Quickbooks Journey

[AmithS]

Another Q on product samples and inventory adjustments.

For product samples provided to customers - is this a cogs or expense?
For product samples purchased from suppliers - is this a cogs or expense?
For damaged product that cannot be sold - is this a cogs or expense?
For product that is missing\short during stock take - is this a cogs or expense?

Thanks,

[Andromeda]

Another Q on product samples and inventory adjustments.

For product samples provided to customers - is this a cogs or expense?
For product samples purchased from suppliers - is this a cogs or expense?
For damaged product that cannot be sold - is this a cogs or expense?
For product that is missing\short during stock take - is this a cogs or expense?

Thanks,

3 and 4 are COGS.

If you expense the 2nd one, then the 1st should not result in an entry.

[AmithS]

Does anyone on the forum use the QuickBooks "fixed asset item list" to record and depreciate assets?

Some insight into this feature would be great. Is it for recording purposes only or does it integrate into the rest of your financials and have automated depreciation?

Thanks,

[Andromeda]

Its one of those pointless features; it does not integrate with the ledger. It also does not deal with impairments, nor properly with disposals.

You would probably have to record the details in a fixed asset program, so I am not sure you would want to duplicate the effort here.

[AmithS]

Hi All,

Can someone please give me the quick run down on depreciation of assets in South Africa accounting...

-Over how many years must the asset be depreciated?
-Is there any limits on the value for assets to qualify for depreciation?
-Pros & cons of monthly vs. yearly depreciation?

Thanks,

[Andromeda]

Hi AmithS

This link to an IAS 16 explanation should answer all your questions https://www.ifrsbox.com/ias-16-prope...and-equipment/

[AmithS]

Hi AmithS

This link to an IAS 16 explanation should answer all your questions https://www.ifrsbox.com/ias-16-prope...and-equipment/

Thanks Andromeda, appreciated.

Is it common practice to add in manual journal entries to get your QBs figures to match fixed asset depreciation \ tax submission calculation figures?

[Andromeda]

Yes. There is actually no other way. That is to match your carrying values, which is cost less accumulated depreciation.

Wear and tear and tax values you merely use when submitting your tax return. Depreciation is added back to profit, because it is a disallowed expense, and wear and tear is deducted in it's place.

[AmithS]

Hello, what is best practice when invoicing multiple branches for a single customer account in QBs.

Create invoices for each branch with the individual branch delivery addresses on the respective invoices and attached statement for total amount?

[Dave A]

Hello, what is best practice when invoicing multiple branches for a single customer account in QBs.

Create invoices for each branch with the individual branch delivery addresses on the respective invoices and attached statement for total amount?

That certainly is an option.

One scenario we deal with is where we have a single client with multiple service sites, and we need to track and report the services provided per site. We solve this by creating a separate Customer:Job for each site (pretty much a customer sub-account for each site).

[AmithS]

Hello, so what happens in this instance and how do you handle it in Quickbooks,

If a customer pays for services\products before you actually invoice them...

[Andromeda]

Receive a payment in the normal way and leave it unallocated to any invoice.

After the invoice is made out, you can allocate it in a few ways.

[AmithS]

Thanks Andromeda, so basically if I understand correctly I can still allocate the payment to the invoice even if the payment date was before the invoice date?

[Andromeda]

Hi
Yes. You can apply any credit to any debit on the same customer account.

[AmithS]

One more thing, what do you do if you invoice someone and they never pay (goods or services also not delivered to them)...