Quickbooks Journey

[Andromeda]

Reverse the sale because it never happened

[Dave A]

Or you could void the transaction (if it isn't affected by a VAT filing yet).

I have a few suggestions when it comes to the editing functionality in Quickbooks.

1. Be careful about who you enable the editing functionality for.
2. Set clear protocols about when editing is permissible, vs the "normal" reverse entry / transfer entry.
3. Use period locking to keep control of edits where an inappropriate edit may affect the validity of the record.
4. Never delete - only void transactions.
5. Monitor the audit trail from time to time.

[AmithS]

Thanks Dave, will look into these features to avoid any record problems down the line.

When a transaction is Void does it also reverse the stock allocated to the invoice?

or will I have to manually adjust the stock...

[Dave A]

When a transaction is Void does it also reverse the stock allocated to the invoice?

Yes.

Or rather, it nulls all quantities.

[AmithS]

Yes.

Or rather, it nulls all quantities.

Perfect thanks. Will make a backup and test these out.

[AmithS]

Or you could void the transaction (if it isn't affected by a VAT filing yet).

I have a few suggestions when it comes to the editing functionality in Quickbooks.

1. Be careful about who you enable the editing functionality for.
2. Set clear protocols about when editing is permissible, vs the "normal" reverse entry / transfer entry.
3. Use period locking to keep control of edits where an inappropriate edit may affect the validity of the record.
4. Never delete - only void transactions.
5. Monitor the audit trail from time to time.

Been thinking about this, have 2 questions,

1. What happens if the invoice is already affected by a VAT invoice? How do you then cancel the transaction

2. Could I maybe use Sales Orders and only issue an invoice after payment? Extra step might be worth it in the long run?

[Dave A]

1. What happens if the invoice is already affected by a VAT invoice? How do you then cancel the transaction

If you have processed a VAT return that includes the invoice in question, you definitely must not void the invoice. You would need to process a credit note reversing the invoice (in my version of Quickbooks this is a click-one-button deal if you have the invoice you want to credit open).



I have to say, I was a bit reluctant to raise the editing functionality within Quickbooks at all for a couple of reasons:
1. It is viewed with suspicion by many in the accounting fraternity within South Africa
2. It does take a bit of thought as to when it is appropriate to use it.

Quickbooks is pretty good at warning you when you're going to do something inadvisable though.
And used correctly, editing an entry rather than posting correcting entries certainly helps keep the books tidy and easier to follow.

[Andromeda]

Hi

As Dave pointed out, be aware of the ramifications of Quickbooks' very powerful editing features, as well as delete. It can be a double edged sword in most circumstances, but if you understand the ramifications it can be very useful.

There is also a bug in Quickbooks related to this aspect, and staff will almost always eventually discover it, if the circumstances are right:

When you load a user with even a modicum of restrictions, a question arises whether this employee has the ability to modify or delete his entries (a further question basically asks the same thing if the transaction is before the Quickbooks closing date). The assumption when you answer "No" is that the user will not be able to change or delete any entered transaction and would have to request a supervisor or owner to do it. You naturally also take comfort that when you print an invoice, Quickbooks displays a message that the invoice must first be saved. You most likely think great, so it can't be printed again.

However this only works where the particular employee has logged off, then on again. Quickbooks SA's story was that this was to enable a person to fix his mistakes. Supposedly they got this story from Intuit in the UK. This probably qualifies as the weakest excuse I have ever heard and I simply don't believe it. It seems to me rather to be a coding issue.

This is what happened at a client who had 3 counter hands who invoiced both accounts and cash sales (Sales Receipt). A salesperson would process a cash sale, print the invoice and receive the cash.
For the next cash sale the person would simply change the already produced invoice and receive the cash again, which the person pocketed. The person would do this umpteen times before logoff and heaven only knows how much money was stolen.

Certain places have a cash receiving person in a separate locale where the invoice also ends up, provided this person keeps a check on the numbers the risk is eliminated, however these are exceptions and to expect a user to go to those lengths is a cheek.

This scheme was only discovered when a client brought goods back, accompanied by his invoice, only for other staff to discover the invoice was totally different to the one on the system.

Inspection of the audit trail then revealed the scheme, but in a busy outlet inspection of the audit trail is somewhat exhausting. This was an outfit that produced in excess of 1200 invoices per month

This was clearly an anomaly and I reported it to both local and UK Quickbooks. Local Quickbooks told me that was UK's response, which they agreed with, I might add.

It so happened I also have the 2014 version of Enterprise Edition, which has the most comprehensive task based security system I have ever seen. You guessed it, the weakness is there too. And that package use to cost in the region of R18,000.00 for a single user.

Despite the weakness, I would never change Quickbooks for another system, I have used AccPac, Pastel, Omni (2nd best), Palladium and a host of online cloud based packages; they don't come close to Quickbooks which I have used daily since 2000.

