QUICKBOOKS 2015:

A COMPLETE COURSE CHAPTER

2
LECTURE

SALES AND
RECEIVABLES:
SERVICE
BUSINESS
Fadi Alshiyab
 CHAPTER FOCUS: SALES

Record credit sales by completing an invoice

 Invoice replacement for Sales Journal
 Use Customer:Job List as Accounts Receivable Subsidiary Ledger
 Balance of Customer:Job List = balance of Accounts Receivable
account in Chart of Accounts
 Use Chart of Accounts as General Ledger
Record a cash sale by completing a sales receipt
 Sales Receipt replacement for Cash Receipts Journal

Fadi Alshiyab
 LECTURE NOTE

Examples in lecture may or may not match

textbook
Lectures illustrate key points within chapters
Lectures do not contain every transaction
completed in text
Not everything presented in chapters will be
shown in lecture
Some parts of lecture show results of
transactions entered in lecture
Fadi Alshiyab
 COMPANY FILE

Lecture uses the company Computer

Consulting by Your Name for demonstration
To complete training in Chapter 2, open:
 QuickBooks
 Computer Consulting by Your Name company file

Fadi Alshiyab
 DATES

Pay special attention to dates when recording

transactions ‫!!! مهم جدا‬
Frequent Problems:
 Forget to enter date used in text
 Use computer date for a transaction
 Incorrect dates may cause problems in
 reports
 other transaction information

Fadi Alshiyab
 DATES

Text uses 2015

2015 may not match date of your computer
Acceptable to use current year when training
 If you use current year, be consistent
 Remember text and solutions show 2015 and your work will
show current year

Fadi Alshiyab
 DATES

In business documents and reports QuickBooks

always inserts:
 Computer date
 Or date of last transaction
If date used in training is different, you must
enter it

Fadi Alshiyab
 DATES

Examples where QuickBooks allows you to

change date from computer’s date:
 Some business documents—invoice, sales receipt, etc.
 Some reports—Journal, Trial Balance, etc.

Fadi Alshiyab
 DATES

Example where QuickBooks will not allow you

to change date:
 Bank Deposit Summary, QuickBooks uses computer’s date
when printing
If you cannot change date, accept
QuickBooks’ printed date

Fadi Alshiyab
 DATES

Possible errors caused by using different

dates
 Use 2015 for some transactions and 2016 or 2017 for others
 Reports for 2015 will not show entries for 2016 or 2017
 Balances and totals will not match those provided

Fadi Alshiyab
 SALES ON ACCOUNT

To record a sale on account, create an invoice

A sale on account is
 Purchase made by a customer
 and charged to his/her account with company
Behind the scenes QuickBooks:
 Records information on invoice into Journal
 Posts transaction
 Debits:
 Accounts Receivable in Chart of Accounts (General Ledger)
 Customer’s individual account in Customers & Jobs List (Accounts Receivable Subsidiary
Ledger)
 Credits proper income account

Fadi Alshiyab
 RECORD TRANSACTION

01/02/15, record a sale on account to Luis

Gomez, Esq. for 10 hours of technical support:
 Use Invoice 1
 Use “Thank you for your business.” for Customer Message

Fadi Alshiyab
 PREPARE INVOICE

Click Create
Invoices icon
Click drop-down list
arrow for
Customer:Job
Click Gomez, Luis
Esq.

