Comprehensive Zoho Books Masterclass: Setup, Accounting, GST, and Automation

hello everyone sushil here welcome to joho Mastery Hub [Music]

channel so are you a business owner or an accountant you understood the potential of joob books but you're not

sure like how to get started how to onboard your organization on joob books and you know get started with your

day-to-day accounting so if that is your case yes you will defitely have a great value with this session so I'm planning

this master class so I'll start from the initial step of like assigning it's it's not going to be any PP or something I'll

I'll do everything on the real time so I'll start with you know signing up for the Joo fresh joob books account then we

will do the basic organization settings needed like configuring GST some organization details uh if I have any

multiple if you have any multiple branches how you going to configure that and also we will see how you customize

uh know the invoice templates or quotation po templates according to your organiz format

we will see how you can do the user specific control the access control and all then we will go ahead with importing

the Master's data which includes chart of accounts vendors uh customers data the items which is include which is

nothing but products and services your company offers so once you have the Master's data ready uh imported then we

will go ahead with importing the opening balances so once this is done then your organization is set up then you need we

will review how how you manage your day-to-day purchase entries then sales entries which

includes everything like you know if your organization has uh you know know sales returns or something how you

manage sales return how you generate credit noes so all the aspects you know which you need in day-to-day you know

accounting practices like which is related to purchase and sales we will cover everything required then we'll

also focus on banking module so we will uh in have a detailed walk through on the bank reconciliation and other things

related to the banking module so then we will also cover know manual journal entries so I'll take few examples like

how to post salary uh entries or loan taken loan given so I'll take these examples and you know I'll show you how

we record this manual journals we will also have a uh walk through on managing the compliances if e invoicing EV Bill

applicable for your organiz how you can set up that also we will review and we'll have a walk through on the various

reports joob books has and if you need any custom report how we going to create we can see and there are lot of advanced

configuration automation aspects we will cover that and especially if you are a business uh which is into service or it

and you build your clients on Project Specific how you manage that uh the project specific building also we will

review there are other customizations so I'm also giving you here the timestamps uh of each and and every topic if you

want to directly jump onto the any specific topic you are free to do that so with that let's get started I also

want to quickly introduce myself uh as you can see here uh I'm a certified joob books professional I represent an

organization Fab Consulting so we are authorized joho partner we've been associ with joho for the last 7 years we

completed 400 projects till date uh we do offer end to end Joo service which also includes tally to joob books

migration uh everything so yes the agenda of this master class is to empower you so that you can do it

yourself but if you want any professional help to setting up you can also reach us all right uh let's get

back to the agenda we'll start start with signing up for the joob books account so

visit joob Books page so you will find sign a form

registration form fill this details you will receive a link on your registered email ID by clicking that link you

complete the uh joob book sign up process here I will take a moment of your time uh to to introduce an

exclusive opportunity uh which will definitely benefit you so you'll find our partner referral Link in the

description so by clicking that link if you can register for Joo books and activate your license you will be part

of our Fab alliance members CL Club so it's a free membership and with a lot of benefits and uh if you already H have an

existing joob books account still you can also part of this community by coming landing on this page you can fill

this uh registration form so there should be some qualification there is some qualification criteria you can uh

go through this eligibility so you then you will be part of this and let me give a walk through on the benefits so you

will get a best price on joho subscription and we'll also assist you choosing the best bundle best plan so

that you can op know efficiently use your subscription budgets and we also provide complimentary Consulting

sessions uh 30 minutes each it's a personal one-on-one Consulting session so we can assist you with your

onboarding any questions concerns you might have so you know to get your onboarding done smoothly and uh there is

a priority support window you so you can raise a support ticket on our help center platform so our team will assist

you uh you know with uh by email response so we also take care of your account

management like if you have any requirement for user upgrade plan changes subscription plan changes

renewals or anything uh you can we will assist you with that and we also offer special discount on implementation and

migration Services as you as I already told you like we take care of end to end uh implementation migration Services if

you want any such Services we'll offer you know special discount for our fam club members so definitely you will have

an access to exclusive iive resources and training material so you can so with all these things you can get more value

from your joob book subscription so consider joining the club so let's get back to the process so since we are done

with the registration so uh to access your joho books you should visit books dot books

Dojo doin by visiting this link uh you can access your joob books application so the moment you land on the

application so you will see the dashboard which will give you the insights on your financial health of the

business uh the total receivables uh which also gives a break up on uh the date range up to 15 days 30 days 45 days

so what all your receivables same with the payables and you'll also see a uh dashboard for your cash

flow and there are other insights so actually uh as on today there I'm recording this session this dashboard

components are not customizable but uh pretty much what we require is will be shown and of course there will be lot of

reports and everything because that I will discuss in further uh part of this session all right uh let's configure the

organization settings so click on this gear icon top right

corner so under the organization go to profile so you can add or organization logo here and add all other details

organization name address everything and financial year April to March it will be automatically

chosen need not to touch that yeah so the company ID you can rename it for example if you want to

mention it as uh you know cin corpor identification number you can change this to that tax ID you can change it as

