Tag Archives: QuickBooks Online

How to record landing cost in QuickBooks?

Software: QuickBooks Desktop

Advance payment is a payment made to the supplier before goods received. It debits the advance to the supplier account, which is an Other Current Asset and credits the accounts payable. It gets complicated when including the landing cost in the product average cost; often, the landing cost has excluded from the advances made.

Assuming the goods purchased is worth $100,000, and the landing cost is $4,000 (the shipping and insurance). You record the Bill as debits advance to the supplier and credits the accounts payable of $100,000 since no goods have received. Then, do a pay bill when due; the payment debits the accounts payable and credits the bank.

QuickBooks Advance to supplier by account

You can record the $4,000 landing cost via the Enter Bill or Write Cheque method depending on whether any bill received from the forwarder. It debits the landing cost expense and credits the accounts payable when using the Enter Bill, and credits the bank if write cheque method has applied instead.

QuickBooks Frieght charges

A dummy bill has to record in QuickBooks to update the stock on hand when goods received. Select the product with the total cost of $104,000; this amount inclusive of the $4,000 landing cost. Then, deduce the $4,000 landing cost expense and the $100,000 advances paid. This dummy bill:

Debit the inventory assets account 104,000

Credit the landing cost 4,000
Credit advance to the supplier 100,000

QuickBooks dummy bill

There shouldn’t have any outstanding amount unless the advances difference from the billable amount.

The cost of sales will realise when there are sales of the product. It reduces the inventory cost and debits the cost of goods sold when an invoice has added to QuickBooks.

Book a demo today to find out how to use QuickBooks to manage your business finance.

QuickBooks Online (QBO) – The Gear Icon

Software: QuickBooks Online (QBO)

Unlike QuickBooks Desktop, QuickBooks Online does not have a traditional menu bar. It does not have an Edit menu where you can find the Preferences, it doesn’t have a Lists menu where you can locate the Chart of Accounts list or items list. QuickBooks Online (QBO) has simplified the interface by providing two icons at the top of the screen — a “+” and a “Gear”.

The “+” icon contains the daily transactions and the “Gear” icon is about the setup.

The “Gear” icon consists of four main sections; the Setting, Lists, Tools, and Your Company.

QuickBooks Online (QBO) accounting software

The Setting is like a Preferences function in the desktop version, where you can set up the Company information, template or fields used in the transactions.

The Lists consist of Chart of account (under all list), Product and Services list, recurring transactions, etc. It’s like the Lists menu of the QuickBooks Desktop version.

The Tools section gives you the ability to import lists such as chart of accounts or item list, it allows user to reconcile the bank and set up a budget.

Managing the users and QuickBooks Online (QBO) account is at the “Your Company” section.

Anything that is non-transaction related, click the “Gear” icon. Simple?

Adding GST Summary to the QBO invoice template

Software: QuickBooks Online (QBO)

QuickBooks Online (QBO) does print the GST rate, GST amount and the amount payable excluding GST of a foreign currency invoice in Singapore dollars equivalent.

Although, you are not able to customise the template of the QuickBooks Online (QBO) like a QuickBooks Desktop version, you can “fine tune” the template by adding a GST Summary from the Company Setting, which includes GST Rate, Foreign Currency GST, SGD GST, and SGD Net.

QBO GST Summary

QuickBooks Online (QBO) is meant for user who loves simplicity. For those who require a little more complex than a QBO may consider the desktop version, which allow user to have multiple images, text boxes or even more than one sales invoice templates per company file.