 QuickBooks Online, sales receipts form. Get ready to start moving on up with QuickBooks Online. We're gonna be using the free QuickBooks Online test drive tool, finding it by searching in our search engine for QuickBooks Online test drive, selecting the option that has Intuit.com within the URL, Intuit being the owner of QuickBooks. We're then gonna be using the United States version of the software and verify that we're not a robot. Zooming in a bit by holding down control up on the scroll wheel currently at one to 5% on the zoom in. Note that in the cog dropdown, we can toggle back and forth between the accountant view and the business view. We are currently in the accountant view. We'll try to toggle back and forth so we can see where different things are located in the two views as we go. We're gonna be duplicating some tabs to put our major financial statement reports in as we do every time. Right-click in the tab up top to duplicate it. Right-click the tab up top again to duplicate it again. Back to the middle tab, opening up the reports down below. We want the balance sheet, opening up the balance sheet report. I'm gonna go to the tab to the right as that is opening, go back to the reports on the left and this time the profit and loss we would like to open. I'm gonna close the hamburger up top, scroll up, change the date range. I would do it this way by selecting the beginning date and go from 010122 January 1st, 2022 to 123122 December 31st, 2022 tab and then run to refresh the data. Middle tab, closing the hamburger, scrolling up, selecting the starting point from 010122 tab to 123122 tab, running the report. That's the setup process we do every time. Going back to the first tab now. Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website, broken out by category, further broken out by course. Each course then organized in a logical, reasonable fashion, making it much more easy to find what you need than can be done on a YouTube page. We also include added resources such as Excel practice problems, PDF files and more like QuickBooks backup files when applicable. So once again, click the link below for a free month membership to our website and all the content on it. Looking at the dropdown in the new button, we've been focusing in on the customers area which I would call the customer cycle, sales cycle, revenue cycle, accounts receivable cycle, noting the cycle may be different depending on the type of industry you're in. The easiest industry to be dealing with would typically be one where you have like a gig work where you can wait till you get paid by like YouTube or some other platform, Amazon. As it clears the bank, you record it possibly with bank feeds using in essence, a deposit form or the slightly more complex but still cashed based method would be one in which you have a cash register possibly you're gonna get paid at the same time you do the work but you can't really wait till the money clears the bank before you record it possibly because you're collecting cash at a cash register or something like that and you want to be able to record the transaction and then tie out your cash count to what the sales count is on the sales transaction and then make the deposit. That's the one that we're going to do here and then the third kind of option you might have or type of business would be the accrual type which we've looked at in prior presentations in which case you do the work first and then invoice the client which increases accounts receivable then you receive the payment and then you make the deposit. So we're gonna go to the second method this time. Now this method is still a cashed based system. There's a difference between a cashed based system where you're gonna record the transaction at the same point in time you do the work but have a full service accounting system as opposed to a cashed based system where you say wait for the amount to clear the bank and possibly use bank feeds to record the transaction. The one where you're gonna wait till it clears the bank is actually not really a full service accounting system because you're actually constructing the books based on the bank data rather than as you enter the transactions. Usually we use the bank feeds or bank reconciliation to verify what we have entered into the system. We don't use the bank data to create the transactions into the system. It should be a double check and internal control. Although if you have the type of industry such as gig work or something like that where you can construct your books directly from the bank statement that would be the easiest thing to do and therefore a good system oftentimes in that case. However, we're gonna use a system where we are on a cashed based system but we've got the sales receipt possibly at a check register or cash register. Now the problem with this system is that again, you can't really wait till you get the money and then deposit it. We're gonna have to get the money at the point of sale cash or credit cards or whatever the payment is. And then we could use this form itself in order to record the deposit into the checking account. However, we often don't wanna do that if we're at a cash register because then for example, we might make like $25 cash transactions. And if I deposit into our account in QuickBooks a bunch of deposits that are $5 each but then they're gonna be grouped when I actually make the physical deposit into the checking account either from me going to the bank and depositing all the $5 amounts at once for one lump sum or by the credit card company then I won't be able to match with the bank feeds or the bank reconciliation what's in our account to what's on the bank statement very easily. So that's the issue with the sales receipt. Oftentimes if you're at a cash register you wanna put the money into the undeposited funds the clearing account so that then you can take the added step of grouping those deposits