Question

QBO

What steps need to be followed to record a new product and adding a new service?

What is the differences between adding a new product and a sales receipt and a sales invoice?

Answer 1

Steps to be followed to record a new product and service in QBO

Ans1.To add to your list of Products and Services:

1. Choose the Gear icon > Products and Services under the Lists column
2. Click New
3. Enter your information for the new product or service
4. Click Save

Ans:2 . While invoices and sales receipts may appear synonymous in the business world, QuickBooks make a difference between the two in terms of when and how customers are billed and pay for services rendered, and this may create confusion.

Invoices allow customers to pay for services over time, while sales receipts track payments and receipts at one time. Invoices also offer more versatility than sales receipts, handling other sales-tracking functions that sales receipts in QuickBooks cannot process. Use both invoices and sales receipts in your daily operations: invoices to track payments and sales receipts to record payments.

Payment Terms

One of QuickBooks' primary purposes is to track accounts receivables. With invoices, records of customers who have a preset total owed, but who do not pay in full or pay in advance, can be separated from and reported on individually from the customer job list. Sales receipts do not provide this neat, itemized listing. Sales receipts are useful in handling circumstances for which payment for sales or services occurs as a single transaction.

Payment Methods

Sales receipts simplify the process of tracking customer sales that use only one payment method. An invoice favors customers who pay using a combination of methods, including check, cash or charge. This is because each payment method qualifies as a type of adjustment, which sales receipts do not handle.

Estimates

Use an invoice to process jobs that require written estimates or purchase orders. In addition, any estimate or purchase order that you create for a customer in QuickBooks can automatically be converted into an invoice with one click. Estimates and purchase orders cannot be converted into a sales receipt, nor can sales receipts be converted into an invoice.

Usage in Business

Invoices come in handy with contractors, consultants and mail order firms, while sales receipts usually work well in situations where demand for payment occurs at the same time services are rendered. Beauty salons, pet groomers, newspaper stands, dry cleaners and restaurants use sales receipts instead of invoices for this reason.

Process

QuickBooks has a two-step process for tracking sales receipts: you enter the sale's information, and the money collected from the sale is deposited into an account at the same time. For invoices, it's a three-step process: you create the invoice, receive payment, and then make the deposit.

Other Differences

QuickBooks invoices are versatile tools that allow you to group items together, and generate reports by multiple lines of services and products sold. You can have reports -- for both invoices and sales receipts -- on sales tax owed that are separate from the service or product sold; however, the one-size-fits-all solution of the sales receipt could simplify the task of preparing daily, weekly or monthly tax reports.