 QuickBooks Online 2024. Receive payment form. Get ready and some coffee because we're diving into it with Intuit's QuickBooks Online. Here we are online in our browser searching for QuickBooks Online Test Drive looking for the result that has Intuit.com and the URL Intuit being the owner of QuickBooks, selecting the United States version of the software and verifying that we're not a robot. So how quick is QuickBooks Online? Well, we're going to find out because we're giving it a test drive here with the QuickBooks Online Test Drive. In any case, we're going to be opening up our reports like we do every time reports on the left hand side. I'm going to close this out and we'll right click then on the favorite report of the balance sheet. Open link in new tab. Right click on the profit and loss open link in new tab. Let's take a look at those tabs that have been opened. Middle tab going to close up the hamburger. There is our balance sheet tapping to the right closing the hamburger. There's our profit and loss or income statement going back to the first tab. That's the setup process that we do every time data input here on the first tab and then we'll check the financial statements and related reports on the tabs to the right. If we select a drop down, you'll recall that we're in the customer cycle side of things. Customers for QuickBooks means the people that are ultimately going to be hopefully paying us inflow of cash for goods and services that we provide. Remember in common language, we are also customers and we are also vendors, right? But because we're the customers of our vendors, but for QuickBooks terminology, we have to think about what side of the table we are on and for customers we're talking about first a word from our sponsor. Yeah, actually, we're sponsoring ourselves on this one because apparently the merchandisers, they don't want to be seen with us, but but that's okay. Whatever because our merchandise is better than their stupid stuff. Anyways, like our crunchy numbers is my cardio product line. Now, I'm not saying that subscribing to this channel, crunching numbers with us will make you thin fit and healthy or anything. However, it does seem like it worked for her. Just saying. So, subscribe, hit the bell thing and buy some merchandise so you can make the world a better place by sharing your accounting instruction exercise routine. If you would like a commercial free experience, consider subscribing to our website at accountinginstruction.com or accountinginstruction.thinkific.com. Customers, our customers, people that will ultimately be paying us for the goods and services that we provide. The cycle that we have for the customer cycle or revenue cycle or sales cycle could be easier or more difficult depending on the industry that we are in. If it was a cashed based system and even easier than a cashed based system, one in which we get paid by like a platform, say gig work or something like that, we might be able to wait until the deposits clear the bank using the bank deposit in the form of the bank feeds as they come through to record the revenue. If we have a slightly more complicated system, but still a cashed based system, that's when we use the sales receipt at a cash register possibly and then make the deposit. We have been talking here in the last couple lectures about an accrual type of system where we have an invoice. An invoice in and of itself is an accrual document because it deals with accounts receivable, which is an accrual account. So last time we talked about the recording of the invoice after we record the invoice, then we're going to have to receive the payment on the invoice. That's going to be the next step. That's where we are this time. We're going to be receiving the payment on the invoice. Let's first create another invoice just so we can recap where we start off with where the received payment comes from and then we'll track how to find that received payment and record it. So I'm going to make another invoice and we're going to say that this is going to be then let's just call it customer one again, customer number one generic customer. I'm going to add it and the invoice. I'm not going to add an email, but oftentimes you might be emailing the invoice. It's going to be a 30 day invoice net 30. Let's make it as of 011524 and tab in through and let's make a new service item. I'm just going to call it hourly. Let's call it hourly or let's just make a new a new one this way. Let's go up top and say new one and let's pretend it's just an hourly service item. I'm not going to deal with inventory here noting that the inventory, whether you had inventory or not, doesn't really impact the next form which we're focused in on the received payment form, although inventory does create the invoice and make it a lot more complicated. So we're just going to do the service item and we'll just call it hourly service hourly. Oh my goodness, my fingers aren't working. And so we're going to say, okay, description hourly $100 an hour again, it's going to go into service income and let's say it's not taxable. If it were taxable, again, it wouldn't really impact the next form so much because we're going to be collecting for the total dollar amount, whether there be sales tax or not. And so there it is. I'm going to go ahead and save it and close it. And we're going to say let's just say it was two hours. There's the $200 and what's this going to do? It's an invoice. Therefore, it's going to increase accounts receivable. That's where we're focused on now because the next form is to collect on the accounts receivable. The other side's going to go to the revenue account. We're not dealing with any inventory here. So we don't have to deal with all that kind of stuff. But we also note that as accounts receivable goes up, there will be a subsidiary ledger that we will have to track as well. Let's just record that real quick on Excel just so we can check it out. So the AR is going to go up. There would be a debit and then the credit's going to be going to income. So $200 debit and credit. So AR is going to go up with a debit and income is going to go up. And you can have an increase. This is an increase down here because that's revenue of $200 on the income statement. Let's check it out, save it and close it over here and check it out on this side. Let's go to the balance sheet. Let's change the range up to $2024. 