QB 2002 Basic quest. / setting up Customer Discount


K

Karen

Hi,

I'm rather new to QB but have done a lot of financial work in the past
(using mainframes and massive amounts of programming) but am working in
a very small office and have found some discrepancies such as their
invoice accounts not reflecting (deducting) those that are sent out
either through complementaries or sales. One of the things that I
cannot seem to locate is the small box to check in "preferences" that
allows for a customer discount (by specific customer) to be entered.
I'm seeing it in the manual that came with the software and also in the
Ivens book but it is nowhere to be seen in the software. I'm assuming
by the books that this is in the Sales & Customers "Company Preferences"
tab but it is not there to check. So how can I, without this feature,
apply a discount at the time of the sale to the invoice?

Other issues involve a main invoice item (they are CD's) set up as an
invoice item but all of the other "list items" contain the identical CD
(with a slightly modified name) set up as both non-inventory "service"
items as well as "discount" items which the user has been employing
since the system was originally set up. Of course none of these are
deducting from the inventory count which in the business is essential.
To be honest, I'm unsure what a "service" account really is but also
have the feeling that this system was set up completely wrong and that
there should perhaps be *one* CD item that is inventory, the discount
set up by customer, and each invoice should bump up against the
inventory item and not a "service item" as is currently being done.

I'm not an accountant but as stated worked with financial software and
some of the above "in place" procedures just don't seem right to me. Am
I way off here or are my questions valid?

And how can I get a discount set up at the time of sale when there is no
checkbox for it as outlined in all of the books?

They also use "consignments" which I've recently read are a nightmare if
not impossible to set up in QB 2002. I'd imagine a workaround of just
using a "packing slip" and not an invoice to get around that but again,
am unsure as to how this works.

Thanks,

Karen
 
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?

_

1. Customer discounts, called "Price Levels" by QB, are a feature of
QB Pro, not Basic. You will have to use a Discount Item (which often
works best in conjunction with a Subtotal Item).

2. I think your analysis is correct - the Items have not been set up,
or are not being used, appropriately. A Service Item is just what it
sounds like - a service that is purchased or sold, as opposed to a
product that is tracked as Inventory. You should find reasonably good
descriptions of different Item types if you click Help while editing
an Item or creating a new Item.

3. Consignment sales are complicated in almost any accounting system.
I don't think they're any worse with QB than with other programs. I
haven't looked recently, but at one time the KnowledgeBase on the QB
website had a couple of articles describing recommended procedures in
detail - search the KnowledgeBase to see if they're still available.
Reading the details, it sounds more complicated than it really is; but
if you take it step by step and consider what's happening at each
step, it makes sense.
 
K

Karen

Thanks for the validation that my feelings were right on how their books
were originally set up. Hopefully they will upgrade to the latest Pro
version so at least they will have the customer discounts at the time of
sale. One of the problems still is though on "billed" sales vs
"consignment" sales. I couldn't find anything at all in the KB on
consignments, even searching the articles in QB 2004 Pro. If anyone has
any ideas of how to handle a consignment I'd appreciate it. This is a
slow and flow charted analysis of how things should be set up and I'm
not putting a finger to the setup until I know of all the issues and of
how to solve them, or at least employ workarounds.

Thanks again,

Karen

wrote:
 
B

Bob Williams

Thanks for the validation that my feelings were right on how their books
were originally set up. Hopefully they will upgrade to the latest Pro
version so at least they will have the customer discounts at the time of
sale. One of the problems still is though on "billed" sales vs
"consignment" sales. I couldn't find anything at all in the KB on
consignments, even searching the articles in QB 2004 Pro. If anyone has
any ideas of how to handle a consignment I'd appreciate it. This is a
slow and flow charted analysis of how things should be set up and I'm
not putting a finger to the setup until I know of all the issues and of
how to solve them, or at least employ workarounds.
<big snip>

You could try using either Sales Orders or Pending Invoices - neither
of them post and can keep a record of the potential sale.

Bob Williams
 
K

Karen

Bob said:
<big snip>

You could try using either Sales Orders or Pending Invoices - neither
of them post and can keep a record of the potential sale.

Bob Williams
Bob,

Thanks for the help. I'll look into this. I'd thought of "packing
slips" but your suggesting sounds a lot more accurate.

Karen
 
T

Tee

Karen said:
Hi,

I'm rather new to QB but have done a lot of financial work in the past
(using mainframes and massive amounts of programming) but am working in
a very small office and have found some discrepancies such as their
invoice accounts not reflecting (deducting) those that are sent out
either through complementaries or sales. One of the things that I
cannot seem to locate is the small box to check in "preferences" that
allows for a customer discount (by specific customer) to be entered. I'm
seeing it in the manual that came with the software and also in the
Ivens book but it is nowhere to be seen in the software. I'm assuming
by the books that this is in the Sales & Customers "Company Preferences"
tab but it is not there to check. So how can I, without this feature,
apply a discount at the time of the sale to the invoice?

Other issues involve a main invoice item (they are CD's) set up as an
invoice item but all of the other "list items" contain the identical CD
(with a slightly modified name) set up as both non-inventory "service"
items as well as "discount" items which the user has been employing
since the system was originally set up. Of course none of these are
deducting from the inventory count which in the business is essential.
To be honest, I'm unsure what a "service" account really is but also
have the feeling that this system was set up completely wrong and that
there should perhaps be *one* CD item that is inventory, the discount
set up by customer, and each invoice should bump up against the
inventory item and not a "service item" as is currently being done.

