 QuickBooks Desktop 2024 customer prepayment estimate sales order receive payment forms. Get ready and some coffee because we're locking into some non-stop QuickBooks Desktop 2024. Here we are in our QuickBooks Desktop sample company file we set up in a prior presentation using the enterprise version of the QuickBooks Desktop software so we can practice the new unearned revenue feature within it under the view drop-down we have the hide icon bar selected the open windows selected open windows open on the left hand side in the company drop-down we have the home page open now we're going to go to the reports and select the two major financial statement reports like we do every time company and financial let's start off with the balance sheet report i'm going to customize the report up top changing the range from 010127 to 123127 and then go to the fonts and numbers changing the font up to 14 as we do every time is that okay yes okay then then we're going to go to the reports drop down again company and financial this time the profit and loss the income statement and let's change that range this time the range going from 010127 to 0606327 because we want to see it side by side month by month not the total only in other words but the month by month breakout our first scenario was run in january second scenario in february the third scenario took three months from uh march to may this next scenario is going to be in june let's customize the reports fonts and numbers changing the font size back on up to 14 is that okay yes okay then all right so then let's go back to the home page quick recap of what we have done in the past we ran three scenarios so we could do some comparing and contrasting the first one the normal scenario where we don't get a prepayment we just entered the estimate the sales order remembering the sales order would only be there if you're in like the enterprise version they're both transactions that aren't recording any actual journal entry to the financial statements then we created an invoice and we also went up and uh created a purchase order in order to receive inventory because we imagined it was for an inventory item and then we received the payment and make the deposit that's the normal process however we might have an under revenue situation or a customer deposit where we receive the payment first which could come in like two major scenarios one being where we sell a large product in our case it was the psychedelic surfboard where we would want to deposit in advance to us delivering the surfboard to make sure that we're going to receive the payment to lock the customer in to the transaction the other being if we have a subscription model classic subscription models being magazine newspapers more modern subscription models being like online application services in which case we receive the entire payment upfront we are we when we recorded these two types of transactions we hit we entered the estimate we entered the sales order but on the customer side we then jump to the receive payment recording it and the old method that we used to do which is a negative receivable which works pretty well from a bookkeeping standpoint but isn't quite right from a reporting standpoint and that's where the problem lies so this time we're going to we're going to do the new method where when we get to this receive payment we're going to record not a negative receivable not income but rather a liability which we'll call in this case customer deposit because we're imagining we're in that surfboard situation where we're selling a fairly large or expensive item and we want to get the deposit first before we complete the sale possibly because we have to order like a custom surfboard and then our next scenario will be one where we have the subscription model where we might rename the liability account as unearned revenue okay so let's go through the process if I if I go to the the customer drop down and let's just take a look at what we did before customer center this is where our customers hang out and in the last one when we did the negative AR it looks really nice internally what we did is we made the estimate and then we made the sales order and then on the sales side of things we used the sales order to create or we then created a payment so we received a payment for it and then we created an invoice to finish it off this payment however was recorded as a negative receivable but it looks pretty easy to follow just from a internal bookkeeping perspective to try to just get the facilitate the transactions right so now let's do the new one we're going to go to the home page let's start with a uh estimates and we're going to have an estimate and I'm going to call it this time for and this is going to be customer uh prepayment which is a weird name for a customer but the idea is that I'm going to try to separate everything to this being scenario number four that's going to be our customer name I will quick add it we're going to say it happened on 060127 tab tab tab tab I'm going to make a new item which is going to be by the same name although I'm going to imagine it's that psychedelic surfboard scenario again so someone our customer is in wants to order a surfboard it's going to be an inventory part we don't have it on hand he wants some crazy psychedelic airbrush on it or whatever and we're like okay we're going to have to order it so we're going to order that uh but we're going to want the down payment first to make sure that this crazy looking guy is actually going to pay us right so we're going to say that the cost let's say is a hundred dollars to to match the scenario we had before sales price 175 same scenario we had before sales taxes turned on within the system good we're going to set up an account here so there's going to be a new account that we're going to set up set up the account and I'm going to call it uh an income account let's just call it an income account and I'll call it customer prepayment for the customer prepayment let's say income something like that so I can see a different account so we can again separate our scenarios that we're running so we're going to say okay there it is I'm not going to say any inventory on hand because we will enter a bill at a future point when we order the surfboard so there it is down here hundred dollars the the markup is 75 so we're charging 175 $13 is the tax and if I was to record the journal entry there is no journal entry yet because it's just a request form just as we've seen in our prior practice problems let's go ahead and uh record it and then check it out if I go into my customer center we're going to say there's our customer there's our estimate no impact on the financial statements at as of yet so let's go back to the home page the next step would be estimate we create the sales order this also being an internal form you wouldn't have this possibly if you didn't have like the enterprise version in which case you would go directly from the estimate to the invoice possibly but the sales order we can think of as in essence locking in the customer so the this person wanted a surfboard and we're like okay here's the estimate and now they're agreeing