Fadi Alshiyab
 PREPARE INVOICE

Customer:Job shows Luis’s name

Information for Bill To is completed
automatically
Notice History section

Fadi Alshiyab
 PREPARE INVOICE

History section gives

information about Luis
Gomez, Esq.
Click Hide history button
to close History section
To show history, click
same button

Fadi Alshiyab
 PREPARE INVOICE

Template: Intuit Service Invoice

 If not, click drop-down list and click Intuit Service Invoice
 Always check this because QuickBooks likes to use Product Invoice

Enter date: 01/02/2015

Invoice Number: 1
Terms: Net 30

Fadi Alshiyab
 PREPARE INVOICE

Click in first line of Item column

Click drop-down list arrow for Item
Click Tech Sup 2 to enter Item

Fadi Alshiyab
 PREPARE INVOICE

Tab to Quantity, enter 1

Description, Rate, and Amount are entered
automatically for Tech Sup 2
Click drop-down list arrow for Customer
Message
Click Thank you for your business

Fadi Alshiyab
 PREPARE INVOICE

Completed invoice is ready for printing

 You may or may not see note “Your customer can’t pay this
invoice online. If you do, disregard it.

Fadi Alshiyab
 SAVE INVOICE

To save an invoice and prepare a new invoice,

click Save & New

Fadi Alshiyab
 PREPARE INVOICE WITH
TWO SALES ITEMS
Complete Invoice 2 to bill Matt Williams on
January 3 for five hours of on-site training:
 First hour billed as Training 1
 Remaining four hours billed as Training 2
Click drop-down list arrow for Customer:Job
Click Williams, Matt
Template: Intuit Service Invoice
 Click drop-down list arrow and select if not shown
Date: 01/03/2015

Fadi Alshiyab
 PREPARE INVOICE WITH
TWO SALES ITEMS
Invoice # 2 and Terms Net 30 should be shown
 If not, enter appropriate numbers

Fadi Alshiyab
 PREPARE INVOICE WITH
TWO SALES ITEMS
Enter first item: Training 1
 Click drop-down list arrow in ITEM column
 Click Training 1
Tab to Quantity, enter 1
Enter second sales item
 Click drop-down list arrow in row beneath Training 1
 Click Training 2

Fadi Alshiyab
 PREPARE INVOICE WITH
TWO SALES ITEMS
Tab to Quantity
Enter quantity 4 and press tab
Amount of invoice will be totaled

Fadi Alshiyab
 PREPARE AN INVOICE WITH
TWO SALES ITEMS
Complete invoice:
 Click drop-down list arrow for CUSTOMER MESSAGE
 Click Thank you for your business.

Print
Click Save & Close to save Invoice 2 and exit Create
Invoices
Fadi Alshiyab
 PREPARE JOURNAL

Journal shows every transaction in

Debit/Credit format
All information for Invoices 1 and 2 will
appear in Journal

Fadi Alshiyab
 PREPARE JOURNAL

Click Reports on
Menu bar
Point to Accountant
& Taxes
Click Journal

Fadi Alshiyab
 PREPARE JOURNAL

QuickBooks Accountant 2015, can combine

multiple items in a transaction into a single
line on a report
Click OK on Collapsing and Expanding
Transactions dialog box

Fadi Alshiyab
 VIEW JOURNAL

Click Expand button to see transactions in full

Dates are 01/01/15 to 01/03/15
 Note report date January 1-3, 2015
 Note time and date in upper-left—QuickBooks inserted time and
date of computer
 Review debits and credits

Fadi Alshiyab
 QUICKZOOM FROM JOURNAL TO
INVOICE 2
Point to any part of Invoice 2 shown in Journal
When cursor changes to , double-click mouse

Fadi Alshiyab
 EDIT INVOICE 2

Invoice 2 will
be opened
 Change Training 2
hours to 7, press
Tab
 Click Save & Close
button
 Click Yes on
Recording
Transaction screen

Fadi Alshiyab
 VIEW JOURNAL AFTER EDITING
INVOICE 2
View change in report
 If necessary, click Refresh button to update report

Fadi Alshiyab
 PREPARE CREDIT MEMO

01/03/2015: Prepare a Credit Memo

 Record a one hour decrease in Training 2 hours for Matt
Williams
Click icon
Similar to an Invoice but is used to record a
refund or a decrease in a sales transaction
To prepare:
 Select Customer Name
 Enter textbook date: 01/03/15
 Credit Memo number (next available invoice number): 3
 Enter Item Training 2, Quantity 1, and Customer Message
Thank you for your business.

