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Bill Chart of Accounts Check Expense Expenses Reports Vendor Vendors

How to set it up and enter bank Line of Credit (LOC) transactions in new QuickBooks Online?

To track a line of credit (LOC) extended to your business, create a liability account with an opening balance of zero in your Chart of Accounts.

Chart of Accounts
Chart of Accounts

From the Home page screen

  • Go to the Company Gear (right upper-corner)
  • Select Chart of Accounts under Settings header
  • Select blue “New” button (right corner)
  • New “Account” information screen will open
  • Category Type = Other Current Liabilities
  • Detail = Line of Credit
  • Name = Line of Credit (or Chase Line of Credit if preferred to name the bank)
  • Description Line of Credit (or same as name)
  • Balance = Leave opening balance as “0” (zero even if you’ve already used LOC and has balance. It’s better to enter transaction later.)
  • Click “Save” button
Add new LOC account
Add new LOC account

To record (for example $100,000.00) the LOC extended to your company and deposited to main Checking account:

Bank Deposit
Bank Deposit

From the Home page screen

  • Go to Create “+” sign (top middle)
  • Deposits under Other header
  • Ensure the proper Deposit to account is selected (in this example, Chase Checking Account)
  • Date = Enter bank posted date
  • Go “Add New Deposits” section
  • Received From = Chase LOC Payment (Add New as Vendor if needed)
  • Account = Line of Credit (Select the “Line of Credit” account just created as “Other Current Liabilities) from the Account drop-down arrow)
  • Description = For example, Chase line of credit deposited to Chase Checking Account
  • Payment Method = Bank Online or appropriate (add new if needed)
  • Ref Number = Enter last four digits of LOC number (optional)
  • Amount = $100,000.00
  • Attachments (paper clip icon) = Upload picture of related document (if available)
  • Click “Save and New or Save and Close” blue button

This entry will show you have added $100,000 as deposit to Chase Checking Account and $100,000 as liability to Chase LOC account.

loc deposit
loc deposit

To record just interest charges (in this example $500 interest charges) applied to the LOC by your financial institution:
See instructions below for making Principal and Interest Payment.
From the Home page screen

  • Select blue navigation bar on the left
  • Select Transactions
  • Select Registers
  • Locate Line of Credit Account register
  • Double click Line of Credit Account
  • Liability for Line of Credit screen will open
  • Enter the date of the interest charge (for example 4/30/2014)
  • Financial institution name where the line of credit is held as the Payee (in this example Chase LOC Payment)
  • Enter the interest charge in the Increase column (in this example $500.00)
  • Choose Interest Expense account from the “Account” drop-down arrow
  • Enter “Memo” as Interest Expense for the period (in this example for April, 2014)
  • Click Save
Record Interest Expense
Record Interest Expense

To record a repayment of the LOC and/or payment of interest charges:
(In this example making $5,000 LOC payment from Chase Checking Account ($4,500 principal and $500 interest)

From the Home page screen

  • Select Create “+” sign
  • Select “Expense” (if paid Online) or Select “Check” (if issued Check) under Vendors header. In this example, we are making online payment.
  • Click the LOC Account as Payee from drop-down arrow (“Chase LOC Payment” in this example)
  • Choose the bank account you want to make payment from (“Chase Checking Account” in this example)
  • Expense Date: = Payment Date (for example 4/30/2104)
  • Payment Method: = Bank Online
  • Under Account Details, click the drop-down arrow and choose the “Line of Credit” account (Other Current Liabilities type),
    Under Description = Principal Payment
    Under Amount = $4,500.00
  • On the second line, Under Account Details, click the drop-down arrow and choose the “Interest Expense” account (Expenses type),
    Under Description = Interest Payment
    Under Amount = $500.00
  • Make sure total payment is $5,000.00
  • Attachments (small paper clip icon, bottom left): Upload photo of LOC statement. Optional but recommended.
  • Click Save and New or Save and Close button
LOC payment
LOC payment

To enter a payment that has been made directly from the LOC to a vendor, where no bills have been entered:
In this example, we are making $10,000 payment to Simon Manufacturing for purchased materials.
From the Home page screen

  • Select blue navigation bar on the left
  • Select Transactions
  • Select Registers
  • Locate Line of Credit Account register
  • Double click Line of Credit Account
  • Liability for Line of Credit screen will open
  • Enter the date of the purchase (for example 4/30/2014)
  • Name of Vendor Payee (in this example Simon Manufacturing)
  • Enter the amount in the Increase column (in this example $10,00.00)
  • Choose Purchases Expense Account from the “Account” drop-down arrow
  • Enter “Memo” as Buying Materials (for example XYZ job)
  • Click Save

NOTE: This transaction will not show up on Vendors Center record. For to show transaction recorded on Vendors Center, see three-steps process below.