together and the same format that they're gonna be showing on the bank statement or bank feeds. Then we make the deposit in our system and then we can tie it out to the bank statement. Now also note if you think about how the bank feeds are gonna work into this system you can imagine that you make the sales receipt and then you kinda tie the bank feed to the sales receipt but most of the time you'd go through the full process you'd enter the sales receipt and then you're gonna make the deposit on our end and then if you have the bank feeds on they would double check you will use it to match and double check the entry it wouldn't be used to make the entry but to double check it we'll talk more about bank feeds in another section or another course but I just wanna point that out now. So let's make a sales receipt we're imagining for example that we are at a register at this point in time and we are collecting at that time. So we're getting the money at that time. So I'm gonna make up our customers, the same customers so AAA so it shows up at the top of the list I'm not gonna put a lot of detail in the AAA we've seen the fact that you might want more detail in some cases but it will be dependent on the type of industry we're in and if you're at a cash register oftentimes you might not even get their name you might have a generic customer name that would just be customer sales because if you're selling someone a sandwich they probably don't even wanna give you your name so you're just gonna put whatever you need in order to process the transaction but if you have repeat sales then you probably want their contact information so you can give them your newsletter and all that kind of stuff. So I'm gonna save that if we're gonna email we would need it but if the sales happening at the same point in time this is not likely the type of receipt that are the type of form that we're gonna give in the same fashion as an invoice we might give it as a receipt for a transaction but it's not like we're going to be emailing to collect in the future as with the invoice that's why the invoice is a very customizable form or one that you may more likely want to customize because it's gonna be given to the third party. So then we're gonna say the sales date is gonna be here we of course have no due date like we saw in the invoice because we're gonna get paid at the same point in time we're not gonna enter any tags the payment method usually if you're at a cash register will be the cash or a check possibly or some kind of credit card and those kind of payments except possibly the check are you know and most of the time you're not even getting checks at a cash register anymore you're getting cash or basically credit cards oftentimes are the ones that lead to this intermediary problem of us having to group them in the proper way to actually deposit them into our deposit or checking account to match what's on you know the bank statement and therefore usually we're gonna have the default in this kind of system as undeposited funds so again I could deposit directly into the checking account but that could cause problems if I'm gonna group multiple deposits together and then put them into the bank as one lump sum but let's just start with that just so we can see it I'm gonna start going directly to the checking account now if you're getting paid by check or by electronic transfer then it's likely that the transfer is gonna hit your bank account in the same grouping the same dollar amount that is gonna be on that one transaction so you won't run into as many problems however you're still gonna have this sales receipt kind of acting as a deposit form in your system which causes some problems because when you look at your deposits I kind of like to see all the increases in the account being deposits or possibly transfers if you use a sales receipt to deposit directly into your checking account you're also gonna have to note that the sales receipt is another kind of form that might be increasing your account so let's see what that will look like I'll start it off with just a service transaction so let's say we're gonna add another item it's gonna be a service item so we'll open this up we're gonna say it's a service item and then we'll get into an inventory item next time so this is gonna be service one I'm just gonna say I'm gonna copy that and then I'm gonna put that in the description and let's say the sales amount is 240 and it's gonna go into service income I'm gonna take the tax off for this one and we'll talk about the next transaction with tax non-taxable done and so let's save it and close it so there it is let's say we sell whatever two of those so we're at 480 it's not taxable if we had another lined item we could sell multiple things clearly at one time we can imagine that we do multiple things we're writing up something for example if we're gonna do maintenance on a car or something like that we can write up multiple items here that would be included then we're gonna we can add lines down below we can clear lines we can move these lines around if we want them in a different order we then have the message display at the bottom so I'll just put high here so we can see it when we preview it we got the message display on the statement and then we've got any attachments if we would like to add the attachments we can cancel it we can clear it we can print or preview it let's do that and check it out let's preview it see what it looks like so there it is there's our sales receipt form and so you can see the little high right there so you can put your little message if you want right there so we're gonna close that back out and then we've got the total adding up to the 750 no tax applied at this point and so there's the amount due what's this going to do then well it's a sales receipt so you can imagine we're making a sale at a cash register so we would think that some kind of cash account