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How to account for Foreign Currency Transactions? How to Enable Multicurrency Feature in Quick books (QB 12) 2012 Accounting of Exchange Gain/Loss Customers, Suppliers, Banks having Foreign Currency This blog is about to understand foreign currency transactions and how can we enable it in Quick Books 12. How can we assign currency to a customer, supplier, and bank other than foreign currency? Let’s have a basic overview of it and how accounting is automated in Quick books Enterprise Solution 12.0. Basic Terms to Understand this Concept: Exchange Difference: It is the difference resulting from translating a given number of units of one currency into another currency at different exchange rates. Exchange Rate: It is the ratio of exchange for two currencies. Fair Value: It is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. Foreign Currency: Currency other than the fu
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How to Customize / Memorize Report in Quick Books?

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How to Customize Report in Quick Books? How to Memorize Report in Quick Books? This blog is about the report customizations in Quick books and memorize it in specific folder for later view/print of the same in the same customized format. There are lot of reports in Quick books categorized with respect to each module and almost all reports can be customized except some. If you don't see option of "Customize Report" button that means you cannot customize that report so much and you have to view results in the designed format. You can export report in excel and customize according to your need. Here, i am going to generate, customize and memorize report related to "Cash & Banks" as Cash and bank ledgers not available in Cash and Bank module. and it is a basic need of each entity's management to have these reports. Go to --> Home Page -->  Click on Chart of Account --> Cash & Bank or Specific Cash Account Generate Quick Report by short key  (Ct
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How to manage Production/Manufacturing/Build Assembly Process/ Create Deals in Quick Books

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How to manage Production in Quick Books? Handling Manufacturing in Quick Books? Build Assembly Process  in Quick Books? Create Deals/Packages in Quick Books? How to Create KIT in Quick Books? Quick books is financial software but to some extent you can handle production in it using certain ways. But Assembly process can easily be handled in quick books. To create assembly item/production item go to " Item List/Inventory Center" and create New Item. Choose item type as "Assembly Item" add the ingredients/components for the subject assembly item. Add UOM and quantity to be used for ONE UNIT of assembly item. Follow Navigation to create Assembly Item Item List/Inventory Center  --> Create Item -->     Choose Assembly Item                 Unit of Measurement (UOM) for assembly item can be different from the components. Components UOM and Quantity for one unit of production should be corelated with the unit of purchase. If you buy some item in Kg's and consu
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How to create Chart of Account?

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 How to create Chart of Account?  How to add /Edit/Delete/Inactive an account in Quick Books? Chart of account is pre-requisite for in any accounting solution at the time of implementation. Every ERP & small Accounting applications have different ways and account types to add chart of account. The most important thing is to have unique and flexible numeric codes for each type of account. These account codes should be created with such a technique that you can later add specific type of account in hierarchy. Normally chart of account is prepared in four levels to substantiate hierarchy of account types/FS elements. e.g., Assets, Liability, Equity, Income, Expense. Drawings are accounted for in Equity type and Expenses are further split into Cost of Sales & Expenses (Admin, Selling, Financial). Coding custom being mostly followed is under given but you may define your own suitable and logical coding for each type; FS Elements                                  Denomination Assets 
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Quick Books Implementation Steps/ Switching to Computerized Accounting/How to Enter Opening Balances in Quick Books (QB)

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Quick Books/Accounting Software/ERP Implementation Steps Switching to Computerized Accounting Solutions Strategy How to enter Opening Balances in Quick Books? In this blog you will learn steps to be followed for switching to automated/computerized accounting solutions from manual system or from small accounting solution to other ERP system. For me the subject matter will be Quick Books but you can follow these steps for other accounting solutions with slight changes. Steps before moving to computerized Accounting System: Understanding of business processes and design solution accordingly See the configurations/customizations in new solution to align the digital process with manual business process flow Prepare Chart of accounts and decide about the modules that will be required Add all entity's master data  (Customers, Vendors, Employees, Items/Products, Banks, Fixed Assets etc.)  in each respective module as per new solution requirments and verify Categorization and classification
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How to Create Item in Quick Books Intuit Enterprise Solution

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  How to Create Item in Quick Books Intuit Enterprise Solution? Multiple ways to create item in Quick Books  To create items in quick books either stock able items, non-stock able Services items and manufactured/assembled items etc. follow the simple steps: To open the item creation form, go to: List Tab à Item List OR Inventory Tab à Inventory Center à New Item There are different types of item types defined to create items for specific entity and process for invoicing and billing. On each type of item selection, from changes to display more related and relevant fields for creating item. GL account default setup is more critical here to map with each type of item for automated effects in GL accounts configured and reflection in reporting thereof as per accounting standards. Chart of items can be categorized upto 5-6 levels but more preferable to have it in 2-3 levels to keep it simpler and more understandable, it will be fine to print on invoice as with more levels item na
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How to handle Post Dated Cheques/Checks Received from Customers?

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  How to handle Post Dated Cheques Received from Customers? To record Post Dated Cheques/Checks received from Customers required some preferences changes/Configurations changes in “Company Preferences”. Follow the path to make prerequisite changes to enable this feature. Go To à Edit Tab à Preferences à Payments à Company Preferences à Checkbox undeposited funds use as default deposit account See the screenshot, and do accordingly. When you click on checkbox, a field named  “Deposit to”  will be removed from  “Customer Payment form”  and all receipts will go in  “Undeposited funds account”. System creates this account automatically while setting up company file. You may name it as  “PDC Received Clearing Account”,  here you will have all uncleared/ not matured cheques. Click on Customer payment and record the customer payment, add the payment method as check and add check number. Add the date of PDC received and Maturity date of Check on customer payment form. On PDC Maturi
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