How to show a customer pre-payment on an invoice.

If you accept deposits or prepayment from your customers and wish to reflect those payments and show only the outstanding balance due on your invoices, a simple customized invoice will do the trick.  Read here to find out how you can record these prepayments.

 Once the invoice has been created you can choose the Apply Credits button at the bottom of the invoice screen.

Any available credits for this customer will appear in a pop-up.  Choose the pre-payment that you recorded for this invoice.  Select Done.  In the lower right portion of your invoice screen you will see the payment amount that has been applied and the balance due on the invoice.

Your next step will be to create a customized invoice form to show this same information on your printed or e-mailed invoice.  From the invoice screen choose Customize from the invoice menu bar.  If you have a newer version of Quickbooks a pop-up window will appear asking if you want to create your own form or customize an existing form.  Choose the Customize Data Layout option.

In the customization screen choose the Footer Tab, and click the Print box for Payments/Credits and for Balance Due.

New versions of Quickbooks will automatically adjust the layout to fit these extra fields at the bottom of the invoice.  If you have an older version of Quickbooks you will need to manually adjust the layout so that your lines and boxes do not overlap.  To make the manual adjustments click on the Layout Designer button at the bottom of the customization window.

In the Layout Designer window you can click on various boxes and drag the field indicator buttons to make the box smaller.  You can also click and drag various boxes to relocate them on the invoice.  When you click on a box there will be a message in the lower left corner of the Layout Designer screen telling you what box you have clicked on…whether it is a text box, a data box, etc.  Adjust the main body of the invoice to allow room for your new footers at the bottom of the invoice.

When you are done click OK and you will see a preview window of what your invoice will look like when printed.  You can hop right back into the Layout Designer if you need to make further adjustments.   This is what your customized invoice will look like…

 Another great feature is that once you customize this invoice you don’t have to repeat the process.  It remains stored in your Quickbooks.  You can even rename it so it’s easier to use later.  From the Additional Customization window choose the Basic Customization tab,

…then select Manage Templates,

 The invoice you are customizing will appear highlighted in the Manage Templates window.  Click on the Template name in the upper right and change the name as desired.  The next time you create an invoice you simply click the Template drop down in the upper right corner and choose the invoice you wish to use.   

Again, please post comments so that answers to your questions can be addressed on the blog.  Happy Bookkeeping!

This material is for informational purposes only and not intended and financial, legal or tax advice. Please consult your finance, legal or tax professional to confirm the accuracy of all information. Quickbooks is a registered product of Intuit.

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Financial Orbit wrap 16/06/15

Five sentences or graphics which sum up the Financial Orbit output over the last 24 hours across the website, twitter account and anything else thought about…

1. So Greek discussions rumble on…

…as the debt repayment dates gets closer. My view remains that the creditors have to get real too…

2. Yes it is that time of the month again for all fund management industry watchers as the BoA-Merrill Lynch Fund Manager survey hits town.  It is fair enough that putting your hands on a copy is harder than ever but with all due reference to the content providers here are a few of the graphics that I have managed to get hold of…plus a few thoughts of my own surrounding them.
Well when Mr Draghi in the most recent ECB interest rate decision press conference tells you to anticipate volatility…that is what you logically do.  Funny how yesterday I sold my long EU volatility positions at a pleasant profit…  Quite amazing to see how little H2 2008 volatility protection there was…
3. I listen to the Factset quarterly numbers and conclude that the financial information provider is interesting but (link here)…
I think you can wait for a bad day etc. for one if not more of these levels but in short was I impressed: yes.

4. In European economic news the German ZEW was hardly sparkling…
5. The FOMC kicked off today (with the disclosures tomorrow at 2pm ET).  Just a quick visual reminder about the ‘market versus Fed projections’ debate.  I know who I believe…

Sydney property in the news

Sydney red hot
Some of what is happening in Sydney’s property market is “crazy” said Reserve Bank Governor Glenn Stevens in his Brisbane presentation yesterday.
He’s not wrong there.
But house prices in Sydney won’t stop the Reserve Bank cutting interest rates lower still as required, he said.
Any way you look at it, Sydney’s desirable property markets are expensive…and they are going to remain so.
John McGrath highlighted a few out the reasons why last week on Switzer here.
“Sydney’s population is expected to reach 6.1 million in 2031, which means 80,000 new people will move here each year.

Based on the assumption of 1.5 people per dwelling (in recognition of the rise in apartment living), Sydney will need 53,000 new dwellings per year.