Fadi Alshiyab
 PREPARE CREDIT MEMO

Notice History for Matt Williams

Fadi Alshiyab
 PREPARE CREDIT MEMO

Apply decrease in hours to Invoice 2

 Click “Use credit to apply to invoice” on Invoice Main Icon Bar

QuickBooks will apply credit to oldest invoice

Fadi Alshiyab
 APPLY CREDIT TO INVOICE

Click Clear Selections button or check mark in

column for 12/31/2014 to remove
Click in column next to 01/03/15 to apply
credit to Invoice 2
Click Done

Fadi Alshiyab
 APPLY CREDIT TO INVOICE

Notice change to
History for Matt
Williams
 Credit Memo added to
Recent Transactions
 Open balance changed from
$1,130 to $1,050
Click Save & Close
button

Fadi Alshiyab
 ACCOUNTS RECEIVABLE REGISTER

Accounts Receivable account in Chart of

Accounts is same as Accounts Receivable
Register
Click icon on Home Page

Fadi Alshiyab
 OPEN ACCOUNTS RECEIVABLE REGISTER

Click Accounts
Receivable
Click Activities
button
Click Use
Register

Fadi Alshiyab
 VIEW ACCOUNTS RECEIVABLE
REGISTER
View Accounts Receivable register

Fadi Alshiyab
 PREPARE CUSTOMER BALANCE
SUMMARY REPORT
Customer Balance
Summary report shows
customer balances
To prepare
 Click Reports on Menu bar
 Point to Customers &
Receivables
 Click Customer Balance
Summary

Fadi Alshiyab
 PREPARE CUSTOMER BALANCE
SUMMARY REPORT
Report dates should be 01/01/15-01/03/15 or
All
Notice Time and Date in upper-left corner of
report

Fadi Alshiyab
 CUSTOMER BALANCE SUMMARY
REPORT
To remove
date and time
prepared from
report, click:
 Customize Report
button
 Header/Footer tab
 Date Prepared and
Time Prepared to
remove check
marks
 OK

Fadi Alshiyab
 USE QUICKZOOM IN REPORT

Point to amount due for Matt Williams

 Your cursor will turn into

Fadi Alshiyab
 USE QUICKZOOM IN REPORT

Double-click amount to see Customer Balance

Detail report for Matt Williams
 Click drop-down list arrow for Dates, click All
 Notice computer time and date show for this report
 To remove them, click Customize Report and repeat steps discussed
previously

Fadi Alshiyab
 VOID INVOICE

Voiding an invoice
 Changes amount of invoice to 0.00
 Memo is “VOID:”
 Invoice stays as an invoice
Void Invoice 1:
 Click Create Invoices icon
 Click Previous or Next to find Invoice 1

Fadi Alshiyab
 VOID INVOICE

Click Edit on QuickBooks Menu bar

Click Void Invoice

Fadi Alshiyab
 VOID INVOICE
Notice Quantity and Amount are 0.00
Memo says VOID:

Fadi Alshiyab
 VOID INVOICE
Journal shows Memo Void: and 0.00 for
transaction

Fadi Alshiyab
 USE FIND

To find an invoice without clicking through all

invoices, use Find
Click Edit on QuickBooks Menu Bar
Click Find

Fadi Alshiyab
 USE FIND

Click Simple tab

Click drop-down list arrow for Transaction Type
Click Invoice

Fadi Alshiyab
 USE FIND

Click drop-down list arrow for Customer:Job

Click Gomez, Luis, Esq.
Click Find button

Fadi Alshiyab
 USE FIND

Click Inv 1
Click Go To button

 This takes to you Invoice 1

 Even though Invoice 1 was Voided, it remains as an invoice

Fadi Alshiyab
 DELETE INVOICE

A deleted invoice is permanently removed from

QuickBooks records
With Invoice 1 on screen:
 Click Edit on QuickBooks Menu bar
 Click Delete Invoice

Fadi Alshiyab
 DELETE INVOICE

Click OK on Delete Transaction dialog box

You will now see Invoice 2

 When an invoice is deleted, it is removed completely from
QuickBooks
Close Invoices

Fadi Alshiyab
 CLOSE FIND

Invoice 1 will no longer show on Find for Luis

Gomez, Esq.

