COMPUTERIZED ACCOUNTING

Transcription

1 lvin. rens D. Dewey Ward Carol J. Borsum COMPUTERIZED CCOUNTING using QUICKBOOKS PRO 2018 FIFTH EDITION Reference Book 2 of 3

2 Images used on the front cover and throughout this book were obtained under license from Shutterstock.com Copyright by rmond Dalton Publishers, Inc. Okemos, Michigan ll Rights Reserved. No part of this publication may be reproduced, stored in an information retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. QuickBooks Pro is a registered trademark of Intuit Software in the United States and/or other countries and is used by rmond Dalton Publishers, Inc., under license from owner. Computerized ccounting Using QuickBooks Pro 2018 is an independent publication not affiliated with Intuit Software. ISBN Printed in the United States of merica

3 TBLE OF CONTENTS Introduction Overview Contents of Reference Book Suggested Way To Use the Reference Book Purchases and Cash Disbursements Cycle ctivities Prepare a Purchase Order Receive Goods On a Purchase Order Purchase Inventory Without a Purchase Order No Payment Made t Time of Purchase Purchase Non-Inventory Items or Services Without a Purchase Order No Payment Made t Time of Purchase Pay a Vendor s Outstanding Invoice Purchase Inventory Without a Purchase Order Payment Made t Time of Purchase Purchase Non-Inventory Items or Services Without a Purchase Order Payment Made t Time of Purchase Return Inventory From a Purchase

4 TBLE OF CONTENTS ( CONTINUED ) Sales and Cash Receipts Cycle ctivities Make a Credit Sale Collect an ccount Receivable Make a Deposit Make a Cash Sale Process a Sales Return or llowance (Credit Memo) Write Off an Uncollectible ccount Receivable Receive a Miscellaneous Cash Receipt Prepare a Statement for ccounts Receivable Payroll Cycle and Other ctivities Pay Employees Prepare a General Journal Entry djust Perpetual Inventory Records Prepare a Bank Reconciliation Perform Maintenance ctivities Customer Maintenance Vendor Maintenance Inventory Item Maintenance Employee Maintenance General Ledger ccount Maintenance

5 Introduction Overview The QuickBooks software is intended primarily for a wide variety of small and medium-size businesses and is therefore designed to accommodate many different circumstances. s a result, the software has dozens of windows and hundreds of boxes in which to enter or accept information. To help students learn to use QuickBooks, the Reference book is a useful guide to correctly process transactions and do other activities. Based on experience with many students learning to use the software, those who follow the Reference book for each transaction or other activity perform better than those who do not. You will begin using the Reference book in Chapter 5 of the Instructions book. The Reference book contains 25 sections, one for each transaction or other activity included in the Computerized ccounting Using QuickBooks Pro 2018 project. See the table of contents on pages 1 and 2 for a list of the transactions and activities covered. Contents of Reference Book There are four parts to the Reference book: 1. Inside Front Cover Listing of Transactions and Other ctivities This listing can be used to help you locate the appropriate pages in the Reference book for recording transactions or doing other activities. 2. Transaction or Other ctivity Overview The brief overview describes what happens in QuickBooks for the transaction or other activity. The overview for each section is located above the Quick Reference Table. 3. Quick Reference Table The Quick Reference Table is a guide to help you open the correct window(s) and enter or accept the correct information in each box. 4. Window(s) on the Page Facing the Quick Reference Table You will be using these windows to process the transaction or other activity that you are dealing with. The circled letters on the window(s) match the steps on the Quick Reference Table. The letters will not appear on your screen. Reference Introduction 3

6 Suggested Way To Use the Reference Book The information in the Instructions book in Chapters 5 through 8 will direct you to the relevant Reference book pages. For each transaction or other activity you should first read the brief overview at the top of the page to help you understand what is happening in the QuickBooks software. Then follow the step-by-step instructions in the Quick Reference Table and related window or windows to process the transaction or complete the other activity. For Chapters 9 and 10, you will not be told which pages include the relevant Quick Reference Table and related window or windows. For those transactions or other activities the following are suggestions to help you effectively use the Reference book: Determine the type of transaction or other activity you are to process. You will be able to make the determination using the information provided in the Instructions book and the knowledge gained in earlier chapters. Determine the applicable Reference book page numbers. You can locate the transaction or other activity on the inside front cover of the Reference book and determine the applicable page number. Open the Reference book to the pages for the transaction or other activity that you will be processing. Read the information in the brief overview at the top of the page to help you understand what is happening in the QuickBooks software Follow the step-by-step instructions in the Quick Reference Table and related window or windows to process the transaction or complete the other activity. s you become proficient with QuickBooks, you may decide to process the transactions and other activities using the windows as guidance and refer to the Reference book only if you forget which window to use or the appropriate steps to follow. If you make an error, it is usually easy to correct it by either accessing the window again and correcting the information or deleting and reentering the transaction. Even if you follow that approach you will often find it useful to refer to the inside front cover of the Reference book to make sure you are processing the transaction or other activity in the correct window. You may also decide to follow the guidance in the Reference book for all transactions and other activities to minimize the likelihood of making errors. 4 Reference Introduction

