 QuickBooks Online 2022. Bank feeds matching invoice to deposit. Get ready because it's go time with QuickBooks Online 2022. Here we are in our bank feed practice file we set up with a 30-day free trial holding down control, scrolling up a bit to get to the fourth one to five percent currently in the home page otherwise no one is they get things done page in the business view as compared to the accounting view. If you want to change to the accounting view it's something you can do by going to the cog up top switch to the accounting view down below we will be toggling the back and forth between the two views either here or by jumping to the sample company file currently and the accounting view back on over to the bank feed practice file opening up a couple tabs to put reports in by right-clicking the tab up top duplicating that tab going back to the tab to the left right-clicking again duplicating again as that is thinking let's see where the reports are located over here in the accounting view which is on the left-hand side under reports if we go back on over to our other file in the business view the bank feed practice file we're in the second tab the reports are located under the business overview on the left-hand side and then under the reports I'm gonna close up the hamburger opening up our favorite two reports starting off with the balance sheet financial statement reports showing where we stand at a point in time those ranges they are changes 010121 to 123121 and run and then tab to the right and going to the business overview again to the reports again and closing that hamburger going down to the profit and loss otherwise notice the income statement and the ranges they are changing 010121 to 123121 and run that one two now we're gonna imagine a situation where we're gonna have an invoice that will be involved let's jump on over to our flow chart this is the desktop version flow chart but it just gives us an an illustration of the forms involved with the customer cycle or revenue cycle we've been thinking about a situation where we can be completely dependent on the bank feeds now we're gonna basically deviate from that we're gonna say hey I cannot wait till it clears the bank to record the revenue or the transaction because I have to invoice the client so if I have to track the accounts receivable that's one way or one reason you need to oftentimes deviate or move away from a cash basis system being dependent in other words on the bank feeds so for example if I have to track accounts receivable we would use the create sales or the create invoice type of form and what the invoice will do and often will be used when we have like billable items for example if we did bookkeeping law firm or an accounting firm CPA firm and we're billing the client for the work that we had done we would create the invoice and then send it to the client when we make the invoice we would increase the accounts receivable which would be an asset and a cruel type of account the other side go into revenue because we earned the revenue at that point in time and then we would have to track the receivables which QuickBooks can be helpful to do if used properly and then receive the payment and then once we've received the payment we can either put it into the checking account at that point or we can put it into a clearing account which used to be called undeposited funds and then put it into the checking account possibly grouping multiple payments that we have received possibly including sales receipts we have received depositing them together into the bank with a deposit form on the accounting side of things so we've got the three steps that would be involved possibly when we use the invoice so if we start with the invoice then that how do the bank feeds fit into it we could fit it in in one of those three spots so for example is it possible for me to create the invoice increase in the accounts receivable the other side going to sales and then wait till the customer pays me and actually have it clear the bank which is an essence of deposit in the bank use the bank feeds then to match out to the invoice which would basically be recording the transaction of the the revenue going up and the accounts receivable I'm sorry the cash going up and accounts receivable going back down and so that's one way we might be able to fit the bank feeds in or we've record the invoice and then we record the receipt of the payment we deposit the payment into the checking account with a receive payment form we could do that which means it would have already entered the bank on our side when we enter the transaction the bank feed would then match out the deposit that we made on the bank to what is in the actual bank at this point in time or we could use the receive payment to put the money into the undeposited or clearing account and then wait until it actually clears the bank use the bank feed to tie out to the undeposited funds or whatever that clearing account is called taking it out of there put it into the bank or we can do the full process in our system actually making the full deposit and then use the bank feeds to match out the deposit so we'll take a look at each of these steps and see how that could work out and you can think about what system might be best for you so let's do the first one we make an invoice and then we try to match out the bank feed directly to the invoice so I'm going to go back on over I'm going to deconstruct this in like reverse order so I'm going to go to the first tab here I'm going to right click on this tab again and duplicate it again so that I have my bank feeds on the left and then I'm going to put my invoice on the right tab let's go to the left let's locate where the bank feeds are at which if you're in the business view is going to be in the bookkeeping information on the left hand side then we have the transactions up top banking if you're in the accounting view it would be under the banking up top and then in the banking tab up top so I'm going to close up the hamburger these are the transactions we pulled in from the bank in what I would call at this point bank feed limbo let's imagine that we found a transaction here that we're thinking it's going to be a revenue you know type of transaction so I'm going to go down and say okay let's say that I'm just going to imagine this transaction here is it's from Amazon but I'm going to imagine it was a customer that we build and then the money came through to our system on the bank feeds we got paid then this 8239 so let's kind of kind of reverse construct this and say okay what would happen if I made the invoice first and then this item basically cleared the bank so let's go to the first tab and say we would have to enter the invoice so I would go then to the plus button up top we would enter an invoice I'm going to make an invoice for that amount and you could do it in reverse order by the way this way because if you did it in reverse order like this you can actually put the items down here which gives you a little bit more tracking information so that could be used but we're going to imagine we're doing the invoice first in this case generally let's say this was customer for customer number four is the one we're on generic customer where's your imagination I don't I've just do it's customer for terms and then I'm going to say this is on let's say let's say this was on to one say to one to 2021 and then I'm going to say the product down here I'm going to make a new product so I'm just going to make it a service service item one so I have to have a service item if I'm going to make the invoice we're going to say this is what we're charging possibly billable hours or something like that I'm going to make it a service item that we are charging and then I can go down and say description I'll just say this is service item one and maybe I leave the price a blank and I just record it into service and then I record I'll record the amount manually and then is it subject to sales tax I'm going to say no I'm going to try to say no it's not subject to sales tax sometimes