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QuickBooks Tips Blog

Richard Haralson

Recent Posts

Why Does QuickBooks Accounts Payable Report Still Show Paid Bills?

Posted by Richard Haralson on May 28, 2015 7:30:00 AM

You have entered a bill into QuickBooks and you wrote a check for that bill. So, why is that bill still showing in your accounts payable report? It’s an easy and common mistake to make. Sure there may be a number of ways this can happen, let me give a simple example.

You receive a bill from a vendor that is not due for a few weeks. You enter it and forget about it. A few weeks go by and the vendor sends a statement. You jump into QuickBooks and write a check to the vendor. Done.

Being the savvy owner you are, you often look at you’re A/R, A/P and P&L thus you are wondering, “Why does that bill still show in my A/P?” From the perspective of QuickBooks, you didn’t pay the bill (from pay bills); you simply wrote that vendor a check.

So, how do you fix this? You could delete the check, then go to Pay Bills and do it correctly, and adjust the check number to match the check that was mailed. But what if you found the issue after the checking account has been reconciled? Deleting the check will mess up the checking account reconciliation. Don’t do that. Here is a better way to fix this problem.

Open the check that was written. Select the account on the lower check details. Perhaps you had the check coded to an expense account (the coding could be anything, doesn’t matter). Change the coding to Accounts Payable. Next tab over to the Customer Job field and find the vendor name the check was written to. Save and close.

Last step is clearing the bill. Now go to pay bills and select the vendor bill in question that is still showing outstanding. Lower on the screen select set credits, apply the credits, click done, click save and close, then click done.

That’s it; you have now tied what QuickBooks thinks is a random check to a vendor bill and the bill we no longer show on your accounts payable report.

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Topics: QuickBooks Tips, QuickBooks advice, Accounts Payable

How To Record A Vendor Refund In QuickBooks

Posted by Richard Haralson on May 26, 2015 7:30:00 AM

At first glance you might wonder what’s so tricky about recording a vendor refund in QuickBooks. Why is this question being asked? Or, this seems simple, am I doing it right?

Let’s back up and set up a scenario. You run a service based business that pays for some supplies. One week you pay a bill to your supplier for cleaning supplies. A few weeks ago you received the bill and entered the bill in QuickBooks correctly. Last week you properly went to Pay Bills. There you paid that bill and any others that needed to be paid. If you entered a bill and then wrote a check for the bill AND the bill still shows in your Accounts Payable, go to this QuickBooks blog where I explain how to correct that.

So now your bill is paid and business goes on. Then one day you receive a check back from that vendor for any number of reasons: an unknown discount, price change, or whatever. A common mistake is to receive those funds back against the expense from the original bill; you might even go as far as labeling the deposit as being received from that vendor. And I’m sure it goes without saying that of course you noted the refund reason in the deposit memo field. But this is still incorrect, slightly. This is wrong because it does not directly tie the deposit to the vendor. Meaning you will not find this deposit in the vendor center.

So, how do you properly receive a vendor refund? Go to the deposit screen, in the received from field enter the vendor name. Then in from account field, here you put accounts payable. Memo and amount as usual then save and close. Next you need to enter a bill credit from the bills screen. After opening bills toggle it to a credit and enter the vendor name, date, amount, and memo it. In the account field, this is where you will put the expense account that off-sets the original bill. Save and close. Last step, go to pay bills and find the vendor. What you will be clearing here is the check from vendor received. Check the box, and then in the lower portion of the screen you will find set credits. There you can apply the bill credit you created and click done. Click pay selected bills, then click done.

There you have it. You have correctly received a vendor refund check. Both the incorrect and correct way will have the same impact on the expense account. However, the correct procedure will show the transaction in vendor reports.

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Topics: QuickBooks Tips, QuickBooks advice

Clean up QuickBooks Customer, Vendor and Employee Lists

Posted by Richard Haralson on Dec 15, 2014 7:00:00 AM

Keeping your QuickBooks lists clean and current is always a good idea. Just like a chief will sharpen his knives and wash the dishes in preparation for the next meal, so should a bookkeeper keep their tools of the trade sharp and clean.

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Topics: QuickBooks Tips, QuickBooks Consultant

QuickBooks Online vs QuickBooks Desktop - Pros and Cons

Posted by Richard Haralson on Nov 21, 2014 7:00:00 AM

I’ll be the first to say I am all for new features and new products to help me become more efficient. However, QuickBooks Online (QBO) is a Trojan horse, not the White Knight Intuit says it is. I want to present a few bottlenecks of QBO and expose the surprise inside you won’t read about on the front page of Intuit’s big push.

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Topics: QuickBooks, QuickBooks Consultant

Help! What are Undeposited Funds In QuickBooks?

Posted by Richard Haralson on Jun 18, 2014 7:15:00 AM

'What are undeposited funds?' is a very common question for users of QuickBooks.  The short answer is, undeposited funds are funds that have been recieved by the company from the customer and not yet been deposited into your bank. To further clarify, QuickBooks follows a set of accounting activities called a flow.  The following examples will better illustrate. 

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Small Business Lessons From My 3 Kids

Posted by Richard Haralson on Jun 2, 2014 6:16:00 AM

Having recently become a father for the third time I wondered what small business lessons can I learn from my 3 kids. Can the actions of my kids be a lesson to me, my clients and you as a small business owner?

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Topics: Small Business Bookkeeping, Sales Advice