Tag Archives: QuickBooks job and class

How to record a cooperative advertising in QuickBooks accounting software?

Software: #QuickBooks #accounting software

A cooperative advertising is a sharing of advertising cost between you, the reseller, and the supplier (either the manufacturer or the wholesaler). Some businesses may call this as a marketing fund.

Record the bill from the advertising company with the Advertising and Promotion expense account. You have to select the supplier in the “Customer:Job” column, which you have created as a customer type. By default, the “Billable” checkbox is checked, this allows the cost to be transferred to the sales invoice later.

Billable cost

When you create the sales invoice to the customer who has tagged in the bill, QuickBooks will prompt to add the outstanding billable time and cost. If you opt to add a markup to the cost incurred, it will post to the relevant income account that you have set.

outstanding billable time and cost

Generally, if the supply is made and the tax invoice is issued to you, the subsequent billing by you will be considered as reimbursement and treated as a separate supply of services. You will have to charge GST.
IRAS

The journal behind the sales invoice is debit the Accounts Receivable and credit the expense account. This sales invoice contra the Advertising and Promotion expenses, which you have entered in the bill earlier.

Alternatively, you may consider invoicing the supplier with an item, which associated with the other income account, instead of contra the expense. In this case, you will see both the other income and the expense in the profit and loss report.

 

Job vs. Class

Software: QuickBooks accounting software

User get confuse on whether to use a job or a class. 

There are no fix rules as in when a job or a class should be used; a simple guide line would be a “Job” involved ONE customer but many suppliers, and a “Class” involved MANY customers and many suppliers. 

Example:

We can use job for project given by a customer. If your business is in a project model, you may have one customer that given you multiple projects, in this case, job will be used. 

A project such as organizing event or exhibition which involved more than one customer and more than one supplier (You sell exhibition space and needs lots of subcontractors to set up the event). Then, “Class” should be a better choice here. 

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