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QuickBooks Journal Entries

179 bytes added, 15:31, 5 September 2013
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=== Handling prepayments ===
Typically, payments Payments in Fishbowl are typically received when a sales order is being fulfilled. However, some companies may require their customers to pay for the order days or weeks before 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/RAccounts Receivable, but no offsetting debit because until the order is fulfilled and the invoice has not yet been sent to QuickBooksis exported. This will cause the A/R Accounts Receivable balance to appear temporarily understated until the invoice order is fulfilled. For the occasional prepayment, this is sent unlikely to QuickBooks. The following process can be used to avoid this an issue by creating an item in Fishbowl , but for companies that can consistently take prepayment, the following process may be used to record the prepayments. Instead of A/R helpful as it will prevent Accounts Receivable from being affected by the prepayments. Instead, the payment amount prepayment amounts will be recorded in a liability account as unearned revenue until the order has been fulfilled.
'''Creating a prepayment item'''
The following steps only need to be performed one timeonce.
# 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]]
# On the original order, 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 '''Accounts Receivable''' account.
:[[File:Prepayment in QuickBooks.png]]
:[[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. The prepayment can be taken using the '''Payment''' button. After issuing the order, right-click the positive '''Prepayment''' amount, choose '''Fulfill''', and then click the '''Save''' button. In this alternative process, the journal entries will be identical as to those displayed above except for two additional offsetting entries that will appear in the A/R '''Accounts Receivable''' account.
== Purchase Order {{top}} ==

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