LOC purchases
LOC purchases

To pay bills where funds have gone directly from the line of credit to the Vendor Entered Bill as Accounts Payable:
This involves three steps process.

Step # 1 Enter Vendor Bill

Enter Vendor Bill
Enter Vendor Bill

From the Home page screen

  • Select Create “+” sign
  • Select “Bill” under Vendors header
  • Select Vendor = Simon Manufacturing
  • Date = 4/30/1014
  • Under Account Details column, select Account = Purchases Expenses Account for example
  • Amount = $10,000.00
  • Click Save and Close button

This entry will created Accounts Payable balance of $10,000.00 to Simon Manufacturing’s account

Step # 2 Write Journal to show payment to Vendor by LOC

Journal Entry
Journal Entry

From the Home page screen

  • Select Create “+” sign
  • Journal Entry under Other
  • Enter the date (for example 4/30/2014)
  • On the first line, click the Account drop-down arrow and select Accounts Payable
  • Under the Debit column, enter the amount ($10,000 in this example) you paid the vendor
  • Enter a memo such as “Paid from line of credit”
  • Under Name, click the drop-down arrow and select the vendor you paid (“Simon Manufacturing” in this example)
  • On the second line Under Name, click the Account drop-down arrow and select the line of credit account (“Line of Credit” in this example)
  • Under the Credit column, enter the amount you paid the vendor ($10,000 in this example)
  • Enter a memo such as “Paid from line of credit”
  • Click Save and Close
Journal Entry for Purchase Payment
Journal Entry for Purchase Payment

Step # 3 Now you need to link the bill payment to the vendor credit paid by LOC:
From the Home page screen

  • Select Create “+” sign
  • Select “Pay Bills” under Vendors header
  • Under Pay to the Order of, select the vendor name (Simon Manufacturing)
  • Under Choose an account for Bank, Select Bank Clearing Account (Add new if needed. This account will always have zero balance.)
  • The screen will refresh and you’ll see a matching amount under Credits and Bill Payment Information.  Click the checkboxes so the amounts match.
  • Leave the amount blank as “0.00” zero. It’s “In and Out” entry, so amount should be zero
  • Click Save and Close button

This entry will clear Accounts Payable and will show payment transaction on Vendor Center.

Apply LOC payment to vendor 1
Apply LOC payment to vendor 1

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Categories
Reports

Why is every report not listed under All Reports in new QuickBooks Online?

Why is every report not listed under All Reports? How is it possible to review what reports are available, if they are not listed? I am not happy with this setup.

From blue navigation bar on the left

      Select Reports
      Just “Go to report” with magnifying glass (above recommended link, middle left corner)
      This is where all the standard reports (57 reports to be exact as of today) are located.

Reports Screen
Report Screen
Categories
Profit and Loss Reports

I need to track revenues and expenses across multiple lines of business. Does QuickBooks Online Plus support profit and cost centers?

You can establish Profit and Cost Centers by enabling Class tracking feature in new QuickBooks Online Plus.

To enable Class tracking feature:

  • From the Home page screen
  • Select the Company Gear (top upper corner)
  • Select Company Settings under Settings header
  • Select Company
  • Select/Double Click to enable “Track Classes On” under Categories
Class Tracking
Class Tracking
Categories
bank reconciliation Bank Register Reports

How to view all uncleared / uncashed checks in new QuickBooks Online?