The HIA says 54,000 new dwellings will commence in NSW in 2015 – but that’s for the entire state. That’s also a record high figure, with annual new builds expected to decline to 47,000 per year over the next four years.”

I’m not quite sure where the assumption of 1.5 persons per dwellings came from, but the principal is spot on.
In the most desirable areas of Sydney demand is outstripping available supply by a factor of many as covered here previously.
SBS News lead with a short piece on the story here yesterday,
I note that Demographia’s measures of housing affordability have previously been criticised for not including all dwellings (i.e for excluding apartments and attached dwellings).
Yes, any way you look at it Sydney housing is expensive, but that said I don’t expect anything to change in that regard over the next couple of decades.
Watch the SBS News piece here.

Open Purchase Order Report Shows PO's That Are Received In Full

In Quickbooks Pro Manufacturing Edition are you seeing Purchase Orders on your Open PO report in Quickbooks that have been received in full.  Are you seeing the “Received In Full” stamp on these PO’s when you open them to try to determine the cause of the error.

Here is a little trick that I have found works well for me.  Open the purchase order that is in question (be sure to keep track of the PO number), change the date of the PO to the year 2030 and save and close it.   Use the “Find” feature with the PO number or locate it in the Customer center if you no longer see it on the report.  Re-open the PO and change the date back to the correct year and save and close it.

Give this a try and please comment on whether or not it has fixed your problem.  It has worked well for me and I am curious to find out if others have the same result.  Yes, I admit, it’s just a treatment and doesn’t really diagnose why this is happening.

Am picking this mortgage, why?

 What exactly makes pick one mortgage loan package and leave the other? What attracts you to your favourite package? The fact is you’ll in all circumstances repay the loan amount plus interest to the lender regardless of the amount in question. Am sorry my learned fellows .In all posts in this blog my target is the common /ordinary person who needs to live, borrow and prosper just like others though they lack enough knowledge about the lending, credit and finance sectors.My language therefore is the simplest and friendly only to ensure that one get at least something for survival tomorrow.
 Back to the topic.When I talk about mortgage, it’s all about houses and owning a house.So, if you’ll be looking to own a house or building or buy a house for business or residential purpose ,what are you going to consider leaving out majority of the terms used in real estate?
 Whoever the lender might be , I have a collection of some of the preliminary characteristics of a favourable mortgage plan for a startup:

   1. Extent of financing.

How much is the lender ready to give in relation to the cost of the house or building? Majority of lenders will finance upto a given percentage for example 80% and cover the rest yourself.As for me I think 100% financing is better. Let there only be the pain of repaying the loan when it’s due.The thing is ,if you want a house let you see a house but not iron sheets, timber , sand and no bricks! This drives me to my second characteristic; real estate company involvement.

   2.Real Estate company involvement.

Real estate companies are the experts in matters concerning building houses with the right experience. The thing is these people will show you a house.what am I saying? Good mortgage givers enter into partnerships with real estate companies to give mortgage loans to their clients. Here , even the convincing power is high because the customer can view the real house on site. The advantage again is that you can right away start using the house for your residential or business purposes. Let there only be the pain of waiting for full ownership rights when the loan is fully settled. What will I do with a plot I would like to develop? Simple, let the lender develop it for you through a real estate company.

  3.Minimum Deposit.

The minimum deposit comes in when the loan can’t finance the cost of the building 100%. The percentage left (in reference to characteristic number 1, the minimum deposit will be 20%) is termed as the minimum deposit required for a borrower to qualify for that mortgage. A good mortgage should have a small or no minimum deposit altogether.

   4 . Insurance

Okay ,this is complex but it good to know. What will happen to you if the house you were loaned get consumed by fire or brought down by a hurricane? All the property used as collateral will be gone! Therefore, to avoid this , consider a mortgage package that has an insurance plan incorporated in it.The monthly premiums will save your collateral property.

    5.Duration of maturity.

When will the loan be fully repaid? Currently in Kenya, majority of lenders give upto 7 months ,that’s a duration of six years. This is the best duration for a good mortgage loan.Why? Because the amount of monthly instalments will be very low .Are you not happy paying just small amounts of money for a big mansion?

The above characteristics of a favourable mortgage loan are the main ones according to ‘Loans Kenya’. There are other factors too which apply to all loans .These are ; loan interest rate, secured or unsecured and valuation fees and stamp duty.