Good luck in your venture.

[AmithS]

If you have processed a VAT return that includes the invoice in question, you definitely must not void the invoice. You would need to process a credit note reversing the invoice (in my version of Quickbooks this is a click-one-button deal if you have the invoice you want to credit open).

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I have to say, I was a bit reluctant to raise the editing functionality within Quickbooks at all for a couple of reasons:
1. It is viewed with suspicion by many in the accounting fraternity within South Africa
2. It does take a bit of thought as to when it is appropriate to use it.

Quickbooks is pretty good at warning you when you're going to do something inadvisable though.
And used correctly, editing an entry rather than posting correcting entries certainly helps keep the books tidy and easier to follow.

Thanks Dave, I see I have the option in your picture available. So if I understand this correctly this method would then adjust the VAT in the current VAT period to recover the VAT paid in the previous VAT period?

[AmithS]

Hi

As Dave pointed out, be aware of the ramifications of Quickbooks' very powerful editing features, as well as delete. It can be a double edged sword in most circumstances, but if you understand the ramifications it can be very useful.

There is also a bug in Quickbooks related to this aspect, and staff will almost always eventually discover it, if the circumstances are right:

When you load a user with even a modicum of restrictions, a question arises whether this employee has the ability to modify or delete his entries (a further question basically asks the same thing if the transaction is before the Quickbooks closing date). The assumption when you answer "No" is that the user will not be able to change or delete any entered transaction and would have to request a supervisor or owner to do it. You naturally also take comfort that when you print an invoice, Quickbooks displays a message that the invoice must first be saved. You most likely think great, so it can't be printed again.

However this only works where the particular employee has logged off, then on again. Quickbooks SA's story was that this was to enable a person to fix his mistakes. Supposedly they got this story from Intuit in the UK. This probably qualifies as the weakest excuse I have ever heard and I simply don't believe it. It seems to me rather to be a coding issue.

This is what happened at a client who had 3 counter hands who invoiced both accounts and cash sales (Sales Receipt). A salesperson would process a cash sale, print the invoice and receive the cash.
For the next cash sale the person would simply change the already produced invoice and receive the cash again, which the person pocketed. The person would do this umpteen times before logoff and heaven only knows how much money was stolen.

Certain places have a cash receiving person in a separate locale where the invoice also ends up, provided this person keeps a check on the numbers the risk is eliminated, however these are exceptions and to expect a user to go to those lengths is a cheek.

This scheme was only discovered when a client brought goods back, accompanied by his invoice, only for other staff to discover the invoice was totally different to the one on the system.

Inspection of the audit trail then revealed the scheme, but in a busy outlet inspection of the audit trail is somewhat exhausting. This was an outfit that produced in excess of 1200 invoices per month

This was clearly an anomaly and I reported it to both local and UK Quickbooks. Local Quickbooks told me that was UK's response, which they agreed with, I might add.

It so happened I also have the 2014 version of Enterprise Edition, which has the most comprehensive task based security system I have ever seen. You guessed it, the weakness is there too. And that package use to cost in the region of R18,000.00 for a single user.

Despite the weakness, I would never change Quickbooks for another system, I have used AccPac, Pastel, Omni (2nd best), Palladium and a host of online cloud based packages; they don't come close to Quickbooks which I have used daily since 2000.

Good luck in your venture.

Thanks Andromeda for the info, I am enjoying QBs - was wondering for a moment why so many people talk about Pastel\Sage and I don't see as much activity with QBs (alot of accountants seem to use Pastel)
Having Dave & yourself give good feedback has given me much comfort in my choice.
Thanks Guys

[Dave A]

Thanks Dave, I see I have the option in your picture available. So if I understand this correctly this method would then adjust the VAT in the current VAT period to recover the VAT paid in the previous VAT period?

Mind you (just to be clear), if you have already filed the VAT return on the transaction you're reversing, it is my habit not to introduce new entries into the closed period. I rather post the reversing entry dated after the closing date.

[Andromeda]

Thanks Andromeda for the info, I am enjoying QBs - was wondering for a moment why so many people talk about Pastel\Sage and I don't see as much activity with QBs (alot of accountants seem to use Pastel)
Having Dave & yourself give good feedback has given me much comfort in my choice.
Thanks Guys

It's fair to say that Quickbooks almost never breaks and is pretty intuitive. Pastel not so much.

[AmithS]

Meant to ask, Dave - do you file your own UIF, PAYE, VAT etc... I would assume you also have the QBs payroll module?

[Dave A]

Amith, I tried Quick Payroll for a couple of years, then switched to another payroll program in 2014.

I found the new program to be far better to work with at the time, but don't know how Quick Payroll might have evolved since and hence can't really give a current view.

[AmithS]

So here's another Q, I only realised today that I did not receive one of my invoices from last month... (payment is due this month)

So say I already closed last month and filed returns etc... how would one handle this "missed" invoice?