To check the status on a check you can run a Check detail report

  • Select the blue navigation bar on the left
  • Select Reports
  • Go to Report (magnifying glass) and type Check
  • Select “Check Detail”from the dropdown selector list
  • This report will provide all issued checks.
  • Once report is open click Customize button (top left corner)
  • Customize by:
    1. General > Transaction date > All Dates

      Lists > Transaction Type > Check

      Status > Cleared > uncleared

  • Run report

Customize Check Detail All Dates
Customize Check Detail All Dates
Customize Check Detail Check Uncleared
Customize Check Detail Check Uncleared
Uncleared Check Detail Report
Uncleared Check Detail Report
Categories
Reports

How can I run a report that gives me the detailed automobile expenses for this year in new QuickBooks Online?

Run Transaction Detail by Account and customize the report to show just Automobile Expense account.
Select the blue navigation bar on the left

  • Select Reports
  • Go to Report (magnifying glass) and type Transaction
  • Select Transaction Detail by Account from the dropdown selector list

This report will show all transaction details by all accounts
We will to need to customize this report just to show Automobile Expense account only.

  • Change Transaction date as necessary (for example change to This Year to run report this year only)
  • Click Customize button (located top left corner)
  • Select “Lists”
  • Go to Distribution Account under Lists
  • Scroll down the list and select “Automobile Expense”
  • Select Run Report button
  • Now you’ve Transaction Detail by Account report for Automobile Expense account only.
  • If you need to run similar report for other accounts, follow the same steps, just select appropriate account from Distribution Account List.

You can also customize this report (click Save Customizations button) if you need to see just Automobile Expense next time.

Transaction Detail by Account Customize
Transaction Detail by Account Customize

Transaction Detail by Account
Transaction Detail by Account
Run Transaction Detail by Account and customize the report to show just Automobile Expense account.

Other way to generate that report is to use your chart of accounts to create a “QuickReport.”

To do this:

  • Click on the gear in the top right and choose “Chart of Accounts” in the dropdown
  • On the chart of accounts, scroll down to the expense account you categorized your interest to
  • Click on that account once and then click the “Report” button in the upper right
  • Set your date range at the top of the report and click the “Run Report” button and you’re good to go!
Categories
Bank Register Reports

How can I undo the previous bank reconciliations in new QuickBooks Online?

QuickBooks Online doesn’t have an Undo Last Reconciliation feature. To unreconcile a reconciliation you’ll need to unreconcile each transaction via the register.

Reconcile
Reconcile

To access and print a previous reconciliation report:

  • From the gear icon go to Reconcile.
  • Choose the account from the drop-down list.
  • Click on the desired reconciliation report.
  • Once the report is open, click Print.

To undo a reconciliation:

Reconcile Go To Register
Reconcile Go To Register
  • Select Transactions on the left menu then Registers.
  • Click on the account then click Go to Register
  • Find the transactions that need to be unreconciled, one at a time.
  • To highlight click on the transaction.
  • Click on the R on the top line of the transaction, which is between the Payment and Deposit or Charge and Payment amount. Clicking in this field will allow you to change the status of the transaction to the desired status from blank = unreconciled to C = Cleared.
  • Click on Save.
  • A message will appear: This transaction has already been reconciled. You should only remove the R if you’re correcting a mistake. Are you sure you want to remove the R? click Yes.
  • Continue this process for each transaction on the reconciliation report or statement you want to unreconcile.
Categories
Bank Register Banking Reports

How to undo a bank reconciliation without clicking of all the Rs manually in the registers in new QuickBooks Online?

There is no easy answer. Removing the Rs from the register can turn into a long, tedious process.

Unfortunately, QuickBooks Online doesn’t currently have a way written into the program to undo a reconcile all at once. If you feel the reconcile must be undo, then we do require that reconciles be undone transaction by transaction.
Other alternative:
Ask your Accountant or a Certified ProAdvisor with QB Online Accountant (QBOA) subscription to undo it for you. They can do it in QuickBooks Online Accountant.

Categories
Reports

How to change cash flow forecast beginning balance in new QuickBooks Online?

In QBO, Cash Flow Forecast beginning balance is based on accrual basis accounting method. And, it is fixed. No way to change it from accrual to cash.

If you are running the Balance Sheet and Profit & Loss reports, you will need run on accrual basis as well to match with Cash Flow Forecast report?

For detailed instructional guide regarding these topics, you can also checkout our YouTube videos published for new QuickBooks Online users.