Lending finance soars to a 7 year high

Upbeat news
A compelling couple of days indeed for economic data releases, then.
First and foremost, the Labour Force figures showed that the Australian economy has added 234,000 jobs over the past year, as I analysed in a little more detail here.
When we get such strong results commentators tend to declare that they are “too good to be true” – the figures must be wrong – and this month was no exception, of course.
I haven’t gotten around to reading the market commentary on the April Lending Finance data yet (in truth, they don’t get all that much coverage in the media) but I imagine these must be too good to be true as well, since in the event April proved to be a massive result – one of the strongest ever.
Yesterday’s Lending Finance figures from the ABS showed that April was one the biggest months on record for lending in Australia.
On only two previous occasions have we seen more substantial lending data in an individual month.
You invariably get accused of hubris for pointing these things out, but what can you do? Them’s the numbers. 
Let’s take a look…
7 year high for lending
The April Lending Finance figures revealed a thumping $75.7 billion of lending in the month.
This was the strongest monthly result since waaaaay back in January 2008, and tantalisingly close to the all time record monthly lending figure which breached $78.4 billion back in June 2007.
The nature of this data series is that the monthly figures tend to jump around quite a bit, so I prefer to look at the figures on a rolling annual basis.
We already know that owner-occupier housing finance has increased in a robust manner, up by another 3.1 in April and by 9.3 per cent over the past year on a rolling annual basis, a typical and rational enough response to ultra-low mortgage rates.
Commercial finance increased by another 4 per cent in April and is now up by an even stronger 13.8 per cent on an equivalent rolling 12 monthly basis.
This takes rolling annual total lending finance 11.9 per cent higher over the past year.
Lower interest rates have clearly encouraged investors and homebuyers into the real estate markets, and businesses have evidently become more inclined towards borrowing and refinancing too.
Here’s the chart:

Investment pipeline weak

So what’s the downside, given that we’ve just had the third largest month of lending on record? 

The answer is that both capital expenditure plans and the investment pipeline are weak.

Total capital expenditure is broadly expected to fall by nearly 25 per cent from $149 billion in 2014-15 to just $104 billion in 2015-16.

This implies that the increase in commercial lending may well be on shaky ground if investment plans don’t pick up, which they may or may not.

I’ve always preferred looking to the “actuals” versus “expecteds” when it comes to capital expenditure and other ABS data.

This is largely because I know how perfunctory certain of my own submissions were back in my Group FC days, particularly on expected capex, which – let’s face it – is very much an art rather than a science.

Never missed a deadline, though!

Personal and other credit
Lease finance has increased sharply by 13.2 per cent over the past year.
While on the subject of credit, data released by the Reserve Bank of Australia revealed that the average credit card balance has declined by 1.2 per cent over the past year, and the average credit card limit declined by 0.4 per cent in April too.
This underscores the fact that with mortgage repayments having fallen to remarkably cheap levels, households are shoring up their finances and enjoying getting well ahead on mortgage repayments instead.

Average credit card repayments tumbled from $1,704 in March to $1,538 in April, and remarkably the proportion of credit card limits utilised has plummeted to its lowest level in 13 years.
Small wonder that mortgage arrears and loan impairments are also tracking close to their lowest level in years.

Property investor loans

On of the interesting sub-sets to this data series is the breakdown of property investor loans by state.

I’ve smoothed the data again below on a rolling annual basis.
I know people like to argue that theoretically interest rates don’t drive or impact property markets, but, hell’s bells, just look at the chart!
Presented in this manner, investor loans in New South Wales have exploded 32 per cent higher over the past year.
And in fact on a rolling annual basis property investment loans have increased almost everywhere, including in Victoria (+22 per cent), Queensland (+14 per cent), Western Australia (+10 per cent), South Australia (+11 per cent) and Tasmania (+23 per cent).

By contrast, the investor loan data has been pretty much stone dead flat in the Australian Capital and Northern Territories respectively on a rolling annualised basis. 
Original data
This data series is not seasonally adjusted, but looking at the unadjusted or “original” data series reveals some interesting trends.
Queensland investor lending is clearly now tracking materially higher than was the case through the 2011 and 2012 lull.
This is being reflected in rising median house prices in inner Brisbane suburbs such as New Farm, East Brisbane, Coorparoo, Norman Park, Woollooongabba, Holland Park, Newmarket, Wilston, Clayfield, and others.

South Australia is also steadily emerging as a destination for budding property investors, despite the weaknesses apparent in both the underlying economy and labour markets.

In Western Australia the up-trend is rather less convincing, despite a lift in total investor lending over the past year. In fact, it could be rolling over.

