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Entering Sales Information, Part 3

Lecture Slides are screen-captured images of important points in the lecture. Students can download and print out these lecture slide images to do practice problems as well as take notes while watching the lecture.

  • Intro 0:00
  • Managing Overdue Customer Payments - Using the Collections Center 0:21
    • Collections Center
  • Create Invoice Letters 2:00
    • Prepare an Invoice Letter
  • Generating Reminder Statements 7:32
    • Assess Finance Charges
    • Preview Statement
  • Processing Sales Orders - Invoices Against Sales Orders 10:28
    • Open Sales Orders by Item
    • Create an Invoice
  • Tracking Back Orders 14:36
    • Create Invoice from Sales Order
  • Receiving Items 18:21
    • Check Item List / Inventory
    • Create Sales Order

Transcription: Entering Sales Information, Part 3

Welcome back to Educator.com.0000

This is QuickBooks lesson regarding entering sales information.0003

Now, remember, sales is the most important thing of your business aside from accounting for the revenue and expenses.0008

Sales is the lifeblood of your business.0017

Entering sales information, what we are going to talk about today, is managing overdue customer payments using the Collection Center.0021

Now, this is one of the most important aspects, is collections from our customers.0029

So, what we are going to do here is we are going to begin by going into the Collection Center.0035

In order to get to the Collection Center, we are going to go ahead and go to the Customer icon button from the Icon menu bar and choose Customers.0044

Under Customers, we will notice that there is the Collection Center, and we are going to click on the Collection Center.0056

Now, I need to let you know that the Customers Collection Center, this is where we can actually generate collection0065

letters or form letters that we can generate from our self or we can actually utilize Intuit canned reports0073

and generate letters that will remind our customers of their overdue payments to us.0080

So, we will look at that, and we will see that this is an overdue item from Hendrel Riyadi remodelled kitchen. There is an overdue balance.0086

We can also look at the almost due items, that we see that Robson and Robert Allard also owe us money.0097

So, from there, we can, kind of, see from the Collection Center which clients are listed in the general summary of who owes us money.0107

It is a little overdue.0116

So, from our Reports Center, now, we are going to go ahead and create and show you how to create invoice letters.0118

The next step is we are going to go to our Reports menu, and under Customer and Receivables, we have various reports here.0129

And the first thing we are going to do is we are going to say Look at the open invoices report.0136

Which invoices are open that have not been closed or paid?0141

So, under this, we are going to go ahead and search down and look at our list here and see if we can find a couple items that we wanted to look at.0146

We have several individuals that owe us money. It is all done alphabetically.0157

We could choose any one of these. From here, we will just go ahead and say Robert Allard owes us money since he was on one of those lists there.0162

So, we will look at that, and we are going to double-click on the invoice which is the item here, which is no. 1058.0172

We will double-click on that, and it is going to open up the Create invoice window.0182

We are going to go ahead and click on the down arrow next to Create.0190

So, we are going to see her up here on the top menu under the Create invoice window.0195

We are seeing in the middle of the screen under Create that there is a dropdown menu that we can choose.0200

And here, it gives us an option to go into Letters. If we click on Letters or highlight it, it opens up.0204

Then, we can prepare an invoice letter or do a custom invoice letter of a template.0211

This is where we can actually customize a letter or a letterhead if we like, or we can go ahead and prepare a canned invoice letter.0216

At this point, we are going to go ahead and choose Prepare an invoice letter, and it will say Find letter templates.0223

What we are going to do is we are actually going to copy those, and it will copy from the installed directory from the program.0231

So, we will choose Copy and allow Intuit to copy those letters from the installed directory. From here, we can choose the invoice with Details option.0237

There is just a cover letter, or we can actually create a letter that will use the details of the invoice that is outstanding.0253

So, here, we are going to go ahead and create an invoice letter with details and click on Next.0261

In the main field, we are going to go ahead and type in Robert Allard, and under the Title, we will say President in the title field, OK?0268

Or we can say Mister or whichever, but, we will present this as a company, Robert Allard Remodel.0285