Close Find
Fadi Alshiyab
 VIEW JOURNAL

Invoice 1 no longer shows in Journal

Fadi Alshiyab
 ADD NEW ACCOUNT

Add Installation
Income:
 Click Chart of
Accounts icon on
Home Page
 Click Account button
 Click New

Fadi Alshiyab
 ADD NEW ACCOUNT

Click Income to select account type

Click Continue button

Fadi Alshiyab
 ADD NEW ACCOUNT
Enter Account Name: Installation Income
Click check box in front of Subaccount of
Click drop-down list arrow for Subaccount of
Click Income

Fadi Alshiyab
 ADD NEW ACCOUNT

Click in Description textbox

 Type: Hardware/Network Installation Income
Click Save & Close button to add account

Fadi Alshiyab
 ADD NEW ACCOUNT

Scroll through Chart of Accounts to see new

account
 Account is indented because it is a subaccount of Income

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 ADD NEW ITEM

Because an item is used when recording a cash

or credit sale, Items are called Sales Items
Each Income account must be used by or linked
to a sales item
When invoice or sales receipt prepared, select
Item used to earn income
QuickBooks records revenue in associated
income account

Fadi Alshiyab
 ADD NEW ITEM

Click icon
Click Item button at bottom of Item List
Click New

Fadi Alshiyab
 ADD NEW ITEM

Add a New Service Item:

 Type: Service
 Item Name: Install 1
 Description: Initial Hour of Hardware/Network Installation
 Rate: 95.00
 To select Account, click drop-down list arrow
 Click Installation Income

Fadi Alshiyab
 ADD NEW ITEM

Click OK to add sales item

Fadi Alshiyab
 ADD NEW ITEM

Item List includes Install 1

Notice Account used for this sales item is
Income: Installation Income

Fadi Alshiyab
 CASH SALES

When recording a cash sale, a sales receipt is

prepared
A cash sale is a customer purchase paid for
with cash, check, or credit card
Behind scenes QuickBooks:
 Records information from sales receipt into Journal
 Posts transaction by
 Debiting Checking in General Ledger
 Crediting proper income account

Fadi Alshiyab
 PREPARE SALES RECEIPT

Click icon
Remove History from screen, click Hide History
button

Fadi Alshiyab
 PREPARE SALES RECEIPT

Record Cash Sale

 Customer:Job: Raymond McBride
 Template is Custom Cash Sale
 Date: 01/03/15
 Payment Method: Check
 Check No.: 3287
 Items:
 Training 1 (Qty 1)
 Training 2 (Qty 4)
 Customer Message: Thank you for your business

Fadi Alshiyab
 PREPARE SALES RECEIPT

Click Save & New

Fadi Alshiyab
 ADD NEW CUSTOMER WHILE
COMPLETING SALES RECEIPT
In Customer:Job text box
 Type new customer’s name: Collins, Ken
 Press Tab
Customer:Job Not Found message appears
 Three choices are available
 Quick Add: add customer name only
 Set Up: Add complete information for customer
 Cancel: Do not add new customer
Click Set Up

Fadi Alshiyab
 ADD NEW CUSTOMER WHILE
COMPLETING SALES RECEIPT
Enter Address
Info for new
customer
 First Name: Ken
 Last Name: Collins
 Main Phone: 818-
555-2058
 Invoice/Bill To name:
Ken Collins
 Address:
 20985 Ventura Blvd.
 Woodland Hills, CA
91471

