Handy reference to inventory item fields

Here is a handy reference on how to fill out fields in an inventory item screen you are creating.

You might not see some of these fields in your inventory item screen depending on your choices in Company Gear icon (upper right corner). You will need to enable Quantity on Hand (QOH) inventory tracking in Company Settings.

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Click on the screenshots below to enlarge them
inventory tracking settings

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inventory fields


YouTube Tutorial Video:

How to handle a partial payment when creating an invoice in QBO?

Case: A customer bought $105.00 worth of product and paid $80.00 in cash. You need to send an invoice to the customer for the balance. How would you handle this in QBO?

First, create a new invoice using product/service item code for $105.00. Use deposit field to post $80.00 as the prepayment on that invoice. Deposit field is located right below the total. Now, the invoice will show $25 balance due.

If you do not see “DEPOSIT” field on your invoice, go to “Company Gear” settings to enable deposit field: Gear icon (upper right corner) > Settings > Company Settings > Sales > Deposit > ON > save. See screenshot below for reference.

Click on the screenshots below to enlarge them
enable deposit setting

Once you enter deposit amount, your invoice screen will expand to show the following three fields added to the invoice form. Fill out the information appropriately:

a) Payment method
b) Reference no.
c) Deposit to

You will need to select “Deposit to” field depending on your situation. If you are depositing this deposit (prepayment) to the bank along with other payments as a batch deposit, then you should select Undeposited Funds Account. On the other hand, if you are depositing just $80.00 as a single deposit to the bank, you should select the appropriate bank account.

deposit field on invoice

The snapshot below shows what accounts are affected by this transaction:
deposit journal report
1. Accounts Receivable: $25
2. Sales Income: $105
3. Undeposited Funds or Bank Account: $80


#QuickBooks Online


How to fix: Invoice numbers stay same on recurring transactions in QuickBooks Online

Case: With recurring transactions none of the invoice numbers ever change. They are the same month to month, as well as across multiple customers with same invoice number. It is becoming a huge problem getting paid from Customers (Clients) when they see the same invoice number every month.

First, we will need to turn on Custom Transaction numbers. You can do this by going to the Company Gear icon (upper right corner) > Company Settings under Settings > Sales > Sales Form Content > check “Custom Transaction Numbers” > ON > Save.

Click on the screenshots below to enlarge them
custom transaction numbers

Now, go to the Company Gear icon again > Lists > Recurring Transactions. Delete the “Invoice number” from the field and Save.

delete inv no

YouTube Tutorial Video:

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    Can QuickBooks Online remind me that I need to create an invoice

    Yes, you can set up “Reminder” in QuickBooks Online.

    This is how you do it:

    From the home page screen

    • Click on your company gear in the top right corner
    • Click Recurring Transactions under the Lists column
    • Click New
    • Change the Transaction Type to Invoice
    • Change Type to Reminder

    Your reminder will show up in the Tasks section of your home page screen. Click “View reminders” link to review and complete the task.

    Click on the screenshot below to enlarge it


    #QuickBooks Online


    #QuickBooks #QBO – How to assign employees to classes

    First, you need a PLUS plan to have class tracking features.

    To turn on the class tracking:

    From the home page screen

    • At the right upper corner, click the company gear icon.
    • Select Company Settings under Settings.
    • Under Company, click anywhere on Categories.
    • Select Track classes.
    • Select Warn me when a transaction isn’t assigned a class.
    • Under Assign Classes, select One to each row in transaction.
    • Click Save and then Done.

    Now, class tracking is ON for the company file.

    To setup new classes:

    From the home page screen

    • At the right upper corner, click the company gear icon.
    • Select All Lists, under Lists.
    • Select classes under Lists.
    • Select New button (upper right corner).
    • Name Class.
    • Select sub-class (optional).
    • Click Save.

    To set up the class tracking for employees:
    From the home page screen

    • At the right upper corner, click the company gear icon.
    • Select Payroll Settings under Settings. Note: If you do not see Payroll Settings under Settings, that mean Payroll is ON yet. From the left navigation bar > select Employees > select Turn on Payroll (blue button, far right corner).
    • Under Preferences, click Accounting.
    • Click Customize button.
    • Under Classes, select I use different classes for different employees.
    • Click OK.
    • Assign classes for employees including inactive employees if needed.
    • Click OK.
    • Under Want to update existing transactions, too?, enter the nearest date of the transactions. Note: normally you would want to select current fiscal year starting date (for example if starting Jan 1, 2015).
    • Click OK.

    When you run Profit and Loss by Class report next time, you should see payroll costs distributed by class.
    To run Profit and Loss by Class:
    From the home page screen > left navigation bar > reports > go to report and type profit and loss by class.

    Watch Tutorial Video on YouTube:

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    #QBO Plus


    QuickBooks Multicurrency in QuickBooks Online US

    With QuickBooks Online (QBO) multi-currency, you can track transactions in more than one currency. Multicurrency affects many accounts and balances in company file and the preference can’t be turned off once it’s been turned on.

    Important: Since you cannot really back up company file (with all the features and the settings) in QBO at this time, make sure this is what you want before turning on this multi-currency feature.

    The multi-currency menu items are in the Company Settings menu under Currency in the QuickBooks Online.

