Yes, there are a few restrictions on making General Journal Entries to Accounts Receivable (A/R) and Accounts Payable (A/P) accounts. Normally, the preferred way to change the balance in an A/R or A/P account is by recording transactions, such as customer invoices or vendor bills. However, sometimes it’s more convenient to make a General Journal Entry. […]
How Do I Record a Debt Refinancing Where I Use a New Loan To Pay Off Several Other Loans?
A common business situation is to use a new loan to repay one or more existing loans, possibly raising cash in the process. This is commonly referred to as a refinancing. QuickBooks includes a Loan Manager which can be run from the Banking->Loan Manager menu selection. It’s important to understand that Loan Manager is primarily […]
How Do I Change an Onscreen Form Such As Create Invoices To Show More Line Items?
Making changes to the windows of QuickBooks is easy. Let’s use the Create Invoices window as an example. By default, this window shows just 2 invoice lines. In this article, we’ll change the default look. An important point to keep in mind is that you should not close the Create Invoices window until you’ve completed […]
How Do I Record the Sale of a Fixed Asset On a Lease?
If you’ve already accounted for a leased asset as a fixed asset, you’ve accounted for that asset as a capital lease, sometimes called a finance lease, as opposed to an operating lease. We’ll assume that the capital lease determination is correct and proceed from that point. Capital leases impact a firm’s balance sheet, and the […]
How Do I Resort Lists?
Lists are one of the foundations of QuickBooks, and from time to time they can become out of order. That’s when they need to be resorted. Some common indicators that it’s time to resort your lists include: the list itself is out of order an element is missing new entries in a list appear at […]
Are Licensed Recordings of Music an Asset of My Company?
Maybe. Under US GAAP, the accounting for recorded music is governed by Financial Accounting Standards No. 50, Financial Reporting in the Record and Music Industry. FAS No. 50 says in part that: The portion of the cost of a record master borne by the record company shall be reported as an asset if the past […]
How Do I Enter or Change the Opening Balance of a General Ledger Account?
When you’re setting up your QuickBooks general ledger, it’s a good idea to enter an opening balance for GL accounts. However, be careful not to enter opening balances for financial activity that occurred after your QuickBooks start date. To enter an opening balance, simply click the Enter Opening Balance button, which appears on both the […]
What General Ledger Account Types Does QuickBooks Support?
QuickBooks supports 16 total general ledger account types in its Chart of Accounts. Each account is assigned a single account type, which can be changed, subject to certain restrictions. 5 Income/Expense Account Types for the Profit & Loss (P & L) Statement Income Expense Cost of Goods Sold Other Income Other Expense 11 Asset/Liability/Equity Account […]
Should I Use Account Numbers In My General Ledger?
We think you should use account numbers in your general ledger, but we think it’s more important that you’re consistent in either using them correctly or not using them at all. To use account numbers, you need to enable that preference by visiting the Edit->Preferences menu and clicking on the Company Preferences tab of the […]
Are There Restrictions On Making General Journal Entries In a Multicurrency Environment?
Yes, there are a few restrictions on making General Journal entries in a multicurrency environment. Only 1 foreign currency is allowed per General Journal entry The currency of the General Journal entry must match the currency of the accounts selected or be your home currency If you enter data in the Name field, it must […]
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