) Because the QuickBooks window contains so much detail, it’s helpful to have it fill the screen.

2 Click Customers

(On the icon bar.) To open the Customer Center.

3 At the top of the Customer Center window, click New Customer & Job

To display a menu for adding customers and jobs to the Customer Center.

Choose New Customer The New Feature window appears. With QuickBooks 2012, you can add or edit multiple entries at once, and you can paste from Microsoft Excel.

Click OK To open the New Customer dialog box, which you can use to add individuals to your customer database.

4 Click Cancel To close the New Customer dialog box.

5 Click Invoice

(On the icon bar.) To open the Create Invoices window.

Click the Close button (At the top-right of the dialog box.) To close the window.

6 Click Home To go to the Home page.


7 In the Customers section, click Create Invoices

To open the Create Invoices window. There is usually more than one way to open a window or to execute a command.

Close the Create Invoices window Click the Close button.

8 In the Banking section, click Reconcile

To open the Begin Reconciliation dialog box. Some icons, links, and buttons—such as the Reconcile icon—open dialog boxes rather than windows.

Click Cancel To close the dialog box.


The Open a Company dialog box Explanation When you open QuickBooks, the files you have worked on previously appear in the No

Company Open window. You can click these files to open them again. However, if the file you want to work on doesn’t appear here, you can use the Open a Company dialog box:

1 Choose File, Open or Restore Company.

2 Select “Open a company file” and click Next to open the Open a Company dialog box, shown in Exhibit 1-4.

3 Navigate to the folder that contains the file you want to open.

4 Select the desired file.

5 Click Open.

Exhibit 1-4: The Open a Company dialog box

The Open Previous Company command

If you want to re-open a company file you’ve worked on before, choose File, Open Previous Company and then choose the desired file. This submenu is limited to the four previous files by default.

File names vs. company names

Though the terms “file” and “company” are often used interchangeably, it doesn’t mean that your file name and your company name have to be the same. Unlike most Windows-based programs, QuickBooks does not display the file name in the title bar. Instead, the title bar displays the company name, which you enter when creating the company file. If you decide to change the company name later, you can do so without changing the file name. The reverse is also true—you can change the file name without changing the company name.


Do it! A-3: Opening a company file The files for this activity are in Student Data folder Unit 1\Topic A.

Here’s how Here’s why 1 Choose File, Open or Restore

Company… To open the Open or Restore Company dialog box.

Verify that Open a company file is selected, and click Next

You want to open a different company file. Notice that QuickBooks closes the current file.

2 From the Look in list, select Desktop

Or click the Desktop icon on the left of the dialog box.

Double-click the Student Data folder

To open it.

Open the current unit folder To display the topic folders.

Open the current topic folder To display a list of QuickBooks files in this folder.

3 Select Getting started1

Click Open To open the selected file.

4 Observe the title bar

It shows the company name (Outlander Spices) and not the file name. You enter the company name when you create a file. You can change the company name later without changing the file name.

5 Choose File, Open Previous Company

To display a submenu listing previously opened files. To re-open a previous file, you can choose its path from this submenu.

Choose Set number of previous companies…

Using this dialog box, you could change the number of previous files shown in the Open Previous Company submenu.

Click Cancel To close the dialog box without making any changes.

6 Choose File, Close Company

The No Company Open dialog box appears, showing the same recently used files that were listed in the File menu.


Topic B: Getting help and closing QuickBooks Explanation Like most Windows programs, QuickBooks provides a comprehensive Help system.

You can get the technical information you need by using the Have a Question? window. You can also press the F1 key to get context-specific help from within a center or window.

Intuit Community Intuit Community is an interactive Help system that enables you to communicate with other QuickBooks users; you can ask or respond to questions and view the questions and answers of other users. Intuit Community is accessible through the Have a Question? window. Once you submit a question, QuickBooks alerts you by email when your question is answered.

To access Intuit Community, choose Help, QuickBooks Help. At the right side of the Have a Question? window, click Ask Community to open the Intuit Community window, as shown in Exhibit 1-5.

Exhibit 1-5: The Intuit Community window


Do it! B-1: Accessing Intuit Community

Here’s how Here’s why 1 Choose Help, QuickBooks

Help To open the Have a Question? window.

At the right of the window, click Ask Community

To open the Intuit Community window.

2 Observe the Ask box

You can type a question in this box and click Ask to send your question.

3 Observe the Latest Site Activity section

To see a real-time listing of questions and replies posted. Questions are indicated by the “posted” tag,” and replies are indicated by the “replied to” tag.

Click one of the posted questions, as indicated

To view the question. You could click Reply to post your own answer.

4 Click Back (In the navigation bar.) To go back to the main Intuit Community page.

5 Observe the Community Forums section

In the forums, you can browse questions and replies.

Click Help with Intuit Products

To see the available forums in this category. You can browse through the forums, enter a search phrase, or post a question.

6 Close the Intuit Community window

Click the Close button.

7 Close the Have a Question? window


The QuickBooks Learning Center Explanation The QuickBooks Learning Center, shown in Exhibit 1-6, provides multimedia

presentations for a variety of topics. To access the Learning Center, choose Help, Learning Center Tutorials. The left side of the window contains general topic categories. The right side contains titles of specific presentations and links to additional information.

Exhibit 1-6: The QuickBooks Learning Center


Do it! B-2: Using the QuickBooks Learning Center

Here’s how Here’s why 1 Choose Help,

Learning Center Tutorials To open the QuickBooks Learning Center window. You can click the general categories on the left side to display a list of corresponding tutorials on the right.

2 Click Overview & Setup (If necessary.) To display information about tutorials that teach QuickBooks fundamentals.

3 Click What’s New (In the left pane, under Process Payments.) You can click the “Watch video” or “Learn more” links, depending on what interests you. If you have previous experience with QuickBooks, you might find these tutorials helpful.

4 Click Go to QuickBooks To close the window.


Context-sensitive help Explanation

In addition to using the Learning Center, you can go directly to basic Help information for the active window. For example, if you’re working in the New Customer window and you want to know more about how it works, you can choose Help, QuickBooks Help or press F1. The Have a Question? window will open directly to relevant information. This command is useful when you’re starting to learn about a window.

Exhibit 1-7: The Have a Question? window

With the Have a Question? window open, you can continue to work in your company file. The window is divided into three sections: How To, Troubleshooting, and Community. Topics in the How To section relate to instructions for performing tasks, while topics in the Troubleshooting section address problems you might encounter. The Community section shows questions other QuickBooks users have asked. Use the search box to search for Help documents containing a specific keyword or phrase.


Do it! B-3: Using the QuickBooks Help window The files for this activity are in Student Data folder Unit 1\Topic B.

Here’s how Here’s why 1 In the No Company Open

window, click Open or restore an existing company

To open the Open or Restore Company dialog box.

Click Next To open the Open a Company dialog box.

2 Navigate to the current topic folder

Select Getting started2

Click Open To open the Getting started2 file.

3 Press ! To open the Have a Question? window.

Observe the How To section The content currently displayed is about the Home page because that’s where you were when you opened Help.

Observe the Troubleshooting and Community sections

These results relate to QuickBooks in general.

4 Open the Customer Center On the icon bar, click Customers; or, on the Home page, click the vertical Customers button.

Observe the How To section (In the Have a Question? window.) The How To? topics now relate to the Customer Center.

Observe the Troubleshooting and Community sections

These results now pertain more specifically to the Customer Center.

5 Click Delete a customer or job

To open the Help Article window.

Observe the Help Article window Information for the selected topic is displayed.

Close the Help Article window Click the close button.


6 In the Have a Question? window, click as shown

To place the insertion point in the search box.

Type customers and then press e

To display the Help topics that relate to customers.

7 Close the Have a Question? window

8 Close the Customer Center window

To return to the Home page.


The File menu Explanation

QuickBooks is different from most other Windows programs in that you can have only one file open at a time. Additionally, the QuickBooks File menu doesn’t include a Save command because the program continuously updates the active file as you work. To further protect your data, you can create backup copies by using the Create Backup command.

Closing QuickBooks

To close QuickBooks, choose File, Exit. You can also press Alt+F4 or click the Close button in the upper-right corner of the program window. The next time you start QuickBooks, the last company file you were working on will open automatically. If any windows were open when you closed the file, they might not be active when you re-open it, depending on the window type.

Do it! B-4: Closing QuickBooks

Here’s how Here’s why 1 Which file is open? Getting started2, which displays “Outlander

Spices” in the title bar.

2 Display the File menu (Choose File.) This menu has a Create Backup command. The menu does not have a Save command because QuickBooks continuously updates the active file as you work.

Choose Exit To close the file and close QuickBooks. When you restart the program, the current file will be re-opened automatically.

3 Start QuickBooks (Double-click the desktop icon or use the Start menu.) The last file you were working on is opened automatically. If the What’s New in QuickBooks 2012 window also opens, close it.

4 Choose File, Close Company

To close the company file and leave QuickBooks open. The No Company Open dialog box appears. You might be prompted to back up your data.

Click No (If necessary.) If prompted to back up your data.


Unit summary: Getting started Topic A In this topic, you learned that QuickBooks 2012 is an accounting program designed for

small businesses. You learned how to start the program, and you viewed a sample file. Then you learned about the QuickBooks desktop, including the icon bar. You also learned how to open a QuickBooks file.

Topic B In this topic, you learned how to use the QuickBooks Help system, including the Intuit Community, the Learning Center, and the Have a Question? window. Finally, you learned how to close a file and how to exit QuickBooks.

Independent practice activity In this activity, you will practice opening and closing QuickBooks files and using the QuickBooks Help system.

The files for this activity are in Student Data folder Unit 1\Unit summary.

1 Open Practice basics. (Hint: You are opening an existing company file.)

2 If necessary, maximize the Home page.

3 Open the Employee Center by using the icon bar.

4 Go to the Home page.

5 Open the Vendor Center.

6 Get context-sensitive help on using the Vendor Center.

7 Close the Have a Question? window and the Vendor Center window.

8 Use the File menu to open the previous file (Getting started2).

9 Close all open company files.

10 Exit QuickBooks.


Review questions 1 When you open QuickBooks, what are your options in the No Company Open

window? (Choose all that apply.)

A Start Intuit Community.

B Open a sample company file.

C Create a new company file.

D Open an existing company file.

2 On the QuickBooks desktop, which component is specifically used to open a QuickBooks Center?

A Menu bar

B Icon bar

C Navigation bar

D Home page

3 The QuickBooks _________ Center provides tutorials in the form of presentations that demonstrate the ways to work in QuickBooks.

Learning

4 When you press the F1 key, the Have a Question? window opens. What topics are displayed?

Topics relevant to what you are currently doing in QuickBooks 2012 are displayed.

5 True or false? Before you close QuickBooks, you save your file by choosing File, Save.

False. QuickBooks automatically saves, or updates, your file as you work. There is no separate Save action required.

2–1

U n i t 2 Setting up a new company



A Start the Easy Step Interview and create a company file.

B Open your Chart of Accounts, create and delete accounts, make an account inactive, and apply account numbers.


Topic A: Using the EasyStep Interview Explanation To create a file for your company, you’ll complete the EasyStep Interview—a dialog

box with a series of sequential screens. (This kind of feature is also called a “wizard.”) As you work your way through the interview, QuickBooks prompts you for information while providing guidelines and recommendations for your type of business. The amount of time it takes to complete the interview depends on the complexity of your company and the amount of initial data you need to enter.

The content of the EasyStep Interview is dynamic and variable; the screens you see will depend on the type of business you operate, the answers you provide, and the options you select. This unit is not intended to provide in-depth coverage of every possible screen in the interview. Rather, this unit will help you get acquainted with the general process of setting up a new company file and introduce you to important QuickBooks concepts and terminology.

Getting ready Before you get started, you’ll need to gather some information, which means a lot of financial paperwork, as well as computerized records if you’re converting from another program. The following is a simplified list of what you will need:

Last year’s federal tax return

Copies of all unpaid invoices that your customers owe

Copies of all unpaid invoices that you owe to other businesses or individuals

A detailed list of inventory items you’re holding for resale

Balances for your active accounts, including checking, credit card, loan, and line-of-credit accounts

The values of all of your assets

Equity information

The type of information you need depends on the size and nature of your business. Most of the information you’re prompted to enter during the interview can also be entered or modified after the interview is done. QuickBooks will warn you about the entries that are difficult or impossible to change later.

Starting the interview

To start the interview, choose File, New Company to open the QuickBooks Setup window. (You can also click “Create a new company” in the No Company Open dialog box.) If you’re starting QuickBooks for the first time, this window appears by default. You can click Other Options to convert Quicken data or data from other accounting software to your QuickBooks file. Or, you can click Express Start to go directly to QuickBooks and manually set up your company.

To start the interview process, click Advanced Setup to open the EasyStep Interview dialog box, shown in Exhibit 2-1. To navigate in the interview, click the Next and Back buttons.

If you need to exit the interview before completing it, click the Leave button. QuickBooks will save all the information you’ve entered up to that point. The EasyStep Interview will restart the next time you open this file.

Setting up a new company 2–3

Exhibit 2-1: The opening screen of the EasyStep Interview


Do it! A-1: Starting the EasyStep Interview

Here’s how Here’s why 1 Start QuickBooks Because you closed the company file before

exiting, the No Company Open dialog box appears.

2 Click Create a new company

To open the QuickBooks Setup window.

3 Click Other Options and observe the list

You can convert files created with the Quicken or with other accounting software.

Press g To close the list.

4 Observe the Express Start button Instead of completing the interview, you can click Skip Interview to create a company based on minimal starting information.

5 Click Advanced Setup To open the EasyStep Interview, which will guide you through the process of setting up a new company. Your screen should resemble Exhibit 2-1.You can change your previous answers by clicking the Back button. If a decision cannot be reversed easily, a warning symbol will be displayed.


Company information Explanation When you’re entering company information, the only required field is Company name.

The following information can be added now or later:

Legal name

Your federal tax ID number

Company address and phone and fax numbers

Company email address and website address

The following information is helpful to know, although you don’t need to provide it to complete the interview:

Type of industry

The first month of your income-tax year (the 12-month taxation period you choose for reporting income taxes)

The first month of your fiscal year (the 12-month period for which you calculate profits)

The federal income tax form filed by your company

Using an administrator password

If multiple users will be accessing the company file, it’s recommended that you assign an administrator password. This password will prevent unauthorized users from accessing the file.

Exhibit 2-2: Entering your company information in the EasyStep Interview


Saving your file

When you save a new file, QuickBooks uses your company name as the file name by default. When prompted to save the file, QuickBooks opens the Filename for New Company window to the last-used location. You can save the files wherever you like, but QuickBooks also provides a Company Files folder. The folder path for the Company Files folder is Documents\Intuit\QuickBooks\Company Files folder. It’s a good idea to accept the default file name. If you choose to enter a different file name, remember that the company name will still be displayed in the title bar. QuickBooks 2012 files are saved with a .QBW extension.

Do it! A-2: Entering company information and saving your file

Here’s how Here’s why 1 In the Company name box, type

Outlander Spices

Press t To move to the Legal name box, in which QuickBooks enters the company name you typed automatically.

2 Edit the Legal name box to read Outlander Spices Inc.

This is how the company name should appear on legal documents.

3 In the Tax ID box, enter 99-3005000

This is your federal tax ID number, which is required for various government forms.

4 Continue to enter the company information, as follows:

Street address: 46 Main St.

City: Portland

State: OR

Zip: 97205

Country: U.S.

Phone: 555-234-9700

Fax: 555-234-9701

E-mail address: [email protected]

Web site: outlanderspices.com

You can change this information later by choosing Company, Company Information.

Click Next To move to the next screen, which prompts you to select a business type.


5 In the Industry list, select Retail Shop or Online Commerce

Click Next

6 Select Corporation

Click Next

7 Verify that January is selected

Click Next You are now prompted to enter an administrator password.

8 Observe the password screen It is highly recommended that you assign an administrator password for your QuickBooks file. For this class, however, you will not set a password.

Click Next You’re ready to create your company file.

9 Click Next To open the Filename for New Company dialog box.

Observe the File name box By default, QuickBooks uses the company name as the file name.

Edit the File name box to read My new company

Even if you change the file name, the company name will be displayed in the title bar.

Observe the Save as type list QuickBooks files have a .QBW extension. The .QBA extension is used for the accountant’s copy.

10 Navigate to the current topic folder

(In Desktop\Student Data, open the current unit folder.) You’ll save the file here.

Click Save To save the file and return to the interview. This might take a few moments. The next screen continues the interview so you can customize QuickBooks for your business.


Company preferences Explanation In the “Customizing QuickBooks for your business” section, you are prompted to

specify the following information about your company:

What industry it’s in

What you sell: products, services, or both

How customers pay you; this data includes collecting sales tax, invoicing, creating estimates, and tracking job time

How you pay bills

Whether you have W-2 employees or 1099 contractors

Exhibit 2-3: Customizing QuickBooks for your business during the interview

Specifying your industry

As you work through the interview, QuickBooks recommends features and accounts based on your selected industry and your previous answers to questions. If none of the industries matches your business, select the one that is the closest in terms of how you work with customers and vendors.

Although the industry cannot be changed, you can change many of the settings during the interview process by using the Back button. The preferences you specify will affect only your new company file and not the program in general.

Getting additional help

Many of the EasyStep Interview screens provide links to Help documents for additional information. You can also get help on specific questions by clicking the “Get answers” link in the upper-right corner of the EasyStep Interview window.


Do it! A-3: Customizing QuickBooks for your business

Here’s how Here’s why 1 Observe the “Customizing

QuickBooks for your business” screen

In this portion of the EasyStep Interview, you will specify what your industry is and what you sell, how your customers pay you, and how you pay your bills.

Click Next Next, you’ll indicate what you sell.

2 Observe the Leave button If you want to exit the interview at any time, you can click this button. QuickBooks will save all of the information you’ve entered up to that point. Then the next time you open the company file, QuickBooks will resume the interview.

3 Select Products only

Tell students they can change this option at any time after the interview.

Click Next You are asked how you will enter your sales.

4 Select Record each sale individually

Click Next QuickBooks asks if you charge sales tax. You’ll accept the default answer (Yes).

5 Click Next QuickBooks asks if you prepare estimates for your customers.

6 Click Next To accept the default answer (No). Outlander Spices does not use estimates. Next, QuickBooks asks about billing statements.

7 Click Next To accept the default answer (No). Next, you are asked about invoices.

8 Click Next To accept the default answer (Yes). Next, you are asked if you use progress invoicing.

9 Click Next To accept the default answer (No). QuickBooks asks if you want to keep track of bills you owe.

10 Verify that Yes is selected This is recommended for your business.

Click Next QuickBooks asks if you track inventory.


11 Select Yes

Click Next QuickBooks asks if you track time.

12 Verify that No is selected Outlander Spices does not use time tracking.

Click Next QuickBooks asks whether the business has employees.

13 Select Yes

Check We have W-2 employees

Click Next To move to the next step, which involves setting up your starting date and bank account balances.


The Chart of Accounts Explanation This section of the EasyStep Interview involves providing information to set up the

Chart of Accounts. You will need to provide the following information:

The date on which you want to start tracking your finances

Bank account information, including the balance and date of the last statement

The income and expense accounts you want to use

Specifying a start date

Your start date, or conversion date, is the date on which you want to begin using QuickBooks for your financial record keeping. Your choice of start date is critical because it dramatically affects the work needed to get up and running, as well as the initial usefulness of the data you collect and record in QuickBooks. You can specify any date as your start date. The following table describes the advantages and disadvantages of common start date choices.

Start date Advantages Disadvantages

Today’s date Least time-consuming option because there is no historical data to enter.

With no historical data, you will have limited tracking abilities, and you’ll need more time to prepare for taxes.

Beginning of calendar year (January 1)

Requires the least amount of work if the current date is close to January 1. You’ll have all of the current year’s information in one place for tax preparation.

If the current date is later than April, entering historical data can be time-consuming.

Beginning of company fiscal year

If the current date is within a month or two of the fiscal year’s start, the advantages are the same as with a January 1 start date.

Depending on the current date, this might require a large amount of historical data to be entered.

Date your company began

If the company recently started, this is a good option because it can provide a thorough financial summary.

If the company is more than one year old, entering the historical data can be time-consuming.

For example, let’s say today’s date is February 15, 2012. It’s early enough in the year, so it’s probably a good idea to specify January 1, 2012, as your start date. In this scenario, all of your 2012 data would be in one place, but you would have to go back and redo your financial record keeping for the first month and a half of 2012 by entering sales, purchases, and so on directly in QuickBooks. This would mean a bit of redundant work on your part, but the advantages would outweigh the disadvantages.


Exhibit 2-4: Continuing with the EasyStep Interview

Bank account information

QuickBooks recommends that you create an account for each checking, savings, and money market account. During the interview, you can set up at least one, if not all, of the bank accounts. You can use the Chart of Accounts to add more accounts later.

Reviewing QuickBooks accounts QuickBooks displays a list of income and expense accounts that it recommends for your business. These accounts represent ways of tracking the money that comes into and goes out of your company. For example, QuickBooks might set up expense accounts such as Car/Truck Expenses, Dues and Subscriptions, and Repairs and Maintenance. Although you probably pay all of these expenses out of your checking account, you won’t be able to analyze how you’re spending your money unless you categorize each expense accordingly. The account that QuickBooks creates will help you do that. If you need to create additional accounts for tracking purposes, you can do so during or after the interview.

During the interview, you have two choices. You can start with the suggested accounts and edit them later, or you can create accounts later. Of course, the first choice requires less work. Exhibit 2-5 shows the income and expense accounts that QuickBooks recommends for the wholesale business used as an example in this unit.


Exhibit 2-5: The suggested income and expense accounts

Do it! A-4: Completing the EasyStep Interview

Here’s how Here’s why 1 Observe the interview screen As shown in Exhibit 2-4, it explains what you

will be doing next.

Click Next To specify a Start Date.

2 Select Beginning of this fiscal year

Click Next QuickBooks will help you set up your accounts.

3 Observe the income and expense account information

As shown in Exhibit 2-5, these are the recommended income and expense accounts that QuickBooks has created for you based on your business. (You can create additional accounts after you complete the EasyStep Interview.) QuickBooks asks whether you want to use these expense accounts.

Observe the Restore Recommendations button

If you change things and want to get back to the QuickBooks recommendations, click this button.

4 Click Next The “Congratulations!” screen appears.

5 Click Go to Setup To complete the EasyStep Interview.


The QuickBooks Setup window Explanation After you’ve finished the interview process, QuickBooks opens the new QuickBooks

Setup window, shown in Exhibit 2-6.

Exhibit 2-6: The QuickBooks Setup window

You use this window to start working right away in QuickBooks by adding customers, vendors, and employees; additional products or services; and bank accounts. For example, when you click the Add button in the “Add your bank accounts” section, QuickBooks displays a page you can use to add bank account information, as shown in Exhibit 2-7. Add the account name, account number, opening balance, and opening balance date. Then click Continue twice to return to the QuickBooks Setup window.


Exhibit 2-7: Adding bank account information

When you are done with QuickBooks Setup, click the Start working link to open the Quick Start Center.

The Quick Start Center After creating a company file, you can use QuickBooks’ Quick Start Center to watch tutorial videos and start performing common tasks right away. If you don’t need this additional assistance, close the Quick Start Center and begin working in QuickBooks 2012.


