Archive for the 'Vendors' Category

QuickBooks Bills are Due X Days After Receipt QuickTip

Thursday, May 17th, 2012

Change Default Due Date for Vendor Invoices in QuickBooks

In QuickBooks when you enter a vendor bill, the due date fills in automatically, depending on the terms you have with the vendor. If you don’t set up terms for a vendor, the due date for a vendor bill is automatically filled out using a default number of days for paying bills. QuickBooks sets this default at 10 days, but you can change the default to a number of days that you choose. To change this default date in QuickBooks:

  1. Choose Edit | Preferences from the QuickBooks menu bar.
  2. Click the Bills icon on the left pane and click the Company Preferences tab.
  3. Fill in the text box with the number of days after receipt bills are due.
  4. Click OK to save the new setting.

QuickBooks Credits and Discounts QuickTip

Tuesday, April 24th, 2012

Paying Bills in QuickBooks with Credits and Discounts

If you have money due you from a vendor (for overpayment of a previous bill, a return of items, or any other reason) QuickBooks can apply a credit to be used the next time you pay that vendor automatically. If a vendor is giving you a discount, QuickBooks can deduct the discount amount automatically from your payment. To use discounts and credits automatically when paying bills:

  1. Choose Edit | Preferences from the QuickBooks menu bar.
  2. Select the Bills icon in the left pane. These options are in the Company Preferences tab.

Tracking Subcontractor Rates in QuickBooks

Thursday, February 23rd, 2012

How to Track Subcontractor Rates in QuickBooks

A reader explained that he had many subcontractors, and each contractor has an hourly rate. He wanted to know how to track the rates easily, and would really like the correct rate to come up automatically when he's writing checks in QuickBooks.

If you need the correct rate to appear automatically, you have to use QuickBooks Items instead of posting the check to an expense account. Set up a Service Item for each contractor. Actually, it's best to create a Service Item named Subcontractors and make each subcontractor's rate a subitem (e.g. Smith, Jones, etc), so they appear contiguously in the drop-down list when you write a check. Otherwise, you have to search for each name alphabetically in your Items list. Make sure the item is linked to the expense account you use for 1099 reporting (usually "Subcontractors" or "Outside Services").

Another method is to rename the contractor to include the rate, such as Smith-50 if subcontractor Smith charges you $50.00/hour. Remember that vendor names don't have to be the Payee name, because QuickBooks lets you specify the Payee name in the vendor record (use the Print On Check As field on the Address Info tab). While this doesn't automatically enter the rate in the line item, it puts the data in front of you and you can easily fill out the check using the Accounts tab instead of moving to the Items tab. This is useful if you sometimes pay the subcontractor for hours (reported on the 1099) and also reimburse the contractor for materials (which is posted to the appropriate expense using the Accounts tab).


Sending QuickBooks Information to Vendors for Drop Shipping

Wednesday, February 1st, 2012

How to Create a Drop Ship Invoice in QuickBooks

A reader asked for help in streamlining his order process for drop shipping. He said he created a QuickBooks invoice for the customer, and then typed an order for the same items and sent it to the vendor who drop ships the products. He wanted to make this faster by sending a copy of the invoice to the vendor but he doesn't want the vendor to see the prices he's charging his customers.

The solution to this is a packing slip, a template built into QuickBooks. While the packing slip is designed for your warehouse personnel (who also have no business knowing what you're charging your customers), it will work perfectly for drop shipping.

Vendor Refunds Vs. Vendor Credits in QuickBooks

Friday, January 27th, 2012

How to Handle Vendor Refunds in QuickBooks

This tip is in response to many e-mail messages with the same query. The questions all resembled this one: "I received a refund from a vendor because the vendor had made a mistake in its bill. I created a vendor credit in QuickBooks and then deposited the money in the bank using A/P as the account and using the vendor name. The deposit showed up on my bank statement, but the credit still shows up on the vendor's record. How do I clear that credit?" (Two of the e-mail queries said the writers had made purchases with debit cards, and returned the items. Each vendor issued a credit against the debit card account. Both readers also created a credit before depositing the refund check and wanted to know how to clear the credit from the vendor record.)