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QuickBooks Journal Entries

112 bytes added, 22:50, 4 September 2013
Handling prepayments
=== Handling prepayments ===
Typically, payments in Fishbowl are received around the time that an order is being fulfilled. However, some companies may require payment their customers to pay days or weeks before the order is fulfilled. If a payment is taken in Fishbowl and then exported to QuickBooks before anything on the order is fulfilled, there will be a credit to A/R, but no offsetting debit because the invoice has not yet been sent to QuickBooks. This can will cause the A/R balance to be appear temporarily understated until the invoice is sent to QuickBooks. The following process can be used to avoid this issue by creating an item in Fishbowl that can be used to record the prepayments. Instead of A/R being affected by the prepayments, the payment amount will be recorded in a liability account as unearned revenue until the order has been fulfilled.
'''Creating a prepayment item'''
# In QuickBooks, open the '''Chart of Accounts''', create an '''Other Current Liability''' type account, and name it '''Advance Customer Payments''' or something similar.<br>[[File:Advance Customer Payments Account.png]]
# In Fishbowl, open the [[Accounting]] module and click the checkbox to import '''Accounts'''.<br>[[File:Import Accounts from QuickBooks.png]]
# In Fishbowl open the [[Part]] module, click the {{Button|New}}, enter '''Prepayment''' or something similar in the '''Number''' field, and select '''Service''' as the '''Type''' and then click '''Next'''.<br>{{Vertical Spacer}}[[File:Create Prepayment Part.png]]# Proceed through the wizard and on On step 3, select click '''Sell this part as:''' to create a corresponding product, and then finish the wizard.<br>[[File:Create Prepayment Product.png]]# On the '''Accounts''' tab of the newly created part, map both the '''Expense''' and '''COGS''' accounts to the same '''ServicesService''' account in QuickBooks.<br>[[File:Map Prepayment Part Accounts.png]]
# On the '''Details''' tab of the newly created product, map the '''Income Account''' to the newly created '''Advance Customer Payments''' account.<br>[[File:Map Prepayment Product Accounts.png]]
# After adding all items to a sales order, add the '''Prepayment''' item as the last item with an amount of zero.<br>[[File:Prepayment Step 1.png]]
# To take a prepayment, create a ''new'' sales order and add the '''Prepayment''' item. Set the amount to the original order total as a positive number and then receive the payment using the {{Button|Quick Ship}}.<br>[[File:Prepayment Step 2.png]]# Now, on On the original order, enter the prepayment amount as a negative number, making the sales order total zero. If desired, the number of the sales order used to receive the payment can be recorded in the order notes or memos of the original order.<br>[[File:Prepayment Step 3.png]]
'''NOTE:''' Alternatively, both '''Prepayment''' items can be listed on the original order, eliminating the need for an additional sales order. After issuing the order, right-click the positive '''Prepayment''' amount, choose '''Fulfill''', and then click the '''Save''' button. This will create offsetting entries in the A/R account. One entry will be an invoice for the positive '''Prepayment''' item and the other entry will be for the payment. When the payment is exported to QuickBooks, it will hit be exported to the '''Advance Customer Payments''' account, instead of the A/R account.
:[[File:Prepayment in QuickBooks.png]]
When the order is fulfilled, it will export to QuickBooks as a paid invoice, and the '''Advance Customer Payments''' liability will be zeroed out.
:[[File:Prepayment in QuickBooks after order is fulfilled.png]]
 
'''NOTE:''' Alternatively, both '''Prepayment''' items can be added to the original order, eliminating the need for an additional sales order. After issuing the order, right-click the positive '''Prepayment''' amount, choose '''Fulfill''', and then click the '''Save''' button. In this alternative process, the payment will create offsetting entries in the A/R account. One entry will be an invoice for the positive '''Prepayment''' item that was fulfilled and the other entry will be for the payment.
== Purchase Order {{top}} ==

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