GST and you can add the values here along with that if you have based on your business if you have any other

labels to be added for example if you want fssi uh number to be displayed on your uh purchase order invoice quotation

templates you can add that label you can add the number here so whatever you are uh storing here this can be you know

used on the uh quotation purchase order estimate templo so if you want those you can add them and uh save

it so once it is done now we'll configure the GST okay so here you will find under the settings

you will find taxes so click on taxes so here

mark it as yes and add your GST number here uh before we do I just want to quickly you know bring uh something to

your notice juu comes with uh know all the required uh preconfigured uh

accounts under the chart of accounts but if you can see GST You Don't See see any any of like

GST payable uh you know those those kind of accounts here related to GST so you need not to add them manually so you can

choose like if if your business comes under composite scheme or no if reverse charges applicable if your business

involved in Sal or overseas trading so you can uh enable this check boxes accordingly so the moment you configure

GST now if you can just see the accounts yeah so GST related uh accounts are Auto know autogenerated so it works like

that yeah so we are done with uh adding GST number so and if in case if your business has um more than one branch you

can configure the branches also again under the organization you will see the branches

option here you can enable the branches so and if you can see under the taxes uh we have added under the GST SE we have

added one GST number but if you have another or uh branch in different state you will have different GST number right

but you don't have an option to add the GS number here but once you enable the branches let's

see now navigate to taxes here you will find again this new new GST and adding option will reflect

so you can now under the branches so let's say we can create other

branches if you have Branch specific logo you can also upload that and now uh whatever the GST number

we CH set up additional GS that will come here you can choose that transaction series I'm going with

default but for each branch specific you can follow a specific transaction Series so in this way you can add uh

multiple branches so you can do Branch you know Branch wise accounting so and you can

also set up transaction series like transaction number Series so so I want it like uh

invoice. like Fabtech ft Finance year

2425 00 0 01 so I want my invoice number series to be like that and every time I create an invoice this series will be

incremented by one so same way you can give a prefix suffix for the uh you know uh all the other entries like uh

purchase orders sales orders know quotations and everything you can do that so this is done now let's look at

how to customize your own uh invoice quotation po templates in job books so navigate to settings

so under the customizations you will have PDF templates option so click that and uh so you can create custom

templates for all the modules for invoices quotation sales order purchase order even for payment receipts and

everything so you can create the templates for all the models but in for now I'll choose invoice template so Joo

comes with lot of pre-built templates as you can see choose something uh know relevant to you which you like so I'll

just go with the standard template so once you choosen so

let's let's click on header photo section here you can apply the background images for this top

section some some background designs and all so that will come here uh but as of now I'm not choosing

it so uh you can if you want to add uh no foot footer content header content you can add them here customize footer

and all of that same with same with the header content if you

want something to be added on the header you can add that so I'm not touching it as of now so you can control the logo

size here under the transaction Details page under the organization details you can you can choose the color

and everything fonts everything so now under the customer details you can for example here you have the bill to and

ship to details if you deal with Services there is no shipping of the products you can disable that

and the title all of these phones and everything you can choose so for example so what all the

invoice date terms due date PO number project name so all this will be visible if you want something to be not required

like you don't want project name on the invoice so you can disable that uh if you want to include the sales person

name on the invoice you can also enable that so you can control what you can see what you want to see and what you don't

want so now let's navigate to the table so you can control what columns you want to

have it on the template so uh for an example since I am anywhere having the GST components uh you know below the sub

tootal I don't want them to be again you know at the item level on the table so I just want to disable that so I can do

that as you can see I can also change the template color like I just change it to

Blue I can go for purple which is in sync with my logo colors I can do that and uh if you want Bank details to be

added I'll show you another organization template here as you can see the bank details payment details are added you

can add the same for this newly created organization also so let's copy the content

to add the bank details you should come to the other details section in the left side and under the document

summary if you click this you'll have an option like add Bank details here you can add the bank

details so that will reflect here same way if you want uh signatures to be added statically at the template

level you can do that so enable the sign and upload the file okay so in the preview it's not

reflecting but I'll show another organization template which where it is added as you can see it is added like

this for the invoice template so same way uh for this new organization what we are currently setting up so it will add

so when you create a transaction that will reflect even in the preview also you can see that

yeah as you can see same way if you want to add terms and conditions uh know at the template level you can also do that

go to other details and exer add content you can add that content here so in that way you can design your own beautiful

template and if you don't like any of these pre-built templates you want to start

something you know from the very some you want to start designing your own template from from the scratch uh Joo

but it's not by default every for every every account they won't enable but on request they enable uh HTML uh invoice

designing option uh I'll show you another organization where it is enabled here if you can see this is a

different joab books organization account so as you can see on the request they enable this custom layout so

here I can add my HTML script C HTML CSS script and I can design my own uh know template

same way you can create the templates for posos quotations and everything and if you want to clone this template for

example you designed this template for uh invoice and you liked it and you want to clone the same for the uh quotation

also you can do that by clicking on the Clone as quote so it will be loaded so it is

quote and if anything to be removed or added you can do that once it is then you can save it same way you can design

and you know things payment reips also can be

created templates so yeah this is how you deal with setting up the custom templates for your organization now

let's look at uh configuring email preferences for example let's say if you're sharing

this uh quotation invoice or quotation anything to customer okay

so this kind of email will go to the customer so when you send it and let me just check my inbox yeah

as you can see I received the email uh but the receive uh the from address is joho's email

