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