Fadi Alshiyab
 ADD NEW CUSTOMER WHILE
COMPLETING SALES RECEIPT
Opening Balance
 When adding a customer who has an existing balance
 Enter amount owed as an opening balance
 Enter date you are doing this
 An opening balance is normally used when converting to
QuickBooks
 Only time an opening balance can be entered is at time a customer
is added
 When using QuickBooks most new customers will not have an
opening balance

Fadi Alshiyab
 ADD NEW CUSTOMER WHILE
COMPLETING SALES RECEIPT
Click Payment
Settings tab
Enter Payment
Terms:
 Click drop-down list
arrow
 Click Net 30
Preferred Delivery
Method
 Click drop-down list
arrow
 Click None
Enter Credit Limit
1,000
Click OK Fadi Alshiyab
 ADD NEW CUSTOMER WHILE
COMPLETING SALES RECEIPT
Complete sales
receipt :
 Template: Custom
Cash Sale
 Date: 01/03/15
 Sale No.: 2
 Payment Method:
Check
 Check No.: 1264
 Item: Install 1 (Qty 1)
 Message: Thank you
for your business.
Click Save &
Close
Fadi Alshiyab
 RECEIVE PAYMENT ON ACCOUNT

Receive Payments used to record a payment on

an invoice
 Customer must have an account with your company
 Customer must owe a payment on an invoice
 Payment made by customer is for a sale recorded on an invoice
Remember:
 Receive Payments is not used to record a cash sale
 A Sales Receipt is used to record a cash sale not a payment for
an invoice

Fadi Alshiyab
 RECEIVE PAYMENT ON ACCOUNT

Record a partial payment of $2,190 from Andrews

Productions on 01/03/2015
 Click Receive Payments icon
 Click Received From drop-down list arrow
 Click Andrews Productions
 Notice that Customer Balance shows 3,190.00
 Tab to Payment Amount and enter 2190
 Tab to Date and enter 01/03/15
 Click Check icon
 Tab to Check # and enter 2104
 Enter Partial Payment as Memo
 On Underpayment screen, mark Leave this as an underpayment

Fadi Alshiyab
 RECEIVE PAYMENT ON ACCOUNT

QuickBooks:
 Marked
transaction for
opening balance
 Shows an
Underpayment
of $1,000
 Shows Amount
Due of 3,190
 Shows Applied
of 2,190

Fadi Alshiyab
 DEPOSIT CHECKS RECEIVED FOR
PAYMENTS
Amounts received for payments and cash sales
are put into Undeposited Funds
Making a bank deposit will remove amount
from Undeposited Funds and put it in Checking
(Cash)
Procedure helps prevent mistakes in writing
checks using funds not deposited in bank

Fadi Alshiyab
 DEPOSIT CHECKS RECEIVED FOR
PAYMENTS
To make a deposit, click icon
Click Select All button
Click OK

Fadi Alshiyab
 DEPOSIT CHECKS RECEIVED FOR
PAYMENTS
Make Deposits Screen should show:
 Deposit To: Checking
 Date: 01/03/15 (insert correct date if necessary)
 Memo: Deposit
 List of items being deposited
 Deposit Total

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 PRINT DEPOSIT SUMMARY

Print deposit summary:

 Click Print icon
 Select Deposit summary only
 Click OK

Fadi Alshiyab
 PRINT DEPOSIT SUMMARY
Complete print information
Print Deposit Summary
Note:
 Current date and time in upper-right corner
 This is date and time of your computer. It will not match
01/03/2015 date of deposit
 Date and time shown may not be changed

Fadi Alshiyab
 COMPLETE DEPOSIT

After printing, click Save & Close button on

Make Deposits screen

Fadi Alshiyab
 REPORT CENTER

When preparing several

reports, use Report
Center
Click Reports icon on
Top Icon bar
 List of report categories show on
left
 List of available reports for a
category show on right

