Sales workflows for different business structures In QuickBook Online

Overview of sales transactions

The table below lists the sales transactions clients are most likely to use. These are the same options that appear in the Customers column when clients select the + New button in QuickBooks Online. 

Note that while posting transactions create a transfer of money between accounts in the chart of accounts, non-posting transactions don’t.

 

Type of sales transaction	This transaction type is...	Posting/Non-posting to account
Invoice	Transaction form for sales on account	Posts to accounts receivable
Receive payment	Transaction form to apply money received to an open invoice	A posting transaction that applies payments to reduce invoice balance
Estimate	Transaction form to quote a future sales transaction	Non-posting transaction that can convert to an active sales form
Credit memo	Transaction form to reduce the amount owed on a customer’s account and record the return of goods	Posts a credit to reduce a client’s accounts receivable balance
Sales receipt	Transaction form for payments at time of sale	Posts directly as sales made and monies received ready to be deposited
Refund receipt	Transaction form that records cash back to the customer and the return of goods or services back to the client	Posts directly as monies paid back to customers
Delayed credit	Transaction form that records discounts or returns that will be added to an invoice later	Non-posting transaction that can be added to an invoice to decrease the amount billed
Delayed charge	Transaction form that records revenue events that will be added to an invoice later	Non-posting transaction that can be added to an invoice to increase the amount billed

 

To ensure that clients maintain a well-managed set of books, coach them about how to choose the correct transaction type for each stage of their revenue workflow.

The customer workflow that clients should use depends on their business type.

 Simple cash-basis business.

Clients who receive payment upon the provision of services or the sale of a product may opt for a straightforward cash-basis sales workflow. 

This workflow comprises several steps:

1. Make sale (receive cash, an ACH transfer, or a check for services rendered or a product sold)
2. Create sales receipts and record them to Undeposited Funds
3. Bring the money to the bank  
4. Create a Deposit transaction in QuickBooks Online
5. Match the bank deposit to the bank feed in QuickBooks Online

Simple accrual-basis business

 

For clients engaged in service provision as opposed to product sales, it is advisable to adopt a straightforward accrual-based process with regards to payment collection, as this represents the optimal approach.

The simple accrual-basis workflow follows these steps:

1. Provide the service
2. Invoice the customer
3. Receive the payment and deposit it to Undeposited Funds in QuickBooks Online
4. Bring the money to the bank
5. Create a Deposit transaction in QuickBooks Online  
6. Match the bank deposit to the bank feed in QuickBooks Online

 

Complex accrual-basis business.

For clients with intricate sales processes, it is prudent to implement a sophisticated accrual-based workflow to successfully conclude a sale. Such clients may include businesses that furnish estimates of overall charges and issue invoices in installments.

The workflow might look like this:

1.      A potential customer makes a sales inquiry  

2.      Create an estimate of total charges

3.      Customer accepts estimate 

4.      Create a progress invoice for a certain percentage of the total charges (invoice 1)

5.      Customer pays invoice 1 

6.      Receive payment and deposit to Undeposited Funds in QuickBooks Online

7.      Pay money into the bank

8.      Create Deposit transaction in QuickBooks Online 

9.      Match bank deposit to the bank feed in QuickBooks Online 

10.  As part of the progress invoice, create a second invoice (invoice 2 for the remaining percentage of the estimate) 

11.  Close the estimate ($0) 

12.  Customer pays invoice 2 

13.  Receive payment and deposit to Undeposited Funds in QuickBooks Online

14.  Bring the money to the bank

           15.  Create Deposit transaction in QuickBooks Online 

Sales workflow in quickbooks example

quickbooks online workflow diagram

quickbooks online bill approval workflow

quickbooks sales order to invoice

accounts payable workflows in quickbooks desktop

quickbooks desktop workflow