ID but if you want your from email address uh on the quotations or invoices shared through the system you can

configure that under the email preferences to do that uh let's navigate to the

settings and click on profile and here you will have this option like you know email

configurations email preference configuration so uh assume you sign up with your own uh

know official email ID uh let's say this is a demo account but basically it will be like sushil at

fb.co so I need to authenticate the ownership of fb.co with joho so that this currently

this is not uh this is under un unauthenticated domain so the moment you authenticate it will be uh you know uh

active so that you can use your uh your own email addresses from address so to do that and this only possible if you

have if you have your own official domain uh not for any Gmail or uh know Outlook emails

so so to do to how to authenticate that click on authenticate now this will give you some SPF dkm records these are

basically DNS records so you need to add this records under your DNS manager so assume if you're using GoDaddy as your

domain uh DNS manager so log to GoDaddy account so under the products you will have your domains listed

there so there uh you need to choose DNS and here all the DNS records will reflect and uh you

can add the DNS records okay but you must be care ful you know dealing with this D DNS records if you already have

some web developer or someone professional take their help because if you wrongly configured something or if

you delete any existing DNS record your website and everything you know will be down but but the only thing I want to

convey is like once you authenticate your domain only you can use your own official email adds as a from emails

when you share the quotations invoices through the system that's it all right uh let's look at into the most important

feature of joob books like how you're going to restrict the user and role specific access this is very important

for organizations because when we are dealing with accounting software where the sensitive financial information you

know is you know uh exposed to the users so we should have a great control over that so like how we're going to restrict

that information on the role specific so to do that click on settings navigate to users and roles so so click on users So

based on your subscription plan because joho is a multi-user uh application so based on

the subscription plan you will have no no up to specific number of users can be added assume you if you're are a

professional plan user you can add up to five users so you can add users under the user section like you can you can

click on invite user given name email ID and choose the role So based on the role you choosing here they will get the

access we are permitting So currently these are like predefined uh know pre-configured uh roles by joob books

but if you want any specific role assume you have a role called project manager sorry purchase manager where he need

access to only purchase uh modules only so then let's say We'll create new role called purchase

manager and Joo books give gives you a lot of flexibility on you know how you grant access or restrict access to the

your uh users so in this case purchase manager they don't need access to customers at all so I can disable that

they need access to vendors but if you feel like they don't need access to deleting the vendors I can just disable

the delete option so same way I can give access to items because when they're purchasing they might create new items

and everything so banking module access I can restore and sales access I can

restrict I can but I might need to give an access to uh invoices quotations sales orders to view them because based

on that he might go know the purchase manager might go and you know place the order with our own your own vendors

right so based on it's purely based on your business requirement so same way you can control like the so

for purchase module they need entire access so same way you can configure all the settings like what they can see what

they cannot see and also the reports also what they can see and everything then everything is proper save the uh

role right so this role you can use it you know otherwise for this Raj user I want to edit this role from stop to

purchase manager I can do that so so this is how you deal with know adding the users restricting them all right uh

since we are done with all the pre-configuration now let's go to the importing the Master's

data so so under the accountant module you'll find chart of

accounts so click that so Joo comes with all the preconfigured accounts under the chart

of accounts so most of the things you you require for a day-to-day accounting will be available let's say if you want

some office supplies account so the office supplies expense account is there same way if you want

like Sal salaries and wages expense account it is there so in that way most of the accounts what you require uh will

be available but if you want anything specific you can always click on add new account and choose the account typ let's

say I just want to add a loan taken from kotak so this is a liability account I'll choose that and I can add this

account so but especially for the people who are migrating from their existing uh accounting software like tally or

something so they need to import the data in bul so for that click on this more icon then click on import chart of

accounts so you will have a sample file download that and if you can open that sample file it will have the columns so

the account column account name column and the account type column these are the mandatory uh things uh remaining all

like optional if you have that information you can load so I extend this uh you know file with all the

required uh accounts and once everything set save this CSV file then come here import that

file okay so click on next so the all the column headings in the CSV or Excel file will be mapped to the fields in the

