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.

[table id=33 /]
Click on the screenshots below to enlarge them
inventory tracking settings

[table id=34 /]

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:

Subscribe to our world famous YouTube Channels

  • VPController
  • NewQBO
  • [table id=12 /]

    #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:

    [table id=13 /]


    #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


    [table id=13 /]

    #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

    [table id=13 /]

    #QuickBooks Online #QBO – How to handle zero balances in accounts receivable aging

    You have two ways to handle this issue in QBO:

    • Manual Setting
    • Automatic Setting (auto-mode)

    You will need to select the one which is right for your business situation. When you create a new company file in QBO, normally this auto-mode is already ON as a default setting.

    1zero ar aging

    Manual method is commonly used when you have several customers open invoices and need to apply issued credit and received payment against a specific invoice. The credit memo may directly be related to certain specific project or a product return.
    For example, you issued several product invoices to a customer. They returned one product and you had to issue a credit memo. They paid that invoice and also deducted for product return. For your business, you want to make sure, transactions (payment and credit) for that invoice is handled correctly. You would want to manually select that invoice; enter receive payment; apply credit and clear that invoice in A/R Aging.

    To clear zero balance in A/R Aging:
    From the home page screen > left navigation bar > customers > customer page > go to customer invoice > select “Receive Payment” under “Action” column
    It will take you to “Receive Payment” screen. “Amount Received” should show zero because clearing “outstanding” and “credit” are for the same amount. Choose Save and Close. It should clear (disappear) zero balance in A/R Aging. Now, on customer page, status should indicate paid (instead of partial) and closed (instead of unapplied).

    Click on the screenshots below to enlarge them
    2customer page

    3clear ar

    4clear customer page status

    Automatic method (default setting in QBO)
    You can also choose “automatically apply credit” setting in QBO. By turning this setting ON, it will automatically apply credits to the next invoice you create for the same customer. General service-based companies (or non-project oriented companies) prefer turn on this setting. They do not deal with product returns. Invoices they issue are not sensitive to any specific project.

    To turn on this automatic setting in QBO:
    From the home page screen > company gear (upper right corner) > settings > company settings > advanced > automation > Automatically apply credits ON > save

    5automatically apply credit setting

    Once this automation setting is on, it is automatically take care of payment and credit. You will not see zero balances in Accounts Receivable Aging.

    [table id=13 /]

    How to turn off the “Terms” so it won’t show on an Invoice at all?

    Removing the “terms” completely from your invoice is a part of “Custom Form Styles” under Settings. You will need to disable the “Terms” setting just once.


    Here’s how to do it:

    • Click on your Company Gear in the top right corner
    • Click Custom Form Styles under the Settings tab
    • Select form name you would like to take the Terms off of
    • Click edit under action column (far right)
    • Select your form style and click Next
    • Click on Header on the left side
    • Uncheck the box next to “Terms” under Customer
    • Click Save

    Now when you invoice your customers using this customized template (under customize at the bottom),  there will be no terms of payment listed.

    Click on the screenshots below to enlarge them
    turn off terms

    turn off terms invoice


    #QuickBooks Online


    How do I edit preferences with the new company settings? I need to change my default email that goes out with invoices.

    Default for sending out email is always the same* which you cannot change it. What you can change is reply-to email address of your own for customers, different than regular company email address.

        *default email address from Intuit[donotreply@intuit.com]

    From the home page screen > company gear (upper right corner) > settings > company > contact info > add customer email (this is where you add email different from the company email address).

    customer email setting
    customer email setting

    email sender address

    email invoice link

    [table id=12 /]