Fadi Alshiyab
 REPORT CENTER VIEWS

There are three ways to view list of

reports in Report Center
 Carousel
 Grid
 List

Fadi Alshiyab
 REPORT CENTER VIEWS: CAROUSEL
Carousel
view
 Click button
 Shows reports
by rotating
report
examples

Fadi Alshiyab
 REPORT CENTER VIEWS: LIST
List view
 Click
button
 Shows a list
of reports

Fadi Alshiyab
 REPORT CENTER VIEWS: GRID

Grid view
 Click
button
 Shows
miniature
samples of
reports

Fadi Alshiyab
 PREPARE JOURNAL
To verify transactions entered, prepare Journal,
use List view
 Click Accountant & Taxes in Report Center
 Double-click Journal or click Journal and click Run button
 Click OK on Collapsing and Expanding Transactions dialog box

Fadi Alshiyab
 PREPARE JOURNAL
Enter Dates: From 01/01/15 To 01/03/15
Press Tab to generate report
Click Expand button to show all accounts used
Scroll through report
Note date and time prepared are shown
Many columns are not displayed in full
Journal shows transactions entered for
PowerPoint Presentation
 Does not match Journal for Chapter 2 in text

Fadi Alshiyab
PREPARE JOURNAL

Fadi Alshiyab
 CUSTOMIZE REPORT HEADER

Customize header to remove

 Date Prepared
 Time Prepared
 Date and time are for your computer
 Will not match textbook date and/or time

Fadi Alshiyab
 CUSTOMIZE REPORT HEADER
Click Customize Report button
 Click Header/Footer tab
 Click Date Prepared and Time Prepared to remove check marks
 Click OK

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 DISPLAY REPORT INFORMATION

Resize width of Account column to display

account names in full
 Position cursor on sizing diamond between Account and Debit 
 Cursor turns into a plus with arrows pointing left and right .
 Hold down primary (left) mouse button

 Drag cursor from diamond between Account and Debit to right

until account names display in full
 You will see a dotted vertical line while you are dragging mouse and
holding down primary mouse button

Fadi Alshiyab
 DISPLAY REPORT COLUMNS IN FULL

Make columns smaller by pointing to sizing

diamond and dragging left
Point to sizing diamond between Debit and
Credit columns
Drag to left to make Debit column smaller
 If column is too small, numbers that cannot be displayed will be
shown as ******…
 Look at Debit column
 If this happens, drag to right to make column larger

Fadi Alshiyab
 PREPARE JOURNAL

View report and look at debit and credit

entries for each transaction

Fadi Alshiyab
 ACCOUNTS RECEIVABLE
AND SALES GRAPHS
Two QuickBooks graphs are
 Accounts Receivable—shows
 How much customers owe
 Aging of account
 Percentage of accounts receivable for each customer
 Sales—shows information about items sold

Fadi Alshiyab
 PREPARE ACCOUNTS RECEIVABLE
GRAPH
Click Customers & Receivables in Report Center
Double-click Accounts Receivable Graph or click
Accounts Receivable Graph and click Run
To change dates
 Click Dates button
 Enter date for Show Aging as of
 Click OK

Fadi Alshiyab
 PREPARE ACCOUNTS RECEIVABLE
GRAPH
Graph displays
 Accounts Receivable
by Aging Period as a
bar chart
 Pie chart and legend
showing
 Amounts owed by each
customer
 Percentage of
accounts receivable
for each customer

Fadi Alshiyab
 PREPARE SALES GRAPH
Click Sales in Report Center
Double-click Sales Graph or click Sales Graph
and click Run
Click the Dates button
 Enter From 01/01/2015
 Enter To 01/03/2015
 Click OK

Fadi Alshiyab
 ANALYZE SALES GRAPH
Graph shows
 Bar chart to show
sales by month
 Pie chart and a
legend showing
 Amount of sales by
sales item
 Percentage of sales
for each item

Fadi Alshiyab