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Invoicing and Collecting Income

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This chapter is from the book

This chapter is from the book

What You’ll Do

  • Set Sales and Customers Preferences
  • Create an Invoice
  • Preview Invoices
  • Print a Single Invoice
  • Print a Batch of Invoices
  • Email an Invoice
  • Charge Expenses to a Customer
  • Set Finance Charge Preferences
  • Create a Monthly Statement
  • Set Send Forms Preferences
  • Track Accounts Receivable
  • Receive Payments for Invoices
  • Issue a Credit or Refund
  • Receive Cash
  • Make Bank Deposits
  • Receive Advances, Retainers, and Down Payments
  • Issue Discounts
  • View the Open Invoices Report
  • Create a Collection Letter
  • Record Bad Debts

Having a method for recording your income is likely one of the main reasons you purchased your QuickBooks program. Here are just some of the reasons why it’s important to have an accurate record of your income transactions.

  • You need to be able to track your company’s revenue and record income transactions so you know how well your company is performing.
  • You need a vehicle whereby you can separate your income into appropriate accounts so that you can produce reliable financial statements that tell you where your company’s strengths and weaknesses are.
  • You need the record-keeping ability necessary to provide your customers with an opportunity to make down payments and partial payments, as well as being able to give them the right to receive refunds and credits for returned merchandise or unfulfilled obligations.
  • You need to have the mechanism in place for recording amounts you deposit in your bank account.
  • In this day and age, you need to be able to email an invoice to customers.
  • If you incur expenses on behalf of a customer, you need to be able to charge those expenses to your customer.
  • You need to be able to assess finance charges for late payments.

All of this and more can be accomplished through the invoicing and collection services available in your QuickBooks program. This chapter explains how you can meet all your revenue-collection obligations.

Setting Sales and Customers Preferences

You can customize some of the standard features that apply to invoices by making adjustments in the Sales & Customers preferences screen. The types of preferences that relate to your sales operations include setting a default shipping method, setting a standard markup percent for items you purchase and resell to customers, and indicating a standard FOB for your company. In addition, you indicate how you want reimbursements to be recorded in your financial records, in what order customer payments are to be applied to outstanding invoices, whether you want to be told you are about to issue a duplicate invoice number, and whether you want to use the QuickBooks Price Level feature. The QuickBooks Price Level feature enables you to easily apply discounts or price increases to items on your invoices. The settings you make here affect all your company’s invoices. Note that only a user with administrative rights can make changes to the company preferences for sales and customers.

  • orange_circle_1.gif Select Edit, Preferences.
  • orange_circle_2.gif Click the Sales & Customers icon.
  • orange_circle_3.gif Click the Company Preferences tab.
  • orange_circle_4.gif Indicate the most common shipping method that your company uses in the Usual Shipping Method field.
  • orange_circle_5.gif Indicate the status that applies to your sales in the Usual FOB field.
  • orange_circle_6.gif Check the Warn About Duplicate Invoice Numbers checkbox if you want to receive a warning when you are about to issue an invoice with a number that duplicates another invoice.
  • orange_circle_7.gif Check Track Reimbursed Expenses as Income if you have expenditures that will be recorded as income rather than an offset to the expense account.
  • orange_circle_8.gif Enter a Default Markup Percentage that is to be used for standard markups on items your company buys and resells to customers.
  • orange_circle_9.gif Check Use Price Levels to use the QuickBooks Price Levels feature for quickly adjusting amounts on sales forms by a preset percentage.
  • orange_circle_10.gif Check Enable Sales Orders if you want to use the sales orders feature in QuickBooks. If you check this box, then you have the option of checking the box to warn about duplicate sales order numbers and to prevent the printing of zero amounts.
  • orange_circle_11.gif Choose the template you prefer to use for invoice packing slips.
  • orange_circle_12.gif If you have enabled sales orders, choose the templates you prefer to use for sales order packing slips and sales order pick lists.
  • orange_circle_13.gif Check Automatically Apply Payments if you want QuickBooks to apply customer payments to outstanding invoices.
  • orange_circle_14.gif Check Automatically Calculate Payments if you want to automatically calculate the amount of payments you received based on the invoices you check off on the Receive Payments list.
  • orange_circle_15.gif Check Use Undeposited Funds As a Default Deposit to Account to designate your undeposited funds account as the default account when recording payments that you receive.
  • orange_circle_16.gif Click OK.
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