Joo books uh if it is not you can also manually map them to appropriate field so once everything is mapped click on

next it will generate a summary how many records are ready to be imported and if there is any error because you might

mention the account type or something wrong so that it will throw some errors so it will with along with the com

so read the comment and fix that file and once everything is ready then import the data so your chart of accounts will

be imported so same way you can you can import the item master so download the sample file arrange the data in that

format and import it but the but the problem is when you see the sample file for the items it will have too many

columns okay so you you're not not sure like what all this know which columns are mandatory

and all so it looks little complicated there the reason the best approach what I recommend is uh instead of downloading

that sample file just create one or two records like click on add new item give it a name

unites uh all of this information and if you want to enable inventory tracking like you want to know mention the

opening stock and everything so you have to do some configurations so to do that click on

settings uh and under this items section choose item so here if you can

just scroll down you will have an option like enable inventory tracking and choose inventory start date so once this

is done I'll save it so inventory tracking will be aable so if if I can come back and reload this

page so here you will have an option like track inventory so inventory ass said it will

uh you can record the opening stock of the item so let's create some some item sample item and since we enable the

track inventory you can keep the opening stock assume if you have 10 units of opening stock can give the open Stock

unit rate price will be nothing but the purchase cost you can enter that for a unit price

so you can save this record so in that way create one or two entries then export this

file since we only added so while creating that items items we only added what all the mandatory things are what

all we requir so this export file will have only The Limited number of columns which we added so better to arrange uh

the fields know uh you know the you know your data in this format then once you are ready come back come to this page

and click on import F import items and choose that file you recently created and same steps what we followed for

chart of accounts you can follow and get this items imported so once it is done you can import the uh customer

Masters in the same format create one or two customer entries by your salary so let's say

sushil r you can give phone number email ID because the email ID what you given uh

know will be used while sharing the invoices uh through the system same way if you integrate WhatsApp with joob

books uh for the phone numbers and mobile number given you can shoot the WhatsApp trigger WhatsApp messages and

you you need to choose the uh GST treatment like regular business unregister if it's a consumer you can

choose consumer if it's a overseas customer you can choose overseas customer okay so in this case I'll

choose as unregistered business if you choose it as a regular business you need to give a GST number so I'll choose

unregistered business so I can give the address details I can address city state and everything and if this is common for

shipping address I can clone this all this data what I entered here will refl here so I can save these

things so same way create uh one or two customer uh Records then export the file so that uh instead of the sample file if

you export this in way you will will only have the the required mandatory columns so arrange the data in the same

way import the customer Master same way you can also import the vendor Master okay so then you have all the Masters

data ready chart of accounts customers vendors items and the another important step you need to make sure before going

for the know adding the opening balances you make sure the bank uh accounts are added so if anything misses you can

connect manually so under the uh in the in the further part of the session I will be discussing in detail about

banking module so for now I'll just talk about creating account manually so you can associate bank with the branches

also if you enable Branch level accounting so save it so once you added all the Master's

bank accounts now we will go forward and set up the importing opening balances uh if you're starting uh you

know fresh business if you don't have any opening balances you can skip this step but for existing businesses who has

some data you know exist uh exist uh so so that they can import this opening

balances so you need to give the M migration date so if you are uh know starting to use

joa books from this Current financial year give 31st March 2024 as a migration date so that you can record the

transaction from 1st April 2024 for The Current financial year so you can also if you enable multiple branches option

you can record the opening balances at the branch level okay so uh so uh assume if you're migrating from tally so

generate a trial balance report as on 31st March 2024 so that the closing balances in tally uh will be a opening

balances here so Accord according to that sheet you can enter all these assets so all the chart of accounts what

we created there will reflect here you can enter the opening balances in the credit or debit section okay so you can

also import this uh thing uh you need not to manually you know enter the you know opening balance for each and every

account you can import that by clicking on import opening balance same way you can download the sample file so arrange

your data according to the sample file the account name credit or debit the currency will be INR since this is

sample it is giving USD change it to INR so mention the amount debit credit uh that's it so since our home currency and

the know uh currency what we recording is same you not to mention this exchange rate or something you can ignore so by

preparing the data in this format so you can come here and import import the opening B bances so

when you click on next it will ask you to map the fields so make sure this date format is

proper then click on next so your opening balances will be loaded okay same way once you done with opening uh

setting up the opening balances uh uh for the accounts then you need to uh know record the opening

balances for account account Reserva bles and you know accounts payable that means customers and vendors opening

balances so you can click on this import file and again download the sample file arrange the data customer wise know

whatever the opening balances you have uh you can uh you can uh um provide in that

format and load that just make sure that uh if you have negative opening balances that means if you already received some

advance from the customers uh in Joo you cannot negative opening balances uh but you can create that as a customer

advance that I will show you uh talking about the use case of recording the negative opening balance

so for example when you are adding a customer so it will uh give an option like adding

opening balance so but here you cannot enter the negative value to record negative

opening balances in this case negative opening balance from a customer is nothing but the Advan receive so that

you need to go to payment received and click on add new instead of choosing recording the

payment received against the invoice payment choose as a customer advance so select that customers and when you

record the customer Advance this will be nothing but the negative opening balance so that's it so this is how you will uh

make sure the opening balance are loaded same follows for the vendors also all right uh let's see how you

manage purchase entries in the joa box so on the left side panel so you will see purchase section so if you can

click on that so you will see all the purchase related modules here so let's start with

vendors so if you can click on the vendors so you will see all the list of vendors available in your system so if

you want to create a new window so click on this plus icon otherwise on the top right corner also you will have uh add

