QuickBooks Tip – Purchase Orders & Estimates Posting Status
When a Purchase Order, or even an Estimate, actually posts to your accounting and/or job costing numbers sometimes causes confusion for QuickBooks Users.
For example – as a contractor you issue a Purchase Order for $10,000.00 to a subcontractor for excavation work on one of your projects. The Purchase Order becomes part of your accounting records, you can pull it up and look at it ….. but now you are left wondering how does the cost of that subcontract get into your job costing for the project. Is it when the PO is created or when you post the subcontractors invoice (bill) against the PO.
Both Purchase Orders and Estimates are non-posting transactions, meaning that you can created them, save them, print them, and even distribute them; but in reality they don’t “do” anything except sit there….waiting for the next thing to happen.
That next “thing” involves you receiving a bill (subcontractor invoice) against the PO or the act of creating a progress invoice to a customer from the Estimate.
This is when the costs and/or income hit your job costing reports.
Now, there are some setup requirements in order to make this all work; and work correctly –
- each of your items has to be set up to capture both the cost (or expense) and the income.
Leave a Reply
- The Great Debate – QuickBooks Desktop vs. QuickBooks Online
- Using Account Numbers in Your QuickBooks Chart of Accounts
- QuickBooks Creating a More Meaningful Payroll Expenses Section
- Calculating & Displaying Fringe Benefits on a Certified Payroll Report
- QuickBooks Tip - Child Support Garnishments
- How To Turn On and Use Manual Payroll in QuickBooks
- Create a QuickBooks Job Cost Report With Hours & Payroll Costs
- QuickBooks Payroll Tip - Tracking Employee Advances or Loans
- QuickBooks for Contractors Tip – Basics of Progress Invoicing
- QuickBooks Tip - Job Costing Starts With A Simple Item
- QuickBooks Tip-Creating a Functional Payroll Liabilities Section
- QuickBooks Tip: Important Facts About Items Left as Billable
- Welcome to the QuickBooks for contractors blog
- QuickBooks Tip-Handling Employee Reimbursements for Expenses
- QuickBooks Tip - Determing Cost of Goods Sold
- QuickBooks Tip - Handling Retainage
- QuickBooks 2015 Announced - Important System Requirements
- Straight from the IRS - Social Security Tax Reduced to 4.2%
- How to Calculate & Display Retainage on an AIA G-702/G-703
- Tips for Effectively Using QuickBooks Purchase Orders