QuickBooks Online (QBO) Tutorial – Customer Invoice, Sales Receipt, Receive Payment, Bank Deposit

New QuickBooks Online Plus – How to enter various expenses in new QBO?

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Categories
Chart of Accounts Reports

Capital Expenditure Issues?

We are building an IT platform with custom software, the costs of which can be considered capex (capital expenditure) and capitalised on the balance sheet as an asset but I cannot see which account in QBO to do this?

It’s generally part of Fixed Assets Category Type.

Click Company Gear > select Chart of Account under Settings > New button > Category Type = Fixed Assets > Detail Type = Other fixed assets (or Machinery & Equipment) > Name = Capitalized Software

You will need to get advice directly from your Accountant as well as auditors if required.

Certain software development costs can be capitalized only when it meets certain specific thresholds.
1.Capitalization occurs once technological feasibility has been established. Before that, it’s just software development phase (like R&D) overhead expense cycle.
2.All capitalized costs are determined to be recoverable. There is a very small window of accumulated costs that can be capitalized. Nom is no more than two years.
3.Capitalization ends and amortization begins when the product is available for general release to customers.
4.Also refer to FAS86-amended



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Categories
Reports

How many reports are currently available in new QuickBooks Online? How to check reports?

This slideshow requires JavaScript.


  • From the home page screen
  • Go to blue navigation bar on the left
  • Select Reports
  • Select “Go to report” (spyglass)
Search Reports
Search Reports

These are standard reports currently available in new QuickBooks Online Plus?

  1. A/P AGING DETAIL
  2. A/P AGING SUMMARY
  3. A/R AGING DETAIL
  4. A/R AGING SUMMARY
  5. ACCOUNT LISTING
  6. Audit Log
  7. BALANCE SHEET
  8. BALANCE SHEET SUMMARY
  9. BILL PAYMENT LIST
  10. CHECK DETAIL
  11. COLLECTIONS REPORT
  12. Company Snapshot
  13. CUSTOMER BALANCE DETAIL
  14. CUSTOMER BALANCE SUMMARY
  15. CUSTOMER CONTACT LIST
  16. DEPOSIT DETAIL
  17. ESTIMATES BY CUSTOMER
  18. Exceptions to Closing Date (Audit History)
  19. EXPENSES BY VENDOR SUMMARY
  20. GENERAL LEDGER
  21. INCOME BY CUSTOMER SUMMARY
  22. INVENTORY VALUATION DETAIL
  23. INVENTORY VALUATION SUMMARY
  24. INVOICE LIST (INVOICE LIST BY DATE)
  25. JOURNAL
  26. OPEN PURCHASE ORDER LIST (OPEN PURCHASE ORDER LIST BY VENDOR)
  27. PROFIT AND LOSS
  28. PROFIT AND LOSS DETAIL
  29. PURCHASES BY PRODUCT/SERVICE DETAIL
  30. PURCHASES BY VENDOR DETAIL
  31. RECENT TRANSACTIONS (TRANSACTION REPORT)
  32. RECENT/EDITED TIME ACTIVITIES
  33. Reconciliation Reports
  34. SALES TAX LIABILITY REPORT
  35. SALES BY CUSTOMER DETAIL
  36. SALES BY CUSTOMER SUMMARY
  37. SALES BY PRODUCT/SERVICE DETAIL
  38. SALES BY PRODUCT/SERVICE SUMMARY
  39. Scorecard
  40. STATEMENT LIST
  41. STATEMENT OF CASH FLOWS
  42. TAXABLE SALES DETAIL
  43. TAXABLE SALES SUMMARY
  44. TIME ACTIVITIES BY CUSTOMER DETAIL
  45. TIME ACTIVITIES BY EMPLOYEE DETAIL
  46. TRANSACTION DETAIL BY ACCOUNT
  47. TRANSACTION LIST BY CUSTOMER
  48. TRANSACTION LIST BY DATE
  49. TRANSACTION LIST BY VENDOR
  50. TRANSACTION LIST WITH SPLITS
  51. TRIAL BALANCE
  52. UNBILLED CHARGES
  53. UNBILLED TIME
  54. UNPAID BILLS
  55. VENDOR BALANCE DETAIL
  56. VENDOR BALANCE SUMMARY
  57. VENDOR CONTACT LIST

Date: 03/26/2014