010124 tab, $123124 tab. Running it to refresh it. And let's go into that AR for the balance sheet. Closing this out. This is the new look. I know it's the new look. QuickBooks looks nice. So it's got the colored stuff over here which is blue and red. That's nice. So there it is. There's our invoice. If I go back on over and then I go to the P&L and change the range up here from 010124 tab, $123124 tab. Run it to refresh it. There's our $200 on this side. We also note if I look at the balance sheet, I need to track by who owes us the money. So when I drill down on the balance sheet, by the way, on this number, it gives us the transaction by date. I need to see it by customer. So let's go to the tab to the right. Right click again and duplicate this tab to open up another report. And this is where we are at this point in time because now we would be tracking who owes us the money so that we can then record the received payment, collect on the money. We're going to scroll down to who owes you and we're going to go into the customer balance detail. And so there we have it. And so now we had customer number one. There's the $200. The total of all the customers is at $5,481.52 which ties out to what is on the balance sheet, $5,481.52. Now note, I'm going to take a quick look at a float chart here just to get an idea of where we are at. We entered the invoice. What's going to happen next time we receive the payment according to the flow chart and then we make the deposit. Right? Now if you have bank feeds in place, you can imagine different systems that you could set up. Normally, if you have bank feeds, you're probably still going to have an invoice, receive the payment, record the deposit, and then use the bank feed to double check that you have the deposit that ties out to the bank account and it's more of a reconciliation item. However, you can imagine a system where you create the invoice, you receive the payment, possibly it's an electronic transfer or something like that. And you see if you can wait till that clears the bank and then try to use the bank feeds as it clears the bank to match it to the invoice. So I just want to kind of point out that you might be able to come up with a system like that or and then there's the question of when I receive the payment, which I'm going to do at this point in time, we could receive the payment and deposit it directly into the checking account which would be fine in circumstances. For example, if we're getting like a check, a one-time check or an electronic transfer that's going directly into our account, meaning we're not going to be combining multiple things together, because if I deposited directly into the checking account at this stage, then I'd still want to be able to double check it with a bank reconciliation possibly helped by the bank feeds. And I want to make sure that the bank account is going to be hit with the exact same dollar amount that I am depositing. On the other hand, if we have payments that are coming in from a credit card or something like that that's helping us with our collection or we're getting cash payments and we're going to have to group them together, then when we receive the payment, we're probably going to have to put it into undeposited funds or some clearing account first so that we can then properly group the money together when we actually make the deposit. That's easiest to see like if you had cash sales. If someone gave you cash, then you're going to collect multiple amounts of cash during the day from multiple sources. You're going to group them together and make one deposit when you deposit them into the bank. When the bank gives you the bank statement or you receive the bank feeds, it's going to show just that one deposit. It's not going to show the multiple different sales amounts. So that's the tricky bit that we have to make sure that we get right. If you get credit card companies often mess people up as well because the credit card company will be batching payments together deposited into your bank account in one lump sum. You're going to have to come up with some kind of system most likely using a clearing account so that you can match your internal deposits into the checking account as they're batched in the same batching as went out of the credit card. Otherwise, when you go to the bank reconciliation or you try to tie out to the bank feeds, you're not going to get the same number. You're going to have to add up certain things on your side to tie in to what was on the bank side. If you find yourself doing that, you probably don't have the most efficient system set up and you probably need to use it like a clearing account to fix that. So let me show you. So then we're going to have the receive payment that we get here and then if we put it into the clearing account, then we'll record the deposit. Now with the bank feeds, you can also imagine that if you put it into the receive payment and you put it into undeposited funds, you might be able to connect the bank feed here to make that final transaction. We'll talk more about that on the bank feed side of things, but again, usually you would use the bank feeds to be double checking as a form of bank reconciliation rather than to record the actual transaction. Okay, let's go back to the first tab and I'll do this one. We'll go into the sales over here just to track that invoice. So if we were tracking the invoice and we've received a payment on it, we can go into the sales area and I could say, okay, I'm