new button so let's click this so you should give the details choose the GST treatment so once you enter the GS

number system will automatically capture the source of supply and the pan card number

you can also fill the if you have any opening balance that means accounts payable you can enter that balance

here so you can fill the address details you can also copy shipping address this will be useful when you are

doing the purchase returns and you can also enter the bank details so this Bank details will will

be especially useful so if you can see joho supports uh these four Banks Standard Chartered HSBC kotak and s bank

so these four Banks supports direct payments from the Joo system system well that means you can initiate the payments

to vendas from the Joo books itself without logging into your net banking so let's save the

vendor so this is the vendor which we just created so when you click on the vendor you will get to see all the

details related to vendor so you will see the primary contact person uh email ID phone number you will get to see the

billing details shipping details uh the the GST number and everything and also the bank details we have added okay so

along with that you can get to see the transactions this is a new account there are no transaction but let me open

another account uh so this is another vendor if you can see on the transaction side all the purchase transactions

related to this vendors will be available when you open a vend the vendor record okay and you can also

access the statement of accounts here so all the transaction opening balances everything now let's see how you manage

your entire purchase process uh on joob so we'll start from we'll start with the purchase orders so when it comes to

purchase order so I will explain uh uh this functionality in the two scenarios I one is with the inventory item so that

we can see how when you create a purchase order convert into Bill know all these things how the inventory

getting uh know gets affected we will see that and we will also see the you know you know non- inventry item Pro

process also so let's quickly start with the non- invent item so to create a purchase order click on uh this top

right corner plus new button add new button so select the window so all the billing shipping details what

we added uh will reflect so now you can choose an item okay since now we are reviewing this for

the non- inventory Series so you can uh you need not to select the item as it selection of item is not mandatory uh

you can just choose a account so here I'll choose let's say I'm creating this PO for a professional fee consulting

fee so I'll I'll choose an account as Consulting expense and uh instead of choosing an item I can simply you know

write a description also so I just need to enter SS code I'll give a

it so tax is selected if you want to change it you can do that by clicking this button if TDS applicable on this

transaction you can choose that so since it it is a professional fee I'll choose professional fee 10% if you want to

enter any terms of conditions notes you can enter that and once you have all these details you can save I'll just

save it as draft so when you come to purchase orders you will get to see all the posos

we created and since we just created as a draft you will see the status as draft and uh if as you can see once you create

a PO and convert that into bill as you can see against this PO bill is created and we we also uh recorded the purchase

receive this PO is showing as closed and uh let's see once uh know after you're creating

this PO once you can click on the send mail button and since we when we are

registering the vendor we given the email ID so it is automatically picked up so and po will be attached and you

can send this email okay I'm just canceling it I'm marking

this as issued since this is a non non inventory item so we need not to record there

won't be any purchase receiv or something this reason automatically the receive status will be received okay

here I just want to bring uh one thing to your notice uh basically POS doesn't affect any Financial Accounting okay so

but when you convert this PO into a bill okay so while converting po into a bill uh it's not you know you are open

to change the quantity change the pricing or something so it's you know in a business scenarios it happens right

after the issuing a PO during the bill you might increase the quantity or you know anything else

so you are flexible to do that you can increase the quantity like this so as of now I'm just

keeping everything same I'm just saving it

so Bill number is a mandatory basically the invoice issued by your vend will be nothing but Bill number so I'll just

randomly choose something so bill is created if you can go back to the

purchase order earlier it was in the draft stage but when you uh when you build it it is automatically uh M into

close stage and now let's see the bill so this is a bill which we just created so once you process the payment

uh to this against this bill you can record the payment so so here you will see the record payment

option by clicking that you can record the payment you can enable this checkbox if you want to trigger a notification to

your vendor on processing the payment and click on save to record the payment now let's see the purchase

process for an inventory item okay so let's go to uh again P let's go to purchase orders click on add new item so

choose the window so here I'll choose an inventory item so I'm choosing home automation Hub

so just to have know see how this affects the uh inventory so let me in another tab let me open that item so

home automation home so this for this product we are creating a PO so as you can see when this product uh item is

created we given an opening stock of 10 items and uh there was another bill uh for II items so total currently the

stock in hand is 15 okay so now let's go ahead and create a new PO for the same item so home automation H now I just

want to order 10 more items all right so rest of the things are good so let

me S save this PO so as I told you before purchase orders doesn't affect any Financial

Accounting so as you can see so there is no uh effect on the uh current or you know accounting

stock or physical Stu but still since the PO is created it is showing that a quantity of 10 to be received because we

created uh a PO here you manage in the two ways one if your purchase in your purchase process so after issuing a PO

first you receive the goods then you create a bill so then so against this PO you can create a purchase received

otherwise after you issuing a PO once you vender accepts your PO then you raise a bill after you raising a bill if

then you receive the uh Goods then you can convert this as a bill so as I said during the conversion

also at the time of conver converting a poo to bill you can change the quantities and rate and it's not like

for example you created a PO for 10 items but you can uh build uh partially against that uh invoice sorry that poo

so let's say the PO is for 10 items but this bill I just want to raise a partial bill against is the PO so I'll raise the

bill for just five pieces instead of 10 on the PO

so I'll create this bill so Bill number is mandatory which is nothing but invoice received from the

uh vendor so after you created a bill for five items let's see how it is affecting

the inventory as you can see the stock and hand is increased uh by five so earlier it was

