The QuickBooks "History" Button

Have you ever paid a bill only to receive a phone call from the vendor regarding the payment?  Or, perhaps a customer has questioned a payment which was sent in.  Using the "History" button at the top of your transaction is an easy way to see related transactions.

For example, a customer tells you that their check for $2000 paid your Invoice No. 55339.  You can find the payment in QuickBooks, go to the bar immediately above the transaction and click "History".  This will show how the payment was applied.  Perhaps, you applied it to a different invoice. 

Once the "History" screen is open, you can "go to" a selected transaction or you can print a report.

Click here for a video demonstration: QuickBooks History Button Tutorial

Recording Debit Card Transactions in QuickBooks

You are trying not to run up your credit card, so use your debit card instead.  So, how do you record those transactions in QuickBooks?  Basically, anytime money is "sucked" out of your bank account, you should create a "check" in QuickBooks.  "But," you say, "I didn't write a check." That's ok.  The purpose of recording a "check" is to make that automatic journal entry.  Follow these steps:

1. Open "Write Checks"
2. Enter information just as if you were writing a check to that vendor.
3. If you normally print checks, uncheck the "to be printed" box
4. Next to "No.", type in DC for debit card

Capitalization is important. You always want to use that same configuration. That will make your bank reconciliation much easier because everything will be sorted appropriately.


Note, you can also use this for automatic withdrawals, wire transfers, etc.  Simply change the check numbers to EFT (electronic fund transfers), WIRE, ACH.  Develop a simple coding system and stick to it.

Recording Bounced Checks in QuickBooks

How do you record the transaction in QuickBooks when a customer's check has been returned?  Unfortunately, with the economy and new bank rules, this is happening more and more.  Your bank may also charge you a fee because a check has bounced.  How do you record this, let your customer know that it has bounced, and pass a fee on to your customer?  There are several steps.

First, create two new items:

1. Go to your item list and create a new item called "Bounced Check". 
2. Item type should be "other charge"
3. The amount field can be left blank
4. Select "non" for the sales tax field
5. In the account field, select your bank account
6. Create another item called "Returned Check Charge".  This item will be used to charge your customer a fee for their returned check.
7. Follow steps 2 -4
8. The account field should be an income account such as Returned Check Charges.  (You may have to create this as well)

Second, create an invoice to your customer.

1. Click "Create Invoice"
2. Select the appropriate customer:job
3. There will be two items on this invoice.  The first item will be "Bounced Check".  The amount will be the amount of the check which bounced.  The second item will be "Returned Check Charge".  This amount will be the amount you are charging your customer.  Make sure it at least equals what your bank has charged you.

Third, when the customer sends you another check or your bank re-deposits the check, receive payment against the above invoice.

How to Use the QuickBooks Calculator Feature

This is a really cool feature that most people only stumble upon when they hit the wrong key!  Here are the steps:

1. Put your cursor in the amount field and type in an amount
2. Hit a calculator function key (+, -, *, /)
3. Type in another amount
4. Hit "Tab"
5. The calculated answer will appear

You can repeat Steps 2 and 3 several times with different calculator functions.

Here is the video demonstration:  QuickBooks Pop-up Calculator Tutorial

Handling Vendor Deposits in QuickBooks

Sometimes our vendors require us to give them a deposit before they will perform a service or ship a product. The deposit is due before they send you the bill. To record this properly:


Write the Check:

1. Click "Write checks" to create a check
2. The payee will be your vendor.  The amount will be the amount of the required deposit.  Tie the check to "Accounts Payable".  Click save and close to record.

Record the Bill:

1. When the bill arrives, record it as you would any other bill.

Pay the Bill:

1. Click "Pay Bills"
2. Select the bill to pay
3. Click "Set Credits" 
4. Select the previous payment to be applied to the bill.   Click "Done"
5. If there is still a balance due, it will appear in the last column.  That will be the amount of your check.  Click "Pay Selected Bills". 
6. If there is no longer a balance due, the last column will show "0".  You are basically writing a check for zero dollars.  Even so, you will still have to click "Pay Selected Bills" to record applying the credit to the bill.

What do you then send to your vendor?  Since the bill payment check does not show the credit which has been applied, you might want to open up the bill and then do the following:

1. Click the "History" button at the top
2. This screen shows both the check which paid the deposit and the check which paid the final amount
3. Click "Print" and send with the check to the vendor.