We will go ahead and click on Next. Then, it is going to create a letter for us.0292

As we noticed that these are letter that we can certainly utilize that will make sure that we can collect from our customers.0301

And understanding that when we get into other lessons a little bit down the road,0311

we will show you how to create custom letters that will be a little more personal from your business.0315

Here, it goes ahead and it utilizes the Microsoft Word program at this point.0322

And understanding, when you are using QuickBooks, a lot of times, it will integrate with Microsoft Office products specifically Excel and Word.0328

So, in order to use this function, you really need to have Microsoft Office and Word and Excel for you.0338

Here is the standard letter that it gives us. It pulls the information from our Company Information, Rockcastle Construction and our address.0345

And then, it brings up the standard letter along with the customer information from the customer database, Robert Allard, his address.0357

And it goes into some of the information and his detail. As you can, it gives us the detailed information of the job, the invoice number,0367

the invoice date, the amount, the date due and what is due, the total amount.0376

It gives you a little bit more of the description from the actual invoice. It pulls it in saying0381

and here is the item, the description, quantity, rate, everything we need, so that the customer is not confused.0386

Then, he will say "Oh, well, I'm missing that invoice".0392

Well, here is a letter format of the very detailed information from that invoice, so we have all of that there.0394

We are not going to go ahead and print this, but we can see that the letter is there.0401

We are impressed with it. It has all the information that we need. It even has a canned little letterhead for us.0405

We can go ahead and print it if we like, or at this point, we are just going to go ahead and cancel this letter by clicking the red X.0412

I am not going to save anything at this point because I am not going to process that.0420

At this point, I will cancel everything out because I am not going to print any envelopes. I am not going to do anything further.0425

But, again, we can go ahead and have QuickBooks prepare an envelope using Word, and it will prepare the standard template for printing out an envelope.0430

At this point, we will go ahead and hit Cancel, and we will close all by using Window Close all, and it will close all of our windows.0440

So, now, we can generate that collection letter and using the invoice letters.0448

The next thing we are going to talk about is generating reminder statements.0453

Reminder statements are a summary of all the invoices that are outstanding by client.0456

So, what we can do is just send them a statement at the of the month or end of a0464

period for any client that has outstanding invoices that have not been paid as of yet.0467

In order to do that, we are going to go to our Customer menu item and click on the customer and choose Create statements.0474

From here, we are going to choose this statement date of 01-15-2016, and we are going to choose all open transactions as a statement date.0486

We want to see all customers that owe us money as of this particular date.0497

We can customize it from a particular period of time and see who owes us for that particular period of time, or we can just look at as of a particular date.0502

This is more customary there.0512

The next thing that we are going to do is under the selected Additional Options, we are going to choose Show invoice item details on statements.0513

We also want to make sure that we include only transactions over 30 days past due.0522

So, we are going to all look at that and see that we only have transactions past due for 30 days.0534

We also want to see the Do not create statements with a zero Balance or less than zero.0541

So, we do not want to see any statements with a balance less than zero.0546

We want to make sure that we have all customers selected. We want to assess finance charges, as well.0553

So, we are going to click on Assess finance charges. This is going to pull up the items that need to be assessed on a finance charge as late.0557

We will assess those charges. I like this one.0565

It is a finance charge that they owe us $1700 and $5 for remodelled kitchen because this is a seriously past due.0568

And we will assess those finance charges, and we will go ahead and move on to the next item.0576

Now, what we are going to do is we are going to preview the statements that it generates, and here it is.0582

It is going to give us the amount of the invoice.0586

It is going to give us the, kind of, details of that invoice, small summary of it, of what this statement of this particular customer owes us.0589

Robert Allard owes us a $14,510 balance. So, we can send them this statement.0600

If he wants to look at the invoice, it is referencing the invoice there, so it, kind of, gives us the idea of what this customer owes us.0612

We can go ahead and click on Close and close on out of the Create statements.0621

The next item that we want to look at is Processing Sales Orders, and we are going to show you invoices against the sales orders.0629

So, we are going to look at our sales orders and then, create an invoice from those sales orders.0637

