Quickbooks Online Advanced Transactions Flashcards

Questions and Answers

What are the benefits of recurring transactions?

Transactions can be edited after being created

Transactions cannot be scheduled

You can set up transactions to record automatically (correct)

You can only set transactions up once

How do you set up sales service items to record daily sales?

Gear Icon, Products & Services, New, Name Daily Sales, Income Account - Sales, Save and New

What is Daily Sales in QuickBooks Online?

You might want to add a customer named Daily Sales or a customer for each day of the week for the Sales Receipt.

How do you access the recurring templates?

Gear Icon Signup and view all the answers

What types of recurring transaction templates can you create?

Bill, Check, Credit-card credit, Credit Memo, Deposit, Estimate, Expense, Invoice, Journal Entry, Delayed Charge, Delayed Credit, Purchase Order, Refund, Sales Receipt, Transfer Vendor Credit Signup and view all the answers

Which recurring items can you NOT set up?

Receive Payment Signup and view all the answers

What are some other ways to use recurring transactions?

Recurring Sales Receipts with Payments, Recurring Journal Entries, Settings to automatically send out invoices. Signup and view all the answers

What is a zero dollar transaction used for?

To mark many expenses as billable and to allocate overhead expenses. Signup and view all the answers

What needs to happen when a payment fails?

Deduction for the returned check recorded, A/R must be increased, Customer needs to be invoiced for bank charge. Signup and view all the answers

What service items do we set up to record a bounced check?

Bounced Check mapped to Checking Account, Bounced Check Fee mapped to Bank Charges. Signup and view all the answers

How do you record a bounced check?

Use an Invoice, select Customer, add Bounced Check for amount, and record Expense for Bank Fee. Signup and view all the answers

How do you reset the aging on the original invoice?

Open original payment, deselect invoice paid, then select the invoice and save. Signup and view all the answers

What are the three methods for recording retainers?

Deposit Feature in QBO, Credit Balance in A/R, Unearned Income Method. Signup and view all the answers

How does the deposit feature work for recording retainers?

Allows deposits to be recorded in the invoice form, but does not conform to GAAP. Signup and view all the answers

How does the credit in A/R method work for retainers?

Use the Receive Payment Screen to enter Deposit without applying it to an invoice. Signup and view all the answers

How is the unearned income method used to track retainers?

Uses a Deposits Held Account (Unearned Income) liability Account. Signup and view all the answers

How do you turn on the deposit feature?

Account and Settings, Sales, Sales Form Content - Check Box to turn on feature. Signup and view all the answers

How do you set up credits to auto apply?

Account and Settings, Advanced, Automation, select Automatically Apply Credits. Signup and view all the answers

How do you use the Unearned Income Method?

Create a Liability account for Client Retainers and map it to the Income Account field. Signup and view all the answers

In the unearned method, how do you record it?

Sales Receipt to record receipt of the retainer. Signup and view all the answers

What options are there for vendor prepayments?

Use A/P to record prepayment or use an Asset Account to track the prepayment. Signup and view all the answers

How do you use A/P to record prepayment?

Write a check to the vendor and record it to A/P. Signup and view all the answers

How do you use an Other Current Asset Account to record vendor prepayments?

Create an account within the COA called Vendor Prepayments. Signup and view all the answers

What does progress invoicing allow?

Record multiple invoices from an estimate to track progress. Signup and view all the answers

What are the benefits of progress invoicing?

Keeps contractors happy, better communication with customers, consistent cash flow. Signup and view all the answers

How do you turn on progress invoicing in QBO?

Account and Settings, Sales, Progress Invoicing, check Create Multiple Partial invoices. Signup and view all the answers

What do Price Rules allow?

Segment customer base and offer different prices to each group. Signup and view all the answers

Give examples of Price Rules.

Set up wholesale vs retail pricing, discounts for certain groups like students or seniors. Signup and view all the answers

What are the ways you can set a price?

Percentage, Fixed Discount, Custom Per Item. Signup and view all the answers

How would you use the percentage pricing method?

Used to increase or decrease sales price by a specific percentage. Signup and view all the answers

What is Fixed Discount?

Advertise a specific amount off a product. Signup and view all the answers

What is Custom Price Per Item?

Negotiated Pricing. Signup and view all the answers

What versions of QBO allow the use of customer types?

Plus Signup and view all the answers

How do you turn on price rules?

Gear Icon, Account and Settings, Sales, Products and Services, check Turn on Price Rules. Signup and view all the answers

How do you set up customer types?

Sales Center, Customer List, Top Right, New Customer Type. Signup and view all the answers

How to create price rules?

Gear Menu, All Lists, Price Rules, Create a New Price Rule. Signup and view all the answers

How do you activate the tips feature in QBO?

Gear Icon, Account and Settings, Sales, Sales Form Content, check the Tips Box. Signup and view all the answers

How to pay out tips?

Use a check or expense and post the share against the undistributed tips account. Signup and view all the answers

Can tips functionality be turned off?

False Signup and view all the answers

Study Notes

Recurring Transactions

Recurring transactions can be set up to automate recording, allowing efficient management of frequent transactions.
Access recurring templates through the Gear Icon under settings.
Types of transactions that can be set up as recurring include Bills, Invoices, and Sales Receipts, among others.
Transactions that cannot be set as recurring are Receive Payment and Bill Payment, as these are steps in a workflow.

Daily Sales Setup

To record daily sales, create a new service item named "Daily Sales" under Products & Services, associating it with the Income Account for Sales.
Consider adding a customer named Daily Sales or separate customers for each day of the week for detailed sales tracking.

Handling Bounced Checks

Record bounced checks through invoices, including the bounced check amount and associated fees.
Adjust the aging on the original invoice by deselecting the paid status of the original payment and saving the new invoice.
Service items for bounced checks include mapping the Bounced Check to a checking account and the Bounced Check Fee to Bank Charges.

Retainers and Deposits

There are three methods for recording retainers: using the Deposit Feature, maintaining a Credit Balance in A/R, or the Unearned Income Method.
The deposit feature allows recording retainer deposits but may not comply with GAAP; it's best for short intervals between deposit receipt and service delivery.
The Unearned Income Method utilizes a liability account for client retainers and is advisable for businesses providing financial statements.

Prepayments and Vendor Management

Vendor prepayments can be recorded via Accounts Payable or an Asset Account to track the prepayment.
When using A/P, writing a check reduces the balance until the bill is entered.
An asset account called Vendor Prepayments can be created to manage vendor prepayments.

Progress Invoicing

Progress invoicing enables clients to issue multiple invoices from an estimate, promoting ongoing payment as tasks are completed.
Benefits include maintaining contractor satisfaction, improving customer communication, and ensuring consistent cash flow.
Enable progress invoicing in settings through the Sales section.

Price Rules and Customer Types

Price Rules allow businesses to customize pricing strategies for different customer segments.
Different pricing methods include Percentage discounts, Fixed Discounts, or Custom Prices per item.
Set up customer types and price rules via the sales center and account settings, ensuring to confirm the use of customer types is enabled on Plus and Advanced versions.

Tips Feature in QBO

Activate the Tips feature in QuickBooks Online to track customer tips through the sales form content settings.
Payout tips utilizing checks or expenses linked to the Undistributed Tips account. This functionality is available only in sales receipts, not invoices.
Once activated, the tips functionality cannot be turned off, ensuring seamless tip management within transactions.

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Description

Master the intricacies of Quickbooks Online with these flashcards focused on advanced transactions. This quiz will help you understand recurring transactions and setting up sales service items effectively. Perfect for users looking to streamline their bookkeeping process.