Do it! A-5: Using QuickBooks Setup and the Quick Start Center

Here’s how Here’s why 1 Observe the QuickBooks Setup

window The QuickBooks Setup window, shown in Exhibit 2-6, appears.

2 In the “Add your bank accounts” section, click Add

To display the page you will use to add bank account information.

3 In the Account name box, enter Company checking

Only the bank account name is required. You can enter the bank account number later.

Click Continue QuickBooks asks if you want to order checks from Intuit.

4 Select No Thanks Outlander Spices does print checks but doesn’t need to order them right now.

Click Continue To return to the QuickBooks Setup window.

5 Click Start Working

To close the QuickBooks Setup window and open the Home page for the company file you’ve created and the Quick Start Center window.

6 Observe the “Track money in” section

(In the Quick Start Center window.) It contains a video, entitled “Charge customers for money they owe you,” and three icons: Create Invoices, Enter Sales Receipts, and View Customers.

Click Create Invoices To open the Create Invoice window. This is a common task that new QuickBooks users might start with.

Click To close the window.


7 Observe the “Track money out” section

It contains a video, entitled “Track bills that are due and those you paid,” and four icons: Enter Bills, Write Checks, Check Register, and View Vendors.

Click Enter Bills To open the Enter Bills window. This is another common task that new QuickBooks users might start with.

Click

8 Close the Quick Start Center (Click the Close button.) To view the Home page for the company file.

9 On the right side of the window, observe the Getting Started section

You could click the Quick Start Center button to display the Quick Start Center window again.

10 Close the company file


Topic B: Using the Chart of Accounts Explanation The Chart of Accounts is a list of your balance-sheet accounts (assets, liabilities, and

equity) and your income and expense accounts. You can use the accounts in this list to track how the money flows into and out of your business. You can also use the Chart of Accounts to see how your business is doing.

The Chart of Accounts is just one of many lists you’ll work with in QuickBooks. Other lists are used to manage detailed information about your customers, vendors, inventory, employees, and so on. These lists, also called centers, are the backbone of QuickBooks—you use them to complete all types of forms, including checks, invoices, and purchase orders, and to categorize your finances.

Opening the Chart of Accounts You can open the Chart of Accounts in several ways:

On the Home page, click the Chart of Accounts icon.

Press Ctrl+A.

Choose Lists, Chart of Accounts.

Choose Company, Chart of Accounts.

By default, the Chart of Accounts is arranged by account type, with your balance-sheet accounts listed at the top, as shown in Exhibit 2-8. These accounts include your company bank accounts, equity accounts, accounts payable/receivable, and other assets and liabilities. Following the balance-sheet accounts, you’ll see the income and expense accounts that QuickBooks set up and any that you have added manually.

Sorting your Chart of Accounts

To sort the Chart of Accounts by a particular column, click the column’s heading. You can return the list to the default sort order by clicking the diamond in the far left column. You can also use the Account menu at the bottom of the window. To do so:

1 At the bottom of the window, click Account to display the shortcut menu.

2 Choose Re-sort List. A message box will ask you to confirm that you want to return the list to its original order.

3 Click OK.


Exhibit 2-8: A Chart of Accounts


Do it! B-1: Exploring the Chart of Accounts The files for this activity are in Student Data folder Unit 2\Topic B.

Here’s how Here’s why 1 Open New company2 From the current topic folder.

2 In the Company section of the Home page, click Chart of Accounts

To open the Chart of Accounts window.

3 Observe the accounts As shown in Exhibit 2-8, your balance-sheet accounts appear at the top of the list, followed by your income and expense accounts. You’ll use these accounts to categorize your company’s transactions. QuickBooks creates most of these accounts for you based on your business type—in this case, wholesaler.

4 Click the Name column, as shown

To sort the list alphabetically by account name.


Creating accounts Explanation To create a new account or subaccount, you’ll use the Add New Account window,

shown in Exhibit 2-9. Here’s how:

1 At the bottom of the Chart of Accounts window, click Account to display a menu.

2 Choose New to open the Add New Account window.

3 Select the type of account you want to create and click Continue. The Add New Account window changes to the one shown in Exhibit 2-9.

4 Enter the remaining information as needed. If you are creating a subaccount, check “Subaccount of” and then select the desired account from the list.

5 Click Save & Close.

Exhibit 2-9: The Add New Account window


Do it! B-2: Adding credit card and income accounts

Here’s how Here’s why 1 At the bottom of the Chart of

Accounts window, click Account

To display a menu.

Choose New To open the Add New Account window.

2 Select Credit Card You can use this window to create all types of accounts. You’ll add a credit card account.

Click Continue

3 In the Account Name box, enter Visa card, VP Jack Thomas

This account is for Jack Thomas’s Visa card.

In the Description box, enter Sales division expenses

Jack is Vice President in charge of the company’s Sales division.

In the Credit Card Acct. No. box, enter 1234567812345678

For class purposes, it’s not critical that you enter this exact account number.

4 Click Enter Opening Balance

Edit the Statement Ending Balance to be 625 as of 1/31/2012

Click OK To return to the Add New Account window. Compare your screen to Exhibit 2-9.


5 Click Save & Close To finish creating the account. A message box appears, asking if you want to set up online services.

Click No To skip setting up online services, close the message box and return to the Chart of Accounts. The new account is selected automatically.

6 Observe the balance for the new account

(In the Chart of Accounts.) It is $625. Even though this balance indicates an amount owed to the issuing bank, the balance is displayed as a positive amount.

7 Click Account and choose New To open the Add New Account window. You’ll set up an income account for retail sales made through the Outlander Spices website.

8 From the type options, select Income

Click Continue

9 In the Account Name box, enter Online sales (Retail)

Click Save & Close The new account has been added to the Chart of Accounts list.


Adding a loan account Explanation Your balance-sheet accounts—the real, working accounts that you use to make and

accept payments—are different from the accounts that QuickBooks sets up for you. Those are used solely for categorizing and analyzing your cash flow.

To add a loan to a Chart of Accounts, you need to create a liability account. Use the Long Term Liability type for loans that require more than a year to repay. Loans of a year or less are identified as Other Current Liability.

Do it! B-3: Adding an outstanding loan balance

Here’s how Here’s why 1 Open the Add New Account

window (In the Chart of Accounts window, click Account and choose New.) You will create an account for the loan.

Select Loan

Click Continue

2 Observe the account type

The loan will be paid off within a year, so it is a current, not long-term, liability.

3 In the Account Name box, enter Loan for office equipment

4 Set the opening balance to 7500 as of 2/15/2012

Click Enter Opening Balance, enter the values, and click OK.

The original loan balance was $10,000. Of this total, $2,500 was paid off by the start date. This leaves an unpaid balance of $7,500.

5 Click Save & Close The account for the office equipment loan appears in the Chart of Accounts.


Editing account information Explanation After you create an account, you might need to go back and edit some information.

Here’s how:

1 In the Chart of Accounts window, select the account that contains information you want to edit.

2 At the bottom of the Chart of Accounts window, click Account and choose Edit Account to open the Edit Account window.

3 Modify the account information as necessary.

4 Click Save & Close. If you have made any changes that might cause problems in the program, QuickBooks will notify you.

Do it! B-4: Editing an account

Here’s how Here’s why 1 In the Name column, click

Company checking

(In the Chart of Accounts.) To select this bank account, which was created during the EasyStep Interview.

2 Click Account At the bottom of the window.

Choose Edit Account To open the Edit Account window for the selected account. Most of the fields are empty, because you entered only minimal information about this account during the EasyStep Interview.

3 In the Description box, enter Main account

In the Bank Acct. No. box, enter 80002500-4

Set the opening balance to 5000 as of 12/31/2011

Click Enter Opening Balance, enter the values, and click OK.

4 Click Save & Close To return to the Chart of Accounts window.

5 Sort the list by account balance Click the Balance Total column heading.

6 Click the diamond in the leftmost column heading

To return the list to its original sort order.


Deleting accounts Explanation You’ll probably find that some of the default accounts that QuickBooks creates for you

are not needed for your business, and you can delete them. To delete an account:

1 Select the account you want to delete.

2 In the Chart of Accounts window, click Account to display the menu.

3 Choose Delete Account. A message box appears, prompting you to confirm that you want to delete the selected account. If deleting the selected account will cause a problem elsewhere in QuickBooks, the program will not allow you to proceed. Instead, it will prompt you to cancel the action or make the account inactive.

4 Click OK.

Making accounts inactive

When you try to delete an account, you may find that QuickBooks won’t let you do so. This is to prevent you from deleting accounts that have balances or are used in transactions or items or in your payroll setup. If you rarely use an account, you can make it inactive instead of deleting it. When you make an account inactive (also known as “hiding” an account), QuickBooks keeps the information associated with the account, but hides the account in the Chart of Accounts and removes it from any drop-down lists that use accounts.

To make an account inactive:

1 Select the account you want to make inactive.

2 In the Chart of Accounts window, click Account and choose Make Account Inactive.

To reactivate a hidden account:

1 In the Chart of Accounts window, click Account and choose Show Inactive Accounts. Inactive accounts will be marked with an X.

2 Select the account you want to reactivate.

3 Click Account and choose Make Account Active.

Do it! B-5: Deleting an account and making an account inactive

Here’s how Here’s why 1 Select the Capital Stock

account You’ll delete this account.


2 Click Account At the bottom of the window.

Choose Delete Account A message box prompts you to confirm that you want to delete the selected account.

Click OK To delete the selected account. It is immediately removed from the Chart of Accounts.

3 Select the Visa card account The account you created in the previous activity.

Press c + D To try to delete the account.

Observe the message

The message states that you can’t delete the account. In this case, it’s because the account has a balance. Instead, you’ll make the account inactive.

Click Make Inactive The account no longer appears in the Chart of Accounts. When you make an account inactive, QuickBooks keeps the information associated with it, but hides the account in the Chart of Accounts and removes it from any drop-down lists that use accounts.

4 Click Account You’ll reactivate the account.

Choose Show Inactive Accounts

The Visa card account reappears. It’s marked with a gray X to indicate that it’s inactive.

5 Select the Visa card account

Click Account and choose Make Account Active

To reactivate the account.


Account numbers Explanation Using an account numbering system can help you identify the various types of accounts.

This will speed up account selection when you’re completing forms and performing other tasks.

There are two ways to apply account numbering. One way is to manually add the account number at the beginning of each account name. To do this, you use the Edit Account window.

A more efficient approach is to apply automatic account numbering. To turn on this feature, you’ll need to use the Preferences dialog box. Here’s how:

1 Choose Edit, Preferences to open the Preferences dialog box.

2 Click the Company Preferences tab.

3 On the left side of the dialog box, click the Accounting icon to display the accounting options for the current company file.

4 Under Account Number, check “Use account numbers.”

5 Click OK.

With automatic account numbering turned on, default account numbers will be assigned to any accounts that QuickBooks created automatically. (You can change these default account numbers if necessary.) A Number box will appear in the Add New Account and Edit Account windows. No matter who assigns the account number—you or QuickBooks—it will always appear in the Chart of Accounts, in all Account fields, and on all relevant reports and graphs.


Exhibit 2-10: Using the Company Preferences tab to turn on automatic account numbering


Do it! B-6: Applying account numbers

Here’s how Here’s why 1 Choose Edit, Preferences… To open the Preferences dialog box, which

you’ll use to turn on the account numbering feature. There are two tabs: My Preferences and Company Preferences.

2 On the left side of the dialog box, select Accounting

To display the accounting options for the current company file.

Click the Company Preferences tab

3 Under Accounts, check Use account numbers

As shown in Exhibit 2-10.

Click OK To close the dialog box and return to the Chart of Accounts. You’ll see that most accounts have been assigned an account number automatically.

4 Observe the names of your balance-sheet accounts

Account numbers were not applied to any accounts that you created manually.

5 Select Loan for office equipment

This account was created manually, so it does not have an account number.

Open the Edit Account window (Press Ctrl+E.) A Number box appears next to the Account Type list.

6 In the Number box, enter 24000

Click Save & Close A message box states that account number 24000 is already being used by another account. QuickBooks offers to merge the two accounts.

7 Click No To return to the Edit Account window.

8 Edit the Number box to read 27000

Click Save & Close To assign the specified account number and close the Edit Account window.


9 Observe the selected account Account number 27000 is now listed between 25500 and 30000.

10 Close the Chart of Accounts Click the Close button.



Unit summary: Setting up a new company Topic A In this topic, you learned about the EasyStep Interview, which guides you through the

process of setting up a new company file. You started the interview and entered basic information about your business (company name and address, business type, federal tax ID, and so on), and then saved the file. After the interview, you used the QuickBooks Setup window and the Quick Start Center to begin using QuickBooks.

Topic B In this topic, you reviewed and accepted the income and expense accounts that QuickBooks created based on your industry. You opened the Chart of Accounts, which lists your income, expense, and balance-sheet accounts. You also added and edited accounts. Then you deleted an account and made an account inactive. You also learned how to apply an account numbering system.

Independent practice activity In this activity, you will use the EasyStep Interview to create a company file.

1 You operate a carpet cleaning business out of your home. Your company’s name is Spotless Services. Set up a QuickBooks file for your company. Start the EasyStep Interview, and enter the company name and a federal tax ID of 99-0213400. (You can skip the company address and phone information.)

2 Use the following information to customize your company file.

The industry is a General Service-based Business.

You are a sole proprietor.

The fiscal year starts in January.

Don’t add a password to the file.

Save the file as My practice company in the Unit Summary folder.

You provide only services.

You don’t collect sales tax.

You do create estimates.

You do use billing statements.

You do use progress invoicing.

You do want to track bills you owe.

You want to track the time spent on each cleaning job.

You have W-2 employees.

3 Specify a start date of January 1, 2012.

4 Accept the default income and expense accounts set up by QuickBooks.

5 Add a checking account with a balance of $6,000 as of 12/31/2011. Make up a name and account number. You opened the account before January 1, 2012.

6 Close QuickBooks Setup and the Quick Start Center.

7 In the Chart of Accounts, add an account for your corporate American Express credit card with a balance of $500 as of 1/1/2012.

8 Don’t set up online services.

9 Close the company file.


Review questions 1 Which of the following statements is true about the EasyStep Interview?

A It is the only way to create a new company file.

B You must provide complete information for each screen before you can finish the interview.

C The Leave button will exit the interview, but you will have to start again from the beginning.

D If you have data to convert from Quicken or other accounting software, you do so in the QuickBooks Setup window before starting the interview.

2 True or false? A password is recommended if multiple people will be using the company file.

True

3 What is the file extension for a QuickBooks company file?

A QBW

B QBB

C QBM

D QBC

4 What is the significance of the start date? (Choose all that apply.)

A It is the date on which you will begin tracking your finances.

B It must begin at the beginning of your fiscal year.

C For a complete picture of your finances, you need to enter balances and all transactions for the period between the start date and the current date.

5 The Chart of Accounts is a list of the following (choose all that apply):

A Assets

B Liabilities

C Debt

D Equity

6 A loan is a(n) _________ account.

Liability. A loan that will require more than a year to repay is classified as a Long Term Liability. A loan that can be paid off in less than a year is an Other Current Liability.

7 Instead of deleting an account, you can make the account _______.

Inactive. Deleting an account might cause a problem elsewhere in QuickBooks.

8 How do you display account numbers in the Chart of Accounts window? (Choose all that apply.)

A Click the Show Account Numbers button.

B Manually add the account number in the Edit Account window.

C Turn on automatic account numbering on the Company Preferences tab in the Preferences dialog box.

D Press Ctrl+A while opening the Chart of Accounts window.

3–1

U n i t 3 Working with centers and lists



A Enter and edit customer and vendor information, and create job records.

B Create all types of items, including inventory, subtotal, discount, and shipping cost items.

C Create a custom field and apply it to records in a list.


Topic A: Managing customers, vendors, and employees

Explanation In QuickBooks, a customer is anyone who pays you for goods or services. A vendor is anyone you pay for goods or services; therefore, the phone company is a vendor, as is the landlord to whom you pay rent for office space. The information you enter for each customer and vendor is used to automatically complete fields when you’re completing forms, such as checks, invoices, purchase orders, and so on.

The Customer Center QuickBooks uses the Customer Center to store information about the people and companies who buy your products and services. You can add customers to the list at any time. You can open the Customer Center in several ways:

On the icon bar, click the Customers button.

On the Home page, click the Customers button.

Press Ctrl+J.

Choose Customers, Customer Center.

Adding customers with an opening balance

The first time you open the Customer Center, it will be empty. You can add a customer with an opening balance by following these steps:

1 Click the New Customer & Job button and choose New Customer to open the New Customer window.

2 In the Customer Name box, enter the customer’s name.

3 In the Opening Balance box, enter the amount that the customer owes you. Verify that the “as of” date is correct.

4 Click OK. The new customer will appear on the Customers & Jobs tab in the Customer Center.

Exhibit 3-1: The Customer Center after a customer is added

Working with centers and lists 3–3

Do it! A-1: Adding a customer to the Customer Center The files for this activity are in Student Data folder Unit 3\Topic A.

Here’s how Here’s why 1 Open Lists1

2 On the icon bar, click Customers

To open the Customer Center. In QuickBooks, a customer is anyone who pays you for goods or services. You won’t enter all of your customers now—you’ll enter only those who owed you money as of your start date.

3 Click the Customers & Jobs tab

(If necessary.) This tab has three columns: Name, Balance Total, and Attach.

Observe the right pane It shows details about the customer, including any notes and jobs for the customer.

4 Click New Customer & Job To display a menu. You’ll add a customer.

Choose New Customer The New Feature window appears. In QuickBooks 2012, you can add and edit multiple list entries.

Close the New Feature window If necessary, check “Do not display this message in the future” and click OK.

5 In the Customer Name box, enter Big Don’s Steakhouse

This is a large restaurant that regularly orders products from Outlander Spices.

In the Opening Balance box, enter 250 as of 1/1/2012

As of 1/1/2012, Big Don’s Steakhouse owed your company $250.

6 Click OK

To add the new customer with an opening balance. In the Transaction list, a new invoice appears for this customer.


Adding customers with detailed information Explanation To add a new customer with additional details, follow these steps:

1 In the Customer Center, click New Customer & Job and choose New Customer to open the New Customer window, shown in Exhibit 3-2.

2 At the top of the window, enter the customer information: name, opening balance, and date.

3 Use the following four tabs to enter the relevant customer details.

Address Info — Stores contact information, including the company name, shipping and billing addresses, phone number, and so on.

Additional Info — Stores the category type, credit terms, and other information, including price level. Assigning customer types allows you to generate reports that indicate your company’s performance in various market segments. For example, Outlander Spices might use the following customer types: Restaurant (chain), Restaurant (individual), Grocery store (chain), Grocery store (individual), and Online/retail.

Payment Info — Stores information about the customer’s preferred payment method and credit limit. When you receive a payment from a customer, QuickBooks uses the preferred payment method to fill selected fields.

Job Info — Lets you enter job-related information when you are performing a single job for a customer.

4 Click OK.

Creating customer types and subtypes

You can create new customer types “on the fly” by choosing <Add New> from the Type list. If you want to use subtypes, create the subtype first by checking Subtype and entering the desired name. Then enter the desired type name in the Customer Type box and click OK.


Exhibit 3-2: The New Customer window


Do it! A-2: Creating a customer type

Here’s how Here’s why 1 Click New Customer & Job

and choose New Customer (In the Customer Center.) To open the New Customer window so you can add another customer.

2 In the Customer Name box, enter Food City, Inc.

Food City is a supermarket in Reno, Nevada. The name you enter in this box will be used on official forms, so it’s a good idea to enter the company’s legal name here.

3 On the Address Info tab, in the Company Name box, enter Food City

This name will be used in the Bill To address.

Enter the indicated contact information

4 Under Addresses, complete the Bill To box as indicated

5 Click Copy To open the Add Shipping Address Information dialog box. The information you entered appears here.

Edit the Address Name box to read Food City

Click OK To close the dialog box and add the information to the Ship To box.

6 Click the Additional Info tab In the New Customer window.


7 Under Categorizing and Defaults, display the Type list

You can use customer types to track your various market segments.

Select <Add New> To open the New Customer Type dialog box.

Check Subtype of You’ll create a new customer type, and then create a subtype for stores like Food City.

8 From the Subtype of list, select <Add New>

To open another New Customer Type dialog box.

In the Customer Type box, enter Grocery store

Click OK To create the new customer type and return to the first New Customer Type dialog box. Notice that “Grocery store” is entered automatically in the Subtype of box.

9 In the Customer Type box, enter Independent grocer

Outlander Spices wants to track sales to both independent grocers and supermarket chains.

Click OK To return to the Additional Info tab in the New Customer window. You’ll see that the customer type is entered as “Grocery store: Independent grocer.”

10 From the Terms list, select Due on receipt

Payments for wholesale orders are due upon receipt.

11 Click the Payment Info tab

In the Account No. box, enter 11560

This is your internal account number for tracking this customer.

Under Preferred Payment Method, from the list, select Check

Notice that you can also enter credit card information for your customer.

12 Click OK To close the New Customer window and return to the Customer Center. Food City now appears on the Customers & Jobs tab.


Jobs Explanation Many companies, especially service-oriented businesses, track their work as jobs. For

example, a construction company would view each building project as a job with a time frame, a budget, materials costs, and so on. In QuickBooks, you can track multiple jobs for each customer. Each job is listed under the customer’s name in the Customer Center.

If you are going to set up jobs for a customer, do not enter an opening balance for that customer. QuickBooks will calculate and track the overall balance for the customer from the balances you enter for the individual jobs.

The New Job window

To add a job, you’ll use the New Job window:

1 Select the customer for whom you want to create a job.

2 Click New Customer & Job and choose Add Job to open the New Job window.

3 Enter the job name, opening balance, and opening balance date.

4 Click the Job Info tab and enter the following information:

Job status (options include Pending, Awarded, In progress, Closed, and Not awarded)

Start date

Projected end date

End date (actual)

Job description

Job type

Similar to customer types, job types help you keep track of the types of work you do and how profitable each type is for your company.

If your company performs only one job at a time for each customer, you can record jobs by using the Job Info tab in the New Customer or Edit Customer window. When you use this method, only the job’s status is indicated in the Customer Center.

Exhibit 3-3: The Food City, Inc., customer with a new job


Do it! A-3: Adding a job

Here’s how Here’s why 1 In the Customer Center, verify

that Food City, Inc., is selected You’ll create a job for this customer.

2 Click New Customer & Job

Choose Add Job To open the New Job window. It’s almost identical to the New Customer window.

3 In the Job Name box, enter Design job 1

In the Opening Balance box, enter 1000

Outlander Spices is charging Food City $1,000 to design a gourmet foods section for its store.

Edit the “as of” date to read 02/01/2012

4 Click the Job Info tab

5 From the Job Status list, select In progress

The job has already started.

6 In the Start Date box, enter 02/01/2012

In the Projected End box, enter 02/28/2012

The job is projected to take about a month to complete.

Observe the End Date box You should leave this box empty until you actually complete the job.

7 In the Job description box, enter Design gourmet foods section


8 From the Job Type list, select <Add New>

To open the New Job Type dialog box.

In the Job Type Name box, enter Retail consulting

Click OK To return to the New Job window.

