To complete this exercise, you must be in the Sample company. From your QBOA account, click on the Gear icon on the top right corner of the screen, then select Sample company.

Note that you will be logged out of your current account. If you are sure, click "Continue" to confirm. 

Now let's get started with the exercise.

First, create an Expense transaction.

Click the "+ New" button, then select "Expense".

Leave the Payee field blank. You will need to add a Clearing account, set up as a Checking type bank account.

In the Payment account field, select "+ Add new".

In the Detail Type field, select "Checking".

First, using the Category Details grid, remove $300 from the “Job Expenses:Job Materials:Plants and Soil” account by entering it as a negative number.

*Note: Make sure you are using the Job Materials: Plants and Soil category underneath Job Expenses (an expense account) and not the one under Landscaping Services (an income account), or you will get an error.*

On the first line, in the Category field, select "Plants and Soil".

Next, individually enter $100 for the same Plants and Soil account, one on each line. Mark each as billable and enter the individual customers.

On the second line, in the Category field, select "Plants and Soil".

In the "Billable" field, click the checkbox.

*Note: you may need to click this twice to have it selected.*

In the Customer field, select "Red Rock Diner".

Repeat steps 9-12 for Kookies by Kathy and Paulsen Medical Supplies.

This is how the Expense should look when all the information is added. Notice that the result is a zero-dollar expense.

QuickBooks

QuickBooks is a widely-used accounting software developed by Intuit, designed to simplify financial management for businesses of all sizes. It provides a user-friendly platform for tasks like invoicing, expense tracking, payroll processing, and generating financial reports. QuickBooks automates many financial processes, making it easier for businesses to monitor their financial health, prepare taxes, and manage cash flow. With its various versions and integrations, QuickBooks caters to the needs of freelancers, small businesses, and larger enterprises, offering a flexible and comprehensive solution for efficient accounting and financial management.

app.qbo.intuit.com

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Scenario: Over the last couple of months, Craig spent about $300 on soil for various landscaping jobs. Now that the jobs are done, he sees that he spent about $100 of it each on 3 of his customers: Red Rock Diner, Paulsen Medical Supplies, and Kookies by Kathy. 

How can you add these to their invoices without going into each of the old expense transactions? This is a perfect time to create a zero-dollar transaction.

A.4.2.a Reallocating Expenses