is gonna go up whether that be the checking account or possibly a clearing account like undeposited funds the other side is gonna go to revenue typically driven by the items and note you typically want to have your items down here so that you can get more detail on the information that you're selling even if it's a service item you probably want to think about how you're gonna be grouping your items in such a way that would be most applicable so if you have hourly service for example you could use hourly service items but it might be better if you could find some other billing option of a bundle of things that you are doing because that could be a little bit more concrete so it's just an idea so then we've got the print we've got the make reoccurring so we could make it a reoccurring transaction if we think it's gonna be happening customarily or on a reoccurring basis we can customize it we've got the more option where we could copy it if it's a long one and we wanna make another one similar to it void it, delete it transaction journal and add history and then save it and we can save and send or we can simply save and close which is what we will do save it, close it let's see what happened go into the tab to the right let's run the report and then we're gonna look in the checking account the good old checking account let's check out the check-in if I can and so down below on the check-in we've got the sales receipt so there it is AAA I can drill back down on it go into the source document and there is the source document now note that in here this is basically like a deposit this is an increase to the checking account which you would think of as generally a deposit but it's recorded in the transaction type as a sales receipt item which is fine but it does make it so that if I wanted to sort my cash transactions by increases to the cash account I would have to take into account that now I can't just look for deposits and possibly transfers but I would have to pick up the sales receipts as well which I would prefer personally if I can basically have all my increases called deposits unless it's a transfer but that's not a big deal just something to kind of keep aware of you wanna keep a good idea and have an idea of what these forms mean in the transaction type could be quite useful in the cash account you have a wide variety of types of forms given the fact that cash is the lifeblood of the company so I'm gonna go back and then on the other side if we go to the income statement run the report then and we scroll down we're gonna say then we have what did I put it in here I put it in service revenue it's in here somewhere I think I'm gonna go into there and so there's those I put it in here in the two line items because we had two different things that we sold those are the two line items on the invoice broken out by the items that we sold closing that out scrolling back up back to then our income statement we obviously don't have any accounts receivable or anything at that point we still might wanna sort this information by customer go into the first tab we can go into our sales area which I would call like our receivable or income cycle and then I'm gonna go into the sales now the sales item under the business view is not in the get paid pay tab but rather in I think the bookkeeping tab we'll take a look at that later but notice that usually if you're spending a lot of time in here if you have a full service accounting system and deal with invoices but you still might wanna sort your transactions in here if you have a cash based system by sales receipts so there's our sales receipt you can sort by type up top and just look for those sales receipts there it is I don't expect anything else to happen for this one but if a customer comes back and asks us questions or if there's a problem with it we can sort this information we also wanna make sure that we add the customer if we can because then we got another area that we can sort the data by so then I'm gonna make this large again go back to the sales tab we've got our invoices, estimates we've got our payment, our customers let's go into our customers and we can also see our customer here there's nothing outstanding cause we didn't invoice them they already paid us but if they have a question we can go into that particular customer and we can say hey yeah here's the sales receipt and so on here's the transaction that took place okay let's do it again this time we're going to add an inventory item and see that type of transaction so I'm gonna hit the plus button we're gonna say let's invoice another one I'm not an invoice I'm on sales receipts we're at a cash register plus button, sales receipt and this one will be for BBB and I'm not gonna add any more detail than that same stuff going down to here payment method, we could choose another payment method if we had like a transfer of cash or something I'm just gonna put cash and then this time I'm not gonna put it in the checking account but rather I'm gonna put it into the undeposited funds account which is what I would prefer to typically do which is a clearing account and it will go up in a similar fashion as we saw with the received payment from an invoice so that I can group multiple payments together and then make the deposit of those grouped items which we'll see shortly then I'm gonna add an inventory item this time to make things a bit more complicated assuming we're tracking inventory in the system on a perpetual inventory method so we'll call it inventory one and I'm gonna say that the amount on hand I'm gonna put this amount on hand which is gonna record a transaction for beginning inventory so we have something to sell and normally you would not do that because unless you were first starting the company file which we'll see more in the second half of the course when we start a new company file so we're gonna go to the inventory asset that's when we