“Retail consulting” has been entered in the Job Type box.

9 Click OK To return to the Customer Center. The new job is listed under Food City, Inc. The job details are displayed in the Job Information area of the Customer Center.

10 Observe the overall balance for Food City, Inc.

It has changed from $0 to $1,000. Compare your screen to Exhibit 3-3.


The Doc Center In QuickBooks 2012, you can attach documents to customers, vendors, employees,

items, accounts, and transactions. Documents can be scanned directly into QuickBooks, or you can use images that are already on your hard drive. You can use this feature to attach electronic copies of:

Bank statements

Bills

Checks

Credit card transactions

Deposit transactions

Estimates

Invoices

Photos

Purchase orders

Receipts

To manage documents in the Doc Center:

1 Choose Company, Documents, Doc to open the Doc Center window. You can also click Docs on the icon bar.

2 To add a document from your hard drive, click Add a Document to open the Select Documents to add to Inbox window. Select the desired document and click Open to add it to the Doc Center.

3 To scan a document, click Scanner to open the QuickBooks Scan Manager window. After selecting the appropriate scanner, click Scan.

Exhibit 3-4: The Doc Center

You can click the Attach button in any dialog box or window that has one to open the Attachments window. You use this window to select files from your computer, from a scanner, or from the Doc Center.


Do it! A-4: Adding attachments with the Doc Center The files for this activity are in Student Data folder Unit 3\Topic A.

Here’s how Here’s why 1 On the icon bar, click Docs

To open the Doc Center. You’ll add a draft for the logo of the Food City gourmet foods section that Outlander spices is designing.

2 Click Add a Document

To open the Select Documents to add to Inbox window.

Select Gourmet Foods (From the current topic folder.) This is a JPEG file.

Click Open To add the file to the Doc center.

3 Click Close To close the Doc Center.

4 In the Customer Center, verify that Design job 1 is selected

Click Attach

To open the Attachments window.

5 Next to Attach from, click Doc Center

To open the Select Doc Center Documents window.

Select Gourmet Foods.jpg

Click Attach The file appears in the Attachments window.

6 Click Done The Attachment Successful window appears, explaining how to view attachments.

Click OK To return to the Customer Center.

7 Observe the Attach button The paperclip is green, indicating that there is an attachment.

Observe the job listing

It indicates there’s an attachment to the job.

8 Close the Customer Center


The Vendor Center Explanation Remember that a vendor is anyone you pay for goods or services. You use the Vendor

Center to store important information about your vendors. This information is used to complete checks and other types of forms. You can open the Vendor Center in several ways, including the following:

On the icon bar, click Vendors.

On the Home page, click the Vendors button.

Choose Vendors, Vendor Center.

On the left side of the Vendor Center, there are two tabs: Vendors and Transactions. As shown in Exhibit 3-5, the Vendors tab displays the balance total for each vendor. In this list, a positive balance indicates the amount you owe to the vendor. The Vendor Information section displays detailed information about the selected vendor, including notes and transactions in the lower half of the window.

Adding vendors with an opening balance

The first time you open the Vendor Center, it will be empty. You can add a vendor with an opening balance by following these steps:

1 Click the New Vendor button and choose New Vendor to open the New Vendor window.

2 In the Vendor Name box, enter the vendor’s name.

3 In the Opening Balance box, enter the amount you owe the vendor. Verify that the “as of” date is correct.

4 Click OK. The new vendor will appear on the Vendors tab in the Vendor Center.

Editing vendor information

You can edit vendor information by selecting the vendor name on the Vendors tab and then clicking the Edit Vendor button in the Vendor Information section.

Exhibit 3-5: The Vendor Center after a new vendor is added


Do it! A-5: Adding a vendor with an opening balance

Here’s how Here’s why 1 On the icon bar, click Vendors

To open the Vendor Center. You can also choose Vendors, Vendor Center.

2 Click New Vendor… To display a menu.

Choose New Vendor To open the New Vendor window. You’ll add a vendor.

3 In the Vendor Name box, enter Global Spice Importers


In the “as of” box, enter 1/1/2012

As of 1/1/2012, you owed Global Spice Importers $750.

4 Click OK To close the New Vendor window and add the vendor with an opening balance.


Adding a vendor and a vendor type Explanation To add a vendor with additional details, follow these steps:

1 In the Vendor Center, click New Vendor and choose New Vendor to open the New Vendor window, shown in Exhibit 3-6.

2 Enter the vendor information, such as name, opening balance, and date.

3 Use the following tabs to enter the relevant vendor details:

Address Info — Stores contact information for the vendor, including the company name, address, and phone number, and the vendor’s name as you want it to appear on checks.

Additional Info — Stores your account number and credit terms, as well as the vendor’s tax ID and vendor type. Assigning vendor types allows you to generate reports that indicate how much money you’re paying to particular types of vendors. For example, Outlander Spices might use the following vendor types: Spice importer, Warehousing provider, Shipping company, and Display/kiosk manufacturer.

4 Click OK.

Creating vendor types

You can create a vendor type on the fly by selecting <Add New> from the Type list. After you create the type, it will be available in the Type list.

Exhibit 3-6: The New Vendor window


Exhibit 3-7: Vendor Information in the Vendor Center

Do it! A-6: Creating a vendor type

Here’s how Here’s why 1 Observe the Vendors tab Just one vendor is listed: Global Spice

Importers. On the Vendors tab, a positive balance indicates the amount you owe to the vendor. Vendor details are displayed on the right side of the Vendor Center.

2 Click New Vendor… and choose New Vendor

To open the New Vendor window so that you can add another vendor.

3 In the Vendor Name box, enter National Packaging

Outlander Spices just switched to National Packaging as its main shipping provider.


Edit the “as of” box to read 02/10/2012

4 In the Company Name box, enter National Packaging

Enter the indicated contact information


5 Complete the Billed From Address box as indicated

Copy the address to the Shipped From Address box

Click Copy to open the Add Shipping Address Information dialog box, and then click OK.

6 Click the Additional Info tab In the New Vendor window.

7 In the Account No. box, enter 9720-1000-50

This account number will appear on all checks payable to this vendor.

8 Display the Type list The appropriate vendor type for National Packaging is not available, so you’ll create a type.

Select <Add New> To open the New Vendor Type dialog box.

9 In the Vendor Type box, enter Shipping company

Click OK To close the dialog box and return to the New Vendor window.

10 From the Terms list, select Due on receipt

Payments for all National Packaging orders are due when the invoices are received.

11 Click the Address Info tab Compare your New Vendor window to Exhibit 3-6.

Click OK To close the New Vendor window and add National Packaging to your Vendor Center. Compare your screen to Exhibit 3-7.


Notes Explanation

In both the Customer Center and the Vendor Center, you can add notes about customers, jobs, and vendors. You can use these notes as reminders or to store information not normally saved in a customer, vendor, or job record. Notes appear in the details section just above the transactions list.

To add a note to a record:

1 Select the customer, vendor, or job to which you want to add a note.

2 Click Edit Notes to open the Notepad dialog box, shown in Exhibit 3-8.

3 If desired, click Date Stamp to enter the current date in the text area.

4 In the text area, enter the desired text.

5 Click OK to close the dialog box.

Exhibit 3-8: The Notepad dialog box


Do it! A-7: Adding a note

Here’s how Here’s why 1 In the Vendors list, verify that

National Packaging is selected

You’ll create a note for this vendor.

2 Click Edit Notes To open the Notepad dialog box for the selected vendor.

3 Click Date Stamp To enter today’s date in the text area.

4 Type New rates take effect 4/1/2012

As of April 1, National Packaging will charge new shipping rates.

5 Click OK To close the dialog box and save the note.

6 Observe the new note in the Vendor Information section

(If necessary, select National Packaging on the Vendors tab.)

You can easily change the note by clicking Edit Notes.

7 Close the Vendor Center


The Employee Center Explanation The Employee Center provides a central location for tracking employee information,

such as payroll data, time off, and tax-related details. The layout and features of this center are similar to those of the Customer Center and Vendor Center. You can edit employee information and add notes by clicking the appropriate buttons in the Employee Information section.

To open the Employee Center, do any of the following:

On the Home page, click Employees (the button with vertical text near the bottom of the window).

On the icon bar, click Employees.

Choose Employees, Employee Center.

Adding an employee

The Employee Center will be empty the first time you open it. To add an employee, follow these steps:

1 In the Employee Center, click New Employee to open the New Employee window.

2 Use the following tabs to enter the relevant employee details:

Personal — Stores the employee’s name, Social Security number, birthday, and the name to be printed on the paycheck.

Address and Contact — Stores the home address, phone numbers, email address, and pager number.

Additional Info — Stores the employee identification number (ID) and any custom fields.

3 If necessary, use the “Change tabs” list to display the following tabs and enter the applicable information:

Payroll and Compensation Info — Stores the salary rates, pay period, sick time, vacation time, direct deposit details, and tax details, including additions, deductions, company contributions, and federal and state withholding information.

Employment Info — Stores the hire date, release date, and employment type (Regular, Officer, Statutory, Owner).

4 Click OK.

Exhibit 3-9: The Employee Center


Do it! A-8: Adding an employee to the Employee Center

Here’s how Here’s why 1 On the icon bar, click

Employees

To open the Employee Center. Currently, only one employee, Jack Thomas, is listed on the Employees tab.

2 Click New Employee To open the New Employee window.

3 On the Personal tab, in the First Name and Last Name boxes, enter your name

To add yourself as an employee.

4 Click the Address and Contact tab

This tab contains employee information, such as the home address, phone and fax numbers, e-mail address, and pager number.

5 In the Home address fields, enter your address

6 From the Change tabs list, select Employment Info

From the Type list, select Owner

7 Click OK To close the New Employee window.

8 Observe the Employee Center Your name appears on the Employees tab, and your home address appears in the Employee Information area.

Close the Employee Center



Topic B: Working with the Item List Explanation

Items are a key component of your QuickBooks file. An item is anything that you would list on an invoice or other sales form. For example, a typical Outlander Spices invoice would include a line for each product and a line for shipping charges. Each of these is an item. Other possible items include sales tax, discounts, and even subtotals; therefore, it would be an oversimplification to define an item as anything you sell or charge for. If you want to include something in an invoice, you’ll need to create an item for it in QuickBooks. The only exception to this rule is the invoice total, which the program calculates and enters automatically.

QuickBooks does not create any items for you. The Item List is empty by default, and you must set up each item manually. You use the Item List for things such as inventory parts, non-inventory parts, shipping charges, postage costs, and other reimbursable expenses.

Opening the Item List There are many ways to open the Item List. Here are a few:

On the icon bar, click Item.

Choose Customers, Item List.

Choose Lists, Item List.

On the Home page, click Items & Services.

This list has seven columns: Name, Description, Type, Account, Total Quantity On Hand, Price, and Attach. The Total Quantity On Hand column indicates the quantity you have in stock for each item. The Price column indicates how much you charge your customers for each item.

The New Item window

The first time you open the Item List, it will be empty. To add a new item:

1 At the bottom of the Item List window, click Item to display a menu, and choose New to open the New Item window, shown in Exhibit 3-10.

2 From the Type list, select the appropriate item type. The window’s remaining contents will vary depending on the item type you select.

3 Enter the required item information.

4 Click OK.

You can edit items at any time by selecting them in the Item List window, clicking Item, and choosing Edit Item. After making the desired changes, click OK.


Exhibit 3-10: The New Item window

Exhibit 3-11: Adding a non-inventory item to the Item List


Do it! B-1: Adding a non-inventory item The files for this activity are in Student Data folder Unit 3\Topic B.


2 On the Home page, click Items & Services

To open the Item List window. In QuickBooks, anything you include in an invoice is an item. For example, in a typical Outlander Spices order, each spice is an item, as is the shipping cost. You’ll create an item for the kiosk displays that Outlander Spices provides to grocery stores free of charge.

3 At the bottom of the Item List window, click Item and choose New

To open the New Item window.

4 From the Type list, select Non-inventory Part

In the Item Name/Number box, enter Kiosk display

In the Description box, enter Holds 50 spices

Observe the Price box The default entry is 0.00, which you’ll accept because Outlander Spices does not charge customers for this item.

5 From the Account list, select 4010 Sales

Even though Outlander Spices does not actually sell this item, you must assign it to an income account. The Sales account will do.

6 Check This item is used in assemblies or is purchased for a specific customer:job

A Purchase Information section is added to the New Item dialog box.


7 In the Description on Purchase Transactions box, enter Kiosk display, Outlander Spices

Edit the Cost box to read 375 Each display costs Outlander Spices $375, including shipping directly from the manufacturer to the grocery store.

8 From the Expense Account list, select 6780 Marketing

Compare your New Item window to Exhibit 3-10.

9 Click OK The new kiosk display item appears in the Item List, as shown in Exhibit 3-11.


Inventory Explanation Inventory is anything you purchase, hold in stock, and then sell. In order to include

these goods on your invoices, purchase orders, and so on, you have to create the appropriate items in QuickBooks. These are also called inventory part items. When you create an inventory part item, specify the following:

The item name and description to appear on invoices

The selling price per unit

The income account for tracking sales of the item

The item description to appear on purchase orders, checks, or bills for the item

Your cost per unit

The reorder point (QuickBooks will automatically remind you to reorder the item when inventory is at or below the specified quantity.)

The quantity on hand as of your start date

Based on the cost per unit and the quantity on hand, QuickBooks calculates the total inventory value for the item as of your start date. If necessary, you can change this value manually.

Exhibit 3-12: Creating an inventory item in the New Item window


Exhibit 3-13: The Item List


Do it! B-2: Adding an inventory item

Here’s how Here’s why 1 Verify that the Item List is open If necessary, click Items & Services on the

Home page.

2 Click Item and choose New To open the New Item window. The Type list is selected by default.

3 From the Type list, select Inventory Part

The window’s contents change according to your selection.

4 In the Item Name/Number box, enter Dill weed, bulk

5 In the Description on Purchase Transactions box, enter Dill weed, 16 oz. bag

This text will appear on purchase orders issued by your company.

In the Cost box, enter 4.50 Outlander Spices pays $4.50 for each one-pound bag of dill weed.

Observe the COGS Account box

Your main Cost of Goods Sold expense account is entered by default.

From the Preferred Vendor list, select Global Spice Importers

6 Edit the Sales Information section as shown

The sales price is the amount you charge your customers for the item.


7 Under Inventory Information, in the Reorder Point box, enter 200

QuickBooks will prompt you to reorder this item when inventory is at or below 200 bags.

In the On Hand box, enter 400

Press t

The Total Value ($1,800) is calculated automatically with item cost and quantity on hand.

8 Click OK To close the New Item window. The inventory item is added to the Item List, as shown in Exhibit 3-13.


Grouped items Explanation

If you regularly sell several items together as a set, you can group them. By creating a grouped item, you save yourself the trouble of entering each item individually.

To group items:

1 Open the New Item window.

2 From the Type list, select Group.

3 Enter a name or number and a description for the group.

4 In the table at the bottom of the window, click anywhere in the Item column to activate the drop-down list.

5 From the Item List, select the first item you want to include in the group.

6 Press Tab to place the insertion point in the Qty column. If necessary, enter the desired quantity for the first item.

7 Press Tab to move the insertion point to the next line in the Item column and activate the drop-down list. Repeat steps 5 and 6 for each additional item in the group.

8 Click OK.

Grouping items is useful when you want to offer a special discount on a particular product you sell. In cases like this, you’ll need to create three items:

An inventory or non-inventory part for the product being sold

A discount item for the amount of the discount

A grouped item that combines the product item with the discount item

Exhibit 3-14: A grouped item in the Item List


Do it! B-3: Grouping items

Here’s how Here’s why 1 Open the New Item window In the Item List window, click Item and choose

New.

2 From the Type list, select Discount

You’ll create a discount item.

3 In the Item name/Number box, enter Super special

Outlander Spices offers this discount when the company wants to sell a large amount of a particular spice quickly.

In the Description box, enter Half-price discount

In the Amount or % box, enter 50%

Be sure to enter the % sign. Otherwise, QuickBooks will assume you mean the number to be an amount.

From the Account list, select 6130 Cash Discounts

4 Click OK To close the New Item window.

5 Open the New Item window You’ll group the discount item with an existing product item.

6 From the Type list, select Group

7 In the Group Name/Number box, enter Dill weed special

8 At the bottom of the window, in the table, click anywhere in the Item column

To activate the drop-down list.

From the Item list, select Dill weed, bulk

The item’s description is entered automatically.

9 Press t To move the insertion point to the Qty (Quantity) column. If necessary, you can enter a specific quantity for each product item in the group.


10 Press t To move the insertion point to the next line in the Item column and activate the drop-down list.

From the Item list, select Super special

This is the discount.

11 Click OK To close the New Item window. The grouped item is added to the list. Notice that the grouped item’s price is not displayed. Compare your screen to Exhibit 3-14.

12 Close the Item List



Topic C: Adding custom fields Explanation You can add your own customized fields to the windows where you set up customers,

vendors, and items. The information you enter in the fields can be intended just for your use, or it can be used to automatically fill in certain forms when you enter a name or item on them. Customized fields are also useful for generating reports.

Defining custom fields Let’s say you want to track your company’s sales by geographic region. You can add a custom field named “Sales Region” to the New Customer and Edit Customer windows. Here’s how:

1 Open the New Customer or Edit Customer window and click the Additional Info tab.

2 Click Define Fields to open the Define Fields dialog box.

3 Under Label, in the first box, enter a name for the new field (such as “Sales Region”).

4 Under “To be used for,” check the list(s) you want the new field to be applied to. (In this example, you’d check Customers:Jobs.)

5 Click OK. An Information box appears, stating that you can use custom fields in transactions.

6 Click OK. The new field is added to the Additional Info tab under Custom Fields.

Keep in mind that any custom fields you create will not be added to your forms automatically. You must add the corresponding fields manually. For example, you would add the new Sales Region field to your invoice form. From then on, a customer’s sales region would be filled in automatically when you entered a sale. You could then filter a report so that it showed only sales for a particular region.

You can use a similar procedure to add custom fields for vendors, items, and other list-based records in QuickBooks.


Exhibit 3-15: The custom Sales Region field in the Edit Customer window


Do it! C-1: Creating a custom field The files for this activity are in Student Data folder Unit 3\Topic C.


2 Open the Customer Center You’ll add a Sales Region field to your customer records.

3 Double-click Food City, Inc. To open the Edit Customer window. You can also select the Food City entry, right-click, and choose Edit Customer from the shortcut menu.

Click the Additional Info tab

4 Under Custom Fields, click Define Fields

To open the Set up Custom Fields for Names dialog box.

5 Under Label, in the first box, enter Sales Region

Under Use for, check the first box, as shown

(Under Cust.) The Sales Region field will be available only in customer and job records.

Click OK The Information box shows that you can also use custom fields in transactions.

Click OK To return to the Edit Customer window. On the Additional Info tab, under Custom fields, a Sales Region box has been added.

6 In the Sales Region box, enter West

Food City is in the West region.

Click OK To close the Edit Customer window.

7 Open a New Customer window and click the Additional Info tab

To verify that the new field appears on the Customer form.

8 Click Cancel To close the window without saving.

9 Close the Customer Center and close the company file


Unit summary: Working with centers and lists Topic A In this topic, you learned how to use the Customer Center. You added a customer and

created a customer type. You learned how to add jobs and create job types. You also learned how to use the Doc Center and how to attach files. Then you opened the Vendor Center, added a vendor, and created a vendor type. You also learned how to attach a note to a list entry.

Topic B In this topic, you opened the Item List and added an inventory item. You also learned how to add other types of items, including sales tax, subtotal, and discount items. Then you learned how to group items.

Topic C In this topic, you learned how to add custom fields to your customer, vendor, and item records.

Independent practice activity In this activity, you will edit the Chart of Accounts, modify customer and vendor records, and create an entry in the Item List.


1 Open Practice lists.

2 In the Chart of Accounts, create an account as follows:

Type: Income

Number: 4025

Name: Retail consulting

Tax-Line Mapping: Income: Gross receipts or sales not on line 1a

3 Delete the Automobile Expense account. When you’re done, close the Chart of Accounts.

4 Edit the customer information for Big Don’s Steakhouse by adding the following information:

Bill To/Ship To address: Big Don’s Steakhouse, 8 Elm St., Chicago, IL 60604

Customer Type: Restaurant (You’ll need to create this customer type.)

Account Number: 12300

5 Add a new job for Food City, Inc., as follows:

Job Name: Design job 2

Opening Balance: $500 as of March 5, 2012

Job Status: Pending

Start Date: March 3, 2012

Projected End Date: March 17, 2012

Job Description: Redesign dry goods storage area

Job Type: Retail consulting

6 When you’re done, verify that the new balance for Food City is $1,500. Compare your Customer Center to Exhibit 3-16. Close the Customer Center.


7 Add a new vendor as follows:

Vendor Name/Company Name: Superior Properties

Addresses: Superior Properties, 495 Lake Ave., Portland, OR 97220

Print on Check as: Superior Properties, Inc.

Contact: Grace Lee

Contact’s phone number: 555-253-0600

Vendor Type: Office space rental (you’ll need to create this vendor type).

8 Create a note for the Superior Properties vendor record. Stamp the note with today’s date and enter the following text: Spoke to Grace; new lease due next week. When you’re done, close the Vendor Center.

9 Create an item that will allow you to enter subtotals on your business forms. In the Item Name/Number box, enter Subtotal. There’s no need to enter a description. When you’re done, close the Item List.


Exhibit 3-16: The Customer Center after Step 5


Review questions 1 A customer pays you for goods or services, and you pay _______ for their goods or

services.

Vendors

2 How do you open the Customer Center? (Choose all that apply.)

A On the icon bar, click Customers.

B On the Home page, click the Customers button.

C Press Ctrl+C.

D Choose Customers, Customer Center.

3 True or false? The Transactions tab in the Customer Center window lists all of your customers and their balances.

False. The Customers & Jobs tab lists all of your customers and their balances.

4 How do you add a new job for a customer?

a On the Customer & Job tab, select the customer.

b Click New Customer & Job and choose Add Job.

c Enter the job name, opening balance, and opening balance date.

d On the Job Info tab, enter the job status, start date, projected end date, and other job details.

e Click OK twice to save the job and close the customer window.

5 What is the advantage of learning how to use the Customer Center and the customer window?

The same techniques that are used to add and edit customer accounts can also be used to manage vendors and employees.

6 Where do Notes appear in the Customer and Vendor Centers?

In the details section, just above the transactions list

7 What is an item?

An item is anything that you would list on an invoice or other sales form. Items can include inventory, non-inventory parts, and miscellaneous charges such as shipping and postage.

8 How many items appear in the Item List by default?

None

9 Which of the following are described as anything you purchase, hold in stock, and then sell?

A Items

B Inventory

C Non-inventory

D Assets

10 What is an advantage of creating a grouped item?

When you regularly sell several items together, combining them in a group allows you to avoid entering each item individually, which would be less efficient.

4–1

U n i t 4 Working with business forms



A Prepare, print, modify, and customize invoices, and prepare a credit memo.

B Prepare and print a sales receipt, record a customer payment, and deposit customer payments into your checking account.

C Prepare and print purchase orders, and enter items into inventory.

D Locate information quickly by using the QuickFilter and Find features.


