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arif hamid
Level 1

invoice

Hello Every one ! 

 

I hope you all are doing great. 

 

I am writing this to understand the procedure of invoicing in QBO.

 

Once , an invoice is raised, QBO passes a journal entry behind the scenes and we can see in P/L invoices being charged to sales. 

 

E.g: 

Debit: Accounts Receivable / Cash 

Credit: Sales 

 

Why I am writing this because our QBO is connected to a system called Synchroteam (which is used for building maintenance). All the invoices are raised from there and are automatically raised in QBO. Upon running the P/L found that some of the invoices are charged to "Sales" but a lot are charged to "Unrealised loss on securities, net of tax". Why is that ? is this correct (which I don't think so) is this because of some connectivity issue between QBO and Synchroteam. I can delete all of them and raise them again and prevent this from happening again but first I need to understand the system of QBO. (is it simple as mentioned above in the e mail dr. A/R cr. Sales) 

 

Please advice. 

 

Kind Regards 

 

6 Comments 6
ReyJohn_D
Moderator

invoice

Hello there, @arif hamid.

 

Thanks for the details. I'd be glad to share with you some insights on how invoicing works in QuickBooks Online (QBO).

 

Normally, you create invoices in QBO if you plan to get paid in the future for products and services you sell. 

 

Once you receive the payments from your customers, you can enter them in QBO using the Receive payment feature. This way, they won't stay open and unpaid on your reports. Then, you can use the Undeposited Funds account to hold all payments until you're ready to deposit them at your real-life bank. 
 

Also, QBO depends on the account details setup shared by your Synchroteam app. This may be the reason they're showing on your Profit and Loss report. Thus, I suggest contacting your app provider so they can further check this.

 

You're able to personalize your invoices to get the details and formats you need. Please browse this article for more info: Customize invoices. You may also batch email or print them to make your task easy and efficient. 

 

To monitor them, you can run some invoices-related reports in QBO. These are the following:

 

  • Invoice List report shows all your invoices, ordered by date.
  • Open Invoices reports give details of all the unpaid invoices and statement charges, with totals for each customer.
  • Invoices and Received Payments report highlights all the payments you’ve received and the invoices that go with them.

 

If you need more QuickBooks help, just click the Reply button. Take care and have a nice day.

arif hamid
Level 1

invoice

Hello 

 

I hope you are doing great. 

 

I want to understand the chart of accounts used while raising the invoice. Once an invoice is raised, which accounts are debited and credited. How come "un realized loss on securities, net of tax" is credited. 

 

Grateful for your advice. 

 

Stay Safe! 

 

Regards 

 

 

Rose-A
Moderator

invoice

Hi, arif hamid.

 

I can help you run a report that shows the accounts used when you raised an invoice in QuickBooks Online.

 

The posting of an invoice will depend on what account (Income or Sales account) you use when you set up your items in QuickBooks Online. 

 

To see which account that's debited and credited when you raised an invoice via QuickBooks Online, you can run and filter the Journal report.

 

Here's how to run the report:

 

  1. Click Reports on the left and search for the Journal report on the search field.
  2. On the report screen, click Customize.
  3. Click Filter and select Transaction Type.
  4. Choose Invoice and hit Run report.
  5. You'll see which account is Debited and Credited in the report.

Also, I'd suggest getting in touch with your accountant. Your accountant can provide more expert advice on how the net of tax is credited.

 

Additionally, to get more ideas on how to utilize your reports in QuickBooks Online, you can visit the following article: How to Customize Reports: Basics, Sorting & Date Ranges. This will provide you a brief video for your visual reference.

 

I've got your back if there's anything else I can help with QuickBooks. Have a great rest of your day!

arif hamid
Level 1

invoice

Dear Rose 

 

Many thanks for your reply. 

 

I myself is an accountant and was asked to look after the books of accounts of this company. the owner has actually set up this in QBO and have linked QBO with synchroteam. he raises invoice is Synchroteam and it gets raised in QBO itself.

 

I ran the report you  mentioned in your reply. the debit account is A/R which is fine but credit account is Unrealised loss on securities, net of tax which I don't understand why ? it should be sales. as of now we are not charging our clients with Tax, have already submitted the application waiting for TRN. once received will include VAT in invoices too.

 

please advice if I can change the account for already raised invoices. or shall I delete them all and raise them again in QBO and also stop them being raise from Synchroteam.

 

many thanks in advance for your advice.

 

Regards

 

arif hamid
Level 1

invoice

and also can you please tell me how to setup the terms with QBO? can we change them now ? 

 

 

MaryAnn_E
QuickBooks Team

invoice

Hi there, @arif hamid.


You can change the account that is assigned to the item on the invoice. This will take effect on historical transactions. Also, you run the Profit & Loss report to see the account.

 

You can set up invoice terms through the Account and Settings. Here's how:

 

  1.  Go to the Gear icon at the top right to get to the Account and Settings.
  2. Click the Sales menu at the left pane, then tick the Sales form content section.
  3. In the Preferred invoice terms drop-down, choose to Add new or select the option provided.
  4. Hit Save to complete the process.

 

For additional information, consider checking out this article: How to Adjust Invoice Payment Terms in QuickBooks Online.

 

Please let me know if you have any other issues or concerns. I want to make sure everything is taken care of for you. 

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