QuickBooks supports two main types of sales:
- Invoices are for sales on account. When you create an invoice, you identify the customer account so the amount of the invoice can be added to the customer's account balance.
- Cash Sales are for sales for which you receive immediate payment, either by cash, check, or credit card. When you enter a cash sale, no accounts receivable balances are affected.
You enter each type of sale with a form that includes all of the fields you'll need for that kind of sale. These forms are virtually identical, so if you know how to enter one type of sale, you can easily enter the other.
To get the most out of QuickBooks, it's a good idea to take advantage of all of the fields that appear in sales forms. Most form fields correspond to QuickBooks lists. Before you begin to enter sales, the following lists should be up to date; you can find instructions in Chapter 2 for adding, modifying, and removing list items.
- For both invoices and cash sales:
- Employee (for Rep field)
- Ship Via
- Customer Message
- For invoices only:
- For cash sales only:
- Payment Method
To create an invoice or enter a sales receipt
- Choose Customers > Create Invoices (Figure 2) or press
. The Create Invoices window appears (Figure 3).
Figure 2 The Customers menu.
Figures 3 & 4 Blank invoice (top) and sales receipt (bottom) forms for product sales.
- Choose a customer from the Customer:Job drop-down list. The Bill To, Ship To, Terms, and Rep fields should fill in automatically with information for that customer (Figure 5).
Figure 5 When you choose a customer, other fields are filled in automatically based on customer information.
- If desired, choose a class from the Class drop-down list.
- Enter information or change the entries in the following fields if necessary:
- Date is the invoice or sale date. By default, the current date is automatically entered, but you can change the date if you need to.
- Invoice No. or Sale No. is the invoice or sale number. This field is automatically incremented by one from the previous form, so you should not need to change the number.
- Bill To or Sold To is the customer name and address for billing or payment purposes.
- Ship To is the customer name and address for shipping purposes.
- PO No. is the customer's purchase order number, if one was provided. This field appears on invoice forms only.
- Terms refers to the payment terms for the customer. This field appears on invoice forms only.
- Check No. is the customer's check number, if payment was made by check. This field appears on sales receipt forms only.
- Pay Method is the payment method. This field appears on sales receipt forms only.
- Rep is the sales representative. This drop-down list displays initials for your employees.
- Ship Date is the date the items that were purchased were or will be shipped.
- Ship Via is the shipping method to be used to ship the items.
- FOB is the FOB (free on board) location for shipping.
- Choose the name of an item sold from the Item drop-down list (Figure 6). The Description, Rate, and Amount fields fill in automatically (Figure 7), but you can change them if desired. Enter a quantity in the Qty field for the line to update the amount (Figure 8).
Figure 6 The Item drop-down list includes all items in the Item List.
Figure 7 When you choose an item, its information appears on its invoice line.
Figure 8 Enter a quantity to calculate the amount.
- Repeat step 5 for each item you want to include on the invoice or sales receipt. (Figure 9). shows an example with three line items.
Figure 9 Here's an example with several line items entered.
- If the customer is required to pay sales tax, turn on the Customer is taxable check box and choose the correct tax item or tax group from the Tax dropdown list. QuickBooks calculates the sales tax and total (Figure 10).
Figure 10 If the customer is taxable, QuickBooks calculates the tax due based on the tax item or tax group you choose from the Tax drop-down list.
- If desired, choose a message from the Customer Message drop-down list.
- For a sales receipt, choose one of the radio buttons at the bottom of the window:
- Group with other undeposited funds records the amount of the sale in the Undeposited Funds account for depositing into another account later.
- Deposit To enables you to choose an appropriate account from a dropdown list.
- To create an iCal reminder for the invoice or sales receipt, turn on the Add to iCal check box.
- To print the invoice or sales receipt with other invoices or sales receipts, turn on the To be printed check box.
- To save the invoice or sales receipt and create another new one, click Next. Or To save the invoice or cash sale without creating another new one, click OK. QuickBooks makes an entry sound and saves the transaction.
To include billable items, expenses, and time in an invoice or sales receipt
- Follow steps 1 through 10 in the previous section to create an invoice or enter a sales receipt.
- Click the Time/Costs button. The Choose Billable Time and Costs dialog appears. This window has three panes that display billable time and costs for the customer.
- To include billable items in the invoice or sales receipt, click the Items button (Figure 20). Click in the Use column to place a check mark beside each item you want to include.
Figure 20 The Items pane of the Choose Billable Time and Costs dialog lists all items you have purchased for a specific customer.
- To include billable expenses in the invoice or sales receipt, click the Expenses button (Figure 21). Click in the Use column to place a check mark beside each expense you want to include. To apply a markup amount or percentage to the expense, enter a value or percentage in the Markup Amount or % box and choose an account from the Markup Account drop-down list. If the expenses are taxable, be sure to turn on the Selected expenses are taxable check box.
Figure 21 The Expenses pane of the Choose Billable Time and Costs dialog lists all expenses you have incurred for a specific customer.
- To include billable time in the invoice or sales receipt, click the Time button (Figure 22). Click in the Use column to place a check mark beside each activity you want to include.
Figure 22 The Time pane of the Choose Billable Time and Costs dialog lists all time spent on service items for a specific customer.
- To set options for how billable time will appear on the invoice or sales receipt, click the Change button in the Time tab to display the Options for Transferring Billable Time dialog (Figure 23). Select one of the Combine Activities? radio buttons and click OK:
Figure 23 The Options for Transferring Billable Time dialog.
- Do not combine activities enters a separate line item for each activity. If you choose this option, you can then select one of the Transfer Notes or Descriptions? options: Transfer notes for each activity includes an activity's notes in the line item and Transfer service item descriptions includes an activity's service item description in the line item.
Combine activities with the same service item creates a single line item for all checked activities with the same service item. (Figure 24) shows an example of an invoice with this option set.
Figure 24 The billable items, expenses, and time in Figures 20, 21, and 22 added to an invoice.
- To include all selected time and costs as one line item on the invoice or sales receipt, turn on the Print selected time and costs as one invoice item check box.
- Click OK. The item(s) you selected are added to the invoice or sales receipt (Figure 24).
- Follow steps 11 and 12 in the previous section to complete the entry of the invoice or sales receipt.