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Setting Up Vendors in QuickBooks 2012
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Table of Contents
Introduction 1
How This Book Is Organized 1
Conventions Used in This Book 3
Menu Commands 3
Web Pages and Manufacturer Information 3
Special Elements 4
Text Conventions 4
Introducing QuickBooks 2012: What’s New 5
Get New Insights 5
Calendar View 5
Excel Integration Refresh 5
User-Contributed Reports 7
Get More Organized 7
Lead Center 7
Document Center 7
Inventory Center 9
Edit No Company Open 9
QuickBooks 1099/1096 Wizard 9
Get Time Back and Save Steps 11
Express Start 11
Batch Timesheets 11
Integrated Help/Search 12
Transaction Tab 12
QuickBooks Enterprise Solutions 13
Enhanced Inventory Receiving 13
First In First Out (FIFO) Inventory Costing 14
Inventory Auto Cost, Sales Price, Markup 15
Inventory Lot/Serial Number Tracking 15
For the Accounting Professional 17
Accountant Center 17
Starter Copy 18
Period/Archive Copy 18
QuickBooks Statement Writer 19
1 Getting Started with QuickBooks 21
Understanding QuickBooks 21
Using QuickBooks Sample Data 23
Creating a New QuickBooks File 24
Express Start 25
Advanced Setup Using EasyStep Interview 29
Creating a New File from an Existing Company File 33
Converting from Other Accounting Software 34
Converting from Quicken to QuickBooks 35
Converting from Peachtree, Small Business Accounting, or Office Accounting to QuickBooks 36
Setting Up Users and Permissions 38
External Accountant 38
Other QuickBooks Users 40
2 Getting Around QuickBooks 43
Home Page and Navigation 43
Title Bar 43
Menu Bar 44
Icon Bar 45
Home Page 47
Open Windows List 50
Tutorials 50
Preferences 51
Accounting—Company Preferences 51
Desktop View—My Preferences 52
General—My Preferences 52
Spelling—My Preferences 53
Help Options 53
Selecting a Company File to Open 54
Opening Your Data for the First Time 54
Choosing from a List of Multiple Data Files 55
3 Accounting 101 57
Basic Principles of Accounting 57
The Matching Principle 57
Accrual Versus Cash Basis Reporting 59
Basic Financial Reports 60
Balance Sheet 60
Income Statement 61
Statement of Cash Flows 61
Other Accounting Reports 62
Accounting Checklist to Help You Manage Your Financials 62
Setting Up a QuickBooks Data File for Accrual or Cash Basis Reporting 63
Cash or Accrual Basis Startup Transactions: Accounts Receivable 65
Cash or Accrual Basis Startup Transactions: Accounts Payable 69
Cash or Accrual Basis Startup Transactions: Bank Account Statement Balance 73
Cash or Accrual Basis Startup Transactions: Recording Uncleared Bank Checks 74
4 Understanding QuickBooks Lists 77
Chart of Accounts 77
Account Types 78
Adding a New Account 80
Items 82
Adding an Item 82
Understanding Items 84
Item Types 85
Class 86
Customer Type 88
Managing Lists 89
Chart of Account Preferences 89
Add/Edit Multiple List Entries 90
Importing an Intuit Interchange Format File (IIF) 92
Reporting on Lists 94
Finding and Fixing Chart of Account Errors 94
QuickBooks Required Accounts 95
Making an Account Inactive 95
Merging Duplicated Accounts 96
Modifying an Account in the Chart of Accounts 97
Assigning or Removing a Subaccount Relationship 98
Finding and Fixing Item List Errors 100
Reviewing the Item List on the Computer Screen 100
Item Listing Report 102
Profit & Loss Standard Report 102
Correcting One-Sided Items 105
Making an Item Inactive 108
Merging Items 109
Creating Items as Subitems 110
5 Setting Up Inventory 111
Overview of Accounting for Inventory 111
Inventory Features by QuickBooks Edition 112
QuickBooks Pro 2012 112
QuickBooks Premier 2012 113
QuickBooks Enterprise Solutions 12.0 114
Enabling Inventory Preferences 115
Inventory Item Type Descriptions 118
Inventory Part 119
Non-inventory Part 119
Group Items and Inventory Assemblies 119
Adding or Editing Inventory Items 121
Adding or Editing Individual Items 121
Using Add/Edit Multiple List Entries 125
Importing an Intuit Interchange Format File (IIF) 127
Changing Item Prices 128
Creating Inventory Assemblies 131
Creating Group Items 133
Setting Up Multiple Unit of Measurement 134