Topic A: Invoices and credit memos Explanation By entering complete and accurate information about your customers, vendors,

inventory, and other items in your various lists, you’ll make it easier to complete all types of business forms, including invoices and credit memos. Your list data is used to fill in particular fields automatically, leaving you to fill in the remaining fields manually. QuickBooks uses an invoice form based on the type of business—services, products, or both—that you selected during the EasyStep Interview. These default invoice forms are based on templates, each of which has a predefined field structure and print layout. You can create a custom invoice form tailored to your company’s specific needs.

The Create Invoices window To create an invoice, you’ll use the Create Invoices window, shown in Exhibit 4-1. The contents of this window depend on the selected invoice form. Here’s how it works:

1 On the icon bar, click Invoice to open the Create Invoices window.

2 From the Customer:Job list, select the desired customer. Some fields, such as the customer’s address and terms of sale, will be filled in automatically.

3 Fill in the remaining fields, or accept the default values. In the main table, you activate a field by clicking it. For example, to activate the drop-down list for entering an item, click anywhere in the Item Code column. To move the insertion point to the next field, press Tab; to move back, press Shift+Tab.

4 At the bottom of the window, use the check boxes to specify whether the invoice is to be printed, sent via e-mail, or both.

5 If you want to save the invoice and close the Create Invoices window, click Save & Close. If you want to continue preparing invoices, click Save & New.

Exhibit 4-1: The Create Invoices window with the Food City invoice

Working with business forms 4–3

Reminders

The Reminders window reminds you about bills to pay, overdue invoices, and items to print. By default, the reminders are turned off. To turn them on, choose Edit, Preferences and select the Reminders category. Check “Show Reminders list when opening a Company file,” and click OK.

Exhibit 4-2: The Reminders window

Do it! A-1: Preparing an invoice The files for this activity are in Student Data folder Unit 4\Topic A.

Here’s how Here’s why 1 Open Forms1

2 On the icon bar, click To open the Reminders window. This window reminds you about invoices, bills, and other things you need to take action on soon.

Double-click Invoices/Credit Memos to Print

To expand the list of invoices that are due (or overdue) for printing.

3 On the icon bar, click To open the Create Invoices window.

Display the Template list

The Intuit Product Invoice template is selected. You can use this list to select a different invoice form.

Press g To close the Template list.

4 From the Customer:Job list, select Food City, Inc.

The Bill To and Ship To addresses are filled in automatically.

5 Observe the Date and Invoice # fields

Today’s date is entered by default. This is the first time you’re using the Create Invoices window, so the invoice number is 1.


6 Select the invoice number

Double-click the Invoice # field to select the number 1.

Type 785 To change the invoice number.

7 Click anywhere in the P.O. Number field

To place the insertion point in this field.

Type 6201

This is your customer’s purchase-order number.

8 Observe the Terms field The standard terms for this customer (Due on receipt) are filled in automatically.

Observe the Ship field Today’s date is entered automatically.

9 From the Via list, select UPS This indicates the shipping method.

10 In the Quantity column, click the first line

To place the insertion point in the first line of this column. The Item Code list is activated.

Type 3 This is the order quantity.

From the Item Code list, select Nutmeg, ground, bulk

This is the item being ordered by Food City. The Description, Price Each, and Amount fields are filled in automatically.

11 Press t To move the insertion point to the Description field for the current item. You can modify the description.

Press t three times To move the insertion point to the beginning of the next line and activate the Item Code list.

12 From the Item Code list, select UPS Ground, level 1

To enter the standard UPS shipping charge for orders totaling less than $50. The Description, Price Each, and Amount fields are filled in automatically.

At the bottom of the invoice, observe the Total and Balance Due values

QuickBooks calculates these values for you.


13 From the Customer Message list, select Thank you for your business.

To enter this message in the field. Compare your screen to Exhibit 4-1.

14 Click Save & New (In the lower-right area of the form.) To save the current invoice and start a new one.

Observe the Invoice # field

QuickBooks continues numbering from the previous invoice number.

Close the Create Invoices window To return to the Home page.

15 View the Reminders window with Invoices/Credit Memos to Print expanded

(If necessary, click Rmnd and expand Invoices/Cred Memos to Print.) The new invoice (#785) is in the list of invoices to print, as shown in Exhibit 4-2.

Close the Reminders window


Modifying invoices Explanation

To modify an invoice:

1 Open the Create Invoices window.

2 Click the Previous and Next buttons to page through your saved invoices and display the one you want to edit.

3 Change the desired field entries. To insert a new item line in the middle of the table, place the insertion point in the line that you want the new line to appear above, and choose Edit, Insert Line (or right-click the line and choose Insert Line). To delete a line, place the insertion point anywhere in the line you want to delete and choose Edit, Delete Line (or right-click the line and choose Delete Line).


Do it! A-2: Modifying an invoice

Here’s how Here’s why 1 Press c + I To open the Create Invoices window. A new,

blank invoice is created. The invoice number is 786. You want to modify invoice number 785.

2 At the top of the window, click Previous

To display the previous invoice (785).

3 In the Quantity column, select 3 Use the mouse.

Type 2 To change the quantity of nutmeg items to 2.

Press t To enter the new quantity and update the calculations.

4 Place the insertion point anywhere in the second item line

You’ll insert a new line above this item.

Right-click and choose Insert Line

To insert a new, blank line above the shipping charge item.

5 On the new line, enter an order for three 16-ounce bags of dill weed

Type 3 and press Tab. From the Item Code list, select “Dill weed, bulk.”

6 Insert a blank item line between the second and third items

Place the insertion point anywhere in the third item line (UPS shipping), right-click, and choose Insert Line.


7 On the new line, enter the Subtotal item

Use the Item Code list.

8 Observe the Amount column

It shows the subtotal of the two previous items ($39.50). The new invoice total, including shipping, is $48.45.

9 Click Save & Close A message box prompts you to record your changes.

Click Yes To save your changes, close the Create Invoices window, and return to the Home page.

10 View the reminder for invoice #785

(Open the Reminders window and expand Invoice/Credit Memos to Print.) The invoice amount has been updated to $48.45.

Close the Reminders window


Printing invoices Explanation Before you print an invoice or any other form, use the Printer setup dialog box (shown

in Exhibit 4-3) to enter the appropriate settings. To open this dialog box, choose File, Printer Setup. From the Form Name list, select the type of form for which you want to set up your printer. The contents of this dialog box will vary according to the selected form and the printer drivers on your computer. After entering your settings, click Align to make sure the selected form will print correctly. When finished, click OK.

Exhibit 4-3: The Printer setup dialog box

Printing from the Create Invoices window

To print the current invoice from the Create Invoices window:

1 Click the Print button to open the Print One Invoice dialog box, which is nearly identical to the Printer setup dialog box. This gives you a chance to change any of your previously entered settings before printing.

2 In the Number of copies box, enter the number of copies you want to print.

3 If desired, click Preview to preview the invoice before printing. When you’re done, click Close to close the Print Preview window. You can also preview an invoice from the Create Invoices window by clicking the arrow next to the Print button and choosing Preview.

4 Click Print.


Printing multiple invoices

If you want to print a batch of invoices, you should use the Select Invoices to Print dialog box, shown in Exhibit 4-4. Here’s how:

1 Choose File, Print Forms, Invoices to open the Select Invoices to Print dialog box. The invoices associated with your main accounts-receivable (A/R) account are displayed and selected (checked) by default. To display the invoices for a different A/R account, use the A/R Account list.

2 Deselect (uncheck) the invoices you don’t want to print. To deselect all invoices, click Select None. To select all invoices, click Select All.

3 Click OK to open the Print Invoice dialog box, which is nearly identical to the Printer setup dialog box. This gives you a chance to change any of your previously entered settings before printing.

4 In the Number of copies box, enter the number of copies of each invoice you want to print.

5 Click Print.

Exhibit 4-4: The Select Invoices to Print dialog box


Do it! A-3: Printing an invoice

Here’s how Here’s why 1 Choose File, Printer Setup… To open the Printer setup dialog box. The Form

Name list is displayed by default. Before you print any type of form, you should apply the appropriate printer settings in this dialog box.

From the Form Name list, select Invoice

The contents of this dialog box will vary depending on the selected form type. For invoices, there are two tabs: Settings and Fonts.

2 On the Settings tab, observe the Printer name and Printer type lists

You use these lists to specify the output device and its type (continuous or page-oriented).

3 Observe the “Print on” options

You can print invoices on any of these three types of paper. You can also specify whether lines should appear around each field.

4 Observe the Align button You click this button to test and adjust your printer’s alignment for the selected form.

5 Click the Fonts tab It indicates that you need to use the Template list to change the fonts on this form, and it provides the steps to do so.

6 Click OK To close the Printer setup dialog box.

7 Choose File, Print Forms, Invoices…

To open the Select Invoices to Print dialog box. All invoices are selected for printing by default.

Observe the A/R Account list

If you have more than one accounts-receivable account, you can display the invoices for a different account by selecting it from this list.

8 Click Select None To deselect (uncheck) all invoices.

In the No. column, click 785 To select invoice number 785 for printing.

9 Click OK To open the Print Invoices dialog box. This gives you a chance to change the settings before printing.

Edit the Number of copies box to read 2

It’s a good idea to print an extra copy of each invoice for your records or files.

10 Click Cancel To close the dialog box without printing the selected invoice.


Custom invoice forms Explanation If none of the default invoice templates are adequate for your needs, you can create a

custom invoice form. You can modify a standard invoice template to some extent, or you can create a copy of a template and modify the copy. No matter which approach you use, you can start with the Basic Customization dialog box, shown in Exhibit 4-5.

To create a custom invoice form:

1 Open the Create Invoices window.

2 Click the Customize button on the icon bar to open the Basic Customization dialog box.

3 Click Manage Templates, select a template from the list, click Copy, and click OK.

4 Change the logo and fonts as needed, and determine what company information should appear in the template.

5 Click Layout Designer to adjust the placement of items on the invoice.

6 When you are satisfied with the layout, click OK.

Exhibit 4-5: The Basic Customization dialog box for invoices

To further customize the invoice form, you can use the Additional Customization dialog box. It has four tabs: Header, Columns, Footer, and Print. By selecting options and entering text on these tabs, you can add, delete, and customize various components of your invoice form. For advanced layout options, click the Layout Designer button.

You use the same general procedure to customize any type of form in QuickBooks, including credit memos, sales receipts, and purchase orders.


Adding your company logo

For a professional look, many companies include a logo on their invoice forms. In QuickBooks, your logo file must be in the bitmap (.bmp), JPEG (.jpg), or GIF (.gif) format. To add your logo:

1 Open the Basic Customization dialog box.

2 Under Logo & Fonts, check Use logo. The Select Image dialog box opens.

3 Navigate to and select your logo file; then click Open to return to the Logo dialog box, which displays a preview of the selected logo.

4 Click Open.

5 Click OK to copy the image.

Do it! A-4: Creating and previewing a custom invoice form

Here’s how Here’s why 1 Open the Create Invoices window Press Ctrl+I.

2 On the Create Invoices icon bar, click the arrow next to the Customize button

Choose Manage Templates… The Manage Templates window opens with the Intuit Product Invoice template selected.

You’ll make a copy of the template and use that, because you can make only limited changes in the standard templates.

3 Click Copy

To make a copy of the template and select it.

4 In the Preview section, edit the Template Name box to read My custom invoice

Click OK To open the Basic Customization dialog box.


5 Under Logo & Fonts, check Use Logo

The Select Image dialog box opens.

Navigate to the current topic folder and select Logo

Student Data folder Unit 4\Topic A.

Click Open A warning box prompts you to copy the file to the Forms - Images folder.

Click OK

To return to the Basic Customization dialog box. The logo is now in the upper-left corner of the invoice.

6 Click Layout Designer You’ll make a minor layout adjustment.

7 Select the logo If necessary.

Drag the logo to the middle of the top of the form

The mouse pointer changes to a four-headed arrow, indicating that the logo can be moved.

Click OK To close the Layout Designer and return to the Basic Customization dialog box. The pepper now appears in the center of the form in the preview.

8 Click Additional customization

To open the Additional Customization dialog box.


9 Next to REP, clear the check box in the Screen column

To remove the Rep (sales representative) field from your invoice in the screen view. A message appears, warning you that you might have to rearrange fields in the Layout Designer.

Click OK To close the message box.

Observe the options on the other tabs

You can choose to include or omit many pieces of information on the invoice.

Click OK To close the Additional Customization dialog box and return to the Basic Customization dialog box.

10 Under Company & Transaction Information, check E-mail Address

These options are like the ones in the Additional Customization dialog box, but they are shown here because they are more commonly used. The e-mail address appears at the bottom of the invoice, as shown in Exhibit 4-5.

A message appears, warning you that you might have to rearrange fields in the Layout Designer.


11 Click OK To close the Basic Customization dialog box and return to the Create Invoices window.

12 Click Print Preview A message about shipping labels appears.

Click OK To close the message box and open the Print Preview window.

13 Click the upper-left corner of the invoice

To zoom in on this area. You’ll see the company logo and mailing address.

Observe the bottom of the invoice Your company’s e-mail address has been added.

14 Click Close To close the Print Preview window.

15 Close the Create Invoices window


Preparing credit memos Explanation Credit memos are often used to handle customer returns and refunds. Credit memos also

provide a handy way to correct data entry mistakes. QuickBooks provides different kinds of credit memos for different kinds of companies.

To start creating a credit memo, choose Customers, Create Credit Memos/Refunds to open the Create Credit Memos/Refunds window, shown in Exhibit 4-6. This window is similar to the Create Invoices window, and you complete it in much the same way. When you’re preparing a credit memo, it’s a good idea to refer to the original invoice number in the Memo box.

Exhibit 4-6: The Create Credit Memos/Refunds window


Do it! A-5: Preparing a credit memo

Here’s how Here’s why 1 On the Home page, click

Refunds & Credits

(In the Customers section.) To open the Create Credit Memos/Refunds window. It’s similar to the Create Invoices window.

2 From the Customer:Job list, select Big Don’s Steakhouse

You’ll credit this customer for returned merchandise.

3 Observe the Credit No. field

Credit memos follow the same numbering as invoices by default.

4 Click in the Item column (Anywhere will do.) To activate the Item list.

From the Item list, select Nutmeg, ground, bulk

This is the type of item the customer returned. As in an invoice, the Description, Rate, and Amount fields are filled in automatically.

5 Press t twice To place the insertion point in the Qty field.

Type 2

Press t The Amount, Total, and Remaining Credit values are recalculated based on the quantity.

6 In the Memo box, enter Return, invoice #775

(In the bottom-left area of the form.) When you’re preparing a credit memo, it’s a good idea to refer to the original invoice number. Compare your screen to Exhibit 4-6.

7 Click Save & Close

Observe the Available Credit message

QuickBooks asks how you want to handle the remaining balance. You’ll accept the default to retain the remainder as available credit.

Click OK To close the Available Credit message.


8 Open Reminders

Expand Invoices/Credit Memos to Print

The credit memo you just created is listed. The credit amount is indicated as a negative number.

Close Reminders



Topic B: Sales receipts and customer payments Explanation

When you make a sale or complete a job, you’ll need to provide your customer with a receipt and process the payment. You record a sales receipt when a customer pays you in full for goods at the point of sale. Sales receipts are recorded in a way that changes your cash balance. However, if your customers don’t always pay you up front for their purchases, you’ll need to record another type of payment—the ones that customers make to pay off or pay down what they owe.

The Enter Sales Receipts window To create a sales receipt, you’ll use the Enter Sales Receipts window, which is similar to the Create Invoices window. To open this window (shown in Exhibit 4-7), choose Customers, Enter Sales Receipts.

Exhibit 4-7: The Enter Sales Receipts window

Printing sales receipts

You print a sales receipt the same way you print an invoice or credit memo.


Do it! B-1: Preparing and printing a sales receipt The files for this activity are in Student Data folder Unit 4\Topic B.


2 On the Home page, click Create Sales Receipts

(In the Customers section.) To open the Enter Sales Receipts window, which is similar to the Create Invoices window.

3 From the Customer:Job list, select Huller, Elizabeth

You’ll prepare a sales receipt for this customer.

4 Observe the Sale No. box

Sales receipts have a numbering sequence that is different from the sequence for invoices and credit memos.

5 Activate the Item list Click anywhere in the Item column.

From the Item list, select Rack-o-spices 3

In Qty, enter 2

6 On the next line, enter an item for UPS Ground, level 3

Compare your screen to Exhibit 4-7.

7 Click the arrow on the Print button and choose Print…

To open the Print One Sales Receipt dialog box. If necessary, you can change your output settings before printing.

Click Cancel To close the dialog box without printing. (Ordinarily, you would click Print to send the receipt to the printer.)

8 Save and close the sales receipt Click Save & Close.


The Receive Payments window Explanation To receive a payment and apply it to a previously issued invoice, you’ll use the Receive

Payments window. This window looks slightly different from the other windows you’ve used so far, but you complete it in much the same way.

To receive a payment:

1 Choose Customers, Receive Payments to open the Receive Payments window, shown in Exhibit 4-8. You can also click Receive Payments on the Home page.

2 From the Received From list, select the customer’s name. The customer’s current balance is indicated, and all of the customer’s outstanding invoices are listed in the table.

3 From the Pmt. Method list, select the payment method. Based on your selection, the contents of the window’s upper section will vary.

4 Complete the upper section of the window. For check payments, you’ll enter the date of payment, the amount, the check number, and a memo.

5 In the table, select the invoice to which you want to apply the payment.

6 Click Save & Close (or Save & New).

Applying a credit

When receiving a payment, you might want to apply a previously issued credit. To do this from the Receive Payments window:

1 Click Discounts & Credits to open the Discounts and Credits dialog box. The Credits tab is active by default.

2 Select the credit(s) that you want to apply to the current payment.

3 Click Done to return to the Receive Payments window.

Exhibit 4-8: The Receive Payments window


Do it! B-2: Recording a customer payment and applying a credit


Receive Payments

To open the Receive Payments window.

2 From the Received From list, select Big Don’s Steakhouse

Observe the Customer Balance value

The selected customer owes you $250.

3 Edit the Amount field to read 231.50

Big Don’s Steakhouse is paying you this amount.

4 From the Pmt. Method list, select Check

5 In the Check # field, enter 0370 This is the number on the check.

6 In the lower-right corner, under Amounts for Selected Invoices, observe the values

The current check amount ($231.50) has been copied from the Amount field and pasted in the Payment column. No credits have been applied.

7 In the lower-left corner, observe the options for underpayment and the Available Credits

You’ll apply the credit to the underpayment.

Click Discount & Credits… To open the Discount and Credits dialog box. The Credits tab is active, and credit memo #786 ($18.50) is selected.

Click Done To apply the selected credit to the current customer payment and close the dialog box. Compare your screen to Exhibit 4-8.

8 Click Save & New To save the payment and start a new one.


9 Go back to the previous payment Click Previous.

Observe the Amount Due value By applying the $18.50 credit, you reduced the customer’s balance from $250 to $231.50. The check you just received covers the entire amount owed by Big Don’s Steakhouse.

Close the Receive Payments window

10 Open the Customer Center

At the top of the list, you’ll see that the balance for Big Don’s Steakhouse is now zero (0.00).

Close the Customer Center


Recording deposits Explanation As you record sales receipts and customer payments, QuickBooks adds the cash to its

list of undeposited funds. These funds could be a batch of checks you haven’t deposited, or they could be some currency and coins. You’ll want to put this money in the bank. To record these deposits in QuickBooks, use the Payments to Deposit dialog box and the Make Deposits window.

To record deposits:

1 Choose Banking, Make Deposits to open the Make Deposits window and the Payments to Deposit dialog box, shown in Exhibit 4-9. (You can also click Record Deposits on the Home page.) If you don’t have an outstanding payment to deposit, only the Make Deposits window will open.

2 Select the payments you want to deposit, and then click OK to switch to the Make Deposits window, shown in Exhibit 4-10.

3 From the Deposit To list, select the account into which you want to deposit the selected payments.

4 Enter the deposit date and a memo (if desired).

5 If you’re getting cash back on the deposit, use the fields at the bottom of the window to enter the cash-back information.


Exhibit 4-9: The Payments to Deposit dialog box


Exhibit 4-10: The Make Deposits window


Do it! B-3: Depositing payments in your checking account The files for this activity are in Student Data folder Unit 4\Topic B.


Record Deposits

(In the Banking section.) To open both the Make Deposits window and the Payments to Deposit dialog box.

2 In the Payments to Deposit window, click Select All

To select both payments for depositing. Compare your screen to Exhibit 4-9.

Click OK To close the dialog box.

3 In the Make Deposits window, display the Deposit To list

The Company checking account is selected by default. You’ll deposit both payments into this account.

Close the Deposit To list (Press Esc or click any blank spot outside the list.) Compare your screen to Exhibit 4-10.

4 Click Save & Close To record the deposit.



Topic C: Purchase orders and inventory Explanation

Many companies use purchase orders to record and track items they order, receive, and then pay for in the future. Filling out purchase orders enables you to tell which items you have on order and when the items will arrive. When the items arrive, all you have to do is tell QuickBooks, and the items will be added to your inventory list.

The Create Purchase Orders window To create a purchase order, you’ll use the Create Purchase Orders window, which you open by choosing Vendors, Create Purchase Orders. You can also click Purchase Orders on the Home page. The Create Purchase Orders window is similar to the Create Invoices window, and you enter information in it by using the same procedures.

One key difference, however, is that you can use a purchase order to order an item that will be shipped directly to one of your customers. To specify this third-party recipient, use the Drop Ship To list. Another difference is that if you’re ordering several items that are for various customers but will be shipped to you, you can indicate which item is for which customer by using the Customer column.

Exhibit 4-11: The Create Purchase Orders window


Do it! C-1: Preparing a purchase order The files for this activity are in Student Data folder Unit 4\Topic C.


2 On the Home page, click Purchase Orders

To open the Create Purchase Orders window.

3 From the Vendor list, select A-1 Signs & Displays

On the purchase-order form, the vendor’s address is filled in automatically.

4 From the Drop Ship To list, select Food City, Inc.

To enter this customer’s address in the Drop Ship To field.

5 Activate the Item list Click anywhere in the Item column.

From the Item list, select Kiosk display

You are ordering one kiosk display to be sent directly from the manufacturer to Food City. The Rate field indicates your cost per item. The Customer field is also filled in.

In the Qty field, enter 1 Compare your screen to Exhibit 4-11.

6 Save and close the purchase order


The Create Item Receipts window Explanation If you receive purchase-order items without a vendor bill, you can enter them into

inventory by using the Create Item Receipts window. Here’s how:

1 Choose Vendors, Receive Items to open the Create Item Receipts window.

2 From the Vendor list, select the appropriate vendor. The Open PO’s Exist box will appear, stating that at least one open purchase order exists for the selected vendor. QuickBooks asks if you want to receive against one or more of these orders.

3 Click Yes to open the Open Purchase Orders dialog box.

4 Select the purchase order(s) against which you want to receive the items.

5 Click OK to return to the Create Item Receipts window. QuickBooks will fill the Items tab fields with the information from the purchase order.


When you save the item receipt, the purchase order is automatically stamped “RECEIVED IN FULL.” In your Item list, the On Hand column is updated to reflect the new inventory amount.