Meanwhile in New South Wales, the Sydney market in particular is burning up, with total investor lending over the past year in the state unprecedented at $61.1 billion.
As a point of comparison, just three years ago in the year to April 2012 the equivalent figure was just $26.5 billion.
Lending has more than doubled (and then some) over that time horizon.

Unfortunately as noted here previously Sydney property listings appear to have dipped sharply again in June.
In some suburbs there is almost no stock for sale at all!
It’s going to be a decmented third quarter for Sydney property markets in 2015. 
Finally, as for the droll reports that Sydney prices have been “falling” despite auction clearance rates ripping to record highs at close to 90 per cent…lol.

AAR Credit and Bright launched a loan package

 I know you are used to the famous AAR insurance company in Kenya which covers everybody against diverse calamities in life.Yes your are right but the company is growing. Apart from collecting premium which is the major source of benefits gained by insurers ,AAR developed a new limb, long enough and prepared to reach for ‘interest’ hence the origination of AAR Credit. But what is ‘Bright? I have talked much enough to give an clear overview about AAR Credit.Bright or Bright Technologies Limited is a fast growing tech company based in Nairobi Kenya specialising in selling digital gadgets.
 Then why did the two companies come together? What loan package came out of their partnership? Stop asking too many questions.The thing is AAR wanted to collect interest from its borrowers while Bright on the other hand wanted to get buyers for their goods.You know the objective of this blog ‘Loans Kenya’ is to inform borrowers of anything concerning loans or credit so that they can quickly take advantage of it.
 So, what does the package carry?Okay. This package covers everybody from salaried individuals to self employed to SMEs to corporates. Where do you belong?There are laptops, desktops, smartphones and more other gadgets all on credit.Thinking of starting a cybercafé or bring in computers in your corporate offices? A aah just mentioning some examples.
 How it works? Visit Bright Technologies premises in Nairobi at Ground floor, old mutual building, Kimathi street and ask for the loan application forms after choosing the item or items you wish to buy on credit. The filled in forms will be forwarded to AAR Credit for evaluation.
  What you need to know now?
1)The loan will cover 70% of the total value of the gadgets. Therefore, you must provide 30% as deposit.
2) The minimum loan amount is ksh15000
3) The loan will be repaid within a period of 1 2 months at an interest rate of 2.5% per month.
4) There’s a processing fee of 4% and 3.01% as premium for the gadget because it’s going to be insured.
5) As usual with lenders ,you’ll need to provide ID or Passport ,payslips ,PIN certificate for businesses/corporates, bank statements.
  The loan processing will be within one week. Disapproved loans will get applicants refunded their deposits.
  I have been advising people for some time now and what I know is that people fear much when so many documents get mentioned by the lenders.That should not get one afraid because some of them are in your reach.
  You are now updated!

Residential construction boom to continue

Jobs news today
Australia’s favoured share market index, the ASX 200 (“XJO”), continues to meander along, now miserably hovering below 5,500, having previously once again threatened 6,000.
It’s a monster day ahead for news with the Labour Force figures out at 11.30am.
After a somewhat downcast speech from Reserve Bank Governor Stevens yesterday, analysts will be awaiting these latest figures with bated breath.
Before we move on to look at the employment figures in detail, a quick look at why the residential construction boom has plenty of gas left in its tank yet.

New home finance up

The Housing Finance figures for April showed a moderate increase in the seasonally adjusted number of new dwelling commitments to 2,766 in the month.
While this was an improvement on the March figure, smoothing the data on a 4mMA basis, shows that the trend looks to have passed its peak.

In terms of the value of loans written for new dwellings, the data recorded a record high of $1.03 billion in April, reflective of the expensive nature of new housing stock in Australia.
Investors both domestically and from offshore pay a hefty premium to buy new, and this has taken rolling annual new dwellings finance its highest ever level at $11.6 billion.

Despite the trend in new dwelling commitments looking decidedly toppy, this overlooks that a sizeable percentage of new dwelling sales are made to foreign investors, particularly in Sydney, Melbourne, Brisbane, and elsewhere.
Naturally enough, these offshore sales are not picked up in our domestic housing finance figures.
Most other indicators, including record high building approvals and forecast dwelling starts, point towards an industry which is now at or approaching its full capacity.
Typically skills and materials shortages at this stage in the construction cycle will lead to rapid inflation in the build cost of new dwellings, and there are already some indicators of this dynamic.
In particular, the Reserve Bank’s liaison work has noted a shortage of bricklayers and project managers in the residential space, despite the widespread availability of construction workers as the mining investment boom dies its long, slow death.
Construction loans
Unsurprisingly most buyers continue to seek finance to buy established property, although if you look closely, construction finance is rising steadily.

