In this article, we will about different Account Receivable (A/R) workflows in QuickBooks Desktop.

What Is Account Receivable?

The record of the money you own for your business for goods or services. These are the invoices for which you haven’t received payment till now. Account Receivable is also denoted as A/R. (The word “accounts” is plural bit QuickBooks requires a single account on the chart of accounts for tracking all outstanding invoices.) Other terms for A/R are Notes and Collectibles.

What is QuickBooks Accounts Receivable account?

It is the account added by QuickBooks automatically to chart of accounts for the first time you create an invoice. QuickBooks requires this account to track the money owed to your business. While writing an invoice or receiving a payment from a customer, the transaction is recorded by QuickBooks in the register for you’re A/R account.

The type of account in Cart of Accounts is listed as Account  If you need to use more than one of this type of account in your business, you can add additional “accounts receivable” accounts to the chart. When you have more than one accounts receivable account, QuickBooks lets you choose the account you want to use when you write an invoice or enter a customer payment.

It is required to record A/R transactions properly to make sure there are no wrong financial reports that can lead to incorrect tax payments and penalties.

Accounts Receivable workflows

Basically, there are five usual A/R workflows in QuickBooks Desktop. You can record your A/R transactions, select one workflow that suits your business process and follow the steps while creating each transaction from the workflow you have selected.

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

You can use this workflow if you are required to transfer a proposal or quote to your customer that you will make a sales order before creating an invoice and collect payments. Important: Sales Order can only be used in the Premier and Enterprise version if QuickBooks Desktop.

This workflow contains the following steps:

  • Step 1: Create an estimate
  • Step 2: Create a sales order
    • From the main menu of QuickBooks, go to Customers > Sales Orders/Create Sales Orders.
    • Select a customer or customer job from the Customer: Job drop-down. If you don’t find the customer or job on the list, click on Add New.
    • Provide the required information on the form such as Date and O. No.
    • Choose an item from the detail area. Note: While selecting or adding an item, the description and amount are automatically pops up depends on the description and unit cost provided when you set up the item. You can also remove or change it while creating Sales Orders.
    • (Optional) You can apply for a discount as well and for this, you need to create a discount:
      • From the main menu of QuickBooks, go to List > Item List.
      • Right-click anywhere in the window and click on New.
      • From the New Item window, click on Type drop-down and select Discount.
      • Provide an Item Name/Number and a brief Description.
      • Provide the discount amount of percentage in the Amount or % If your discount amounts may vary, you may have to leave the Amount or % field section blank.
      • Choose the income account from the Account drop-down options. This account is the one that you want to use to track the discount provided to customers.
      • Choose an appropriate Tax Code for the item and click on OK.
    • Click on Save & Close.
  • Step 3: Create an invoice
    • From the main menu of QuickBooks, go to Customers > Create Invoices.
    • Choose a customer or customer job from the Customer: Job drop-down options. If you can’t see any customer or job, click on Add New.
    • Provide the required information on the form such as the Date Invoice #, Bill to/Sold to, and Terms.
    • From the detail section, choose an item or items. Note: While selecting or adding an item, the description and amount are automatically pops up depends on the description and unit cost provided when you set up the item. You can also remove or change it while creating invoices.
    • (Optional) You can apply for a discount as well and for this, you need to create a discount:
      • From the main menu of QuickBooks, go to List > Item List.
      • Right-click anywhere in the window and click on New.
      • From the New Item window, click on Type drop-down and select Discount.
      • Provide an Item Name/Number and a brief Description.
      • Provide the discount amount of percentage in the Amount or % If your discount amounts may vary, you may have to leave the Amount or % field section blank.
      • Choose the income account from the Account drop-down options. This account is the one that you want to use to track discount provided to customers.
      • Choose an appropriate Tax Code for the item and click on OK.
    • Click on Save & Close.
  • Step 4: Record a payment
    • From the main menu of QuickBooks, go to Customers > Receive Payments.
    • Select customer’s name from the Received From drop-down options.
    • Provide the Amount received in the respective field.
    • Verify that the date is correct and then select your Payment method.
    • Choose Discounts and Credits to add a discount or credit.
    • Click on Save and Close.
  • Step 5: Deposit customer payments

Workflow 2: Sales Order – Invoice – Payment Deposit

This workflow is used when you don’t have to send proposals or quotes to your customer but you still want to use a sales order for products and service management purposes. Important: The feature of Sales Order is only available in QuickBooks Premier and Enterprise versions.

This workflow contains following steps

  • Step 1: Create a sales order
    • See Workflow 1 to get complete information about creating sales order.
  • Step 2: Create an invoice
    • See Workflow 1 to get complete information about creating an invoice.
  • Step 3: Record a payment
    • See Workflow 1 to get complete information about recording a payment.
  • Step 4: Deposit customer payments
    • See Workflow 1 to get complete information about depositing customer payments.

Workflow 3: Estimate – Invoice – Payment – Deposit

This workflow is used when there are requirements of creating/sending proposals or quotes that doesn’t required to turn into a sales order in your business.

  • Step 1: Create an estimate
    • See Workflow 1 to get complete information about creating an estimate.
  • Step 2: Create an invoice
    • See Workflow 1 to get complete information about creating an invoice.
  • Step 3: Record a payment
    • See Workflow 1 to get complete information about recording a payment.
  • Step 4: Deposit customer payments
    • See Workflow 1 to get complete information about depositing customer payments.

Workflow 4: Invoice – Payment – Deposit

This workflow is used when there are not requirements of sending proposals or quotes to your customers and you also don’t have to create a sale order to manage the sales of your products and services.

This workflow contains the following steps:

  • Step 1: Create an estimate
    • See Workflow 1 to get complete information about creating an estimate.
  • Step 2: Create an invoice
    • See Workflow 1 to get complete information about creating an invoice.
  • Step 3: Deposit customer payments
    • See Workflow 1 to get complete information about depositing customer payments.

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

This workflow is used when you bill your customers per month. This workflow allows you to enter charges directly into the customer’s register instead of creating individual invoices.

  • Step 1: Create statement charges
    • From the main menu of QuickBooks, go to Customers > Statement Charges/Enter Statement Charges.
    • Select the customer job. Note: If the Customers & Jobs list displays multiple job for one customer, choose the correct job. QuickBooks creates a separate register for every job.
    • (Optional) Modify the statement charge date.
    • Choose the item. Note: The description and amount will automatically shown when you choose or add an item. However, it depends on the description and unit cost provided while you set up the item. You can also remove or modify this while creating invoices.
  • Step 2: Assess finance charges
  • Step 3: Create a billing statement
  • Step 3: Record a payment
    • See Workflow 1 to get complete information about recording a payment.
  • Step 4: Deposit customer payments
    • See Workflow 1 to get complete information about depositing customer payments.

Other A/R-related transactions and tasks

These are not a part of the usual A/R workflows, but these other customer-related transactions can be useful for you as well.

Technical Support For QuickBooks

The provided steps should be helpful for you in understanding the Accounts Receivable Workflows in QuickBooks Desktop. Understanding the concept of A/R can be a bit complex for you if you are not using QuickBooks from a long time and sometimes you can even face several issues as well. In such situations, you may have to connect with the support department by dialing our toll-free QuickBooks Support Phone Number +1888-396-0208 and get your issues resolved.

Accounts Receivable Workflows In QuickBooks Desktop

Leave a Reply

Your email address will not be published. Required fields are marked *

Call Us: +1888-396-0208