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QuickBooks Journal Entries

17 bytes added, 23:16, 4 September 2013
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Handling prepayments
=== Handling prepayments ===
Typically, payments in Fishbowl are received around the time that an when a sales order is being fulfilled. However, some companies may require their customers to pay for the order days or weeks before the order it 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 will cause the A/R balance to 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, select '''Service''' as the '''Type''' , and then click '''Next'''.{{Vertical Spacer}}[[File:Create Prepayment Part.png]]
# On step 3, 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 '''Service''' account in QuickBooks.<br>[[File:Map Prepayment Part 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]]
# On the original order, enter change the prepayment amount to the order total 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]]
When the payment is exported to QuickBooks, it will be exported to the '''Advance Customer Payments''' account, instead of the A/R account.

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