QuickBooks-Chapter 2

Pay bills window the Acct field allows user:

To choose a bank acct from which to make a pymt

cash payments journal

a multi column journal used to record only cash payment activities, including punts of accounts payable

Used the pay bills window in QuickBooks to record a payment made in any of the following forms except what

Cashiers check

Pay bills window uses these two default general ledger posting accounts

Accounts payable and cash

What does QuickBooks do when you write a check in the pay bills window?

Automatically decreases (debits) the accounts payable account

Vendor center contains important info on each vendor:

Company name, address, contact person, type of vendor, terms, credit limit, tax id, current balance owed

When you enter a bill in the enter bills window QuickBooks automatically updates all of the following except

Customer Center

Cash Purchase is recorded by:

Debuting asset/expense and crediting cash

Vendor Balance Detail report

Displays all transactions for each vendor with the remaining balance owed Is similar to an accounts payable subsidiary ledger in a manual system

Vendor contact list report

Displays information for all vendors that has been entered in each vendors file Displays the name of each vendor, account number, address, contact person, telephone and mobile numbers, and the present balance owed

Expenses tab

For non-item purchases such as expenses and non-inventory assets the expenses tab at the enter bills window is used

Net 30 Days

Full payment of an invoice within 30 days of the invoice date is requested.

Purchases journal

In a manual accounting system, all purchases of goods and services on account are first recorded in a multi column

credit memo

A reduction of accts payable as a result of a return or an allowance by a vendor

vendor

(n.) a person who sells something

Summary for vendor reports

-include the unpaid bills detail report, the vendor balance detail report, and the vendor contact list report -include only the vendor balance detail and vendor contact list reports -Reflect the information and activities recorded in all activities windows -Are not customizable

purchases journal

A journal used to record the purchase of goods on acct

Bill from vendor is considered:

A liability

Chart of accounts list

List of accts a company uses as it conducts its business

Vendor/Acct Reports- Unpaid Bills Report

Lists all unpaid bills for each vendor at a specific date Lists each open bill, with date and IV number, along with any credit memos applied

Vendor/Acct Reports

Manage its liability payments Ensure timely and correct remittances Control cash flow Retain an accurate record of all vendor related transactions

In the pay bills window, the user has the option of doing all of the following except what

Paying multiple vendors with one check

System Default Accounts

Pre-identified general ledger acct that increases and decreases auto depending on the type of transaction entered

payment on account

Pymt of an outstanding acct payable

Cash purchase

Pymt of any bill or item other than accts payable

purchases journal

QuickBooks enter bills window is equivalent to the purchases journal in a manual accounting system

Pay bills window is used to:

Record a pymt on acct Allows you to select bills to be paid, pay all or part of each bill, & designate checks to be printed by comp Displays all open bills as of a selected date Is designed only for punts of existing bills Previously recorded in enter bills Bills can be paid in full or partial pymt can be made Check or credit card or online pymt Several bills at once Pay bills window default accounts are accounts payable and cash

Vendor center is used to;

Record purchases on account Identify vendor sending bill, the IV date, due date, terms of pymt, and nature of purpose Record credit memos Add, edit, or delete vendors

The Enter Bills window is used to:

Record purchases on acct Identify vendor sending the bill, IV date, due date, terms of pymt, & nature of purchase Record of credit memos

Vendor transactions are entered in all of the following windows except

Reference window

Vendor Center

Serves as the accts payable subsidiary ledger for the company being paid

Cash operating

The default account from the chart of accounts to post all open bill liabilities

Vendor reports features

The drill down feature: Provides the opportunity to review the information and make corrections if necessary Enables you to see the originating transaction or document that gave rise to the report figures Allows you to move quickly from a report to the related transaction windows and back to the report again The activities entered in the windows behind the scenes are recorded in general journal format and posted to the general ledger and also flows into the financial statements QuickBooks can display and print the standard accounting reports

Write checks window is used to:

Useful for companies that pay on acct but receive bills and Remit pymts immediately

purchase on account

When a co receives a bill for goods or svc from a vendor but plans to pay it a later date

Purchase on account

When a company receives a bill for goods or services from a vendor but plans to pay it at a later date