A lot of times, the sales order feature lets us track order from customers and set items aside.0647

We might be able to use those sales orders to track backorders, as well.0653

We might have sales, but we may not have all the items on hand. We might have only a portion of them.0657

So, we can sell them a portion of it and then, on the sales order, we will go ahead and keep track of the backorders of those items that are not in stock.0664

When the inventory items come in, we can actually create an invoice directly from that sales order against those items that come in as we receive them.0673

And if only some of the items come in, we can actually invoice just for those particular0682

items when they arrive and still have a backorder log and keep track of the backorder.0686

So, QuickBooks has a nice feature to do that, but in order to utilize those features, you have to use QuickBooks Premier or higher editions.0692

We want to make sure that you can use actually QuickBooks Enterprise, QuickBooks Premier or QuickBooks Accounting Edition.0701

And those higher editions will have these features to track our inventory a little bit better.0710

So, they really improved on that, and we are very pleased with this.0717

We are going to go ahead and show you how we could invoice against those sales orders.0719

The first thing that we want to do is under the Report Center, we are going to choose Sales.0725

Under our Report area, and we are going to choose Sales. We want to see Open sales gy item.0734

So, it is going to give us a nice little list here of all these open items for a sale.0745

We are going to see that there are light pine cabinets. Over here, we are going to see all those that we have four.0750

We have invoiced for two, and we are basically backorder for two on the light pine cabinets.0758

We need to make sure that we have all those items available for us since we are going to sell those items.0765

The next thing we want to do is after that report, we can actually click on, say, these decking maybe on the decking.0776

Here, we have quantity invoice, but we will try the light pine.0785

Double click on that invoice, and we will see that we have ordered four of them, and we have backordered two, and we have invoiced only two of them.0789

So, we have only sold two of the items there.0800

Under the Create invoice button, on the Tool bar at the top of Create sales order window,0805

we can see up here under Create, we can create an invoice to invoice the additional orders.0810

So, now, when we say Create sales invoice order, we can say click on Create invoice for all the sales orders or just selected items.0820

At this point, we are just going to create invoice for all the sales items and click on OK.0829

From the Sales Order, it is going to create two more to invoice for our customer here.0837

So, we can go ahead and see that. It is created from the Sales Order, the remaining items that we need to invoice.0847

And from here, we can go ahead and hit Save and close, and it is just to invoice those other two items.0855

So, now, those are all taken care of, and we notice that there is no more items here on the Open Sales Order0861

because we cleared that one out, and we invoiced that clearly for them.0868

The next thing we are going to over is tracking backorders. Backorders are items that are presold without having them on hand.0876

So, we might have a few items on hand, and the customer wants more than what we actually have, so it is called a backorder.0885

In addition on the QuickBooks Premier, these inventory tracking systems for backorders0892

and whatnot are only available again for QuickBooks Premier or greater.0898

So, if you are going to utilize this, make sure that you have QuickBooks Premier or greater.0903

What we are going to do is make sure that our Home screen is there. Under our Home screen, we are going to click on Sales Orders.0909

We are going to type in our client R-O-C-H-E, Roche Jermund, and the item that we are going to sell to them is going to be a cabinet.0917

And we are going to actually sell them light pine cabinets, OK?0928

And let's say they want...this is just sales orders, not an invoice. This is just that they want to order eight cabinets from us.0933

Now, when we put in eight, it says "Hey, you do not have sufficient quantity available to sell all those items".0943

Yes, it is true. We do not.0949

So, what we are going to do is we are going to say while we are ordering them, and we are going to go ahead and click OK to that.0951

And it is going to order those items. We are going to have them on backorder at this point in time.0957

So, the rate there is we can pull it down and say it is going to be the commercial rate for0963

Jermund Roche because we are going to give him that rate there for a little less money.0970

Go ahead and hit tab, and it will give us the adjusted total.0974

From here, we are going to go ahead and our sales order, kind of, looks similar to this with the eight items there with our rate.0980