purchase it we're not purchasing here, we're selling here so this 10 amounts are gonna be included the 10 quantity times the cost will be included in the asset account of inventory and then the description we're gonna say is inventory one generic description we're gonna say that they cost $75 or they're selling them for $75 and it's gonna go to the sale of product account when we sell it that's what we're doing with the sales receipt taxes we're gonna say that tax is applicable remember for taxes there's a couple things to consider you gotta turn the taxes on set up the taxes and then the item which we're doing now will determine whether or not it be taxable or not and then also the customer which we set up as BBB in this case could be exempt so by default they're not exempt typically but if they were exempt then you can have the customer exempt we talked about sales tax prior to this so I'm not gonna go into a lot of detail there and then the cost I'm gonna say 25 we buy them for 25 cost of goods sold is the expense account that will be hit when we sell it which we are doing with the sales receipt all right let's save it and close it and then let's say that we're gonna sell like four of those which comes out to $300 so now what's this going to do well it's got the tax involved on it now so the tax is being applied based on the fact that we said it was a taxable item and because the customer is not exempt from taxation this being sales tax and so we're now at the 324 total so this is gonna increase a cash account because it's a sales receipt we can imagine we sold at a register a check as a cash register for something that was purchased a piece of inventory it's gonna increase the account however of undeposited funds not going directly into the checking account because we're imagining we're holding onto the cash or possibly made a sale with the credit card which is gonna be grouped together with other sales and then deposited into the checking account with multiple sales transactions grouped together and therefore that's how we need to deposit them on our side so we can do a bank reconciliation either with the bank feeds or with just a standard bank reconciliation so that's gonna go up by 324 the undeposited funds sales is gonna go up by 300 which is driven by the item telling us what account to hit which we said was like inventory sales or sales of inventory or something which we'll see shortly and then the difference of $24 is going onto the balance sheet as in essence sales tax payable but I think it's gonna list it by vendor who we pay, the government that we are paying note that you can imagine a system where you'd say well why don't we increase the sales by 324 and then record an expense of 24 for sales tax expense which would get us down to the same net income of the 300 answer because the tax isn't supposed to be on us the owner, the tax is supposedly on the customer we're just the collection agency so we didn't really sell it for 324 even though we're collecting 324 because in theory we sold it for 300 and then are acting as the collection agency of the government for $24 therefore the $24 is not an income but rather on the balance sheet as a payable and then we're gonna pay it so neither the income nor the expense for sales tax will hit the income statement okay and then we also know that the inventory for the sub ledger is gonna go down not by $75 per unit or 300 but rather by $25 or 100 times four or 100 four because that's what we paid for them okay let's save it close it check it out saving it and closing it and then go to the tab to the right to check it out gonna run it again so it's fresh gotta do with fresh stuff here this went into undeposited funds undeposited funds and I'm gonna hold control down and scroll down so there it is so there's the sales receipt for the full amount the 324 including sales tax closing that out scrolling back up going back to our report now remember that is in essence a cash account it's a clearing account it's not a temporary account those are different a temporary account are the income statement accounts that are called temporary because at the end of the period month or a year that is they close out and then we start over this one isn't gonna close out periodically at the end of the year but periodically whenever we're done with the clearing process it should be much shorter it should go back down to zero right after we take this money out and put it into the checking account it's only use being that it allows us to group the funds in the same format as we deposit them into the checking account so we can better reconcile with the bank what happens on the bank statement side either through the bank feeds or through the bank reconciliation process then on the other side if I go to the sales side of things and refresh the report we have the sales of products so that should be impacted going into that one there it is notice it's on the books for $300 does not include the sales tax sales tax not included closing that out sales tax has to go somewhere going back it's on the balance sheet under liabilities because we owe the tax to the government you would think it'd be called sales tax expense but they usually list it by vendor meaning the government agency that we're gonna be paying that's making us into their tax collector so if we go into that then there's the BBB right there there's the 24 sales tax let's go back to the report then inventory is going down so here's the inventory account so if I go into the inventory it's gonna be going down by the $100 which is the amount that it's an amount that's not on the actual sales receipt but is driven by the item that we set up because we said we purchased these for $25 each we got four of them that we sold closing that out and then scrolling back up so you can imagine this form is kind of like what you would imagine happening when you go to a grocery store and you scan