Do I have to wait until I close the month before I enter the next months transactions (vendor invoices, sales, etc.) What field determines which month a transaction relates to?

Niki12 · ‎November 01, 2020

FYI, I am new to Quickbooks and will be using Quickbooks Desktop Pro.

I will be entering all transactions for 2019 and 2020 to date. I will be using accrual accounting. Can I enter (or import) all the activity first for all of 2019 and 2020, and then afterwards go back and close each month as time permits (for both 2019 and 2020)? After each month for all the periods (both 2019 and 2020) are closed then I would want to close the 2019 year, again as time permits. Is that sequence of events possible? What fields are the keys to determine in which period transactions will fall, before I do adjusting entries?

For example, a vendor invoice for services in June that is dated July 1st and posted on July 3rd. If I set the cut-off date for the month as June 30 how would Quickbooks determine the proper period for that invoice? When does accounts payable close? Is it on June 30 or does accounts payable stay open for a few days after month end to allow for as many vendor invoices as possible be included in accounts payable? Remaining vendor invoices after AP closes, but related to June would then be included in the accruals.

Another example is sales. If I enter all sales for both years first, would Quickbooks automatically include certain sales as being a June transaction. Then I would need to accrue any additional revenue related to June that will naturally appear as a July transaction. What field is key to determining which month the sales transactions would naturally fall into (before adjusting entries).

Hopefully I am clear in asking my questions. First question is basically can I enter transactions for multiple periods before going back to close individual months? Second question is about understanding how Quickbooks determines what transactions fall into which period and the fields that are responsible for making that period determination, ignoring accruals for purposes of the question.

I haven't been able to locate a Quickbooks Desktop Pro User Manual. I would appreciate if someone could point me to where I would find it.

Thank you for any insights you can provide.

Fiat Lux - ASIA · ‎November 01, 2020

You may utilize the IIF feature to import historical data. But you should consider using one of these importer tools to import some transaction types.

https:// transactionpro.grsm.io/qbd

https:// partners.saasant.com/affiliate/idevaffiliate.php?id=5051_2

We may share a PDF manual guide of an older QB Desktop version (i.e QBD 2016). Most of the content are still relevant for recent versions. Check our profile name and send your business email address should you interest to have it.

Catherine_B · ‎November 01, 2020

Hello there, Niki12.

I'd like to add further information to what Fiat Lux - ASIA provided. There are several ways on how to enter historical customer and vendor transactions. QuickBooks Desktop automatically updates your bank balance as you enter payments received from customers and payments to vendors.

You can record them in chronological order for accurate reporting. For customers, you enter charges, invoices, credits, and then payments. Vendor transactions you can start with bills, credit from vendors, and then payments.

The Accrual basis accounting method is the time when you enter transactions and the time you actually pay or receive cash. The report it shows income regardless of whether your customers have paid your invoices and expenses regardless of whether you have paid all your bills.

For more details, you can visit the Differentiate Cash and Accrual basis article. In addition, you can click here to get our QuickBooks Desktop User Guides.

You can always post your questions here if you need more help. Take care!

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Do I have to wait until I close the month before I enter the next months transactions (vendor invoices, sales, etc.) What field determines which month a transaction relates to?

Do I have to wait until I close the month before I enter the next months transactions (vendor invoices, sales, etc.) What field determines which month a transaction relates to?

Do I have to wait until I close the month before I enter the next months transactions (vendor invoices, sales, etc.) What field determines which month a transaction relates to?

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