Additional Customer Transactions

1. Additional Customer Transactions 2014

2. Topics • Recording Customer Returns and Credits • Writing Off a Bad Debt • Creating Customer Statements • Collecting Sales Tax • Creating Sales Reports

3. Customer Returns and Credits • Use Credit Memos in following situations: • Cancel an order that has been invoiced • Returned merchandise • Credit-on-account for a customer • Refunding a customer

4. Refunding Customers By Check • In Credit memo, click Use Credit To and choose Give Refund • Issue a Refund window • Creates refund check in the checking account and records the Credit Memo

5. Writing Off a Bad Debt • Write off uncollectible invoices with a credit memo • Bad Debt Item • Bad Debt is an Other Charge Item linked to Bad Debts expense

6. Creating Customer Statements • Customer statements provide a summary of the activity for an accounts receivable customer during the period you specify

7. Activating Sales Tax and Setting Preferences

8. Using Sales Tax Items on Sales Forms • The Sales Tax Item calculates the tax for the sale

9. Setting Up Sales Tax Items

10. Sales Tax Codes • Additional classification for calculating and reporting sales tax • Assigned to each product or service item, as well as to each customer. • Sales Tax Codes serve two purposes • Indicate whether a specific product or service is taxable or non-taxable • Categorize revenue based on the reason you charged or didn’t charge sales tax.

11. Using Sales Tax Codes on Sales Forms

12. Setting up Sales Tax Codes • To set up a Sales Tax Code • From the Lists menu select Sales Tax Code List • Select New from the Sales Tax Code menu at the bottom of the list • Enter three character Sales Tax code and description • Each Sales Tax Code has a taxable or non-taxable status

13. Assigning Sales Tax Codes to Customers • Add Sales Tax Code to Customer in the Additional Information tab • Default Tax Code on sales forms

14. Calculating Sales Tax on Sales Forms • QuickBooks automatically calculates and tracks sales tax on each sale.

15. Sales by Customer Summary Report • Shows sales to each customer over a given date range • Select the Reports menu, then select Sales, and then select Sales by Customer Summary

16. Sales by Item Report • Shows sales of each Item over a given date range • Select the Reportsmenu, then select Sales, and then select Sales by Item Summary

17. Summary of Key Points • Recording Customer Returns and Credits • Writing Off a Bad Debt • Creating Customer Statements • Collecting Sales Tax • Creating Sales Reports