something on the grocery store it's very easy to do if you have things set up properly or for a clerk to do that doesn't know much about the transaction even though the transaction taking place is actually quite complex the other side is on the income statement under cost of goods sold and we can see there's the $100 in cost of goods sold let's go back to the income statement so the net impact on the income statement is the increase in the sales account minus the cost of goods sold which here was so that's gonna be the impact I think it's 400 minus 100 I think was here on this one let's go back to the balance sheet the other thing impacted here is the inventory so inventory is affected and let's make another report because if we're tracking this we not only wanna track inventory by the dollar amount but also by the number of units that's what it means to track in QuickBooks on a perpetual inventory system I'm gonna go to the tab to the right right click on it duplicate it so we can open up another report and check that out so we'll go down to the reports on the left hand side close up the hand boogie and then I go into inventory valuation summary and so here there's the inventory now you'll recall when I made the inventory we put 10 on the books the beginning balance and then we sold four of them so now there's six left and there's the cost the point being that we're tracking the inventory by unit we'll take a look at this more in the second half of the course when we do our practice problem but there's the 74625 is the point and that ties out to what's on the balance sheet the 74625 there so that's the general process and again we can kind of track the activity in the first tab by customer like if I was to go into let's hit the plus button here and go into our customers then we've got AAA we've got BBB I can go into the transaction here I can close the hamburger and so there you've got your sales receipt and there you've got that it has been paid meaning the deposit has been made if you go into it then you could check out your sales receipt although because we're making the sale at the point of time there's no really added detail as there is with an invoice which we're usually kind of trying to collect on obviously okay so I'm gonna close that back out the next step that would happen is that we would make the deposit so if I was to make the deposit I won't do it here because we've seen the deposit well maybe I'll deposit it but if I go into here notice the bank deposit we've got the amount of BBB and I might add that to another deposit because possibly these two are both cash transactions or possibly because they are both credit card transactions that then the credit card company grouped together when they made the deposit into our account that's why we would go to this undeposited funds that's one of the main reasons we would do so and so now if I record the deposit it would increase the checking account and then it would decrease the undeposited funds and by these two amounts I'll leave this last one on the books notice that these three here are the items that are populating that make up the $23,086.52 which is the amount on the balance sheet for undeposited funds that's why they're grouped up top so it's a nice tool so I'm gonna say let's save it and close it and then if I go to my balance sheet and run the report again we can go into our checking account and now we've made a deposit so we've got the deposit that has made now you can see that the deposit shows up as a deposit as opposed to a sales receipt I like that because the increase now is showing up in the system as a deposit now if I wanna sort by increases I can basically sort by deposits instead of having to include like the sales receipt on it also it's grouping the two transactions together which hopefully will match what I put in the actual bank so if I put the physical cash in the bank for $199.52 or the check or the credit card deposited this amount for two transactions at one time I should be able to match this using the bank feeds or the bank reconciliation let's go back to our report here and the other side is an undeposited fund so undeposited funds has gone back down note in here they show the two transactions so that you can see them going in and out there so it's a quite nice match up the way they have it set up there okay let's go back to the first tab I'm gonna go to the cog dropdown and just look at some of these items and areas on the business views just so we can see the two views and where things are located and note that we're talking about the same system it's not a completely new thing we're in the get things done basically the homepage you still got the plus button up top which has all the transactions you got the sales receipt you got the bank deposit we then have been working primarily in the get paid or pay area which is in essence the customer cycle the customer center the sale cycle the get paid is where we're looking there's your customers where we sorted AAA and BBB so we can track that information there the list of transactions in the sale cycle is somewhere different however that is in the bookkeeping area and then transactions up top and then we go to the sales transactions this is where you could sort you know your transactions here by the sales receipts is what we were looking at so remember the two views you can get kind of annoyed sometimes with people that are working in a different view it get quite confusing when you got all these different ways to get to the same area but the accounting is the same it's all the same stuff it's just they're just housing it in different areas so don't let it frustrate you you wanna just be able to look at it from different angles the more you can look at things from different angles the more your brain is making connections and so QuickBooks has made a lot of different angles to look at where to find stuff so that's good practice