Exhibit 4-12: The Create Item Receipts window


Do it! C-2: Entering items into inventory

Here’s how Here’s why 1 Click Items & Services (On the Home page.) To open the Item list.

Observe the Total Quantity On Hand for the dill weed and nutmeg items

(Resize the window and columns, if necessary.) You currently have 397 one-pound bags of dill weed and 300 one-pound bags of ground nutmeg. You’ll update these inventory numbers.

2 Click Activities and select Receive Items

(In the Item List window.) To open the Create Item Receipts window.

Observe the indicated option

You haven’t yet received the vendor’s invoice, so you should not check this box.

3 From the Vendor list, select Global Spice Importers

The Open POs Exist box appears, indicating that at least one open purchase order exists for the selected vendor. QuickBooks asks if you want to receive against one or more of these orders.

Click Yes To open the Open Purchase Orders dialog box.

4 Select the purchase order

Click in any column to select PO No. 1.

Click OK To close the dialog box. In the Create Item Receipts window, the fields on the Items tab have been filled in with the information from the purchase order. You ordered 50 bags of each spice. Compare your screen to Exhibit 4-12.

5 Save and close the item receipt (Click Save & Close.) To return to the Item list.


6 In the Item List, observe the Total Quantity On Hand for the first two items

You now have 447 one-pound bags of dill weed and 350 one-pound bags of ground nutmeg.

Close the Item List

7 Open the Create Purchase Orders window

On the Home page, click Purchase Orders.

Display purchase order #1

(Click Previous twice.) It has been stamped “RECEIVED IN FULL.”

Close the Create Purchase Orders window



Topic D: Finding information quickly Explanation As you store more and more data in your QuickBooks file, you’re going to need easy

ways to find specific information when you need it. You can use the QuickFilter feature and the Find window to do so.

QuickFilter To save time when scrolling through a list of customer or vendor information, you can use QuickFilter to show only certain list items. You can filter a list to show all items, active items, or items with open balances, or you can create a custom filter. You can also perform an initial search and then filter the search results list as much as you’d like until the desired item or list is displayed.

To quickly filter customer or vendor information:

1 Open the Customer or Vendor Center.

2 From the View list, select Custom Filter to open the Custom Filter dialog box, shown in Exhibit 4-13.

3 From the Search list, select the list you want to search. It can be one of the following:

All Customers/Vendors

Active Customers/Vendors

Customers/Vendors with Open Balances

Customers/Vendors with Overdue Invoices

Customers/Vendors with Almost Due Invoices

Search Within Results (use this option to further narrow your search results)

4 In the For field, enter the text or numeric information that you want to see.

5 From the In list, select a field by which to filter.

6 Click Go.

Exhibit 4-13: The Custom Filter dialog box


Do it! D-1: Using QuickFilter The files for this activity are in Student Data folder Unit 4\Topic D.


2 Open the Customer Center On the Home Page, click Customers.

3 From the View list, select Custom Filter…

To open the Custom Filter dialog box. You’ll filter the Customers & Jobs list to show only items for which the city is Reno.

4 From the Search list, select Active Customers

You’ll filter the Customers & Jobs list to show only the active customers whose city is Reno.

5 In the For box, enter Reno To filter by only those Customers & Jobs in the city of Reno.

6 From the In list, select City To filter based on only the City field.

7 Click Go To close the Custom Filter dialog box and filter the Customers & Jobs list to show only items with the city of Reno.

8 Close the Customer Center window


Finding completed forms Explanation At some point, you’ll have so many saved forms that paging through them to find a

particular form will be inefficient. A faster approach is to use the Find window, which allows you to find forms and transactions based on search criteria, including the date, customer or vendor name, form number, and transaction amount.

The Find window

To open the Find window, click Find on the icon bar. The Simple tab is active by default, as shown in Exhibit 4-14. This tab is flexible, so you might never need to use the Advanced tab.

To find a form:

1 From the Transaction Type list, select the type of transaction you want to find. Based on your selection, the contents of the rest of the tab will vary slightly.

2 Enter your search criteria. These can be one or more of the following:

Customer or vendor name

Date range (to search for a particular date, enter the same date in both fields)

Form number

Transaction amount

3 Click Find. The results of your search are displayed in the table.

When you find the form you’re looking for, you can open it by selecting its entry in the table and clicking Go To. If you want to start another search from scratch, click Reset to clear all of the fields in the window.

Exhibit 4-14: The Simple tab in the Find window


Do it! D-2: Using the Find window

Here’s how Here’s why 1 On the icon bar, click Find (If necessary, click the chevron at the end of the

icon bar and choose Find.) To open the Find window. The Simple tab is active by default.

2 From the Transaction Type list, select Sales Receipt

You’ll find all of the sales receipts for a particular customer.

From the Customer:Job list, select Huller, Elizabeth

Click Find To perform the search. The program finds one sales receipt, as shown in Exhibit 4-14.

3 In the table, select the sales receipt

Click in any column to select it.

Click Go To To open the selected sales receipt.

Close the Enter Sales Receipts window

To return to the Find window.

4 Click Reset To clear all fields.

5 From the Transaction Type list, select Invoice

In the Invoice # box, enter 785 You can also search by form number.

Click Find To find invoice #785 for Food City, Inc.

6 Open the invoice Click Go To or double-click the invoice.

Close the Create Invoices window

7 Close the Find window



Unit summary: Working with business forms Topic A In this topic, you learned how to create, modify, and print invoices. You also created a

custom invoice form that includes a company logo. Then you learned how to create a credit memo.

Topic B In this topic, you created a sales receipt, used when a customer pays in full for goods at the point of sale. You also learned how to receive payments against previously issued invoices. At the same time, you learned how to apply a credit when receiving a payment. Then you recorded a deposit for a batch of previously undeposited funds.

Topic C In this topic, you created a purchase order and entered received items into inventory.

Topic D In this topic, you used the QuickFilter feature to display only certain items in the Customers & Jobs list. You also used the Find window to search for completed forms based on search criteria, including form type, customer or vendor name, date, form number, and amount.

Independent practice activity In this activity, you will customize the invoice template, create and modify invoices, and create a sales receipt and a purchase order.


1 Open Practice forms.

2 Edit the My custom template. Add the Account Number field, and remove the F.O.B. field from the print version of the invoice. (Hint: Open the Create Invoices window and the Basic Customization dialog box.)

3 Prepare an invoice as follows:

Invoice form: My custom template

Customer: The Gourmet Grocer

Invoice number: 787

Customer’s purchase-order number: 5200

Items (quantity): Allspice, ground, bulk (4); Cinnamon, ground, bulk (5); Cloves, ground, bulk (3)

Shipping: UPS Ground, level 4

Customer message: Thank you for your business.

4 Compare your invoice to Exhibit 4-15. Then save and close the invoice.

5 Modify invoice #787 so it includes a subtotal line. Insert the Subtotal item between the Cloves item and the shipping cost. The subtotal should be $102.40. Save the changes and close the invoice.


6 Prepare a sales receipt with the following details. When you’re done, save and close the sales receipt.

Customer: Alex Quigley

Item (quantity): Rack-o-spices 2 (3)

Shipping: UPS Ground, level 3

Customer message: Thanks for using our website! (You’ll need to add this message.)

Payment handling: Deposit directly into the company checking account. (Hint: Close Alex’s sales receipt first and then choose Banking, Make Deposits.)

7 You just received a shipment from Global Spice Importers, but you haven’t received a bill from the vendor. The shipment fulfills all items on purchase order #3. Use the Create Item Receipts window to receive the items into inventory. When you’re done, save and close the item receipt.

8 Use the Custom Filter to locate the vendors in the state of New Jersey (NJ). Verify the Item Receipt you just created and close the Vendor Center.

9 Use the Find window to locate and open purchase order #3. Verify that it has been stamped “RECEIVED IN FULL.” Close the Create Purchase Orders window, and close the Find window.


Exhibit 4-15: Invoice #787 after Step 3


Review questions 1 When you’re creating an invoice, how do you fill in the main table with items?

Click in the Item column to display a drop-down list, and then select the appropriate item. Press Tab and Shift+Tab to move between fields.

2 How do you modify an invoice?

Open the Create Invoices window, and click the Previous and Next buttons to page through the saved invoices. When the invoice you want to modify appears, make the necessary changes and click Save & Close.

3 Which command is used to print multiple invoices?

A File, Print

B File, Print All

C File, Print, Invoices

D File, Print Forms, Invoices

4 How do you add your company logo to invoices?

Open the Basic Customization dialog box and check Use Logo. Then select the desired image file and click Open.

5 Which item is used to handle a customer return or refund?

A Sales receipt

B Credit memo

C Bank deposit

D Sales expense

6 When is a sales receipt created?

When a customer pays you in full for goods at the point of sale

7 When is a Receive Payments item created?

When a customer pays for a previously issued invoice

8 When you’re receiving a payment, how do you apply a previously issued credit to the payment?

a In the Receive Payments window, click Set Credits to open the Discounts and Credits dialog box. The Credits tab is active by default.

b Select the credit(s) that you want to apply to the current payment.

c Click Done.

9 What is the difference between a sales receipt and a purchase order?

A sales receipt records items that a customer buys. A purchase order records items that you buy from a vendor. However, the two windows are similar and the same techniques can be used in each one.

10 What is the difference between the Find and QuickFilter features?

The Find feature is used to search for completed forms based on criteria such as form type, customer name, or amount. The QuickFilter feature is used to show only certain items in the Customer or Vendor lists.

5–1

U n i t 5 Banking and billing activities



A Write and print checks.

B Transfer funds between accounts, edit transactions, and reconcile a bank account.

C Enter and pay bills.

D Examine the QuickBooks payroll service options.


Topic A: Writing and printing checks Explanation As with many other tasks in QuickBooks, there are several ways to prepare checks. The

method you choose will depend on several factors, including whether you’ve received a bill for the item, how closely you want to track items, and how much time you want to spend. In this topic, you’ll learn how to use the Write Checks window, write checks from your check register, and print checks.

The Write Checks window If your company uses cash-basis accounting, then you should write checks by using the

Write Checks window, shown in Exhibit 5-1. This method is the best option when you’re:

Paying for an inventory item

Paying for something for which you issued a purchase order

Planning to be reimbursed for the bill you’re paying

Paying a bill that includes items you want to assign to a particular job

Exhibit 5-1: The Write Checks window

Banking and billing activities 5–3

Using this window is more time-consuming than using the check register method, but it allows you to record the expenses and items you’re paying for. Here’s how:

1 On the icon bar, click Check to open the Write Checks window.

2 From the Bank Account list, select the checking account from which you want to write the check.

3 Verify that the check date is correct. By default, the current date is entered.

4 From the “Pay to the Order of” list, select the payee. The Address and Memo fields will be filled in automatically based on information from the payee’s record.

5 Enter the payment amount.

6 The “To be printed” option is checked by default. With this setting, the check number will be assigned later, when you print the check. If you want to assign a specific check number, clear this option and enter the check number in the No. field.

7 On the Expenses and Items tabs, enter the things you’re paying for. On both tabs, the rightmost column is the Billable column. A checkmark in this field indicates that the expense or item is reimbursable by your customer. If this is not the case, click the checkmark to remove the Billable status.

8 Click Save & Close or Save & New.


Do it! A-1: Using the Write Checks window The files for this activity are in Student Data folder Unit 5\Topic A.

Here’s how Here’s why 1 Open Transactions1

2 On the icon bar, click Check

To open the Write Checks window. You use this window when a payment covers multiple expenses or items that you want to track.

Observe the Bank Account list

The Company checking account is selected. If you wanted to write checks from a different account, you would select it from this list.

Observe the Ending Balance value This is the selected account’s ending balance.

3 Observe the check number

It’s entered as “To Print.” This means that the check number will be assigned automatically when you print the check later. Below the check, the “To be printed” option is checked.

Observe the Date field The current date is entered by default.

4 From the “Pay to the Order of” list, select First National Bank

This is the issuing bank for the Visa card held by VP Jack Thomas. You’ll write a check to pay Jack’s January balance.

5 Press t To select the amount value.

Type 500 This is the total amount of Jack’s Visa bill.

Press t To enter the check amount. The Dollars text field is filled in automatically.

6 Observe the Address and Memo fields

These fields are filled in automatically based on information in the payee’s vendor record.


7 Observe the tabs (Below the check.) This payment is for reimbursable expenses, so you’ll use the Expenses tab, which is already active.

8 In the table, click in the first line of the Account column

To activate the Account list.

9 From the Account list, select 6380 Travel

Press t To select the value in the Amount field.

Type 385 Jack’s plane ticket cost $385.

In the Memo field, enter Airfare to Reno

Press Tab and type the specified text.

10 Press t To move the insertion point to the Customer:Job field.

From the Customer:Job list, select Design job 1

Jack flew to Reno to consult with Food City’s management on this design job.

Observe the last column

This is the Billable column. The checkmark indicates that the expense can be billed to the customer.

11 Press t twice To start a new line in the Expenses table and activate the Account list.

From the Account list, select 6370 Meals

Verify that the amount is 115 QuickBooks calculated this amount by subtracting the airfare ($385) from the total amount ($500).

Under Memo, enter Meals in Reno

From the Customer:Job list, select Design job 1

Compare your screen to Exhibit 5-1.

12 Click Save & Close To save the check and close the Write Checks window.


The checking account register Explanation Compared to using the Write Checks window, writing checks from your checking

account register can be faster and easier. This method is recommended if:

You’re paying a bill that isn’t for inventory.

You’re paying for non-reimbursable expenses.

You don’t need to track the items you’re paying for.

To write a check from a checking account register:

1 On the icon bar, click Reg to open the Use Register dialog box. (You can also click the Check Register icon on the Home page, press Ctrl+R, or choose Banking, Use Register.)

2 From the Select Account list, select the desired checking account, and then click OK to open the register. Your check register contains a separate entry for each transaction, just as in a checkbook. Each transaction is made up of a series of fields, as shown in Exhibit 5-2. After the last completed transaction, a new, blank transaction is started and its date value is selected.

3 If necessary, change the date. Press Tab to place the insertion point in the Number field. By default, the next check number in the established sequence is assigned to the check. If you want the number to be assigned upon printing, enter To Print in this field.

4 Complete the remaining fields in the transaction: Payee, Payment (amount), Account, and Memo. In the Type field, CHK is entered automatically.

5 Click Record or press Enter to record the transaction. A new, blank transaction is started, and the completed transaction is positioned in the register by date. QuickBooks recalculates the running balances and the ending balance.


Exhibit 5-2: The Company checking account register


Do it! A-2: Writing checks from a checking account register

Here’s how Here’s why 1 On the icon bar, click Reg

To open the Use Register dialog box. In the Select Account list, Company checking is selected. If you wanted to write checks from a different account, you’d select it from this list.

Click OK To open the Company checking account register. A new, blank transaction with today’s date is started automatically. The date value is selected.

2 Observe the First National Bank transaction

(Directly above the new transaction.) In the Account field, this check is labeled as “-split-.” This means that the payment covers multiple expenses or items, each of which is assigned to a separate account.

3 Press t To move the insertion point to the Number field. The next available check number is assigned to the check.

Type T QuickBooks automatically completes your entry as “To Print.”

4 Press t To move the insertion point to the Payee field.

From the Payee list, select Superior Properties

You could also begin typing the payee’s name, and QuickBooks would auto-complete the entry.

5 Move the insertion point to the Payment field

Press Tab.

Enter 1300

6 Press t To move the insertion point to the Account field. In the Type field, notice that CHK (check) is entered automatically.

From the Account list, select 6290 Rent

(If necessary.) To assign the check to this expense account.

7 In the Memo field, enter January rent

Press Tab and type the specified text.


8 Click Record To record the current transaction and start a new one. The ending balance is updated automatically. Compare your screen to Exhibit 5-2.

9 Close the register


Printing checks Explanation Before you print checks for the first time, you should use the Printer setup dialog box to

select the appropriate settings. Checks are usually printed in batches, with several checks on a page. You’ll need to obtain preprinted check forms that will work with your printer.

To print a batch of checks:

1 Choose File, Print Forms, Checks to open the Select Checks to Print dialog box, shown in Exhibit 5-3.

2 From the Bank Account list, select the desired checking account.

3 In the table, select the checks you want to print.

4 In the First Check Number box, enter the starting number for the current batch of checks.

5 Click OK to open the Print Checks dialog box, which is similar to the Printer setup dialog box.

6 Change your printer settings as needed, and then click Print to print your checks. After a moment, the Print Checks - Confirmation dialog box appears.

7 If all checks were printed successfully, click OK. If not, select the checks to reprint and click OK.

Exhibit 5-3: The Select Checks to Print dialog box

Do it! A-3: Printing checks

Here’s how Here’s why 1 Open the Printer setup dialog box (Choose File, Printer Setup.) Before you print

checks for the first time, you should configure your printer appropriately, just as you would for any other type of form.

2 From the Form Name list, select Check/PayCheck

To activate the options for printing checks. This version of the dialog box has three tabs: Settings, Fonts, and Partial Page.


3 Under Check Style, observe the options

There are three printing styles. Voucher is selected by default.

Click OK To close the dialog box and accept the default settings.

4 Choose File, Print Forms, Checks…

To open the Select Checks to Print dialog box. In the Bank Account list, Company checking is selected. In the table, the checks for this account are displayed and selected for printing.

5 In the First Check Number box, enter 401

The selected checks will be numbered sequentially, starting with 401.

6 At the top of the dialog box, observe the indicated statement

QuickBooks tells you how many checks you are about to print and what their combined value is.

7 Click OK To open the Print Checks dialog box, which is similar to the Printer setup dialog box. This gives you a chance to change printer settings.

Observe the top of the Print Checks dialog box

The total amount for the checks is displayed again here.

8 Click Cancel To close the Print Checks dialog box (without printing any checks) and return to the Select Checks to Print dialog box.

Click Cancel To close the Select Checks to Print dialog box.



Topic B: Managing bank account transactions Explanation

In the process of writing checks and making deposits, you’ll need to correct any errors you’ve made. In QuickBooks, you can delete and void transactions, so when the monthly bank statement arrives, you can reconcile your account against the statement. As with so many other QuickBooks tasks, there are multiple methods for editing transactions.

Transferring funds between accounts is another common banking activity. A funds transfer is often used to create a starting balance in a new account. In QuickBooks, there’s a separate window for transferring funds.

Transferring funds To transfer funds, you’ll use the Transfer Funds Between Accounts window, shown in

Exhibit 5-4. Here’s how:

1 Choose Banking, Transfer Funds to open the Transfer Funds Between Accounts window. By default, the current date is entered in the Date field.

2 From the Transfer Funds From list, select the source account.

3 From the Transfer Funds To list, select the destination account.

4 In the Transfer Amount field, enter the amount you want to transfer.

5 Click Save & Close or Save & New.

QuickBooks automatically records the transaction in both accounts.

Exhibit 5-4: The Transfer Funds Between Accounts window


Do it! B-1: Transferring funds between accounts The files for this activity are in Student Data folder Unit 5\Topic B.


2 Choose Banking, Transfer Funds

To open the Transfer Funds Between Accounts window. Today’s date is entered in the date field by default.

3 From the Transfer Funds From list, select Company checking

You’ll transfer funds from this account to the company’s new savings account.

Observe the balance

4 From the Transfer Funds To list, select Company savings

Observe the balance

5 Press t To move to the Transfer Amount field.

Type 10000 To create an opening balance for the selected savings account, you’ll transfer $10,000 from the selected checking account.

6 Observe the Memo box

Each transaction of this type has a memo that reads “Funds Transfer” (you can edit this text). Compare your screen to Exhibit 5-4.

7 Click Save & Close

8 Open the Chart of Accounts

In the Name column, double-click Company savings

To open the register for this account, which has one transaction—the incoming transfer you just recorded. The transaction type is TRANSFR.

Close the register To return to the Chart of Accounts.

9 Open the Company checking register

The corresponding outgoing transfer has been recorded. In this register, the destination account and the new balance are indicated.


Editing transactions Explanation There are several ways to edit a transaction. Here are just a few approaches:

Open the window in which you originally entered the transaction—for example, the Write Checks window. Click Previous until the transaction you want to edit is displayed. Make the required changes and save the transaction.

Open the register that contains the transaction. Select the transaction you want to edit and click Edit Transaction. The transaction will open in the appropriate window for editing.

Open the register that contains the transaction. Select the transaction and edit its field values directly.

The word “split” in the Account field indicates that multiple expenses were assigned to this check. To see the individual expenses that make up this transaction, click the Splits button. The Splits panel appears, as shown in Exhibit 5-5.

Exhibit 5-5: Displaying the Splits window in the check register

Do it! B-2: Editing transactions

Here’s how Here’s why 1 Verify that the Company checking

register is open You can resize the window, if necessary, to see more register entries.

Scroll to the top of the register


2 Click the National Packaging transaction (check #395)

To select it. You’ll correct the payment amount for this transaction.

Select the Payment value

Type 250 and press e The Recording Transaction box appears.

Click Yes To record your changes.

3 Select the First National Bank transaction ($500)

(You might need to scroll down.) If you want to edit a split transaction, you can use the Edit Transaction button.

At the top of the register window, click Edit Transaction

To open the selected transaction in the Write Checks window.

4 On the Expenses tab, point to the Billable column

(Anywhere in the column will do.) The pointer changes to a checkmark.

In the Billable field for the second expense line, clear the check box

The expense is not reimbursable by the customer.

5 Click Save & Close The Recording Transaction box prompts you to confirm that you want to record your changes.

Click Yes To close the Write Checks window and return to the Company checking register. The transaction you just modified is still selected.

6 Click the Splits button (Located in the bottom-left corner of the window.) To display the Splits window for the selected check. This window shows the individual expenses that make up this transaction, as shown in Exhibit 5-5.

Click Close

(In the Splits panel.) To close the panel.


Voiding and deleting transactions Explanation

If you need to cancel out the amount of a check or other transaction, you have two options: You can void the transaction or delete it. Voiding changes the amount of the transaction to zero, but keeps a record of the transaction in QuickBooks. Deleting removes the transaction altogether.

Voiding is recommended when a payee returns a check or when a check is lost in transit. By voiding the transaction, you maintain its check number in QuickBooks, so there won’t be a gap in your account register. If a check hasn’t been printed or sent yet, however, it’s safe to delete it.

To void a check:

1 Open your checking account register.

2 Select the check you want to void.

3 Choose Edit, Void Check.

The procedure for deleting a check is the same, except that you choose Edit, Delete Check. In most cases, QuickBooks will ask you to confirm that you really want to delete the transaction, and it will point out any problems this action might cause.


Do it! B-3: Voiding and deleting transactions The files for this activity are in Student Data folder Unit 5\Topic B.

Here’s how Here’s why 1 Verify that the Company checking

register is open

2 Select the Ace Avenue Graphics transaction (check #400)

This check was returned by the payee, so you’ll void it.

3 Choose Edit, Void Check To void the selected transaction.

Notice that VOID has been added to the Memo field and the payment amount has been reduced to zero. A checkmark has been added, indicating that the check has cleared.

Record the voided check (Press Enter and click Yes.) If a warning box appears, click “No, just void the check.”

The next transaction is selected. This payment from the Maple Tree Eatery should not have been entered, so you’ll delete it.

4 Verify that the Maple Tree Eatery payment transaction is selected

It’s located just below the voided transaction.