15 now it is 20 okay but physical stock still it is showing 15 because we didn't uh recorded the purchase received so

basically the difference between accounting stock and physical stock accounting stock is calculated based on

the bills whereas physical stock calculated based on the purchase received

okay so and when you see the PO status also for this thing okay so this is still not

closed because in the PO uh we raised for 10 items but in the bill we only recorded five that's the reason it is

showing like partially build and goods not received yet okay let me go ahead and record a purchase receive okay let

I'll choose the window I'll choose the purchase order

so here I'll have two options so do I want to if I want to record uh purchase received uh for unbuild item or build

item so in this case I'll go with the uh build items so there is already a bill for five items so those five five items

we received and I'm recording that purchase receipt I'll save it so now let's see

how it's affecting the stock as you can see even physical St stock also now increased to 20 earlier it was

15 when I when we recorded purchase receive for five items so even the physical stock also increased by five

okay actually basically po we raise for 10 items uh quantity of 10 but only we build and uh build for five and even

purchase receive also for five so when you see the I uh the item it is still showing that there are a quantity of

five still yet to receive okay assume there is a scenario you issued a PO for uh 10 items but you build for five and

you cancel the rest of the five items so you can do that so come to the Poo click on this more icon then click on cancel

item okay so since we already received five we are just cancelling the uh the further file

items when you click on that now you see this PO is closed and if you open any of the bill

you will get to see how it is affecting your financial accounting since we created this bill

for an inventory item so the accounts payable uh is credited and inventory asset is

debited and obviously the GST also debited so this is how the purchase process works okay and uh assume you

want to return to defective items so you can do that by recording the vendor credit so I'll

create window crates I'll choose the window I can choose the build

so build type is registered obviously so credit note I can give a number otherwise you can autogenerate

this member also so the two products I'm I'm wring okay so now let's see how it's affected

the inventory now as you can see earlier it was 20 uh and uh 20 but now it became 18

because we return two items and created a uh vendor credit basically vendar credit is nothing but a debit node uh

when it comes to tally terminology Okay so after when you create this vendor credit let's get back

to yeah vendor credit so there are two uh two cases so this credit amount you can apply to the

any other Bill uh you create for this vend otherwise assume if you got a refund uh for this amount okay you can

also record that so so in case if you want to apply this uh credit to any of the uh bills so you can click on apply

to bills it will show the other pending invoices sorry uh it will show other pending bills uh from this vendor so

there's a uh another bill so you can apply this credits there okay so so all the available

credits I applied for this uh pending bill for the vendor so the remaining credits shown as zero I can save that

okay this is how I can settle the uh know debit note in another otherwise assume uh I

received a refund from the vendor for this can uh returned items purchase return I can click on refund I can

record that I received the refund on so and so date I received receiv it on our bank account uh the total amount uh the

total value of the uh debit note is received and deposited to Kodak so by saving

that the refund entry will be created so this is how you control uh your entire purchase process on uh joob book and you

can also manage purchase approvals that I'll I'll cover in the further part of this video

all right uh let's see how you record expenses in joob books okay before that let's quickly understand what is the

difference between Bill and expense though both serve the same purpose because you either you record bill or

expense to track the money your business spent but however both serve different purposes okay Bill is something we

create this when you purchase either Goods or service on a credit that means you you haven't paid them immediately

you you you process the payment on a lat date okay uh and so it affects the accounts payable so you can also track

the vendor payments so based on the due date you can track whether the payment is made or not you can also made the

partial payments against the bill so all of that you can manage okay the general workflow would be whenever you receive

an invoice from the vendor you will create a bill and once you process the payment you will make the payment entry

and settle that bill okay whereas coming to expenses uh where out of pocket expenses

which typically involves small purchases some utility bills any service payments or something which you uh make okay

either by cash or Bank payments so you can record as an expense basically you record an expense when you pay for

something immediately so that it doesn't affect any accounts payable okay see let's see how you can uh create expense

entry click on expenses here you'll see all the list of expenses which were already uh created so create to create a

new expense entry click on this add new button so choose the expense account see in this example I'm recording office uh

stationary or office supplies so I'll choose expense account as office supplies

5,000 so I paid through Kodak bank so I'll choose the GST treatment as out of

scope all right uh if you have any proof uh of expense you can also upload that uh receipt or

anything uh here I don't upload anything I'll just save so expense entry is created now you

can see how it is affecting uh your you know office suppli expense account it is debited by 5,000 rupees and coming to

the bank account account it is credited so that's how it works and there is another options when it comes to

expenses so so there is a recipient inbox you can basically upload the

receipt here let's say I'm just uploading a travel expense basically a bus ticket and when you click on convert

