cancel
Showing results forΒ 
Search instead forΒ 
Did you mean:Β 
Announcements
Everything you need to know about banking in QuickBooks Online - Discover more

Reply to Message

View discussion in a popup

Replying to:
Rustler
Level 15

Reply to Message

The items you sell determine what account is posted to, basically service and inventory items should all have your sales income account selected as the income account on the item screen

when you create an invoice, this is the how it works

sales price is posted to income
sales tax if any is posted to sales tax payable
if you sold an inventory item, the cost of that item is removed from inventory and posted to COGS
the amount due is posted to A/R

 

When you receive payment on the invoice, the payment posts to A/R clearing the balance, and to undeposited funds. Then you use make deposits to put the money in the bank account

 

A/P is similar for bills
enter a bill and the
expense account selected is posted to
or the inventory item purchased is stocked with cost
and A/P is posted to

when you pay the bill, the bank account, or CC, is posted to and it clears the A/P account for that bill

Need to get in touch?

Contact us