Quickbooks is Garbage: Reason #24


S

S.M. Serba

(e-mail address removed)> wrote in message
Noone is talking about posting POs to the G/L and doing all kinds of
things with them as one would do with a Vendor bill.

What we are discussing is the inability of Quickbooks to put sensible
and useful information on a piece of paper. That's all.

If I send out two POs and have received one which accounting principle
am I violating if I want to see their total on a report?

And if you tell me that this is a Job Costing issue and not an
Accounting or Bookkeeping issue, then why the h*ll does Quickbooks
show both POs *and* the bills that received them and adds all of them
up?
Job costing is DEFINITELY an accounting or bookkeeping issue. However,
as I stated in a previous post, I have not got enough experience with
purchase orders
in QB to confirm for myself that the program posts PO's to the G/L. Provided
you
are correct, the program IS WRONG. Until goods ordered are received and
billed, the costs should NOT appear on the G/L posted to a G/L account.

However, that being said, there should be no reason at all that QB should
not
be able to generate some sort of report which would show costs to date on a
job, and future costs to be incurred when outstanding PO's are received.
Unless,
of course, there is a bit of "faulty program logic".

IMHO, outstanding POs should NEVER be posted to the G/L. That is what I
would post to WIP and Accrued Liabilites. I would account for goods ordered
but not yet received in that manner.
 
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A

Allan Martin

However, that being said, there should be no reason at all that QB should
not
be able to generate some sort of report which would show costs to date on a
job, and future costs to be incurred when outstanding PO's are received.
Unless,
of course, there is a bit of "faulty program logic".

Actually QuickBooks can generate two reports. Open Purchase Orders by Job,
and Profit and Loss by Job. Combining the amounts from both reports would
give the user the information you state above.


As far as your statement above I understand why you made it. I have be a
computer consultant for many years. In that time I have written hundreds of
custom reports for my clients. Each of these reports have been different
with one exception. For each report that the end users requested they were
convinced that their report is so important that it should have already be
created and included with the program out of the box.
 
L

L

Allan Martin said:
.

Say what? You are actually finding fault in one of the programs greatest
strengths. I've said it before and I will say it again. You are the biggest
disapointment in my life.
Allan, you must lead a very charmed life.

A kid who chooses his own destiny over your expectations.. or even a dog who
is slow at house-breaking - these are disappointments. An anonymous poster
to a newsgroup who disagrees with your Intuit bias....your biggest
disappointment? lol
 
G

Guest

S.M. Serba said:
Job costing is DEFINITELY an accounting or bookkeeping issue.
Absolutely! Quickbooks has some semi-basic-rudimentary reporting
features for job costing but a lot of it is incomplete and just wrong.

in QB to confirm for myself that the program posts PO's to the G/L.
It doesn't post them to the G/L. But if you do a P&L report for a Job
and then you choose to include non-posting transactions to get a total
of expenses both realized (received bills) and expected (POs),
Quickbooks shows the POs and the bills that received them and there is
no way to exclude the POs that have been received to avoid the double
counting.

===
 
G

Guest

Allan Martin said:
For each report that the end users requested they were
convinced that their report is so important that it should have already be
created and included with the program out of the box.
And who taught the unskilled-$1.20/hr-offshore-pc-slave-farm-drones
that are apparently making all the development decisions for
Quickbooks what is important and what isn't for a small business
owner?

Instead of offering progressively more ways of reporting with every
version so that they cover as many user needs as possible they are
still refusing to fix glaring errors and they are selling a $3,500
piece of trash that can't even sort correctly.

And this is good enough for you. Very disappointing...

==
 
G

Guest

L said:
An anonymous poster
to a newsgroup who disagrees with your Intuit bias....your biggest
disappointment? lol
I had this effect on people before when I overcooked an elaborate
seafood casserole. We ended up ordering out but what should I do here?
Start cheering for Intuit? :)

....
 
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A

Angela Thornton

S.M. Serba said:
I worked in the construction industry for 5 years as a mid-sized
contractor's accounting manager. I don't think for any reason, ANY
accounting/bookkeeping software should post ANYTHING in either
an estimate or purchase order to the G/L until there is either an invoice
billed or a bill received, for the full or partial balance of the estimate
or
PO. I don't use PO's or estimates in QB enough to know if it does
indeed perform the way the OP states.
The only thing we issue PO's for the occasional purchase of large,
custom-built structures. They are a liability as soon as we issue the
PO, because we are legally committed to purchasing the structure, even
if the job would fall apart on our end.

For that reason, it is indeed a liability, and should be shown as
such, even though we do not get billed for the unit until it is
completed. It is never actually in inventory, as it goes directly from
the manufacturer to the job site. Usually that happens before the
invoice is received.

It doesn't have any effect on our tax basis - that's something totally
different. We pay taxes on a cash basis, anyway.

Angela
 
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Angela Thornton

S.M. Serba said:
No. I disagree. No government can tax you for revenues you have not
yet earned. Unearned revenues are typically posted to a G/L liability
account. They are not taxable until earned or you create an invoice
to offset the prepayment.
I think you're confusing tax accounting with accrual accounting.

I don't do taxes, but our CPA does. We're on a cash-basis, which means
we pay when we receive the money. On the flip side, we do not pay
income tax on our outstanding receivables.

Conversely, you cannot deduct from current earnings
expenses you do not yet have (purchase order for goods not yet
delivered, or services not yet rendered). See my comments below
regarding WIP and Accrued Liabilities.
It's been so long since I actually crached a textbook, but IIRC it's
called an "Encumberance." Technically, to be GAAP compliant we should
set up a "Reserve For Encumberances" Liability Account, but I would
only mess with that step if the period between issuance of the PO and
receipt of the bill spanned the year-end break.

After all, not having to mess with period accounting rules is one of
the praises that QB users brag about, isn't it?

Angela
 

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