Jump to: navigation, search

QuickBooks Journal Entries

7 bytes added, 17:44, 5 September 2013
no edit summary
=== Handling prepayments ===
Payments in Fishbowl are typically received when a sales order is being fulfilled. However, some companies may require their customers to pay in full 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 Accounts Receivable, but no offsetting debit until the order is fulfilled and the invoice is exported. This will cause the Accounts Receivable balance to appear temporarily understated until the order is fulfilled. For the occasional prepayment, this is unlikely to be an issue, but for companies that consistently take prepayment, the following process may be helpful as it will prevent Accounts Receivable from being affected by prepayments. Instead, prepayment amounts will be recorded in a liability account as unearned revenue until the order has been fulfilled.
'''Creating a prepayment item'''
# In Fishbowl, open the [[Accounting]] module, click the checkbox to import '''Accounts''', and then click the '''Import''' button to the left of the checkboxes.<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''' select the lower option 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]]
# 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]]
Once the '''Prepayment''' item has been created in Fishbowl, the following process can be used to take prepayment for an order.
# Make note of the original order total and then create a ''new'' sales order with the '''Prepayment''' item. Set the amount price of the '''Prepayment''' item to the total of the original order total as a positive number and then receive the payment using the '''Quick Ship''' button.<br>[[File:Prepayment Step 2.png]]# Once the payment has been received, add the '''Prepayment''' item to the original order with and set the price to the payment amount as a negative number, making the sales order total zero. If desired, the number of the sales The order notes or memos could be used to receive the payment can be recorded in record the order notes or memos of number associated with the original orderpayment. Click the '''Save''' button once the all changes have been made.<br>[[File:Prepayment Step 3.png]]
When the payment is exported sent to QuickBooks, it will be exported to the '''Advance Customer Payments''' account, instead of the '''Accounts Receivable''' account.
:[[File:Prepayment in QuickBooks.png]]

Navigation menu