Proper Inventory Processes 137
Purchasing, Receiving, and Entering the Vendor Bill 139
Paying for Inventory 146
Selling Inventory 148
Working with Group Items 149
Working with Assemblies 150
Handling Inventory Backorders 152
Handling Customer Inventory Returns 155
Handling Vendor Inventory Returns 158
6 Managing Inventory 159
Adjusting Inventory 159
Performing a Physical Inventory Count 160
Quantity Adjustments 161
Value Adjustments 162
Inventory Reporting 165
Inventory Center 165
Report Center 166
Inventory Valuation and Your Financials 168
Reviewing the Recorded Average Cost Valuation 170
Reviewing Aged Item Receipts 173
Reviewing Aged Accounts Payable 176
How QuickBooks Handles Negative Inventory 177
When Inventory Has an Average Cost from Prior Purchase Transactions 178
When Inventory Does Not Have a Prior Average Cost 180
7 Setting Up Vendors 185
Customizing Your Home Page for Vendor Activities 185
Preferences That Affect Accounts Payable 186
Accounting 186
Bills 188
Checking 188
General 190
Reminders 191
Reports and Graphs 191
Tax:1099 192
Working with the Vendor Center 193
Adding or Modifying Vendors 194
Finding Vendor Transactions 198
The Accounts Payable Process 200
Accounts Payable Forms 200
Accounts Payable Workflow 202
Entering a Purchase Order 204
Recording Vendor Bills 205
Creating a Vendor Credit 207
Paying Vendor Bills 209
Applying Vendor Credits 211
Taking Discounts on Vendor Bills 213
8 Managing Vendors 215
Accounts Payable Reporting 215
Reconciling Balance Sheet Accounts Payable Balance to A/P Aging Summary Report Total 215
Reviewing the Unpaid Bills Detail Report 216
Reviewing Aged Open Item Receipts 218
Reviewing Item Setup 221
Accounts Payable Balance on Cash Basis Balance Sheet 222
Tracking and Reporting Vendor 1099-MISC Payments 226
Correcting Accounts Payable Errors 235
Open Vendor Bills Paid with a Write Checks Transaction 236
Misapplied Vendor Credit 238
Removing Aged Open Item Receipts or Vendor Bills 239
Making General Journal Adjustments to Accounts Payable 241
Handling Unique Accounts Payable Transactions 243
Bartering Services with Your Vendors 244
Recording Vendor Prepayments 245
Entering Mid-Year 1099 Balances 248
Memorizing Recurring Transactions 249
Depositing a Vendor Refund 250
Paying and Recording a Credit Card Bill 251
9 Setting Up Customers 253
Introduction 253
Customizing Home Page Customer Activities 254
Preferences That Affect Accounts Receivable 254
Payments 255
Sales & Customers 257
Checking 257
Finance Charge 258
Jobs & Estimates 259
Reminders 259
Reports & Graphs 260
Sales Tax 262
Send Forms 263
Spelling 264
Time & Expenses 265
Working with the Customer Center 266
Adding or Modifying Customers and Jobs 267
Finding Customer Transactions 270
Working with Prospects in the Lead Center 272
Setting Up Sales Tax 274
Creating Sales Tax Items 274
Creating Sales Tax Group Items 275
Creating Sales Tax Codes 276
Assigning Sales Tax Codes to Products or Services 278
Assigning Sales Tax Codes and Sales Tax Items to Customers 279
Creating Price Level Lists 280
Creating Payment Terms 281
Customizing QuickBooks Forms 282
Using the Customize My Forms Wizard 282
Using the Customize Data Layout Tool 285
Accounts Receivable Process 289
Using QuickBooks Estimates 290
Using QuickBooks Sales Orders 292
Creating Customer Invoices 292
Recording a Sales Receipt 306
Recording a Statement Charge 307
Recording the Customer Payment 308
Making the Bank Deposit 311
Recording and Applying a Customer Credit Memo 315
Refunding a Customer’s Overpayment 317
10 Managing Customers 319
Accounts Receivable Reporting 319
Reviewing A/R Aging Summary and Detail Reports 319
Reviewing the Open Invoices Report 321
Reconciling Balance Sheet Accounts Receivable Amount to A/R Aging Summary Total 322
Viewing the Accounts Receivable Balance on a Cash Basis Balance Sheet 324
Using the Collections Center 326
Generating the Missing Customer Invoices Report 328
Sales Tax Payable Reports 329
Reviewing Customer Lists for Tax Code and Tax Item Assigned 329
Reviewing the Item List for Tax Code Assigned 330
Reconciling Total Sales to Total Income 331