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8 Prepare a Purchase Order The purchase order window is used to prepare purchase orders for inventory. No accounting entry is made to any journal, subsidiary record, or general ledger after a purchase order is saved because a liability does not yet exist. Quick Reference Table Step Box or Other Location Procedure Home Page Click the Purchase Orders icon under Vendors. B Vendor Select Vendor from drop-down list or add new. For a new vendor addition, refer to maintenance tasks in Chapter 5. C D Date Verify the date posted or enter new date. P.O. No. ccept the purchase order number or change. E Ship To ccept the shipping address or change by typing in a different name and / or address. F G H I Item Select an item from drop-down list or add new item. Description ccept the default description or change. Qty. Enter the quantity to be ordered. Rate ccept the default rate or change. J mount ccept the total amount of the items ordered. Changing the amount column will recalculate the Rate. K Various Repeat steps F J for each inventory item to be ordered. L Create Purchase Orders window Review the information to verify that it is correct. M Print button Click the Print button, select the printer, and print the purchase order, if desired. N Save & Close / Save & New buttons Click Save & Close or Save & New to save the purchase order. 6 Reference Purchases and Cash Disbursements Cycle ctivities

9 Prepare a Purchase Order QuickBooks windows L M B C D E F G H I J K N Reference Purchases and Cash Disbursements Cycle ctivities 7

10 Receive Goods On a Purchase Order The Enter Bills window is used to process and record the receipt of goods from an open purchase order. fter the Enter Bills window is saved the following occurs: Subsidiary Records General Ledger Transactions DR CR Updated Updated Inventory, Fixed ssets, or Expenses $ P (inventory and P fixed assets) ccounts Payable $ P P Quick Reference Table Step Box or Other Location Procedure B C D Home Page Click the Receive Inventory drop-down button under Vendors. Receive Inventory drop-down list Select Receive Inventory with Bill to open the Enter Bills window. Vendor Select a vendor from the drop-down list. Open POs Exist window (not shown) Click Yes. E Open Purchase Orders window Select which purchase order is being received by placing a check mark on its line and click OK to return to Enter Bills window. F G Date ccept default date or change. Ref No. Type the vendor s invoice number. H mount Due ccept listed amount due or change. (Not possible to verify unless the information is provided.) I J Terms ccept the default terms or select from the drop-down list. Items tab Click to open the Items tab if it is not open. K Item For each item, accept the items ordered or change using the dropdown list. L Description ccept the default description or edit. M Qty. For each item type received, accept the quantity ordered or change to the quantity that was received. N Cost For each item received, accept default cost or change. Click the Expenses tab. Verify that correct general ledger account is O Expenses tab (content not shown) in ccount Box, type the sales tax amount in the mount Box, then type Sales Tax in the Memo box. P Q Enter Bills window Review the information to verify that it is correct. Save & Close / Save & New buttons Click Save & Close or Save & New button. 8 Reference Purchases and Cash Disbursements Cycle ctivities

11 Receive Goods On a Purchase Order QuickBooks windows B P C F H G I O J K L M N Q E Reference Purchases and Cash Disbursements Cycle ctivities 9