Choose Edit, Delete Payment A message box warns you that the selected payment was used to pay invoice/statement charges, so deleting it might cause problems.

Click OK To delete the transaction. It is removed from the register and all related accounts.

5 Close the register

Close the Chart of Accounts The Home page is displayed.


Account reconciliation Explanation If you have a personal checking account, then you are familiar with the process of

balancing your checkbook. This means comparing your bank statement to your own records to make sure everything adds up. This process is known as reconciling an account.

Exhibit 5-6: The Begin Reconciliation dialog box

Before you start the following procedure to reconcile an account, make sure that you have your most recent bank statement in hand. To reconcile an account, do the following:

1 On the Home page, click Reconcile to open the Begin Reconciliation dialog box, shown in Exhibit 5-6.

2 From the Account list, select the account you want to reconcile.

3 Enter the following information from your bank statement:

Statement date

Ending balance

Service charge (if applicable), the date the charge was incurred, and the expense account to which you want to assign the charge

Interest earned (if applicable), the date the interest was applied, and the income account to which you want to assign these earnings

4 Click Continue to open the Reconcile window, shown in Exhibit 5-7.

5 Select the transactions that appear on your bank statement. When you’re done, the Difference value should be zero. If it isn’t, you’ll need to track down the problem in QuickBooks or contact your bank.

6 Click Reconcile Now. If your account balanced perfectly, the Select Reconciliation Report dialog box will appear immediately. If it didn’t, the Reconcile Adjustment dialog box will appear. Enter the adjustment date and click Enter Adjustment to open the Select Reconciliation Report dialog box.

7 Select the desired report type (Detail or Summary) and click Display. Exhibit 5-8 shows a reconciliation summary report.

Reconciled transactions appear with checkmarks in the column between the Payment and Deposit columns in the register, as shown in Exhibit 5-9.


Exhibit 5-7: The Reconcile window

Exhibit 5-8: The Reconciliation Summary window


Exhibit 5-9: The Company checking account, showing reconciled transactions


Do it! B-4: Reconciling a checking account


Reconcile

To open the Begin Reconciliation dialog box. In the Account list, Company checking is selected. If you wanted to reconcile a different account, you would select it from this list.

2 Observe the Statement date box In this box, you enter the ending date from your bank statement. In this case, you are reconciling your January 2012 statement, so 01/31/2012 is correct.

3 In the Ending Balance box, enter 49380

This is the ending balance from your statement.

4 Edit the Service Charge box to read 10

Last month, your account incurred $10 in service charges. These charges were recorded on January 31.

From the Account list, select 6120 Bank Service Charges

On the Service Charge line.

5 Edit the Interest Earned Box to read 45

Last month, the account earned $45 in interest, which was recorded on January 31.

From the Account list, select 7010 Interest Income

(On the Interest Earned line.) Compare your Begin Reconciliation dialog box with Exhibit 5-6.

6 Click Continue To open the Reconcile window. To reconcile your account, you compare the transactions listed here with those on your bank statement.

7 In the lower-right corner of the window, observe the indicated values

You entered the first three values in the Begin Reconciliation dialog box. The Cleared Balance and Difference values will be updated automatically as you clear transactions. When the difference value reaches zero, your account is reconciled.


8 Under Checks and Payments, check all entries that have January dates

Click each transaction to mark these transactions as cleared.

Under Deposits and Other Credits, mark the first transaction as cleared

9 Observe the Difference value (In the lower-right corner of the window.) It is now zero. You have successfully balanced your checkbook. Compare your screen to Exhibit 5-7.

10 Click Reconcile Now (If an dialog box about online banking appears, click OK.) To open the Select Reconciliation Report dialog box. You can run a detailed report, a summary report, or both.

11 Select Summary

Click Display A message box states that the selected report displays current data and shows all transactions that were reconciled on a given date.

Click OK To display the Reconciliation Summary report, as shown in Exhibit 5-8.

12 Close the report


Scroll up to the top of the register Notice that each cleared transaction has a checkmark between the Payment and Deposit columns, as shown in Exhibit 5-9.

Close the register To return to the Home page.



Topic C: Entering and paying bills Explanation

Some companies use a two-step process to handle bills: Enter bills first and write the corresponding checks later. This method is commonly known as the accounts payable approach. If you use this approach with QuickBooks, you should record bills by using either the Enter Bills window or your Accounts Payable register. To pay these bills, you can use the Pay Bills window.

The Enter Bills window If you plan to track bills by expense and item, you’ll need to use the Enter Bills window, shown in Exhibit 5-10. This window is nearly identical to the Create Item Receipts window. The key difference is that the Bill Received option is checked. You enter information in both windows by using the same basic steps. (The Enter Bills window is also similar to the Write Checks window.)

Exhibit 5-10: The Enter Bills window


Do it! C-1: Using the Enter Bills window The files for this activity are in Student Data folder Unit 5\Topic C.


2 On the icon bar, click Bill

To open the Enter Bills window, which is very similar to the Create Item Receipts window. The main difference is that the Bill Received option is checked in the Enter Bills window.

3 Observe the Date and Bill Due fields

The bill date is today and the due date is 10 days later.

Edit the Date field to read 02/08/2012

Press t To enter the correct bill date. The Bill Due field is updated automatically, and the due date is now 02/18/2012. This will change again based on the payment terms associated with the vendor.

4 From the Vendor List, select Global Spice Importers

The Open PO’s Exist box appears, stating that at least one open purchase order exists for the selected vendor. You’ll complete the bill based on a purchase order.

Click Yes To open the Open Purchase Orders dialog box. Only one purchase order is listed for Global Spice Importers.

5 Select the purchase order

Click OK (If prompted to enter bills for received items, click OK to close the message.) The Amount Due field and the Items tab are filled in automatically based on information from the purchase order.


6 Observe the Terms field

This field is filled in automatically based on the specified terms in the vendor’s record. According to these terms, you’ll receive a 2% discount if you pay the bill within 10 days of the bill date, with the total amount due 30 days from the bill date.

Observe the Discount Date To receive the 2% discount, you must pay by this date.

Observe the Bill Due date It is 30 days from the bill date.

7 In the Ref. No. field, enter Invoice #4444

This is the vendor’s invoice number.

In the Memo field, enter P.O. #4

This is the purchase-order number. Compare your screen to Exhibit 5-10.

8 Save and close the bill Click Save & Close.


The Accounts Payable register Explanation You can also enter bills directly in the Accounts Payable register. This method is faster

than using the Enter Bills window, but it makes it more difficult to track expenses and items.

To enter bills in the Accounts Payable register:

1 Open your Chart of Accounts.

2 In the Name column, double-click your Accounts Payable account to open its register, as shown in Exhibit 5-11. QuickBooks starts a new transaction, in which the date value is selected.

3 Enter the bill information the same way you would enter check information (but you can leave the Number field blank). This information includes:

Bill date

Vendor

Due date

Amount billed

Account to which you want to assign the expense or item (to split the bill, click Splits)

Memo

4 Click Record or press Enter. In the Type field, BILL is entered automatically.

Exhibit 5-11: The Accounts Payable register


Do it! C-2: Entering bills in the Accounts Payable register

Here’s how Here’s why 1 Open the Chart of Accounts

In the Name column, double-click 2000 Accounts Payable

To open the Accounts Payable register. A new transaction is started, and the date value is selected.

2 Observe the bill dated 02/08/2012 This is the bill you entered in the previous activity. Notice that “-split-” is entered in the Account field.

3 In the new transaction, edit the selected date to read 02/11/2012

This is the date of the utility bill you are entering.

4 From the Vendor list, select Portland Power

The Due Date field is filled in automatically.

5 In the Billed field, enter 350 (Press Tab twice and type 350.) This is the amount of the utility bill. Notice that BILL is entered in the Type field.

6 From the Account list, select 6400 Gas and Electric

If necessary.

In the Memo field, enter January bill

7 Record the bill Click Record or press Enter. The bill is added to the register in order by date.

8 Close the Accounts Payable register and the Chart of Accounts


The Pay Bills window Explanation No matter which method you use to record your bills, the procedure for paying them is

the same. Here’s what you do:

1 Choose Vendors, Pay Bills (or click Pay Bills on the Home page) to open the Pay Bills window. By default, it displays only those bills that are due within the next 10 days. To display additional bills, change the “Due on or before” date or select “Show all bills.”

2 In the table, select the bills you want to pay. To do so, you’ll need to click the checkmark column. You can also click Select All Bills.

3 From the list under Payment Account, select the checking account from which you want to pay the selected bills.

4 Under Payment Method, verify that Check is selected. Then select the desired check numbering option (“To be printed” or “Assign check number”).

5 If necessary, change the date under Payment Date.

6 Click Pay Selected Bills.

In the Accounts Payable register, a separate transaction is recorded for each bill you’ve paid. In this register, all bills are represented twice: once as the incoming bill (Type = BILL) and once as the outgoing payment (Type = BILLPMT). In the Enter Bills window, paid bills are stamped PAID.

Exhibit 5-12: The Pay Bills window


Do it! C-3: Paying bills


Pay Bills

To open the Pay Bills window.

2 Observe the indicated option

This window displays all bills.

3 At the bottom of the bill list, click Select All Bills

To select all of the bills in the table. The Amt. To Pay values are entered automatically.

4 In the Payment section, observe the Account list

The Company checking account is selected, and its ending balance is shown. If you wanted to pay bills from a different account, you would select it from the Account list.

5 In the Payment section, observe the Method list

You’ll pay by check. You’ll print both checks later, at which point the check numbers will be assigned.

6 Observe the Date box February 11 is entered by default because it was the date of the most recently entered bill. You can change this entry, if necessary. Compare your screen to Exhibit 5-12.

7 Click Pay Selected Bills To pay the selected bills and close the Pay Bills window. A summary opens.

8 Click Done To close the summary.


9 Open the Enter Bills window

On the Home page, click Enter Bills.

Click Previous three times

To display the Portland Power bill dated 02/11/2012. It is stamped PAID.

Click Previous To see that the National Packaging bill is also stamped PAID.

Click Previous The Global Spice Importers bill also is marked as paid.

10 Close the Enter Bills window



Topic D: Introduction to payroll Explanation If your company has a staff of one (i.e., yourself), then you don’t have to worry much

about payroll. If you have even just a few employees, however, you’ll need to deal with this important and complex business function. Some companies hire an outside service, such as Paychex, to handle all payroll activities; this can be expensive. By using one of QuickBooks’ payroll services, you can do much of the work yourself while taking advantage of Intuit’s online processing and updates.

This topic provides an introduction to using the payroll function in QuickBooks. Consult the program documentation for details and further guidance, and be sure to consult your accountant or financial advisor.

Subscribing to a payroll option QuickBooks 2012 offers two payroll options that you can subscribe to, depending on your needs. These are the options:

Enhanced Payroll — Provides the tools you need to process payroll yourself. Using this option, you (or your accountant) manage(s) your payroll in QuickBooks. Earnings and deductions are calculated based on your QuickBooks data. In addition, you can print your own payroll checks or set up Direct Deposit for a fee. This option also provides the ability to print, sign, and mail federal tax forms, and additional service features that include tracking Worker’s Compensation codes and rates and automatically handling quarterly federal and state tax forms.

Assisted Payroll — Allows you to transmit your payroll data from within QuickBooks over the Internet at any time. The service handles the rest of the payroll requirements, such as calculating payroll taxes and deductions; handling federal and state tax deposits; filing, creating, and mailing W-2 forms; and printing paychecks or setting up Direct Deposit.

If you don’t want to sign up for either of these services, you can process payroll in QuickBooks manually. Given the complexity of payroll and its applicable laws and standards, this approach is not recommended.

Disabling the payroll feature

If you don’t plan to use the QuickBooks and Intuit payroll services—for example, if your company is a sole proprietorship—you can disable the payroll feature. To do so:

1 Choose Edit, Preferences and click the Company Preferences tab.

2 Click the Payroll & Employees category in the left panel and select the No payroll option.

3 Click OK to close the Preferences dialog box.


Do it! D-1: Exploring the payroll service options The files for this activity are in Student Data folder Unit 5\Topic D.


2 Choose Employees, Payroll, Learn About Payroll Options

The Intuit QuickBooks Payroll Services window appears.

3 Select the plan that lets you manage payroll and tax filings yourself

Be aware that these web pages might change.

Click See My Plan The QuickBooks Payroll screen appears.

4 Observe the information for the Enhanced Payroll option

5 Click Back

Select the plan that has Intuit pay and file your payroll taxes

Click See My Plan

6 Observe the information for the Assisted Payroll option

7 Close the Intuit QuickBooks Payroll Services window



Unit summary: Banking and billing activities Topic A In this topic, you used the Write Checks window, and you wrote a check directly from

the checking account register. You also learned how to print checks.

Topic B In this topic, you learned how to transfer funds between accounts. You also learned several methods of editing transactions. Then you learned how to void and delete transactions. You also learned how to reconcile a checking account.

Topic C In this topic, you used the Enter Bills window and you entered a bill directly in the Accounts Payable register. Then you paid bills by using the Pay Bills window.

Topic D In this topic, you learned about QuickBooks payroll services.

Independent practice activity In this activity, you will write checks, transfer funds between accounts, and pay bills.


1 Open Practice banking.

2 Using the Company checking register, write and record the following check:

Date: 02/15/2012

Check number: 408

Payee: Roger Williams, Esq.

Payment: $750

Expense account: 6280 Legal Fees

Memo: Consultation, 01/20/12

3 Change the payment amount for check number 404 to $1250.

4 Void check number 407. Close the Company checking register.

5 Transfer $2,000 from the Company savings account to the Company checking account.

6 Enter a bill for Ace Avenue Graphics dated 02/06/12. This bill is for the items in purchase order #5. The vendor’s invoice number is 890. (Hint: Use the Enter Bills window. Enter the invoice number in the Ref. No. field, and enter the purchase-order number in the Memo box.)

7 Pay the Ace Avenue Graphics bill that you created in step 6. (Hint: Use the Pay Bills window. Accept the default settings under Payment Account, Payment Method, and Payment Date. You might need to select Show All Bills.)

8 Verify that the Ace Avenue Graphics bill is stamped PAID. If it isn’t, repeat step 7. When you’re done, close the Enter Bills window.



Review questions 1 When you’re paying bills, what is the advantage of using the Write Checks window

instead of the check register?

The Write Checks window enables you to record the expenses and items that are being purchased.

2 When is using the check register recommended?

Use the check register to pay a bill containing non-inventory items or non-reimbursable expenses, or when you don’t need to track the items being purchased.

3 What is the menu command to print a batch of checks?

File, Print Forms, Checks

4 Which of the following tasks can be used to create a starting balance in a new bank account?

A Reconciling an account

B Balancing an account

C Transferring funds

D Writing checks

5 When is it better to void a bank transaction instead of deleting it?

Voiding a check is recommended when a payee returns a check or when a check is lost in transit. The transaction amount is changed to zero, but you still have a record of it and the check numbers are maintained.

6 When is it better to delete a check instead of voiding it?

Deleting a check is recommended when the check hasn’t been printed or sent yet. If deleting a specific check might cause problems, QuickBooks will display a warning message when you attempt to delete the check.

7 What are the two ways to record bills?

Use the Enter Bills window.

Use the Accounts Payable register.

8 How do you pay bills?

Choose Vendors, Pay Bills. Select the bill(s) you want to pay. Complete the payment information and click Pay & Close.

9 How are paid bills identified?

In the Enter Bills window, paid bills are stamped PAID. In the Accounts Payable register, a separate entry marked BILLPMT appears.

6–1

U n i t 6 Reporting and budgeting



A Create reports by using the QuickReport feature and the Report Center; use the QuickZoom feature; and modify and memorize reports.

B Use Company Snapshot.

C Create and edit budgets.


Topic A: Generating reports Explanation At some point, you’ll need to generate reports based on the financial information you

maintain in QuickBooks. For example, you might want to create an annual sales report by region and product type, or you might want to create a spending graph. There are many ways to create reports and graphs in QuickBooks. The program provides more than 100 reports you can modify to suit your particular business situation. After you make the necessary changes, you can save your modified report for later use and further modification, and you can print reports.

QuickReports A QuickReport displays year-to-date transactions for the selected income or expense

account. To generate a QuickReport, open the Chart of Accounts and double-click the desired account. A sample QuickReport is shown in Exhibit 6-1.

Exhibit 6-1: A sample QuickReport

QuickZoom

In QuickBooks, you can do more with reports than just displaying and printing them. With the QuickZoom feature, on-screen reports are interactive—you can double-click various parts of a report to dig deeper into the data behind it. Not every part of a report is interactive, however. To find out which parts are, move the mouse pointer over the report; when the pointer turns into a magnifying glass with a “Z,” that means the QuickZoom feature is active for that item.

Reporting and budgeting 6–3

The results of QuickZoom depend on the level of report you’re working with. If you’re working with a summary report, double-clicking an item will show you a detailed report for that item. In a detailed report, such as a QuickReport, double-clicking an item usually displays the associated transaction or record. If you’re working with a graph, QuickZoom works the same way.

Do it! A-1: Using the QuickReport and QuickZoom features The files for this activity are in Student Data folder Unit 6\Topic A.

Here’s how Here’s why 1 Open Reports1

2 Open the Chart of Accounts You can display a QuickReport for any income or expense account by double-clicking the account’s name.

3 In the Name column, double-click 4015 Online sales (Retail)

To display a QuickReport for this income account, as shown in Exhibit 6-1.

4 Observe the Dates list

By default, a QuickReport displays transactions ranging from the beginning of the current fiscal year to the current date.

5 At the bottom of the Name column, point to Quigley, Alex

The mouse pointer changes to a magnifying glass with a “Z.” By using the QuickZoom feature, you can open a transaction directly from a report. The arrows indicate the selected transaction.

Double-click Quigley, Alex (If necessary, close the information window by clicking No Thanks.) To open the Sales Receipt transaction in the Enter Sales Receipts window.


6 From the Account QuickReport window, open the sales receipt dated 02/01/2012

Double-click any part of Marge Gunner’s transaction.


You can press Esc.

7 Close the QuickReport

Close the Chart of Accounts


The Report Center Explanation QuickBooks enables you to create dozens of report types. A new feature in QuickBooks

2012 is the ability to access reports created by other users and to share custom reports you create via the Contributed Report library. To access these reports, you can use the Reports menu or the Report Center, shown in Exhibit 6-2. The Report Center is a powerful tool, but it’s easy to use. Here’s how:

1 On the icon bar, click Reports to open the Report Center. (You can also choose Reports, Report Center.)

2 From the list of report categories, select the appropriate category.

3 From the list of available reports, select the one you want to create. You can see a description of the report by clicking the Info icon below the report sample.

4 If necessary, modify the report to suit your needs. You can do this by using the Dates list to change the date values before you even open the report, or you can click the Run icon to open the report and then use the more advanced options.

5 To print the report immediately, click Print. To save it in another format, click the E-mail button and choose either “Send report as Excel” or “Send report as PDF.”

Exhibit 6-2: The Report Center


Do it! A-2: Using the Report Center

Here’s how Here’s why 1 On the icon bar, click Reports

To open the Report Center. You can use this window to generate more than a hundred types of reports, graphs, and lists. QuickBooks reports are divided into 12 categories. Company & Financial is selected by default.

2 In the list of categories, click Customers & Receivables

3 In the right pane, select A/R Aging Detail

To activate this report.

Under A/R Aging Detail, click the Info icon, as shown

To see more information about the report.

Close the preview

4 In the category list, click Sales In the left pane.

5 In the right pane, select Sales by Customer Summary

Click the Info icon This type of report answers the question “What is the total sales for each customer and job?”

Close the preview


6 For the Sales by Customer Summary report, display and observe the Dates list

You can quickly customize this report by selecting one of the 25 date options.

Close the Dates list Click away from it.

7 For the Sales by Customer Summary report, click the Run icon, as shown

To display the report.

8 Observe the sales figures

The report shows a summary of all sales listed by customer and then a grand total.

At the top of the window, display the Columns list and select Week

To view the sales summary by week.

9 In Feb 12–15, 12 column, double-click –18.50

To use the QuickZoom feature to find out why Big Don’s Steakhouse has a negative number. A more detailed report opens.

Observe the report Big Don’s Steakhouse returned two 16 oz. bags of nutmeg.


10 Under the Name column, point to Big Don’s Steakhouse

Double-click

To open the Create Credit Memos/Refunds dialog box. Earlier today, Big Don’s Steakhouse returned invoice #775.

11 Close the Create Credit Memos/Refunds dialog box

Close the Sales by Customer Detail report

To return to the Sales by Customer Summary report.


Modifying reports Explanation The method you use to modify a report depends on the type of changes you want to

make. Most simple changes can be made directly in the report’s window; for example, you can change the date range, change the table sort order, or adjust the column structure.

For more complex changes, you’ll use the Modify Report dialog box, which you open by clicking Customize Report at the top of the report window. The contents of this dialog box will vary depending on the type of report you’re working with. The dialog box always has four tabs, described in the following table.

Tab Use this tab to…

Display Change the date range, change the reporting basis (accrual or cash), and change the column structure.

Filters Change the scope of a report, and filter out any information you don’t need. For example, let’s say your sales report includes all customer types (wholesale and retail), but you want only retail sales information. You can apply a filter that eliminates all wholesale customers from the report.

Header/Footer Change header and footer components, the company name, the report title and subtitle, page numbers, and so on, and adjust their alignment on the page.

Fonts & Numbers

Change fonts, specify how negative numbers should be displayed (for example, in red), and show or hide cents in dollar amounts.

Exhibit 6-3: Modifying a report


Do it! A-3: Modifying a report

Here’s how Here’s why 1 Verify that the Sales by Customer

Summary report is displayed

From the Columns list, select Total only

To return the report to just a summary for this month-to-date.

2 From the Dates list, select Last Month

To display only January’s income figures.

3 From the Columns list, select Half month

To divide the report into two half-month periods: January 1 – 15 and January 16 – 31.

4 From the Sort by list, select Total To re-sort the list in ascending order by total sales for the month.

5 In the report, observe the last two entries

These two entries include a wholesale customer (a restaurant) and a person named Claudia Kelly. Let’s say you want the report to include only online retail customers. For that, you’ll need to use the Modify Report dialog box.

6 At the top of the window, click Customize Report

To open the Modify Report dialog box. The Display tab is active by default.

Click the Filters tab

7 Under Choose Filter, scroll through the Filter list

You can filter your report based on any of these variables.

From the Filter list, select Customer Type

To activate the Customer Type list.

From the Customer Type list, select Retail (online)

With this filter applied, the report will include only retail customers. Compare your screen to Exhibit 6-3.


8 Click OK

To close the Modify Report dialog box and return to the report. The Maple Tree Eatery is no longer listed.


Memorized reports Explanation After you’ve changed a basic report, you’ll probably want to save it for future use. In

QuickBooks, this is known as memorizing a report. Memorizing a report doesn’t limit you—you can still make more changes. You can open a memorized report, modify it, and re-memorize it by overwriting the previous report or saving it with a new name. As with all other reports, memorized reports always reflect your current data. (The data is not “frozen” at the time you memorize the report.)

To memorize a report:

1 At the top of the report window, click Memorize to open the Memorize Report dialog box.

2 In the Name box, enter the desired report name.

3 (Optional) Check Save in Memorized Report Group and select the desired group from the list. There are six report groups: Accountant, Banking, Company, Customers, Employees, or Vendors.