I'm not an accountant but as stated worked with financial software and
some of the above "in place" procedures just don't seem right to me. Am
I way off here or are my questions valid?

And how can I get a discount set up at the time of sale when there is no
checkbox for it as outlined in all of the books?

They also use "consignments" which I've recently read are a nightmare if
not impossible to set up in QB 2002. I'd imagine a workaround of just
using a "packing slip" and not an invoice to get around that but again,
am unsure as to how this works.

Thanks,

Karen
Do they take in consignment items or consign their items out?

For incoming consignments (things the store holds that aren't theirs):

Set up two liability accounts...one for the actual items called
Consignments & one called Due to Consignee. The item you set up in the
inventory list should be coded to Consignments (liability vs default
inventory asset). Unfortunately you may have to go into the Adjust
Inventory screen to manually change the default account for items you
post this way to the 2nd liability account of Due to Consignee. This
way they balance out and are never recorded as assets. Not sure about
Basic but QB Pro has a nasty little default that sends all new inventory
items to Opening Balance Equity...at least 2001 does...so that's why I
say you may have to go into adjustments each time you set up a new
consignment item.

For outbound consignments (things your client consigns out):

Use the invoice and mark it as Pending via the Edit menu. Another
possibility is to set up an A/R account called Due from Consignments.
Remove items from inventory when they leave the premesis and put them
into the DfC A/R account to show you expect them or their value in
return. You can use the Inventory Adjustment screen for this IIRC.
 
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M

Mike Block, C.P.A.

Karen said:
Hi,

I'm rather new to QB but have done a lot of financial work in the past
(using mainframes and massive amounts of programming) but am working in
a very small office and have found some discrepancies such as their
invoice accounts not reflecting (deducting) those that are sent out
either through complementaries or sales. One of the things that I
cannot seem to locate is the small box to check in "preferences" that
allows for a customer discount (by specific customer) to be entered.
I'm seeing it in the manual that came with the software and also in the
Ivens book but it is nowhere to be seen in the software. I'm assuming
by the books that this is in the Sales & Customers "Company Preferences"
tab but it is not there to check. So how can I, without this feature,
apply a discount at the time of the sale to the invoice?

Other issues involve a main invoice item (they are CD's) set up as an
invoice item but all of the other "list items" contain the identical CD
(with a slightly modified name) set up as both non-inventory "service"
items as well as "discount" items which the user has been employing
since the system was originally set up. Of course none of these are
deducting from the inventory count which in the business is essential.
To be honest, I'm unsure what a "service" account really is but also
have the feeling that this system was set up completely wrong and that
there should perhaps be *one* CD item that is inventory, the discount
set up by customer, and each invoice should bump up against the
inventory item and not a "service item" as is currently being done.

I'm not an accountant but as stated worked with financial software and
some of the above "in place" procedures just don't seem right to me. Am
I way off here or are my questions valid?

And how can I get a discount set up at the time of sale when there is no
checkbox for it as outlined in all of the books?

They also use "consignments" which I've recently read are a nightmare if
not impossible to set up in QB 2002. I'd imagine a workaround of just
using a "packing slip" and not an invoice to get around that but again,
am unsure as to how this works.

Thanks,

Karen

You can set up discount at the time of sale by creating Price Level
from the Price Level List under Item menu. For each specific Customer
set up a different Price Level. But Discount will not be recorded
separately in QuickBooks because the Sales recorded will be Net Sales
i.e. excluding the Discount amount.

For Inventory set up, first check out whether your client has turn on
the Inventory feature or not. To do this go to Preferences under Edit
Menu and from then select Purchases and Vendor. Now check how your
client has recorded the Purchase of CD. It should be an Inventory Item
and not a Service or Non-Inventory Item. Use this Item while entering
a Bill from Vendor and the same Item should be selected while creating
an Invoice.

Mike Block, C.P.A.
Intuit paid me to make QuickBooks better!
http://www.blocktax.com/
http://www.quickbooks-add-ons.com/
 
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K

Karen

Tee said:
Do they take in consignment items or consign their items out?

For incoming consignments (things the store holds that aren't theirs):

Set up two liability accounts...one for the actual items called
Consignments & one called Due to Consignee. The item you set up in the
inventory list should be coded to Consignments (liability vs default
inventory asset). Unfortunately you may have to go into the Adjust
Inventory screen to manually change the default account for items you
post this way to the 2nd liability account of Due to Consignee. This
way they balance out and are never recorded as assets. Not sure about
Basic but QB Pro has a nasty little default that sends all new inventory
items to Opening Balance Equity...at least 2001 does...so that's why I
say you may have to go into adjustments each time you set up a new
consignment item.

For outbound consignments (things your client consigns out):

Use the invoice and mark it as Pending via the Edit menu. Another
possibility is to set up an A/R account called Due from Consignments.
Remove items from inventory when they leave the premesis and put them
into the DfC A/R account to show you expect them or their value in
return. You can use the Inventory Adjustment screen for this IIRC.
Tara,

Thanks so much for this. They consign "out" for one of their businesses
but it goes both ways for another (which I haven't even looked at yet
but I'm sure that it's just as chaotic as the one I'm looking at now.
I'm also beginning to feel that *I* should be doing there books and not
the woman who is currently doing them, and has been for a few years now.
I'd like that!

Karen
 

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