to expense it automatically captures the data from the receipt and expense entry get created if

you want to modify something uh like uh paid through account or any other values you can do that and you can save the

record okay let's see how you manage sales interest in joho

books on the left panel you will see sales section under the sales section you will see all the sales related

modules so you can actually control uh these modules so example in your sales process

you don't deal with sales orders delivery chalant or something if you want to disable those modules you can do

that to do that uh go to settings click on General under the preferences here you will see all those

options if you don't want sales orders or delivery Chon you can uncheck those check boxes and click on save so that

those modules will be disable for your organization okay but I'm not making any changes

let's navigate to the S section again let's see how you manage customers in joob books so click on customers you'll

get to see all the list of customers which are available in the uh your system so you can also control uh this

customers table columns so by clicking this button uh if you want to add any extra columns like you want to see the

phone number column on this table you can enable that otherwise if you want to see the GST number column you can enable

that and as you can see this see those extra columns available phone and GST number since there is no data entered

for these two records uh it's not visible okay uh so let's create a new customer

click on add new button so fill the details so here you you can choose the

GST treatment so if your customer is a GST registered you can choose registered business regular and give the GST number

so you can enter the address details and if the billing address and shipping address same you can click on this copy

billing address and automatically these values will be fed here if it is different you can manually enter

them so here I just want to bring a couple of things to your notice assume you want to record an overseas customer

here GST treat under the GST treatment you should choose them as a overseas and uh you can also Bild your

clients on a foreign currency because joob book supports multi currency assume this customer is from United States so

the current so the billing currency would be USD you can choose change the currency from home currency to

USD okay so basically the exchange rate can be overwritten during the you know creating

the transactions and uh basically in joob books you can maintain Multiple priz

List assume you deal with uh wholesalers or Distributors along with your end customers and you provide a separate

price list a discounted price list for them so basically first of all you should create a prize

list uh under the items so let's say I already created a dealer price so for this price list I took a

markdown of 10% that means my dealers will get 10% discount uh on the list price okay so this is how

you can create multiple priz list and uh when you're adding a customer if you want to associate a

prize list you can associate so whenever you create a quotation sales order invoice or something automatically this

price list will be picked up okay so in this case I'm not choosing any of this so and also I'll switch this back

to GST uh regular I'll save the customer and when you open a customer

record so you can see all the sales transactions available with this customer since this is a very fresh

customer record so there are no transaction but let me open another customer record so as you can see uh

when I click on the transaction it will show all the existing transactions created so there are two invoices uh

currently exist and there is a payment uh entry so in that way all the entries all

the transactions happen with this customer will be shown in this section I can also see the statement of accounts

under the statement so if you're using Joo CRM once it is integrated you will also see

the uh information available in CRM here now let's see how you manage your sales process in joob books so I'll

explain this in two scenarios one is uh it might it will be more suitable for service based companies it's uh it is

quick and simple approach uh where you create a quotation and send it to the customer once customer accepts the code

you convert that quotation as an invoice and uh against the invoice once you receive the payment you'll record a

payment uh payment entry so this is the scenario one on scenario two uh you create a quotation and this more

suitable for uh businesses which deals with inventory and goods so you raise a quotation and convert that into sales

order okay once your sales order is approved so then you convert that into invoice and uh you can ship the goods uh

either by creating a shipment or delivery Chon uh it's based on business uh specific uh you can follow either of

the approach so once Goods shipped or delivered to the client then you can raise an invoice and record the payment

so it's more depending upon the business process you can streamline how you know how you want to do it some businesses

will prefer like after sales order is approved they would like to raise an invoice and once the payment is received

then they want to make the shipment so it is also possible so it's based on your business process you can uh know

manage how you want to deal with it okay let's create a quotation so

on the top right corner you'll have add new button click that choose the customer so choose the

products so I have chosen home automation Consulting it's a service basically the rate which I entered in

during the item creation is reflected automatically if you want to change you can also change the uh price at the

transaction level so you can add the quantity here I'll go with the quantity one and save

this so quotation has been sent as you can see here so you will see the statuses so currently it is sent

okay so after you send the code so customer receives that email by clicking that link customer can actually accept

or reject the code once customer accept that code the status will be changed to accepted okay so

now I can Mark manually by accepted because sometimes client may not accept you know by clicking that link they

might call you and confirm or send you an email mentioning that we accepting the Corde so in that case you can

manually Mark as accepted otherwise if it is declined you can also Mark this as decline so I'm marking this as

accepted so once quote is accepted then I can convert this into invoice so at the time of invoice

creation you will have an option to you know do the modifications like changing the quantity changing the price or

applying some discount so anything so I'll just keep everything as

it is I'll just chose a due date as net 15 in case if you already received this

payment uh you know at the time of creation of this invoice itself you can mark this checkbox as I have received

the payment and choose the mode uh payment mode if they transfer to your bank account you can choose bank

transfer and the bank account like this so but in this case I don't record the payment I'll Simply

Save this invoice and uh you can also integrate your uh Joo books with the payment

gateways so by going to settings so under the online payments

you will see customer payments option so joob books currently supports all the ma major payment gateways in India like