Reconciling Sales Tax Liability to Balance Sheet Sales Tax Payable 332
When a Check or Bill Was Used to Pay Sales Tax 334
Paying Sales Tax 334
Paying Sales Tax Without an Adjustment 334
Paying Sales Tax with an Adjustment 336
Correcting Accounts Receivable Errors 338
Removing an Open Balance from a Customer Invoice 338
Correcting Customer Payments 342
When a Credit Memo Is Applied to the Wrong Customer Invoice 346
When Deposits Were Made Incorrectly 347
Eliminating the Print Queue for Customer Invoices Marked to Print 353
Correcting Sales Tax Errors 354
When a Check or Bill Was Used to Pay the Sales Tax 354
When the Sales Tax Liability Report Shows Past Sales Tax Due 356
When Total Sales Does Not Equal Total Income 358
Correcting Undeposited Funds Account Errors 361
Reviewing the Balance in the Undeposited Funds Account 361
Removing Old Dated Payments in the Undeposited Funds Account 364
Unique Customer Transactions 366
Recording Your Accountant’s Year-End Adjusting Journal Entry to Accounts Receivable 366
When a Customer Is Also a Vendor 366
Recording a Customer’s Bounced Check 368
Tracking Customer Deposits in QuickBooks 370
Unique Sales Tax Transactions 371
When Your State Imposes a Maximum Sales Tax 371
Multiple Sales Tax Rates on One Invoice 373
Issuing Credit Memos When Sales Tax Should Not Have Been Charged 374
11 Setting Up Payroll 377
Getting Started 377
Payroll Process Overview 377
Selecting and Activating a Payroll Service Subscription 379
Updating Payroll Tax Tables 381
Employer Resources 382
Creating Payroll Accounts in the Chart of Accounts 384
Setting Up Payroll Tax Vendors 385
Payroll Preferences 387
Using the Payroll Setup Interview 390
Using the Run Payroll Checkup Diagnostic Tool 397
Managing Employees 401
Using the Employee Center 401
Adding or Editing Employee Information 402
Finding Payroll Transactions 404
Managing Payroll Items 406
Adding or Editing Payroll Items 406
Reporting About Payroll Items 409
Paying Employees 410
Payroll Home Page Workflow 410
Entering Employee Time 411
Preparing Employee Paychecks 413
Printing Paychecks or Paystubs 415
Preparing Payroll Liability Payments 415
Paying Scheduled Liabilities 416
Adjusting Payroll Liabilities 417
12 Managing Payroll 419
Payroll Reporting 419
Report Center Payroll Reports 419
Excel Reports 420
Tax Forms and Filings 421
Preparing and Printing Tax Forms 422
E-Filing Tax Payments and Forms 423
Troubleshooting Payroll 424
Comparing Payroll Liability Balances to the Balance Sheet 424
Comparing Payroll Summary to Filed Payroll Returns 426
Reconciling Payroll Reports to Business Financials 427
Recording Unique Payroll Transactions 427
Employee Loan Payment and Repayment 427
Reprinting a Lost Paycheck 431
Paying a Taxable Bonus 433
Adjusting an Employee Paycheck 434
Depositing a Refund of Payroll Liabilities 435
13 Working with Bank and Credit Card Accounts 437
Importance of Bank and Credit Card Balances 437
Preferences that Affect Banking and Credit Card Management 437
Working with Write Check Transactions 438
Using the Expenses Tab and Items Tab 439
Writing a Check 440
Printing Checks 443
Entering a Bank Debit Charge 445
Entering Credit Card Charges 446
Paying the Credit Card Bill 447
Transferring Funds Between Bank Accounts 448
Online Banking Center 449
Choosing an Online Banking Mode Preference 449
Activating Online Services with Your Financial Institution 449
Retrieving Online Transactions 450
Adding Downloaded Transactions to QuickBooks 452
Renaming Rules in Online Banking 453
Other Online Banking Features 454
Reconciling the Bank or Credit Card Account 458
Troubleshooting Reconciliations 461
Determining If the Account Has Been Reconciled 461
Verifying That All Account Transactions Have Been Entered 463
Identifying All Uncleared Transactions 464
Completing the Multiyear or Multimonth Bank Reconciliation 465
Reviewing Uncleared Transactions 465
Reviewing Previous Bank Reconciliation Reports 468
Locating Bank Account Reconciliation Discrepancies 468
Reviewing the Voided/Deleted Transactions Reports 469
Restarting a Previously Completed Bank Reconciliation 470
Undoing a Previous Bank Reconciliation 470