12 Purchase Inventory Without a Purchase Order No Payment Made at Time of Purchase The Enter Bills window is used to process and record the receipt of goods purchased without a purchase order. fter entering information and saving the completed Enter Bills window, the following has occurred: Subsidiary Records General Ledger Transactions DR CR Updated Updated Inventory $ P P ccounts Payable $ P P Quick Reference Table Step Box or Other Location Procedure Home Page Click the Receive Inventory icon under Vendors. B Receive Inventory drop-down list Select Receive Inventory with Bill (not shown) to open the Enter Bills window. C Vendor Select a vendor from the drop-down list or add new. D Open POs Exist window (not shown) If there are open POs for this vendor, this window will open. Click No. E F Date ccept default date or change. Ref No. Type the vendor s invoice number. G mount Due Leave blank. Information is automatically entered when steps J M are entered. H Terms ccept the default payment terms or select from the drop-down list. I Items tab Click to open the Items tab if it is not open. J Item For each item, select the items received from the dropdown list or add new. K L M Description For each item, accept the default description or edit. Qty. For each item, enter the quantity of items received. Cost For each item received, accept default cost or change. N mount Verify the total is correct. (Not possible to verify unless the information is provided.) O P Enter Bills window Review the information to verify that it is correct. Save & Close / Save & New buttons Click the Save & Close or Save & New button. 10 Reference Purchases and Cash Disbursements Cycle ctivities

13 Purchase Inventory Without a Purchase Order No Payment Made t Time of Purchase QuickBooks windows O C E G F H J K L I M N P Reference Purchases and Cash Disbursements Cycle ctivities 11

14 Purchase Non-Inventory Items or Services Without a Purchase Order No Payment Made at Time of Purchase The Enter Bills window is used to process and record the receipt of non-inventory items or services purchased without a purchase order. fter entering information and saving the completed Enter Bills window, the following has occurred: Subsidiary Records General Ledger Transactions DR CR Updated Updated Expense and Non-Inv. sset ccounts $ P (fixed assets) P ccounts Payable $ P P Quick Reference Table Step Box or Other Location Procedure B Home Page Click the Enter Bills icon under Vendors. Vendor Select a vendor from the drop-down list or add new. C Open POs Exist window (not shown) If there are open POs for this vendor, this window will open. Click No. D E Date ccept default date or change. Ref No. Type the vendor s invoice number. F Terms ccept the default payment terms or select from the drop-down list. G H Expenses tab Click to open the Expenses tab if it is not open. ccount Select account from drop-down list or add new. I mount Enter the amount of the purchase that is associated with the account. J Memo Type a description of the amount that is being charged to the account (legal services, for example). K Various Repeat steps H J for any other accounts that are applicable to the purchase. L mount Due Verify that the amount due is correct. (Not possible to verify unless the information is provided.) M N Enter Bills window Review the information to verify that it is correct. Save & Close / Save & New buttons Click the Save & Close or Save & New button. 12 Reference Purchases and Cash Disbursements Cycle ctivities

15 Purchase Non-Inventory Items or Services Without a Purchase Order No Payment Made t Time of Purchase QuickBooks windows M B D L E F G H I J K N Reference Purchases and Cash Disbursements Cycle ctivities 13

16 Pay a Vendor s Outstanding Invoice The Pay Bills window is used to record and process a payment for a vendor s existing invoice. fter selecting a bill to be paid and saving the transaction, the following has occurred: Subsidiary Records General Ledger Transactions DR CR Updated Updated ccounts Payable $ P P ccounts Payable $ P Discount/Credit $ P Quick Reference Table Step Box or Other Location Procedure Home Page Click the Pay Bills icon under Vendors. B List of open bills Click to place a checkmark and select the bill or bills to be paid. C D E Date ccept default date or click calendar icon to change. Set Discount button Click the Set Discount button to display the Discount and Credits window (not shown). ccept the mount of Discount and the Discount ccount or edit. (Note: Discounts are not normally given for partial payments.) Click Done. mt. To Pay ccept default amount or change for a partial payment. F ssign check number button Select the ssign check number radio button if it is not already selected. G Method ccept the default payment method or change from the drop-down list. H I J K L Pay Bills window Review the information to verify that it is correct. Pay Selected Bills button Click the Pay Selected Bills button. Check No. box (ssign Check Numbers window) Type check number and click the OK button. Payment Summary window Review the information to verify that it is correct. Done button (Payment Summary window) Click the Done button to exit to the Home Page. 14 Reference Purchases and Cash Disbursements Cycle ctivities

17 Pay a Vendor s Outstanding Invoice QuickBooks windows H B E D C G F I ( windows continued on the following page ) Reference Purchases and Cash Disbursements Cycle ctivities 15

18 Pay a Vendor s Outstanding Invoice QuickBooks windows ( continued ) J K L 16 Reference Purchases and Cash Disbursements Cycle ctivities

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