4 Click OK.

You can access your memorized reports by choosing Reports, Memorized Reports and selecting the report from the appropriate category. You can also choose Reports, Memorized Reports, Memorized Reports List and select the desired report from the Memorized Report List window, shown in Exhibit 6-4.

Exhibit 6-4: The Memorized Report List window


Do it! A-4: Memorizing a report

Here’s how Here’s why 1 Choose Reports,

Memorized Reports, Customers

To display the memorized customer reports. These predefined reports were added when QuickBooks was installed. You’ll add another report to this list.

Close the menu To return to the Income by Customer Summary report.

2 At the top of the report window, click Memorize

To open the Memorize Report dialog box.

3 Edit the Name box to read My Retail Report

4 Check Save in Memorized Report Group

To activate the list.

From the list, select Customers

5 Click OK To close the dialog box and memorize the report.

6 Close the report

7 Choose Reports, Memorized Reports, Customers, My Retail Report

To re-open the memorized report. You can also open the report from the Memorized Report List, shown in Exhibit 6-4.


Printing reports Explanation To print a report:

1 At the top of the report window, click Print to open the Print Reports dialog box, shown in Exhibit 6-5.

2 Specify the desired print settings.

3 You can preview the report by clicking Preview. To close the Print Preview window, click Close.

4 Click Print.

Exhibit 6-5: The Print Reports dialog box


Do it! A-5: Printing a report

Here’s how Here’s why 1 Verify that My Retail Report is

open

2 At the top of the report window, click Print

To open the Print Reports dialog box. It has two tabs: Settings and Margins. (See Exhibit 6-5.)

3 Under Orientation, select Landscape

So your report will print horizontally on the page.

Observe the remaining options On the Settings tab, you can also select options for setting page breaks, fitting reports on a specific number of pages, and printing in color.

4 Edit the Number of copies box to read 2

5 Click the Margins tab You can adjust the page margins by entering the desired dimensions in these four boxes.

6 Click Preview To preview the report. In the Preview window, the magnifying glass is used to zoom in on items; it doesn’t open additional windows.

Close the Print Preview window Click Close.

7 Click Cancel To close the dialog box without printing.

8 Close the report

Close the Report Center



Topic B: Using Company Snapshot Explanation Using the QuickBooks Company Snapshot, you can get a real-time view of company

information, and you can perform tasks from a single place. To open the Company Snapshot window, choose Company Snapshot from the Reports menu. The Company Snapshot window has three tabs: Company, Payments, and Customer.

The Company tab By default, the Company tab is displayed with multiple sections. The following table describes five of them.

Section Description

Income and Expense Trend Shows how money goes in and out of your business over a specified period of time, with a comparison of income and expenses.

Customers Who Owe Money Shows all balances owed by customers, with the due dates.

Account Balances Shows all bank, accounts receivable, accounts payable, credit card, asset, liability, and equity accounts.

Top Customers by Sales Shows your top five customers based on sales for the specified time frame.

Expense Breakdown Shows your company’s expenses in a pie chart.

The Payments and Customer tabs The Payments tab gives you access to information such as the receivables report, recent transactions, and payment reminders. The Customer tab shows a specific customer’s recent invoices, sales history, and recent payments.

Customizing the Snapshot window If the Company Snapshot window does not show the information you require, you can customize the window by changing which sections are displayed. Here’s how:

1 In the top-left corner of the Company Snapshot window, click Add Content to display the options.

2 Use the arrows at the bottom of the “Add content to your Company Snapshot” section to view all the content.

3 When you find the content you want to add, click the Add button.

4 Click Add Content to hide the content options.

You can also remove content by clicking the Close button in the top-right corner of any section. When you do, you will be prompted to confirm the deletion. Once all the content is in the window, you can rearrange sections by dragging a section title to a new location.


Exhibit 6-6: The Company Snapshot window with customized content.

Using the Company Snapshot window You might notice that content sections have options that give you access to reports or enable you to customize a particular section or perform specific tasks. For example:

Date Range — The content sections that display charts have a Dates list that you can use to quickly customize the data.

Links — Some sections have links you can use to open dialog boxes or perform specific tasks. For example, the Customers Who Owe Money section has a link you can click to open the Receive Payments dialog box.

QuickZoom — When you point to a chart element, a tooltip is displayed with a dollar amount in it. Double-click a list item or chart element to display a customized report.


Do it! B-1: Customizing the Company Snapshot window The files for this activity are in Student Data folder Unit 6\Topic B.


2 In the icon bar, click Snapshots

To open the Company Snapshot window. You can use this window to see the current state of your business.

3 For the Income and Expense Trend, observe the date range

By default, this is set to This year-to-date.

Change the date range to This month

Use the date range list. The Income and Expense Trend Graph changes to show a comparison of the current month, which is February 2012.

4 Double-click the Income Bar

For Feb 2012. The Custom Transaction Detail Report opens and shows all income for the month of February.

Close the report The Memorize Report box appears. Click No.

5 In the Prev Year Expense Comparison section, click the Close button

(In the top-right corner.) The Remove Content dialog box opens and asks “Are you sure you want to remove this content from your Company Snapshot?”

Click OK To remove the section.

6 Close the Prev Year Income Comparison section

Click the Close button and then click OK to confirm the removal.


7 Click Add Content

(In the top-left corner of the Company Snapshot window.) To display other content options.

View the content options At the bottom of the “Add content to your Company Snapshot” section, click the right arrow twice to view all the content choices.

Add the Income Breakdown section

Click the arrows to view the section. Then click the Add button to the right of the Income Breakdown sample.

Click Add Content To hide the Add Content options.

8 Point to the Income Breakdown section title

The mouse pointer changes to a four-way arrow, indicating that you can move the section.

Click, hold, and drag To move the section to a new location of your choice.

Release the mouse button To complete the move.

9 Rearrange the Company Snapshot content

Move each section to the location of your choice and then compare your screen to Exhibit 6-6.

10 In the Account Balances section, click Select Accounts

To open the Select Accounts to View dialog box.

Clear Payroll Liabilities You’ll remove Payroll Liabilities from the Account Balances list in the Company Snapshot window.

Click Update Payroll Liabilities is removed from the list.

11 Choose Edit, Preferences… To open the Preferences dialog box.


12 In the left panel, click Desktop View

In the Desktop section, select Save Current Desktop

Clear Show Home page when opening a company file

To use the Company Snapshot, instead of the Home page, as your default page.

13 Click Cancel We’ll leave the Home page as the default for this course.

14 Close the Company Snapshot window



Topic C: Setting up budgets Explanation By setting up budgets, you can see how much you’re spending and earning in various

areas and compare those figures to how much you want (or expect) to spend or earn. In QuickBooks, you don’t create a single, unified budget; instead, you set up budgets for individual accounts, customers, or jobs. You can generate reports that tell you how well you’ve done compared to your budgeted amounts.

The Set Up Budgets window To create a budget, follow these steps:

1 Choose Company, Planning & Budgeting, Set Up Budgets to open the Set Up Budgets window. If this is the first time you’ve created a company budget, the Create New Budget Wizard will start.

2 Select the year for which you want to set up budgets. The next year is selected by default. Choose the type of budget you want to create: Profit and Loss or Balance Sheet. All budgets must be account-based. Click Next to proceed.

3 If you want to create budgets for particular customers or jobs, select the option to add Customer:Job criteria. Then click Next.

4 Choose how you want to create a budget: either from scratch or from the previous year’s data. Click Finish. The Set Up Budget window appears with your accounts listed in the first column, the Annual Total in the second column, and the months of the year in the remaining columns, as shown in Exhibit 6-7.

5 For each account, enter the desired budgeted amount in the month columns.

6 Click Save to save the current budget. To create another budget, click the Create New Budget button.

7 Click OK to close the Set Up Budgets window.

Exhibit 6-7: The Set Up Budgets window


Do it! C-1: Creating a budget The files for this activity are in Student Data folder Unit 6\Topic C.


2 Choose Company, Planning & Budgeting, Set Up Budgets

Your company doesn’t have a budget set up, so the Create New Budget Wizard starts.

3 Observe the selected year for the new budget

The next year is entered by default.

Use the spinner control to select 2012

You want to create a budget for this year.

4 Observe the types of budgets you can create

You can choose between a Profit and Loss budget and a Balance Sheet budget. You’ll create a Profit and Loss budget.

Click Next To advance to the next page of the wizard.

5 Observe the budget criteria options

You can add Customer:Job criteria if you want to create budgets for particular customers or jobs.

Click Next To accept the default setting and not add more criteria.

6 Observe the options for creating budgets

You can create the budget from scratch or use the actual data from the previous year. It’s easier to use the previous year’s data to create your budget. You can always change the budget amounts.

Click Finish Your Profit and Loss budget for 2012 is created and displayed in the Set Up Budgets window.

7 Observe the Set Up Budgets window

Compare your screen to Exhibit 6-7. The budget name appears at the top. (To view a different budget, select it from the Budget list.) The first column contains the account list. Then there is a column for each month of the year. You’d enter your budget amounts in these monthly columns.


Editing budgets Explanation Unlike other QuickBooks entries, budgets are not stored in a list. Each budget, account,

customer, or job is a separate entity. QuickBooks doesn’t keep a combined “master” budget.

To edit a budget, use the Set Up Budgets window. Open the window, select the account whose budget you want to edit, and modify the previously entered amounts as needed. When you’re done, click Save. You can edit budgets for as many accounts as you want. When you’re finished editing, click OK to close the Set Up Budgets window.

The Copy Across button

To save data entry time, you can use the Copy Across button to quickly fill in the remaining months of the year with a specified amount. Here’s how:

1 In the selected account row, enter the budget amount in the January column.

2 Click Copy Across to copy the amount to the remaining months. Any existing budget amounts will be overwritten when you use the Copy Across button.

3 Click Save to save your budget.

The Adjust Row Amounts button

You can increase the monthly budget by an exact amount or percentage by using the Adjust Row Amounts dialog box, shown in Exhibit 6-8. For example, say you’ve budgeted $450 for telephone costs in January. You expect telephone costs to rise 5% each month, beginning in February. QuickBooks can quickly calculate the increase and enter the appropriate amounts. The following procedure uses the telephone budget example.

1 In the Telephone account row, enter 450 in the January box.

2 Verify that the January amount is selected.

3 Click Adjust Row Amounts.

4 From the Start at list, select “Currently selected month.” This option must be selected in order to enable compounding.

5 Select “Increase each remaining monthly amount” and enter 5% in the box.

6 Check “Enable compounding” so that every month is a 5% increase from the previous month.

7 Click OK.

Exhibit 6-8: Adjusting row amounts


Do it! C-2: Editing a budget

Here’s how Here’s why 1 In the Set Up Budgets window,

observe the Account list You can set up a budget for any kind of account, including income, expense, and balance-sheet accounts.

Scroll to view 6340 Telephone

You’ll set up the current year’s budget for company telephone charges.

2 In the Jan12 box, enter 450

Select the 6340 Telephone row, click in the Jan12 column to place the insertion point, and enter 450. This is your telephone budget for January 2012.

Press t To accept the change and move the insertion point to Feb12. (If you press Enter, the change will be accepted and the Set Up Budgets window will close.)

3 Select the Jan12 box You want to quickly enter this amount for the remaining months.

Click Copy Across To copy the $450 amount to the remaining monthly budget columns.

4 Verify that Jan12 is selected

You expect telephone expenses to rise approximately 5% per month as business picks up. The increase will start in February.

5 Click Adjust Row Amounts To open the Adjust Row Amounts dialog box.


6 In the Start at box, select Currently selected month

To begin the incremental increase in Feb12.

Select the option to increase each monthly amount

If necessary.

In the box, enter 5% You need to enter the percent sign, or the 5 will be interpreted as 5 dollars.

Check Enable compounding This option is available because you chose to start at the selected month. Compare your Adjust Row dialog box to Exhibit 6-8.

7 Click OK

To fill in the remaining monthly budget amounts. Notice that the amounts go up by the specified percentage every month. February is $472.50, March is $496.13, and so on.

8 Click Save To save your telephone budget.

9 Edit the Jul12 box to read 600 (Type 600 and press Tab.) You’ll enter the same amount for August through December.

Copy 600 to the remaining five months

(Select Jul12 and click Copy Across.) Your monthly telephone budget for the second half of the year is now $600 per month.

10 Save your revised budget Click Save.

Click OK To close the Set Up Budgets window.


Budget reports Explanation

To see how your business is doing compared to your established budgets, you can generate several types of reports. To access these reports, choose Reports, Budgets, or select the Budget category in the Report Center.

Exhibit 6-9: Budget reports in the Report Center

Do it! C-3: Viewing budget reports

Here’s how Here’s why 1 Open the Report Center

2 In the category list, click Budgets

(On the left side.) To display a list of budget-related reports and graphs.

Observe the budgets (As shown in Exhibit 6-9.) You can use these tools to find out how your company is doing compared to the budget amounts you’ve set.

3 Close the Report Center



Unit summary: Reporting and budgeting Topic A In this topic, you used the Report Center and the QuickReport feature to create a year-

to-date income account report. You also used QuickZoom to open transactions from a report and get more detailed information. Then you modified a report directly in its window and by using the Modify Report dialog box. Finally, you saved—or “memorized”—a report and learned how to print reports.

Topic B In this topic, you learned how to use the Company Snapshot to view real-time company information. You learned how to perform tasks and customize the Company Snapshot window.

Topic C In this topic, you learned how to set up and modify a budget.

Independent practice activity In this activity, you will create, modify, and memorize reports. You’ll also set up a budget.


1 Open Practice reports.

2 Display a QuickReport for the expense account named “6280 Legal Fees.”

3 From the QuickReport, open check number 408. (Use the QuickZoom feature.) Then close the Write Checks window and close the QuickReport.

4 Using the Report Center, generate a Purchases by Item Summary report. Use the default date range. You’ll find this report type in the Purchases category.

5 Change the date range of the report so it displays the fiscal year-to-date sales figures.

6 Use the Modify Report dialog box to make the following changes in the report:

Add the subcolumn named % of Column.

Filter the report so that it displays only those items with total sales greater than or equal to 250. (Hint: From the Filter list, select Amount.)

Change the report title to Sales Summary, $250+ (use the Header/Footer tab).

7 Memorize the report, accept the default name, and save it in the Company report group. Close the report.

8 To verify that you memorized the report correctly, open it by choosing Reports, Memorized Reports, Company. (If the report is not available, repeat steps 4 – 7.) Close the report and the Report Center.

9 Set up a budget for Postage and Delivery expenses (account number 6250). For this account, your January 2012 expenses were $300, and you expect this amount to increase by $20 per month through the end of the year. (Use the Copy Across and Adjust Row Amounts buttons.) When you’re done, save the budget and close the Set Up Budgets window.

10 Close all windows and the company file.


Review questions 1 In addition to using the QuickReport feature, how else can you create reports in

QuickBooks?

By using the Report Center

2 Which feature is indicated when the mouse pointer changes to a magnifying glass with a Z?

This means that the QuickZoom feature is active and you can double-click that component of the report to dig deeper into the figures.

3 What are the two ways to make changes in a report?

Make the changes directly in the Report window.

Click Customize Report and use the Modify Report dialog box.

4 What does it mean to “memorize” a report?

Saving a report so it can be used repeatedly

5 What types of budgets can you create?

Profit and Loss

Balance Sheet

6 Which budget feature is used to increase a monthly budget by an exact amount or percentage?

A Enable compounding

B Copy Across

C Adjust Row Amounts

D Fill In Amounts

7–1

U n i t 7 Protecting and backing up data



A Apply and remove password protection, set the closing date for a file, set up user permissions, and switch between single-user and multi-user mode.

B Back up and restore company files.


Topic A: Protecting and sharing data Explanation It’s a good idea to apply password protection to your company file, especially if it’s

stored on a network. You can protect your data on many levels. For maximum security, you can require users to log in with a user name and password every time the file is opened. Before you can create user accounts, though, you must designate the QuickBooks administrator. Most security-related settings can be entered or modified only by the administrator.

You can also set a closing date for your file, preventing users from changing transactions that occurred before the specified date unless they know the password. If you want more than one person to be able to work on the file simultaneously, you’ll need to switch to multi-user mode.

The QuickBooks administrator To control most of the security settings, you must log in as the QuickBooks administrator. When you set up QuickBooks, an administrator account named Admin is created, and you can assign an administrator password during the EasyStep Interview. You can assign or change a password at any time.

To change the QuickBooks administrator’s password:

1 Choose Company, Set Up Users and Passwords, Change Your Password to open the Change QuickBooks Password dialog box, shown in Exhibit 7-1. Admin is entered in the User Name box by default.

2 In the New Password box, enter the desired password. Passwords must be between 6 and 16 characters long. Passwords are case-sensitive. For example, QuickBooks interprets the following as different passwords: password, Password, PASSWORD, PassWord.

3 In the Confirm New Password box, re-enter the password.

4 From the Challenge Question list, select a question.

5 In the Answer box, enter your answer.

6 Click OK.

Important notes about forgotten passwords

If a user forgets his or her password, the administrator can reset it.

If the administrator forgets the password, he or she can reset it after entering the correct answer to the challenge question.

The challenge question and answer

The Challenge Question and Answer boxes provide a way for administrators to reset their forgotten passwords. First, you need to select a challenge question from the list; then type the answer. Unlike passwords, the answer is not case sensitive. Spaces are also allowed.

In the QuickBooks Login dialog box, an “I forgot my password” link appears when you have set up a challenge question and answer. You can click this link to remove the forgotten password and create a new one. However, if you forget the answer to the challenge question, you will need to re-enter your QuickBooks license number and personal information to reset the password.

Protecting and backing up data 7–3

Exhibit 7-1: The Change QuickBooks Password dialog box


Do it! A-1: Setting an administrator password The files for this activity are in Student Data folder Unit 7\Topic A.

Here’s how Here’s why 1 Open Protection1

Choose Company, Set Up Users and Passwords, Set Up Users…

To open the User List and see that you are currently logged on as Admin.

Click Close

2 Choose Company, Set Up Users and Passwords, Change Your Password…

To open the Change QuickBooks Password dialog box. Admin is entered in the User Name box by default.

3 In the New Password box, enter outlander

This will be the administrator’s password for the current file. To protect your password against theft, QuickBooks displays your entry as a series of dots.

Press t To place the insertion point in the Confirm New Password box.

Type outlander To re-enter the password.

4 From the Challenge Question list, scroll to see the options

Select Name of your high school

In the Answer box, enter East It’s important to remember your answer to the selected challenge question. If you forget your answer, you will need to enter your QuickBooks license number and personal information. Compare your screen to Exhibit 7-1.

5 Click OK To save your password settings and close the dialog box.

Click OK again To close the message confirming the password change and encouraging you to change the admin password every 90 days.

6 Close the file Choose File, Close Company.

Re-open the file (Select Protection1.QBW and click Open.) The QuickBooks Login dialog box appears, prompting you to enter a password.


7 In the Password box, enter outlander

The “I forgot my password” link can be used if you forget the admin password. When you click the link, you will be prompted for the answer to your challenge question.

Click OK To submit the administrator’s password and open the company file.


The closing date Explanation

At the end of an accounting period, it’s a good idea to set a closing date for your file. Doing so protects your records against changes that would alter balances for the closed accounting period. You can set a closing date with or without password protection. If password protection is not enabled, a warning box will appear when someone tries to edit the amount of a transaction that occurred before the closing date; the transaction can still be edited, however. If password protection is enabled, all users (even the QuickBooks administrator) will be prevented from editing the transaction amount unless they know the closing-date password. This password is separate from all other passwords in QuickBooks.

To set a closing date and enable password protection:

1 Choose Edit, Preferences to open the Preferences dialog box.

2 Click the Company Preferences tab. (To change settings on this tab, you must log in as the QuickBooks administrator.)

3 Click the Accounting icon to display the accounting options for the current file.

4 Under Closing Date, enter the desired closing date in the date box.

5 Click Set Password to open the Set Closing Date Password dialog box.

6 Enter and confirm the desired password. Then click OK to close the Set Closing Date Password dialog box.

7 Click OK to close the Preferences dialog box.

Do it! A-2: Specifying a closing date

Here’s how Here’s why 1 Choose Edit, Preferences… To open the Preferences dialog box. The My

Preferences tab is active by default.

2 Click the Company Preferences tab

Click the Accounting icon

(If necessary.) To display the accounting options for the current file.

3 Under Closing Date, click Set Date/Password

To open the Set Closing Date and Password dialog box.

4 Edit the Closing Date box to read 01/31/2012

To close your books through the end of last month. Applying a closing date protects your records against changes that would alter balances for closed accounting periods.


5 In the Closing Date Password box, enter spices

This closing-date password will be required whenever users create, enter, or edit transactions that occurred on or before the specified closing date. In addition, any actions that will cause a change in closed periods will require this password.

In the Confirm Password box, enter spices

Click OK To close the Set Closing Date Password dialog box and return to the Preferences dialog box.

6 Click OK To save your settings and close the Preferences dialog box.


8 Select the transaction dated 01/14/2012 (check #397)

You’ll attempt to edit the transaction amount.

Change the payment amount to $30

Click Record and then click Yes

To accept the change. A warning box appears. QuickBooks asks you for a password to make the change.

9 In the Password box, enter spices

Click OK To finish editing the transaction.

10 Close the Company checking register


User permissions Explanation If other users will be working with your company file, you should set up a user name

and password for each person. When setting user permissions, you can give different people different levels of access. In QuickBooks, access areas are classified as follows:

Sales and Accounts Receivable

Purchases and Accounts Payable

Checking and Credit Cards

Inventory

Payroll and Employees

Sensitive Accounting Activities (such as funds transfers and online banking)

Sensitive Financial Reports

Changing or Deleting Transactions

Changing Closed Transactions

In each area, you can grant or restrict permissions as needed. For example, in the Sales and Accounts Receivable area, you can allow a user to create transactions only, create and print transactions, or create transactions and create reports, as shown in Exhibit 7-2.

Exhibit 7-2: Controlling user access for QuickBooks areas

To set up a user account:

1 Choose Company, Set Up Users and Passwords, Set Up Users to open the User List dialog box. When prompted, enter the administrator’s password.

2 Click Add User to start the User Setup Wizard, which will guide you through a series of screens.

3 Enter a user name and password, and then click Next.

4 Follow the on-screen instructions until you complete the wizard.

5 Click Finish.


Do it! A-3: Setting up users and passwords

Here’s how Here’s why 1 Choose Company, Set Up

Users and Passwords, Set Up Users…

You are prompted for the administrator’s password.

In the Password box, enter outlander

Click OK The User List dialog box opens.

2 Click Add User To start the wizard for setting up a new user.

3 In the User Name box, enter New User

In the Password box, enter nutmeg

In the Confirm Password box, enter nutmeg

4 Click Next To proceed to the next screen, in which you specify the access level for the new user. Selected areas of QuickBooks are selected by default.

5 Select All areas of QuickBooks

So the new user will have access to all of your QuickBooks data.

Click Next A warning box appears, asking you to confirm that you want to give New User unlimited access to payroll, check writing, and other sensitive information.

Click Yes To return to the wizard, which displays an area-by-area permissions summary for New User, as shown in Exhibit 7-2.