Reconciling with an Adjustment 471
14 Reporting in QuickBooks 473
Using the Company Snapshot 473
Customizing the Company Snapshot 473
Defaulting the Company Snapshot as Home Page 476
Report Center 476
Reports & Graphs Preferences 479
My Preferences 479
Company Preferences 479
Modifying Reports 482
Modifying Options Available on the Report Window 482
Customizing Reports 484
Report Groups 485
Creating Report Groups 485
Using Report Groups 485
Managing Report Groups 487
Memorized Reports 488
Exporting and Importing Report Templates 489
Exporting a Report or Report Group Template 489
Importing a Report or Report Group Template 490
Exporting Reports to a .CSV File or to Excel 490
Emailing Reports 493
15 Reviewing Your Data 495
Importance of Reviewing Your Data 495
Reviewing the Balance Sheet 495
Account Types 497
Prior Year Balances 497
Bank Account Balance(s) 498
Accounts Receivable 498
Undeposited Funds 499
Inventory 500
Other Current Assets 501
Fixed Assets 502
Accounts Payable 503
Credit Cards 503
Payroll Liabilities 503
Sales Tax Payable 504
Other Current Liabilities and Long-Term Liabilities 505
Equity 505
Reviewing the Profit & Loss Report 505
Other Reviews 506
Tracking Changes to Closed Accounting Periods 506
Using the Audit Trail Report 507
Using the Credit Card Audit Trail Report 508
Reporting on Voided/Deleted Transactions 510
Viewing the Transactions List by Date Report 511
Troubleshooting Open Balance Equity Account 512
16 Sharing QuickBooks Data with Your Accountant 517
Overview 517
Benefits for the Business Owner 517
Benefits for the Accountant 518
QuickBooks File Types 518
Choosing a Method to Share Data 520
Data Sharing for the Business Owner 522
Reviewing Your QuickBooks Data 523
Creating an Accountant’s Copy of Your Data 523
What the Business Owner Can and Cannot Do 529
Importing Your Accountant’s Changes 530
Canceling an Accountant’s Copy 536
Data Sharing for the Accountant 537
Creating an External Accountant User Type 538
Preparing Your Client for Data Exchange 538
Receiving an Accountant’s Copy File 539
What the Accountant Can Do 542
What the Accountant Cannot Do 545
Returning the Accountant’s Copy Change File to the Client 545
What to Request from the Client When the Import Is Complete 549
Converting the Accountant’s Copy to a Regular Company File 549
17 Managing Your QuickBooks Database 551
The QuickBooks Database 551
System Requirements 552
Installing QuickBooks for Single-User Mode 554
Installing QuickBooks for Multi-User Mode 554
The QuickBooks Database Server Manager 555
Windows Permissions Required for QuickBooks 557
Using the QuickBooks Connection Diagnostic Tool 558
Keeping Your Software Current 559
Upgrading Your QuickBooks Version 559
Installing a QuickBooks Maintenance Release 560
Protecting Your QuickBooks Database 561
Creating a QuickBooks Backup 561
Protecting the QuickBooks Operating Environment 564
Using Intuit Data Protect Online Backup Service 567
Monitoring Your QuickBooks Database 567
The Product Information Dialog Box 567
Using the Verify Data Utility 569
QuickBooks Database Corruption 570
Common Causes of Corruption 570
Signs of Data Corruption 570
The QBWin.log File 571
Repairing List Corruptions 574
Reducing Database File Fragments 575
Rebuilding Your Company File 576
Using the QuickBooks Company File Diagnostic Tool 577
Resolving QuickBooks Program File Corruption Issues 579
18 Using Other Planning and Management Tools 581
Planning and Budgeting 581
Create a Budget 581
Edit a Budget 584
Print Budget Reports 585
Delete a Budget 587
QuickBooks Loan Manager 587
Information to Collect 587
Getting QuickBooks Ready 587
Setting Up a New Loan 588
Setting Up a Loan Payment 589
Using the Year-End Guide 591
Synchronizing QuickBooks Lists with Microsoft Outlook 592
Using the QuickBooks Timer 596
Installing the QuickBooks Timer 596
Preparing the Timer for Activities 597
Tracking Time with the Timer 597
Exporting Timer Activities 598
Importing Timer Activities into QuickBooks 599
A Client Data Review 601
B QuickBooks Statement Writer 657
C QuickBooks Shortcuts 687
TOC, 9870789749185, 7/19/2012