103|QUICKBOOKS – Craig’s Ideal Invoices

BYU Student Author: @Kyle_Brown, @Nathan_Frazier, @Abby_Cheshire
Reviewers: @Derek_Cardall, @Mitchell_J_Otis, @Jimmy_Han, @Dallin_Gardner
Estimated Time to Solve: 20 Minutes

We provide the solution to this challenge using:

  • QuickBooks Online

Need a program? Click here

If you want an introduction on how to use QuickBooks Online, refer to Challenge 102|QUICKBOOKS – Getting Your Feet Wet to get step-by-step instructions.

Overview
In this challenge you will use QuickBooks Online to create invoices and utilize the different options within the invoices function. This challenge is meant for users that have little to no experience using QuickBooks.

You have been newly hired as an accounting employee at Craig’s Landscaping. Craig has given you some instructions for your day to help him out with Quickbooks. He has given you a list of invoices to complete and has asked you to run a couple of reports to send him. You know that the last accountant was not careful when recording items in Quickbooks and clients often came to Craig complaining about incorrect and untimely invoices. You want to make sure that you do this as quickly and as correct as possible. Craig wants to check your work using the two reports by the end of day today.

Instructions
Go to the QuickBooks Sandbox Company here: QuickBooks Online Test Drive. (This link allows you to make edits to a sample company, this company is individual to you and will be reset every night. There is already data in this sample company so it is important to make sure that all transactions you add are dated in 2022.)

Create and save each of the invoices below. You can create an invoice by clicking +New >> Invoice. Everything you need to create the invoices is on this screen. If you need more assistance check the suggestions and hints section.

For each invoice, do not fill out any fields that aren’t specifically mentioned in the details of the invoice.

  1. Kate Whelan received a big bonus at work and decided to put in concrete for a fountain in her backyard. On August 16, 2022 you performed the service of the concrete pouring. Create an invoice to Kate Whelan for the concrete service that took 5 hours at a rate of $50 per hour. Make the terms due on the 10th day of the following month, name this new invoice term “Net 10 EOM”. (ex. Any invoices dated in November 2022 should be due on December 10, 2022). Change the description of the installation to say “1 hour of work, 4 hour lunch break”.
  2. Your cousin Whitney owns a wedding planning business (called “Wedding Planning by Whitney”) and often contracts with you to help. She has a wedding where the bride is insistent that there be beautiful garden lighting and has requested your $400 design. Since Whitney is your cousin you give her a 20% friends and family discount. This took place on December 22, 2022. Make an invoice for Whitney with the $400 garden lighting and 3 hours of installation at the stated rate.
  3. Kookies by Kathy really wants you to do her gardening since you are so good at it. On December 29, 2022, you charged them $100 to do their gardening. Create an invoice that is due within 15 days, has a message on the invoice that says, “Thank you for the money! Don’t you love taxes?”, and includes Utah Sales Tax (4.7%). When adding the new tax entity, make the tax name “Utah State”, make the agency name “Utah Tax Commission”, and make the rate 4.7%. After adding the tax rate be sure that the boxes in the “Tax” column next to your products and services are checked.

Create and save as a pdf for each of the following reports: (You can get to the reports screen by selecting Reports on the left-sidebar. Search for the following reports by name)

  • Run an open invoices report as of 12/31/2022.
  • Run an accounts receivable aging summary report as of 12/31/2022.

Questions:

  • What is your balance for current invoices and what is your balance for over 90 days aging?
  • Do any of these invoices seem like they are uncollectible? If so, what would recommend Craig should do about it?
Suggestions and Hints
  • Make sure to use the dates listed in the instructions. If you use dates around the current date there will be other information that will appear on your reports.
  • To change the terms on an invoice, click the down arrow on terms near the top of the invoice. Click plus new then select the option stating “due by a certain day of the month”. Add 10 for both days to say we collect on the 10th day of each month.
  • To add a discount to the invoice scroll to the bottom of the invoice. Below the products and descriptions there is a box that says discount percent. Add 20 next to that value to give the 20% discount.
  • To change the sales tax on an invoice scroll to the bottom below the products and the discount option. Here there is a box that says “select the sales tax rate”. Click on the down arrow and click “add new” button. Add the Utah tax rate as specified in the instructions. Then make sure the box next to the service in the “Tax” column is checked.
  • Click this link for a guide on how to navigate QBO. Page 36 addresses creating invoices and page 63 goes over running reports.

Solution

Was able to figure it all out. I just had a little bit of trouble with the Net 10 EOM. I ended up having to get a little trial and error till I figured a number of days that work. Is there an easier way?


1 Like

What is your balance for current invoices and what is your balance for over 90 days aging?
-The current balance is 544.70 and the balance for accounts over 90 days is $250.00

Do any of these invoices seem like they are uncollectible? If so, what would recommend Craig should do about it?
-The longer that someone waits to pay you, the less likely that they are to pay you. Kate Whelan has a balance that has not been paid for over 91 days. It is likely that she may not pay craig. He could pester her and reach out to her many times, and if that does not work he could just put the amount of money that is owed into a bad debt account and move on.