Raza pay PTM easy pay all of this and coming to International

payments tripe and PayPal also supported so you can integrate that and in case if you want to accept the payment through

QR code or UPI so you can also set up that so go to settings so under the invoice section if you can just

scroll down here you will have invoice QR code so enable that and uh choose QR code type as

UPI okay so just enter your UPI ID and save it

so that uh every time you create an invoice automatically this QR code will be added so your customers can scan this

QR code automatically the uh invoice amount and everything will be reflected and they can make the payment using the

QR code so since this is directly enabled by the system itself uh so there won't be any uh processing fee or

something but whereas uh you great you enable the payment through Razor pay or something the as you know razor pay

charges their platform via something but of course razor pay supports payment other payment modes like credit card

debit card Internet banking so so that's all the options what we have so after sending the invoice once you receive the

payment against this invoice you can come to you can open the same invoice and click on the record payment

I'll just mark this asend so click on the record payment and enter the amount you receive

if you receive the partial amount uh partial payment towards this invoice you can uh record that as well but in this

case I'll record total amount received in case if any Bank charges deducted you can also enter that so that

uh automatically that expense entry uh get created so if if if your customer deducts any

TDS amount you can also mention that under tax in TDS detected so type Advanced STX you can you can enter the

amount withheld but I'll choose no tax directed so I'll choose the payment mode as bank transfer CCH so I can also by

enabling this checkbox I can send a payment receip or acknowledge to the customer okay so by giving all these

details I can record the payment so payment is recorded and as you can see payment receipt also created

so this is a payment receip and the same payment receip will be uh shooted to the customer if you enable that checkbox

during the payment record creation so this is how uh you manage the

uh your sales entries of basically for a service based companies or non non inventory uh sales now see the approach

to so let's create a quotation for an inventory item so I'll choose home automation Hub

this is a product so while creating since we enable the inventory tracking so while creating transactions it will

you can also see the stock details also like currently uh for this item uh there are 18 uh items are available in my

stock so I'll I'll be creating this quotation for five items if you want to offer a discount I

can do that I can save this

quote and we'll also parall see how this sales process is affecting our inventory so let's open the same item home

automation Hub currently it is I 18 now let's convert this quotation into sales order if you want to make any

changes during sales order creation you you are allowed to do that let's save s save this sales

order So currently the sales order which we just created in the draft status and as you can see Associated item

stock currently the accounting stock and physical stock is 18 the basic difference between the accounting stock

and physical stock accounting stock will be calculated based on the invoices created but whereas physical stock will

be uh calculated based on the shipments so now you can see so when the sales order in the draft stage

uh the stock is 18 and to be invoiced also zero but once you Mark the sales address confirm and when

you open the associated item you will see there are quantity of five to be invoiced and as you can also

see that uh the stock available for sales stock is showing 13 and because we committed quantity of five under that

sales order so you can see committed stock is five Okay so

and once sales order is created package and once you ship the pro package you can create a shipment then once shipment

is pro processed then you can create an invoice so this is one way of approach and but otherwise if your company

prefers directly converting this S as an invoice okay so invoice is created after invoice creation and once you record the

receive the payment like so I'm creating the payment entry by clicking the record payment so I'll mention that total

amount is received I received through bank transfer CAC I'll be sending the payment reip and thank you note also

acknowledgement I'll record the payment as you can see once after I recording the uh converting after I

creating the invoice and recording the payment then I can create a

shipment I can create a package first so I'm I'm creating a package with this five

items okay then I'm I'm shipping this product and if you integrate with after ship or ship rocket or something

you can actually provide the tracking details and everything to the customer but in this case I'll just

manually uh Mark the shipment status I'll I'll ship this

save so this is how so I can manage so inventory items sales and everything now let's see how you manage sales

returns so so we created the sales order for five items right assume for out of that

five items so one item which is defective is returned so let's see how we create

sales return so you can create sales return against the sales order so go to sales order open the sales order so

choose the sales order so against that let's create the sales return

so R ma number autogenerated you can mention the reason like

defective as you can see sales return return is created so once you receive the item back from the customer you can

click on receive and mention the date when when you receive the product back and make sure the

quantity uh is entered properly and record record the receive and when you go back to the sales return

return here you you you can create a credit Noe against the uh return value

so click on create credit note so for the value of quantity one so credit

note will be created and you can send this credit note automatically to the customer so you can either apply this

credit note to any of the invoices of the customer currently for example for the same customer there is uh accounts

receivable which is entered as an opening balance you can adjust against that otherwise any future invoices are

there for that you can apply otherwise you you can issue a refund to the customer by clicking the refund you can

issue the refund so you can enter the once you process the refund you can enter record

that by entering the refunded date through which mode you refunded this amount and from which account and save

this record so and when you can see this Associated item

also so the stock appropriately updated all right let's focus on the

crucial aspect of financial management which is bank reconciliation and it's an essential task to ensure your books are

accurate and up to date so let's get into the joho books so on the left side panel you'll find banking module click