QuickBooks Online uses a concept called 'Source' and 'Targets' to build transactions and reports. Understanding this concept will help you create more effective reports.
What are Source and Targets?
Source of a transaction
The Source of a transaction is the summary information about the transaction and includes the source account, source name, source memo, source amount, etc. Each element of source data occurs only once in the transactions.
Targets of a transaction
The Targets of a transaction provides detailed information about the transaction and includes the target accounts, target names, target memos, target amounts, etc. Some characteristics of the Targets are:
- Transaction usually has multiple targets.
- There are a few transaction types that can have only one target (i.e. Payment, Transfer).
- Each element of the target data set can appear multiple times in the transaction.
- In some transactions, the source data is copied into the target data:
- In an invoice, the target names are always copied from the source name.
- In an invoice, the target numbers are always copied from the source number.
Determine the source and targets
- Access the Transactions Journal. The first line is the source data and the rest of the lines are target data
- QuickBooks Online:
- Open transaction (Invoice, Bill, etc.).
- At the bottom of the page, select More.
- Choose Transaction journal.
- QuickBooks Desktop:
- Open a transaction (Invoice, Bill, etc.).
- Press Ctrl + Y.
- QuickBooks Online:
- A summary report (i.e. Sales by Customer Summary) contains only source data.
- A detail report (i.e. Sales by Customer Detail) contains only target data.
Filters allow Source and Target data into a report to show the information that you need.
- If a transaction matches the selected filters, it is included in the report.
- If a transaction does not match the select filters, it is excluded from the report.
Embedded filters are part of the report programming. They cannot be changed when you customise reports.
- The Invoice List Report has an embedded filter to include only invoices. You cannot include other transactions.
- The Stock Valuation Summary Report has an embedded filter including only Stock Items.
- The A/R Ageing Detail report has an embedded filter that excludes transactions that don't affect Accounts Receivable.
Default Filters are set when you first run a report, they can be changed when you customise reports.
- The Sales by Product/Service Detail report has a default filter of all sales items, but you can change. the Product/Service filter to include other item types.
- Most expense reports have a default filter of A/P Paid to set whether you want to see all paid or unpaid bills
- You cannot change the default filters until after a report is run or the Customise window is displayed.
- Product/Service- Change which items show up on the report. Only transactions with selected items will be included on report.
- Payment Method- Only include transactions capture with a certain type of payment (cash, credit card, cheque, etc).
- Transaction Type- Show only specific types of transactions (invoices, sales receipts, bills, etc).
Filtering for A/R or A/P on cash basis removes all data
- Report = Custom Transaction Detail
- Basis = Cash
- Account = All Accounts Receivable or All Accounts Payable
The report is blank because Accounts Receivable (A/R) and Accounts Payable (A/P) are accrual accounts; you cannot report on them on a cash basis.
How reports get data
Company & Financial Reports
The Profit and Loss Standard displays target data from invoices and bills and source data from:
- A journal entry, if the first line has an income or expense account.
- An Stock adjustment, if the offset account is an income or expense account.
- Liability adjustments affecting accounts.
The Balance Sheet Standard displays source data and some target data from:
- Bill Payment Cheques
- Stock Adjustments
- Received from accounts on Deposits
- Sales and purchase transactions that have Stock Items
The Statement of Cash Flows displays both source and target data:
- Sources include Accounts Receivable accounts on invoices and Accounts Payable accounts on bills.
- Targets include bank accounts on payments and bill payment cheques.
The General Ledger displays both source data and target data because it draws on all of the data in the company file.
Common Customer and Receivable Reports
A/R Ageing Summary, Customer Balance Summary/Detail, Invoice List Report. These reports displays:
- Source data from open invoices, statement charges, and credit notes.
- Target data from open payments, open deposits, and open journal entries.
Common Supplier and Payable Reports
A/P Ageing Summary, Supplier Balance Summary/Detail, Unpaid Bills Report. These reports displays:
- Source data from open item receipts, bills, and bill credits.
- Target data from open bill, payment cheques, and open journal entries.