quick book can be a little tricky on this one I say it's not taxable not taxable so I'm setting up the item as we go service item not subject to sales tax so I'm going to say okay and then we're going to say the rate was how much was it again it was eighty two it was eighty two thirty nine eight two three nine eight two three point three nine point three nine you need the decimal it's not the same if it doesn't have a decimal so what's this going to do is going to increase the accounts receivable the other side is going to go then to the to the income and it'll also have the sub-account tracking who we owe the money to by customer number four so I'm going to save it and close it save it and close it and we'll check it out let's go to the balance sheet to check it out running it run at and then I'm going to go down and go into the ARR the pirates favorite account are because pirates say are any case whatever what are you talking about there's the eighty two nine thirty nine there it is going back up top back to our report the other sides on the income statement going to the income statement let's refresh that run at run nine and then we're going to go into the services again and the revenue has most likely been recorded on an accrual basis accounts receivable is an accrual account there it is and we also have the sub-ledge let's open up another tab to make another report that'll be fun let's make let's duplicate this tab right click and duplicate it again and we're going to open up another report by going to the left hand side over here and I'm going to close up the I'm going to go into the reports on the left hand side close up the handbook and then I'm going to say this is going to be some kind of customer report let's call it a customer balance details to the customer balance detailed report shall we and so here we see there's there's the invoice for this eighty two thirty nine this is what we would need to track the customer we can also track the customer let's go to the second tab by going into the get paid pay area for example going into the customer section and I close the hamburger and I might be able to say yeah there's the money that is owed to us by customer number four if you were in by the way the accounting view that would be under the sales tab and then customers up top back to the business view you could go into that customer and I can see there's the invoice the next thing I would expect is to get paid matching that invoice out to a received payment but we're going to imagine we don't do that and wait till it clears the bank to record the receipt of the payment and we're going to do that by then going to the first tab and we'll imagine that this is the item that has now cleared the bank now because you're going from an invoice to the deposit that actually cleared the bank it might not recognize it as easily that would be something that would be a little bit more difficult using this method because all the quick books really has to recognize this is the dollar amounts going to be the same because the date could be substantially different so you might have to go in there we could say is it possible for me then to match this transaction going to the match tab to to the invoice that has been generated and you might have to refresh the screen by the way to to make sure it's picking up that new transaction so now I said I want to see all the transactions and then I went over and said we want to have that first trend for the date range is included and there's the transaction down below so it's the same dollar amount I'm going to say that's the one we want to match it to so we're going to pick that up and so there it is and so then I could show that item I can add it there so I'm going to go ahead and save it so we matched it out and so now it recorded that transaction now let's see what it did if I go to the tab to the right which is the customer tab now and I look at the customer detail let's go ahead and refresh it I'm going to refresh the screen and you can see it added the item down below I'm going to close the hamburger and close this one you can see that it made the payment down below so it made a payment type of form you can see that the invoice has now been marked off as paid and the payment is connected to it so it did what we would want it to do when we're kind of tracking this information on the customer side of things if I go into the invoice there's the invoice marked as paid I can go to the payment that has now been made for it so that looks like what we would want it to do now the question is did it do this in two steps or one step because note you could have the invoice then the received payment often goes into undeposited funds and then takes it out of undeposited funds and puts it into the checking account or you could put it directly into the checking account with this received payment form that we just saw there however it's a little kind of confusing when you do that because then usually you have your increases to the checking account with a deposit form in that case you're going to have received payment type forms which are going to show an increase so in other words if I went into this payment again did they deposit it directly into the checking account or did they take it to the undeposited funds they put it directly into the checking account here and when I say undeposited funds I really mean payment to deposit account because it used to be called undeposited funds and they've updated it in the latest version to a new name because I don't know it's cooler or something but in any case so if I go back on over I'm going to go into the checking account let's go ahead and run this again so it so it changes so we're going to go into the checking account and hold down control and scroll back down and say all right where was that where was that transaction customer number four that we had maybe I should maybe I should customize it and filter that might make it easier by the name which was customer numero quattro and so there we have it so there's the payment so if I go into that form it's going to take me into the and notice it it has an increase to the checking account not with a deposit but with a payment form which is a little bit unusual not you know nothing to worry about but it's a little you know you have to make sure you take it that in the consideration when you're looking at your increases to the checking account if you're sorting by type and there it is there's the received payment form closing this back out scrolling back up going going back on over to our balance sheet the other side is in the a to the r accounts receivable which went back down recorded there so if I go into that there it's going back down that looks good if I go back then to my report if I went to my sub ledge my sub ledge go into the tap to the right and run in that again we've got it's gone because I don't see the detail I could go to the customized up top and say I want to see the detail filter options here and then say that said I'd like to see the amount paid all the stuff all the stuff and then run it so now we could see customer number four there's the invoice there's the payment that we have linked up so that's one one thing one way you could fit the bank feeds in so if I go back to our flow chart here we basically said okay it's possible to create an invoice billing people and then wait till they just pay us electronically wait till it clears the bank which in essence is kind of like a deposit but we're actually going to record and receive payment and then when it clears the bank match it up to the invoice however we got to be careful with that because all the system has to do that matching up is is basically the amounts we have to manually match it up but it's possible then to do that use the bank fees then to match up to the invoice the next time we could think about okay well what if I have the invoice and then I have the receive payment and then I can match the deposit up to the receive payment or I could do the whole process we'll talk about those options in future presentations