    From the home page screen > company gear (upper right corner) > settings > company settings > currency > ON > Save

    Click on the screenshots below to enlarge them
    1enable currency feature

    Multicurrency once enabled from the QuickBooks Online, one cannot UNDO it. See screenshot below, there is no edit pencil icon for currency, once the currency feature is ON.
    2currency feature enabled

    Once the multi-currency is enabled, it will do two visible things:

    • It will create “Currencies” under lists.
    • It will create “Exchange Gain or Loss” account under “Other Expense” type.

    lists currencies

    exchange gain or loss account

    Currency exchange rate

    Once set, the company’s home currency cannot be changed:
    For US QuickBooks Online editions, the home currency is set to USD, by default.
    Exchange rates are always recorded as the number of home currency units it takes, to equal one foreign currency unit.

    To add new currency > from the home page screen > company gear (upper right corner) > lists > currencies > add new

    home currency table

    How to start using the multi-currency feature?

    • After you turn on the feature, you will be able to assign a currency to customers, vendors, and other accounts.
    • You can assign one currency for each customer or vendor so you will create new customers or vendors to use in your foreign transactions.
    • You can assign one currency for each account so you will create new accounts to use for your foreign transactions.
    • If you prefer to use your own exchange rates, you can manually enter those as well.

    The following image shows how these currencies attributes in an Invoice transaction relate to the representation of the invoice.
    invoice in gbp

    Customer Center > from the home page screen > left navigation bar > customers

    customer center

    Customer Page > from the home page screen > left navigation bar > customers > customer

    customer page

    It also automatically creates separate Accounts Receivable accounts (not sub-accounts) by currencies in addition to main home currency A/R.
    ar accounts by currencies

    A/R Aging Summary Report in home currency
    ar aging in home currency

    Balance Sheet Report
    Since A/R (and A/P) not sub-items type, it cannot be collapsed even if wanted.
    balance sheet

    (All Vendor side transactions and reports also work the same way as Customer transactions).

    Mult-currency features not available

    Weekly TimeSheet and Single Time Activity entered (either by employee or vendor contractor) do not work with multi-currency at this time. You will get the following error message:

    “The following errors have occurred: You must choose a customer that uses local currency when time is billable.”

    multicurrency single time not working

    multicurrency timesheet not working


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    How can i import QuickBooks Online into a new QuickBooks desktop version I bought using Google Chrome, NOT Internet Explorer

    You must use Internet Explorer to move your company data from QuickBooks Online to QuickBooks Desktop edition.

    To export data:
    From the home page screen > company gear (upper right corner) > tools > export data

    Click on the screenshot below to enlarge it
    export overview

    The export to desktop provides you with a local copy file that must be opened in desktop within 10 days. Exporting data to QuickBooks desktop edition or creating a local copy has several known issues.

    In some cases, it would be better to just start with entering opening balances from Balance Sheet or Trial Balance (if transferring in during the fiscal year).

    MUST DO: Print (and download to Excel) all major reports from QBO. Do not forget Sales Tax reports and Inventory related reports if applicable.

    Do not forget to CANCEL your QBO subscription. Make sure account is NOT suspended.

    Here are some helpful links, you must read (twice) before starting this project:

    1. Save your data to Excel
    2. Export limitations
    3. Convert QuickBooks Online company file to QuickBooks desktop

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    #QuickBooks – How do I edit the footer message which appears in all my Invoices

    To edit the invoice footer message:

    From the home page screen

    • Click in the company gear at the upper right
    • Go the settings
    • Click custom form styles
    • Find the Standard template under Name and click Edit under Action
    • Select Footer
    • See “Message to customer”. This is where you can edit the message details from the Invoice.

    Click on the screenshots below to enlarge them
    message to customer

    message to customer2

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    #QuickBooks: Can I keep a simple inventory of all shop equipment

    Question: Can I keep a simple inventory of all shop equipment in QuickBooks Online?

    I need to list all shop equipment we have here in the shop. I just need the item and quantity. We do not sell these items so there are no prices involved, its just the equipment we use in the day to day business.

    Answer: Yes You Can!

    You will need PLUS plan do this tracking. Essentials and Simple Start do not have tracking features.

    First, make sure to enable the tracking feature setting ON.
    From the home page screen > gear (company gear) > settings > company settings > sales > products and services > tracking features ON (Track quantity and price/rate and Track quantity on hand) > save

    Click on the screenshots below to enlarge them
    track settings

    Second, create a new dummy Inventory Item called Shop Equipment, then any items you create for the actual “Shop Equipment” (parent) will be marked as sub-items of that dummy Inventory Item.

    To create a new item:
    From the home page screen > gear (company gear) > settings > products and services > new (upper right corner)

    When you create the new items:

    • Select “I track quantity on hand for this product” checkbox.
    • Enter “Initial Quantity on Hand.”
    • Enter “As of Date.”
    • Purchasing Information: enter information for more details (optional).
    • Cost: DO NOT ENTER A COST (leave it blank for the cost field). Equipment Inventory for this special work-around method in QBO cannot track the cost of the item. If you enter the cost your accounting will be totally messed up. It will add value to the Inventory Asset Account.
    • SAVE






    You can also create a customized Equipment Inventory Report if necessary.

    To create customize report:
    From the home page screen > gear (company gear) > settings > products and services > run report (upper right corner)

    • Select “Customize” button
    • Choose “Change Columns” under Rows/Cloumns
    • Add “Create Date” (this will give you information on when this was added)
    • Remove not needed columns (like description, price, cost)
    • Go to Header/Footer section and change “Report Title” as you need it
    • Run Report
    • Select “Save Customizations” blue button (if you want to create your own customized report for future use). Next time go to report and select “My Custom Reports, this report will be on the list.


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