Recent Posts
Copyright 2006 Bookkeeping R Us All Rights Reserved
Cash Basis Accounting is a method of recognizing income and expenses when cash is received or spent not as they are incurred. For example using a cash basis you would recognize income not when you sent out an invoice but when payment was actually received by you. Likewise, you would recognize an expense not when you received the bill but when you actually issued a payment.
Copyright 2006 Bookkeeping R Us All Rights Reserved
Do you have different pricing for different types of customers? Perhaps you may offer a professional discount for those customers who are in a particular trade or business and who are regular customers. Or maybe you might want to offer a lower price to some customers who are reselling your products, a distributor for example. What ever the reason you might have for selling below your standard pricing to an individual customer you can use the price level feature in QuickBooks.
You can choose from a fixed percentage price level or a per item price level. With the fixed percentage method you increase or decrease the prices for all the items charged to a customer or job. Per item price levels will enable you to set custom prices for different customers or jobs. For example you might use the fixed percentage method to give ABC Company a reduced price on the large job you are doing for them. This price reduction would be applied against all the services and/or products for this particular customer. However if you wanted to give some of your customers a reduction in price for a particular services or products than you would choose the per item price level method.
If you haven’t set your Company Preferences to Use Price Levels, then click on your Edit menu, and at the bottom of the Edit menu click on Preferences. Choose Sales & Customers in the left hand column and then choose the Company Preferences Tab. Click in the Price Levels box to enable Price Levels.
You can create a price level through the List Menu and clicking on the Price Level list. Choose Price Level found at the bottom of the list and choose New Price Level. Choose a name for the New Price Level and enter it. Now choose the price level type. However you can only choose the Per Item price level if you have QuickBooks Premium or higher.
With Fixed Percentage you can choose to either decrease or increase your prices and to round up prices to the nearest whole dollar. Choose a percentage and whether you wish to apply an increase or decrease.
If you have chosen Per Item you can set prices of individual items to be used for different jobs and/or customers. In the Custom Price column enter the new price or select one or more items from the list and click Adjust Selected Prices button to apply the new prices in bulk.
You can now use your price levels by either applying them directly on a sales form by clicking the drop down arrow in the Rate Column and choosing the level to be applied to the item or by associating it with one or more customers on the Additional Tab in your customer record.
No one gossips about other people’s secret virtues.
Bertrand Russell
British author, mathematician, & philosopher (1872 - 1970)
Copyright 2006 Bookkeeping R Us All Rights Reserved
Direct material costs represent all expenses that become a part of a finished product and are posted to a work-in-process inventory cost account which resides on the balance sheet. When the product is sold then the unit cost of each item item sold is transferred from the work-in-process inventory cost to a cost of goods sold expense account on the income statement.