Drilling into this a little further, the rolling annual value of construction loans to owner occupiers appears to have peaked out at a record $22 billion.
However, rolling 12 monthly construction finance commitments to investors continue to rise, now up to $9.1 billion of loans written, which is also a record high.


If there is one genuine bubble in the Australian economy, it is surely in the irrationally exuberant number of renovation TV shows advertised on the television (I’ve never actually watched one, I should disclose…not my thing).
Alas, outside Sydney, where renovations activity is both robust and rising, nobody seems to be undertaking any renovation projects themselves! 
Sure this was only the first month of the quarter, but the contribution to GDP growth from major alterations and additions in the second quarter of the year already looks likely like to be nil.


The wrap

Some survey indices have lately pointed to a contraction in apartment and attached dwelling construction.
These indices are surely broken!
Just a few days wandering around the capital cities and major regional centres would tell you as much.
The residential construction boom continues, fuelled largely by sales to offshore buyers, and for this reason, the data on new dwelling commitments domestically doesn’t give us the full picture.
The construction loans data charted above – combined with record high building approvals and a strapping number of dwelling starts – imply that the next two years will see a sustained high level of activity in home building.
The all-important employment data is out later this morning.
After an ordinary flow of news in recent weeks, there will be more than a few twitchy observers today. 
A moderate result of +13,500 total employment is expected by market consensus for the month of May, with forecasts ranging from -5,000 to +20,000, although as we have seen from previous month’s figures, the survey can be hella volatile.

Westpac expects to see solid employment growth of around 1.75 per cent per year based on its Jobs Index, which has been steadily improving since November last year.

However, the seasonally adjusted unemployment rate is still considered likely to come in at 6.2 per cent or even higher.

A brief recap on the April Labour Force result can be found here – the Sydney economy looks relatively muscular, elsewhere not so much. 

Can I use Quickbooks to do this?

Q.)  Im working in a Multinational Pharmaceutical company that operate in the Gulf as in many other countries, and my Region role is to market the products we don’t keep inventory ,we don’t sell, we don’t collect payments, even we don’t prepare balance sheets.  We forward our expenses (allocated by account) to HQ’s and they do the rest.  Our expenses are as follows

1 payroll
2 office related  ( rent, courier,telephone,etc)
3 marketing related (meetings,gifts,,, etc)

My role is to prepare expenses formats, make payment to suppliers, control expenditures and prepare a lot of reports shows how much we spend and on which products are alike and prepare expense formats to be sent to HQ’s as well.

I dont have a tool to manage all of these , so i use excel which in fact very poor tool to manages all of these tasks. Can Quickbooks help me to prepare monthly statements per account to be sent to HQ’s and also help me to prepare internal reports that can help the team to wisly spend on marketing actvites and give me control over spendings against budgets?

A) Even though you don’t generate any financial statements you can use Quickbooks to create a budget for your spending, track how your spending compares with your budget, create spending reports by sales rep, location, etc.

Since you are paying vendors you can use Quickbooks to track what you expense and owe. In addition, it sounds like you have a checking account that Quickbooks can assist you in balancing.

I agree, Excel is probably a very time consuming way to track all of this. Even so, Quickbooks allows you to export just about every transaction and report into Excel so you can easily manipulate it, while having accurate numbers. Most of the reports can be modified extensively and run in many different ways to include a lot of different information.

I think with some time, and experimentation you would find it very useful.

Q)  Can I set up cost centers , like for Every Product a seprate cost center where i can charge them for any marketing actvities and generate the reports to show how much each product (cost center) is spending against budgets for its own?

In case this is possible, which edition of QB’s i should use, Non profit ,pro?

A) Use the “Class” feature in Quickbooks to create your Cost Centers. Quickbooks Pro should work for you. I don’t think the non-profit edition applies but you can use it and make changes to suit your reporting needs.

With the class feature you can create a separate budget and track all of your expenses. Each transaction you enter will give you a “class” column. Remember this one important thing…you have to enter the information correctly to get it reported back to your correctly. You can turn on a “reminder” in Quickbooks that will let you know if you forgot to enter the Class(Cost Center) in a transaction.

Response)  Thank you So Much You were Very hepful. I really appreciate it.
This material is for informational purposes only and not intended and financial, legal or tax advice. Please consult your finance, legal or tax professional to confirm the accuracy of all information. Quickbooks is a registered product of Intuit.
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