Invoices

This form records amounts owed to the business from customers using items on an invoice form. The fields are relatively straightforward.  Simply enter the information as if completing the form on paper.  The software will then automatically create the journal entry "behind the scenes" based on the general ledger account used by each item.

QBRA-2003: Customers > Create Invoices

QuickBooks sequentially numbers the invoices and credit memos (together) based on the form that has just been entered (not necessarily the next number after the highest number used).  For this reason it is important to not enter the invoices out of sequence if you wish to use this feature.  In addition, it is possible to have multiple invoices and credit memos with the same number.  A warning, that can be acknowledged and ignored, will appear (assuming the preference is turned on) if there is a duplicate.

Each line on the invoice that has a corresponding dollar amount should also have an item.  The purpose of the item is the "link" between the invoice form and how the general ledger accounts are updated.

New with version 2002 and higher is improved flexibility regarding sales tax.  It is now possible to assign various tax codes to the item as well as the customer.  These codes can be changed at the time of invoicing if necessary.  Also, detail reports for taxable and non-taxable sales are now available.  In older versions, sales tax will be charged on any line that has been marked with a "T" in the tax column, and the customer has been marked as taxable by placing a check mark in the box at the bottom of the invoice form.  If either is not marked, sales tax will not be charged.

TIP: If the invoices are created by the job, more detailed reports and statements are possible.  In version 2002 and higher it is possible to automatically apply one check received from the customer to multiple jobs.  In previous versions, the payments will need to be received by the job, then make one deposit to show the amounts together in the check register.

TRICK: When entering the open invoices as part of the initial setup, enter the original date and invoice number.  Create an item for the beginning balances, coded to the general ledger account called Opening Balance Equity. Once the invoices (and bills if appropriate) have been entered and reconciled, go back to the item list and make the item inactive.

TRICK: The memo field at the bottom of the invoice will print next to the invoice number on the statement or in the memo field on reports, but will not print on the invoice itself.

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Invoices