6 Click Finish To close the wizard and return to the User List dialog box.

Click OK To close the warning dialog box.

7 Observe the User List

New User has been added to the list.

8 Click Close To close the dialog box.


9 Choose File, Close Company/Logoff

To close the file. Notice that the menu command has changed because there are now multiple users.

Re-open the file (Select Protection1.QBW and click Open.) The QuickBooks Login dialog box appears.

10 Edit the User Name box to read New User

In the Password box, enter nutmeg

Click OK To log in as New User and open the file.

11 Open the Preferences dialog box Choose Edit, Preferences.

Click the Company Preferences tab

A warning box states that only the administrator can modify company preferences.

Click OK To close the warning box.

Close the Preferences dialog box Click Cancel.


Multi-user mode Explanation

If you use QuickBooks in a networked environment, more than one person can work on the same file simultaneously. The first person to open the file must activate multi-user mode by choosing File, Switch to Multi-user Mode. (To switch back to single-user mode, choose File, Switch to Single-user Mode.) Any user can activate multi-user mode.

Using QuickBooks on a network

QuickBooks is a multi-user program, as opposed to a “true” network program. Network programs are typically installed on a single server or workstation. In contrast, every QuickBooks user on the network must have a separate, licensed copy of QuickBooks installed on his or her local workstation. The company file, however, can be stored on a single server or workstation. QuickBooks allows up to five users to have simultaneous access to the file across the network.

In multi-user mode, you can use QuickBooks Messenger to communicate with other users who are logged into the same file. To use QuickBooks Messenger, choose “Chat with a coworker” from the Company menu. Select a user from the list of logged-in users, and click the Start Chat button. Enter your message and click Send to start a chat session with another logged-in user. You can also communicate with all logged-in users by choosing Send Message to Logged In Users from the Actions menu.


Do it! A-4: Switching between single- and multi-user modes

Here’s how Here’s why 1 Choose File, Switch to

Multi-user Mode A message box appears, asking if you would like to host multi-user access.

Click Yes The company file closes and a new message box appears, explaining multi-user mode. The first person who opens the file needs to choose this command in order for other users to be able to work with the file at the same time.

Click OK To close the dialog box. Windows asks if you would like to give administrator permissions for this action.

2 Click Continue To give Windows administrator permissions.

Click Yes In the User Account Control dialog box.

Click OK To close the dialog box.

3 Click OK To close the message about using a file in multi-user mode.

Observe the title bar

New User is logged in with multi-user mode active.

4 Choose File, Switch to Single-user Mode

A message box appears, stating that you can now use the file in single-user mode.

Click OK To open the file in single-user mode.


Removing data protection Explanation The procedures you’ll use to remove data protection depend on the types of security

measures you’ve set up.

Deleting user accounts

To delete a user account:

1 Open the User List dialog box.

2 Select the user account you want to delete.

3 Click Delete User. In the Delete User box, you are prompted to confirm the deletion.

4 Click Yes.

You can also use the User List dialog box to view and change user settings.

Removing the closing-date password

To remove password protection from the closing date:

1 In the User List dialog box, click Closing Date to open the Set Closing Date and Password dialog box.

2 Delete the characters in both Password boxes.

3 Click OK to close the Set Closing Date and Password dialog box and return to the User List dialog box.

4 Click OK to close the User List dialog box.

Removing the closing-date password does not disable the closing date itself. A warning box will still appear if a user tries to change the amount of a pre-closing-date transaction. The difference is that a password is no longer required to change the amount. To disable the closing date itself, simply delete it in the Preferences dialog box.

Removing the QuickBooks administrator’s password

To remove the QuickBooks administrator’s password:

1 Log in as the QuickBooks administrator.

2 Choose Company, Set Up Users and Passwords, Change Your Password to open the Change Password dialog box.

3 Delete the contents of the New Password and Confirm New Password boxes.

4 Click OK.


Do it! A-5: Deleting user accounts and removing passwords

Here’s how Here’s why 1 Close the file To modify user and password protection

settings, you must log in as the QuickBooks administrator.

Re-open the file

2 Log in as the QuickBooks administrator

Enter “Admin” in the User Name box, enter “outlander” in the Password box, and click OK.

3 Open the User List dialog box (Choose Company, Set Up Users and Passwords, Set Up Users. Enter the administrator’s password when prompted.) You’ll delete New User.

4 In the list, select New User

Click Delete User The Delete User box prompts you to confirm that you want to delete the selected user account.

Click Yes To delete New User from the list.

5 Click Closing Date To open the Set Closing Date and Password dialog box.

Delete the dots from both password boxes and click OK

If you want to disable password protection for transactions before the closing date, you simply remove the password.

6 Close the User List dialog box Click Close.

7 Choose Company, Set Up Users and Passwords, Change Your Password…

To open the Change Password dialog box.

In the Current password box, enter outlander

This is the current admin password.

Verify that the New Password and Confirm New Password boxes are empty

By leaving these two password boxes blank, you remove the administrator’s password.

From the Challenge Question list, select <Select>

To remove the challenge question and answer.

8 Click OK To close the dialog box.



9 Choose File, Close Company To close the file. Notice that Logoff is no longer part of the menu command because there is only one user.

Re-open the file This time, the QuickBooks Login dialog box does not appear. Because you removed all passwords, your file is no longer password-protected in any way.



Topic B: Backing up data Explanation The data you store in QuickBooks is critical to your business, so you should back up

your company file regularly. How often you do so is up to you, but once or twice a week is recommended. You might even want to back up your data at the end of every business day. You can back up your file to a CD, to a hard drive, or to a network location. In addition, Intuit offers a fee-based service for backing up your data online. If your original file becomes damaged or inaccessible, you can restore your data from the backup copy.

QuickBooks 2012 also allows you to save what it calls a portable company file. This file is highly compressed and much smaller than a backup copy, so it’s easier to email or save on portable media such as a USB drive. These files take longer to open, though, because they have to be uncompressed.

The Save Copy or Backup dialog box You can start the backup process by clicking Backup on the icon bar to open the Save Copy or Backup dialog box, shown in Exhibit 7-3. To make a regular backup file, follow these steps:

1 Select Backup copy in the Save Copy or Backup dialog box, and click Next.

2 Choose whether you’ll save the file locally or through the online service.

On this screen, you can also click Options to select a folder location and set other options. As shown in Exhibit 7-4, additional options include reminding you to back up and verifying the data in the file before backing it up. Click Next to proceed.

3 Specify whether to save the backup now, schedule it for the future, or both. (If you choose an option that includes scheduling a backup, there will be an extra step for creating a schedule.) Click Next.

4 Confirm the file name and the location in the Save Backup Copy dialog box and click Save.

A Working box will indicate the progress of the backup. After a few moments, an information box will tell you that the backup was successful.

5 Click OK to close the information box and return to the original file.

You can also choose Create Backup or Create Copy from the File menu to back up a company file.


Exhibit 7-3: The Save Copy or Backup dialog box

Exhibit 7-4: The Backup Options dialog box


Do it! B-1: Backing up your company file The files for this activity are in Student Data folder Unit 7\Topic B.

Here’s how Here’s why 1 Open Protection2

2 On the icon bar, click Backup

To open the Save Copy or Backup dialog box.

3 Verify that Backup copy is selected

Click Next

4 Select Local backup If necessary.

Click Options To open the Backup Options dialog box. You’ll choose where to save the file.

5 Click Browse

Navigate to the current topic folder and select the Backup folder

Click OK To return to the Backup Options dialog box.

6 Observe the additional options As shown in Exhibit 7-4, you can specify when to be reminded to back up a file and which type of verification to use on the data.

Under “Online and local backup,” select Quicker verification

To have QuickBooks verify that your company data is OK.

Click OK A warning message appears, telling you that it’s risky to save backups on the same hard disk as the company file.

Click Use this Location For class purposes, we’ll take the risk.


7 Click Next twice To open the Save Backup Copy dialog box.

Verify that you are in the Backup folder in the current topic folder

You set this location earlier. If you had not opened the Backup Options dialog box earlier, you could still choose a location here.

Observe the File name box

Your backup file will have the same name as the original file by default, plus a date and time.

Observe the Save as type list QuickBooks backup files have a .QBB extension.

Click Save To save the backup file in the Backup folder in the current topic folder. A Working box appears, indicating the progress of the backup. After a few moments, a message box indicates that the file has been backed up.

8 Click OK To return to the original file.



Restoring backups Explanation To restore a regular backup file:

1 Choose File, Open or Restore Company to open the Open or Restore Company dialog box, shown in Exhibit 7-5.

2 Select Restore a Backup Copy and click Next.

3 Specify whether you are restoring from a local file or from the online service. Click Next.

4 Select the backup file you want to restore. Click Open and then click Next.

5 Specify a location and file name for the restored file. Click Save.

6 The restore will take a moment. When a message tells you that your data has been restored successfully, click OK.

Exhibit 7-5: The Open or Restore Company dialog box


Do it! B-2: Restoring your company file from a backup

Here’s how Here’s why 1 Choose File, Open or Restore

Company… To open the Open or Restore Company dialog box.

2 Select Restore a backup copy

You will restore the company file from the backup file you just created.

3 Click Next

Verify that Local backup is selected

4 Click Next The Open Backup Copy dialog box opens.

Select the backup file you created Navigate to the folder, if necessary.

Click Open The Open or Restore Company dialog box indicates that you now need to select a location for the restored company file.

5 Click Next To open the Save Company File as dialog box.

Verify that the current topic folder is selected

Edit the File Name box to read Protection restored

You will change the name to avoid overwriting the previous file.

Click Save To restore the file. The Working box appears, and then a message tells you the operation was successful.

6 Click OK To open the restored file.



Unit summary: Protecting and backing up data Topic A In this topic, you learned how to apply password protection to a file. First, you

changed the administrator’s password. Then you set the closing date for a file, and you enabled password protection for modifying transactions that occurred before the closing date. You set up a new user account. You also learned how to switch between single-user mode and multi-user mode. Then, you learned how to delete a user account and disable password protection for a file.

Topic B In this topic, you learned how to back up your data and how to restore your data from a backup file.

Independent practice activity In this activity, you will work with passwords, activate multi-user mode, and back up and restore your QuickBooks data.


1 Open Practice protection.

2 Designate the QuickBooks administrator for this file as follows:

Administrator’s name: Admin

Administrator’s password: practice

Use the Challenge Question and Challenge Answer of your choice.

3 Add a new user account as follows:

User Name: User1

Password: cloves

Access level: all areas

4 Set the closing date for the current file as follows:

Date: January 15, 2012

Password: sesame

5 Close the file. Re-open the file and log in as User1.

6 In the Company checking register, change the amount of check number 395 (dated 01/03/2012) to $300. When you’re done, close the checking register.

7 Delete User1. (You’ll need to log in as the QuickBooks administrator.)

8 Remove the password for editing transactions that occurred before the closing date.

9 Remove the QuickBooks administrator’s password and set the Challenge Question to <Select>.

10 To verify that you performed steps 7 and 9 correctly, close the file and then re-open it. You should not be prompted to enter a user name and password.

11 Back up the current file to the Backup folder in the Unit summary folder, using the Quicker Verification method. Accept the default file name for the backup.

12 Restore the file from the backup you created in step 11. Name the restored file Practice restored.QBW and save it in the Unit summary folder.

13 Close the company file and close QuickBooks.


Review questions 1 Which of the following statements about QuickBooks passwords are false? (Choose

all that apply.)

A Passwords can be up to 20 characters long.

B Passwords are not case-sensitive.

C The administrator password can be assigned or changed at any time.

D Forgotten administrator passwords cannot be reset.

2 Which of the following statements are true about the challenge question and answer? (Choose all that apply.)

A This feature is optional for users and administrators.

B The answer is case-sensitive.

C You must answer the challenge question correctly to reset a forgotten password.

D Without a challenge question, you can reset a password only by re-entering your QuickBooks license and personal information.

3 What is a closing date?

The specific date for the end of the accounting period. If users try to edit transactions that occurred before the closing date, a warning will appear.

4 Are the administrator password and the closing date password the same?

No. The two passwords serve different functions and should not be the same.

5 When creating user accounts, you can grant or deny permissions to different areas of QuickBooks. Name some of those areas.

Answers can include any of the following areas:

Sales and Accounts Receivable

Purchases and Accounts Payable

Checking and Credit Cards

Inventory

Payroll and Employees

Sensitive Accounting Activities

Sensitive Financial Reports

Changing or Deleting Transactions

Changing Closed Transactions

6 What is the advantage of working in multi-user mode?

In a networked environment, more than one person can work on the same file simultaneously.

S–1

Course summary

This summary contains information to help you bring the course to a successful conclusion. Using this information, you will be able to:

A Use the summary text to reinforce what you’ve learned in class.

B Determine the next courses in this series (if any), as well as any other resources that might help you continue to learn about QuickBooks 2012.

S–2 QuickBooks 2012

Topic A: Course summary Use the following summary text to reinforce what you’ve learned in class.

Unit summaries

Unit 1

In this unit, you learned that QuickBooks 2012 is an accounting program designed for small businesses. You learned how to start the program and view a sample file. Then you learned about the QuickBooks desktop; the icon bar; and the Customer, Vendor, and Employee Centers. You also opened a company file. Finally, you learned how to use the QuickBooks Help system, which includes Intuit Community and the Learning Center.

Unit 2

In this unit, you used the EasyStep Interview to set up a new company file. You started the interview, entered basic information about the business, and saved the file. Next, you customized QuickBooks to suit the business, set the start date, and completed the interview. You then used the QuickBooks Setup window to add an account, and you used the Quick Start Center to explore common tasks. Next, you opened the Chart of Accounts, which lists the income, expense, and balance-sheet accounts. You added and edited accounts, deleted an account, and made an account inactive. You also learned how to apply an account numbering system.

Unit 3

In this unit, you learned how to use the Customer Center. You added a customer and created a customer type. You also learned how to add jobs and create job types. Then you opened the Vendor Center, added a vendor, and created a vendor type. You also learned how to add attachments and how to attach a note to a list entry. You added an employee to the Employee Center. Next, you opened the Item List and added an inventory item. You also learned how to add other types of items, including sales tax, subtotal, and discount items. Then you learned how to group items. Finally, you learned how to add custom fields to customer, vendor, and item records.

Unit 4

In this unit, you learned how to create, modify, and print invoices. You also created a custom invoice form that includes a company logo. Then you learned how to create a credit memo. You created a sales receipt (used when a customer pays in full for goods at the point of sale), received payments against previously issued invoices, and applied a credit when receiving a payment. Then you recorded a deposit for a batch of previously undeposited funds. You also created a purchase order and entered received items into inventory. Finally, you used QuickFilter to display only certain items in the Customer & Jobs list, and you used the Find window to search for completed forms based on search criteria.

Course summary S–3

Unit 5

In this unit, you used the Write Checks window, wrote checks directly from the checking account register, and printed checks. You then learned how to transfer funds between accounts. You also learned how to edit, void, and delete transactions. You then reconciled a checking account. Next, you used the Enter Bills window, entered a bill directly in the Accounts Payable register, and paid bills in the Pay Bills window. Finally, you explored the QuickBooks payroll service options.

Unit 6

In this unit, you used the Report Center and the QuickReport feature to create a year-to-date income account report. You also used QuickZoom to open transactions from a report and get more detailed information. Then you modified, memorized, and printed reports. You also used the Company Snapshot window to get a real-time view of company information and to perform tasks from a single place. Finally, you learned how to set up and modify a budget.

Unit 7

In this unit, you learned how to apply password protection to a file. First, you changed the administrator’s password. Then, you set the closing date for a file and enabled password protection for modifying transactions that occurred before the closing date. You set up a new user account and switched to multi-user mode. Finally, you learned how to back up and restore data.

S–4 QuickBooks 2012

Topic B: Continued learning after class It is impossible to learn how to use any software effectively in a single day. To get the most out of this class, students should begin working with QuickBooks 2012 to perform real tasks as soon as possible. We also offer resources for continued learning.

Next courses in this series This is the only course in this series.

Other resources For more information, visit www.axzopress.com.

G–1

Glossary

Centers Windows that are used to manage information about vendors, customers, and employees. For example, the Customer Center contains all pertinent information about customers, such as names, addresses, phone numbers, transactions, and jobs.

Chart of Accounts A list of the balance-sheet accounts (assets, liabilities, and equity) and the income and expense accounts.

Closing date The date when the books are officially finished. You can assign a closing-date password to prevent users from editing transactions that have been closed.

Company Snapshot A window from which you can view trends, reminders, account balances, and lists of customers who owe you money and vendors you need to pay.

Credit memos Notes used to handle customer returns and refunds. Credit memos can also be used to correct data entry mistakes.

Customer Anyone who pays you for goods or services.

Customer Center A window that contains detailed information about each customer, including company name, address, phone numbers, amount owed, transactions, and payment and job information.

EasyStep Interview The wizard that guides you through the process of creating a company file.

Employee Center A window that contains detailed information about employees, including their personal information, salary, and tax-related details.

Grouped item A set of several items that are saved together and handled as a single item in the Item List.

Icon bar A toolbar containing buttons you can click to perform commonly used commands.

Intuit Community An interactive help system that provides the normal “help” function but also gives you direct access to other QuickBooks users, enabling you to ask questions, answer questions, and search previously asked-and-answered questions.

Inventory part Anything you purchase, hold in stock, and then sell.

Item Anything that the company would list on an invoice or sales form, such as a product, service, or shipping charge.

Item List A list that contains inventory parts, non-inventory parts, shipping charges, postage costs, and other reimbursable expenses.

Job An item that is tracked and recorded for a specific customer or vendor. For example, a construction company would view each building project as a job.

Memorizing a report The process of saving a customized report so you can open it again.

Multi-user mode A mode that enables up to five users to simultaneously access the company file across a network.

Purchase order A document used to record and track items that the company orders, receives, and pays vendors for.

QuickBooks desktop The main program window, which contains many components that are common to most Windows-based programs.

QuickBooks Learning Center A feature that provides multimedia presentations for a variety of help topics, as well as links to help documents for additional information.

QuickReport A feature that displays year-to-date transactions for the selected income or expense account. You can generate a QuickReport by double-clicking an account name in the Chart of Accounts.

G–2 QuickBooks 2012

QuickZoom A feature that enables you to double-click parts of a report to view the specific form that is represented in the report. When the mouse pointer changes to a magnifying glass with a “Z,” the QuickZoom feature is available for that item.

Reconciling The process of comparing your bank statement to your own records to make sure everything adds up. Reconciling a checking account is commonly referred to as “balancing your checkbook.”

Report Center A window that contains more than a hundred types of reports, graphs, and lists that can be generated from your QuickBooks data. Reports are divided into categories to make it easier for you to find the exact report you want.

Sales receipt A document created when a customer pays you in full for goods at the point of sale.

Single-user mode A mode in which only one user at a time is allowed to access the company file.

Start date The date on which you want to begin using QuickBooks for your financial record keeping. (Also known as the conversion date.)

Template A document that provides the underlying structure of invoice forms, but can be customized to suit your business requirements.

Vendor Anyone you pay for goods or services.

Vendor Center A window that contains detailed information about vendors, including company names, total balances owed, addresses, phone numbers, transactions, payment terms, and credit limits.

Voiding The process of changing the amount of a transaction to zero, but keeping the record of the transaction in QuickBooks. Voiding transactions is recommended when a payee returns a check or when a check is lost in transit; voiding prevents check-number gaps in the register.

I–1

Index

A Accounts

Creating, 2-21 Deleting, 2-26 Editing, 2-25 Loans, 2-24 Making inactive, 2-26 Numbering, 2-28 Reconciling, 5-18 Setting up, 2-12 Transferring funds between, 5-12

Accounts Payable register, 5-26 Administrator passwords, 2-5, 7-2

B Bills

Entering in the Accounts Payable register, 5-26 Entering in the Enter Bills window, 5-23 Paying, 5-28

Budgets Creating, 6-20 Editing, 6-22 Reports for, 6-25

C Centers

Components of, 1-6 Customer, 3-2 Employee, 3-20 Report, 6-4 Vendor, 3-13

Challenge Question and Answer, 7-2 Chart of Accounts, 2-11

Opening, 2-18 Sorting, 2-18

Checks Printing, 5-10 Voiding, 5-16 Writing in the checking account register, 5-6 Writing in the Write Checks window, 5-2

Closing dates, setting, 7-6 Companies, setting preferences for, 2-8 Company files

Creating, 2-2 Opening, 1-8 Saving, 2-6

Company Snapshot, 6-15 Conversion dates, 2-11

Create Invoices window, 4-2 Printing from, 4-8

Credit memos, 4-15 Credits, applying, 4-20 Custom fields, creating, 3-33 Customers

Adding, 3-2, 3-4 Creating types of, 3-4

D Data

Backing up, 7-16 Protecting, 7-2, 7-6 Removing protection from, 7-13 Restoring from backup, 7-20

Deposits, recording, 4-23 Desktop, 1-5 Document Management System, 3-11

E EasyStep Interview

Entering information in, 2-5 Setting start date in, 2-11 Starting, 2-2

Employees, adding, 3-20

F Fields, custom, 3-33 File menu, 1-17 File names vs. company names, 1-8 Files

Opening, 1-8 Saving, 2-6

Forms, finding, 4-33 Funds, transferring, 5-12

H Help system

Context-sensitive help, 1-14 Learning Center, 1-12 Live Community, 1-10

Home page, 1-5

I Icon bar, 1-5 Invoices

Creating, 4-2 Customizing, 4-11

I–2 QuickBooks 2012

Modifying, 4-6 Printing, 4-8

Item List, 3-22 Items

Adding, 3-22 Defined, 3-22 Entering into inventory, 4-28 Grouping, 3-30 Inventory, 3-26

J Jobs, adding, 3-8

L Learning Center, 1-12 Live Community, 1-10 Loan accounts, 2-24 Logging into QuickBooks, 7-2 Logos, adding to invoice form, 4-12

M Memorized reports, 6-11 Multi-user mode, 7-11

N Navigation bar, 1-5 Networks, using QuickBooks on, 7-11 No Company Open window, 1-3 Notes, adding, 3-18

O Open Previous Company command, 1-8

P Passwords

Administrator, 2-5, 7-2 Removing, 7-13 User, 7-8

Payments Receiving, 4-20 Recording, 4-23

Payroll feature, disabling, 5-31 Payroll options, 5-31 Portable company file, 7-16 Printing

Checks, 5-10 Invoices, 4-8 Reports, 6-13 Sales receipts, 4-18

Purchase orders, creating, 4-26

Q Quick Start Center, 2-15 QuickBooks Setup window, 2-14 QuickFilter, 4-31 QuickReports, 6-2 QuickZoom, 6-2

R Reconciling accounts, 5-18 Reminders window, 4-3 Reorder points, 3-26 Reports

Creating, 6-4 For budgets, 6-25 Memorizing, 6-11 Modifying, 6-8 Printing, 6-13 QuickReports, 6-2

S Sales receipts, creating, 4-18 Start dates, 2-11

T Templates, 4-2 Transactions

Editing, 5-14 Voiding and deleting, 5-16

U User accounts

Creating, 7-8 Deleting, 7-13

User permissions, 7-8

V Vendors

Adding, 3-13, 3-15 Creating types for, 3-15

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