QuickBooks OnlineHow to use Accounts receivable Workflow in QuickBooks

October 21, 2019by J.Smith0
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A QuickBooks Accounts Receivable account is an account that is added automatically by the QuickBooks in your account chart whenever you write an invoice for the first time. QuickBooks uses this account to follow the money owed to your business for any goods or services. QuickBooks records the transaction in the register for your Account Receivable account, whenever you write an invoice or receive any payment from a customer. Your account chart lists this type of account as the accounts receivable workflows. If you need to use more than one type of this type of account in your business, you can add additional accounts receivable to the chart. QuickBooks lets you choose the account you want to use to write invoices or file customer payments if you are having more than one account receivable accounts.

What are account receivable workflows in Quickbooks?

Record of money owed on your business for goods or services; That is, the invoice for which your business has not yet received payment. Accounts receivable are called accounts receivable for short. (Despite the word “account” being plural, QuickBooks uses a single account on the chart of accounts to track all invoices.) Other terms for accounts receivable are records and collectibles. There are five common available in accounts receivable in QuickBooks. To record your accounts receivable transaction, choose a workflow that suits your business method and follow the steps in creating any transaction in the selected workflow. It is very necessary to record the account receivable transactions very carefully to avoid the misleading financial reports. 

Workflow 1: Estimate – Sales Order – Invoice – Payment – Deposit

If you need to send your customer an offer or quote that you will later convert into a sales order before creating an invoice and collecting payment, opt for this workflow.

Key point:-Only the QuickBooks Desktop Premier or Enterprise supports these sales orders.

This workflow contains the following steps:

  • Create an estimate.
  • Generate a sales order.
  • Create an invoice.
  • Record a payment. 
  • Deposit customer payments.

Workflow 2: Sales Order – Invoice – Paid Deposit

Use this workflow if you do not need to send offers or quotes to your customers, but you still need to use sales orders to manage the sales of your products and services.

Main:-The sales order is only available in QuickBooks Desktop Premier or Enterprise.

Contains the following steps:

  • Create a sales order.
  • Create an invoice.
  • Record a payment.
  • Deposit customer payments.

Workflow 3: Estimate – Invoice – Payment – Deposit

If your business needs to create or send an offer/quote, which you do not need to convert to a sales order, then opt for this workflow.

Contains the following steps

  • Create an estimate.
  • Create an invoice.
  • Record a payment.
  • Deposit customer payments.

Workflow 4: Invoice – Payment – Deposit

If you do not need to send offers or quotes to your customers and you do not need to create a sales order to manage the sales of your products and services, opt for this workflow.

Contains the following steps

  • Create an invoice.
  • Record a payment.
  • Deposit customer payments.

Workflow 5: Statement Charge – Finance Charge – Statement – Payment – Deposit

If you bill your customers on a monthly basis. You can enter the fee directly in the customer’s register (via statement charge) instead of creating a personal invoice, opt for this workflow.

Contains the following steps:

  • Create statement charges.
  • Assess finance charges.
  • Create a billing statement.
  • Record a payment.
  • Step 5: Deposit customer payments.

Conclusion:-

In this blog, you can learn how accounts receivable workflows work in QuickBooks. I hope all the information given by me in this article will be useful for all QuickBooks users. If you require more detail about the features of QuickBooks and support service, contact us on our QuickBooks Payroll Support toll-free phone number.

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