And we are going to go ahead and click Save and close at this point in time.0989

Now, we want to look at that sales order, so we are going to look at our item there.0998

So, when I want to look at customers and look at our sales orders, by clicking on Sales Order,1005

I am going to, kind of, go Previous and look at our sales order there.1014

With this, we want to go ahead and create some invoices.1019

So, in order to create an invoice from this sales order of eight items, we are going to sell them what we have.1022

We will click on Sales, or Create and click on Invoice.1027

It is going to convert the sales order of what we have on hand to an invoice where we are going to say Create invoice for all sales orders.1032

And it is going to create an invoice here.1041

And we are only going to be invoicing those items that we have on hand of, say, three because that is what we have on hand from what we saw on the list.1046

Again, we could check on our list and look at Items and look at our Cabinets and1060

look at the pine and say "Gee, we have on sales eight, but we only have three".1065

So, we are going to go ahead and sell them the three, OK? We will invoice them for that.1069

From here, we will go ahead and invoice them for the three that we have and click Save and close.1075

Now, we want to make sure that now that, that is invoiced,1086

we can open up those sales orders by an Item Report, and that can help us track which items are on backorder.1091

So, the next thing that we want to do now is look at the sales orders.1101

From our Vendors menu, we are going to go ahead and go to Vendor menu and choose Receive items.1109

Now, we are going to receive those items that we have had on backorder, and we are going to type in Perry window and doors.1115

And when it says You have orders in existence, we are just going to say No to that message.1125

Under the item, we are going to receive those cabinets that we had just placed order for that client there.1132

And we are going to receive ten of those items, OK, because we want to make sure we have those items there.1140

We are typing in ten that we are getting on hand there.1149

When we hit tab, it pulls it in, the actual cost and what the amount is, so it is going to create that for us, and we will click on Save and close.1154

Now, in order to check our item list and what our inventory is, there are a couple of ways in doing that.1162

My favorite way is clicking on Lists. Go into the Item List, going down to our Cabinets and looking at our light pine cabinets, and there it is.1167

We have ten on hand, and we have five on sale, so if we look at that column there on Sales Order, we have five left.1178

Since we have already invoiced the three, it keeps it in check for us. I am going to close out our Item List there.1187

And now that we have all that, now, we are going to go ahead and fill that order.1197

After receiving those items, we are going to go ahead and fill that order now. As you can see that we have received them.1202

And now, we are going to fill the order.1209

So, under the Customer menu, we are going to click on Create sales orders.1212

And we will click on Previous to look at our sales order for Roche on those eight.1221

And you will notice that QuickBooks helps us track those backordered items by adding a Backorder column.1227

Over here, there is backordered five. It creates it for us.1233

And in addition, we will also see an invoiced item, that we have invoiced already three of them.1237

So, it tracks that for us, as well, and it closed columns, as well.1243

So, we have all of those, kind of, tracking for us on that inventory because that really helps us there.1249

We can go ahead and create the sales order now.1255

Since we went ahead and invoiced the three, now, we need to create an invoice for the next five, the available five that we have to sell.1257

So, from here, we can say Create invoices for all sales order.1264

We will just click on that, and it is going to go ahead and create an invoice for this particular customer.1273

And it shows that we have, now, we are invoicing an additional five.1280

We previously invoiced three for the total of eight ordered, and we will go ahead and make sure that those are done.1284

Once we have that, we can click OK, and now, we notice what we have. Say Save and close, and it all looks good to us on that screen.1295

And we are going to go ahead and invoice them the balance of those five cabinets.1302

So, now, we have all of that taken care of. We can also track our backorders on Purchase.1310

The backorder is the inventory on a purchase order that has not yet been received.1315

And in QuickBooks, it occurs when a purchase order has been sent, a partial shipment has been received.1320

But, you have not received the final shipment, so the items on that purchase order that have not yet been received are considered to be on backorder.1327

So, we have, kind of, went over that a little bit as an example for you.1336

Now, we have all that taken care of, our backorders, our receiving items and tracking our inventory.1341

Thank you very much for joining us here at Educator.com. We will see you next time.1348