2.5The Memorized Transaction List
The more familiar you are with your company, the more repetition you will find in its bookkeeping. There are activities that repeat themselves on a regular basis. There may be a monthly subscription fee for a service that the company purchases. There may be a fee charged by you to a customer each month. Every company is different, but it is likely that there will be transactions that occur regularly. It is possible to copy journal entries, checks, invoices, etc. every month rather than keying it in again, but there is another option. It is possible to have QuickBooks automatically create those transactions at desired intervals. This can be managed using the Memorized Transaction List.
This section will be kept very surface level. It will make more sense as you learn about the actual transaction processes. However, this basic list knowledge may be useful as you get more familiar with QuickBooks.
Rather than starting at the transaction list, we will first talk about making a memorized transaction. This can be done easily. We will go over examples of basic transactions that can be memorized. These transactions include invoicing, billing, and creating journal entries.
Creating an invoice will be covered in a later chapter. However, it is good to be aware of the ability to memorize an invoice for repeated use. Invoices are documents sent from your company to customers, detailing how much is owed for your products or services. It would be appropriate to memorize a transaction if it is repetitive and predictable in timing and amount. This will be illustrated by an invoice from our camping store example.
The Rent-A-Tent company in Hyrum, UT has requested a monthly tent inspection and cleaning service with our company. It pays $75 for the 3 large tents to be serviced. It has been a customer since 2014. Its contract with us specifies that a representative will bring the tents in on the 7th day of the month. A typical invoice sent to Rent-A-Tent looks like this:
A similar invoice is sent out every month to Rent-A-Tent. This makes it a perfect candidate for a memorized transaction.
To add an invoice as a memorized transaction, click on the “memorize” button on the ribbon above the invoice. It should look like this:
Clicking on that icon will bring up this screen:
This lets you determine the nature and time frame of the memorization. The left column lets you choose if you want the transaction to be a simple reminder or if it should be automatically entered. An invoice is usually safe to have automatically entered if the accounts receivable is reasonably monitored. The second column requires date information. It allows you to choose how often the transaction will occur (monthly, weekly, daily, etc.). The “next date” lets you determine the first date that the memorized transaction will occur. The “number remaining” section will then become available and allow you to set the number of times you want the memorized transaction to occur. If you want the transaction to show up early, you can have a number added to the “days in advance” section as well. A grouping is not necessary, but it is part of the memorized transaction list.
This is what it would look like if you memorized the camping store example transaction.
The next 12 months, starting in May, will have invoices created for Rent-A-Tent. The details of this will be found in the Memorized Transaction List.
The process for creating a memorized bill is identical to that of an invoice. To have a bill memorized, you will want one that is predictable in amount and timing. An example of this may be a magazine subscription. If our camping company subscribes to a magazine each month, through a contract, the amount and bill dates should be easily noted. An example bill has been created:
This bill can be memorized through the same process as the invoice.
Slightly different than a bill or invoice is a journal entry. Journal entries can reflect any transaction, and it can be linked with a customer or vendor just like a bill or invoice. However, it is typically used for more general items that are not linked to a name. An example of this could be bank service fees that are automatically withdrawn from the bank account each month. This would look similar to the following image:
This journal entry shows that the charges were paid out of the Wells Fargo bank account. It can be memorized with the same input screen by clicking on the “Memorize” button in the ribbon.
All of these memorized transactions may be edited, grouped, or deleted though the memorized transaction list. The list can be found by clicking on the “List” button on the ribbon at the top of the screen. Click on the “Memorized Transaction List” option to open a screen with the list of memorized transactions we just created. It should look like this:
If you right click on the transaction, options to delete, group, and edit are available. A group could be used instead of these individual transactions to simplify the list. A new group can be created either by right-clicking or selecting the arrow next to “Memorized Transaction” at the bottom of the screen. An input screen that looks identical to the regular memorized entry screen will appear. Fill that out with the information that is common to all the transactions. Once the group is created, you can choose to add the transaction to the group by selecting the “Add to Group” option within the edit screen of the transaction.
Once grouped, the transactions will take on the same properties as the group.
Understanding the lists and groupings available in QuickBooks makes the rest of the system a little easier to comprehend. Don’t forget these vital principles as we continue with the lessons.
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