tracking my invoices. Here's my invoices and I could be looking for that invoice that we just made. Doughn day as star. So here it is for customer number one. So we have we can look for it that way. We're probably more likely to go to the invoices tab over here and we can search for it in the invoices. So again, we could search for all the invoices or possibly we want the unpaid items and we can track for the unpaid ones and there it is. We would expect to receive a payment which we can record the receive payment here. We can send the invoice. We can send a reminder and we can make statements for it. We might talk about that more in future presentations if we haven't received payment on it and then we can go to the customers and we can track them in here. We can look for the open invoices sorting those customers that have open invoices in them. Here's our customer number one. And again, we can go to the receive payment here. I can go into the customer and we could find the invoice in here as well. We've got this little there's our invoice. Now the next thing that would happen is we would have a receive payment. So if I go into the receive payment then most likely you would track it that way. You'd find the invoice. You'd get the payment. Look for the invoice possibly in the customers section for the payment that you have been received and here's our receive payment form. The other way you could do it is if I close this out and if we just went to the trustee plus button open up the hamburger plus invoice and then we receive payment. And if I just go here and I go into this as say customer number one, then it'll populate properly. So let's say we receive the payment on the 16th of 2024. Now we have the payment method. This is basically an internal document for internal use purposes. Let's say it was like a check that we received. And so we'll give it a check here and that might help in some search fields internally. It's not fundamentally important. If you had a check number, you could put the check number or reference number. And then here's the key. What account are we going to put it into? Now if we got one check, we could put it directly into the checking account instead of going into the undeposited funds. So I could say let's put it directly into the checking account this way. Now because this will work because we only have one payment. I'm not grouping multiple payments together. Therefore the bank account should be hit with the exact same dollar amount of $200. It shouldn't be grouping things together. And so we should be okay. The only kind of downside with this still, I still kind of like putting it and going through the undeposited funds just because I'm used to it and also because if we do it that way, when we deposit it into the checking account, it'll be done with a deposit form. If we use the receive payment form to make the deposit, then it's going to show up in our detail as a receive payment form instead of a deposit form. And when we're searching for increases, we've got to make sure to get the receive payment and deposit form. It's not a big deal, but just point that out. Now you check this off. If I want to see the invoice, I can go to the invoice here. I can find the invoice if there was a bunch of invoice and I could filter using my filtering options if we had a bunch of invoices down here that we needed to sort through. Now if I'm going to get paid on not the entire thing, I could only be paid like 50, let's say. And then there's 200 of the invoice, only 50 is going to be paid. There'll still be an outstanding balance then. But I'm going to put it at the 200. So we have the 200. And then you have the memo field. If you want a memo, you have any attachments. If you need any attachments, you can cancel it. You can clear it. We have the print option here. So if I look at the print option, there's our print preview. Now normally the receive payment is an internal document as opposed to the invoice because it's used to facilitate the transaction. But possibly you might use the receive payment as kind of like a receipt type of form in which case, you know, you might want to customize the receive payment if you plan on providing it externally. But oftentimes it's not used externally as much at least as the invoice. The more options you can void, delete, transaction, journal, audit history. And then we have, of course, the save and close, save and new, save and send. So if we want to send it, we have the option here, but we're just going to save it and close it to record it. Now what's this going to do, of course? What's it going to do? Well, it's going to increase the checking account because that's where we put it. And the other side is going to decrease accounts receivable. What you want to keep in mind with the receive payment, the first thing account that should come up is actually the accounts receivable going down. And the other side's going to go into some kind of cash account, but it might go into a clearing account like undeposited funds or directly into the checking account. So for example, if I go over here, in this case, we did, we did, now we're going to receive, receive payment. And so we're going to say that it's going to go right into the checking account. And the other side is going to go to the AR. So a checking account, it's going to be for 200 and 200. So now the checking account is going to go up by 200. And the accounts receivable is going to go down. You can see that only these top two accounts were impacted to asset accounts, right? We had one asset, people owed us money. That's great. We'd rather have the money. So we got the money. This account went down and then the cash went up. Nothing happened to the income statement on that second transaction because the income statement was impacted on an accrual basis when the invoice was created because in theory that's closer to the time we did the work. Let's save it and close it and check it out. Let's go to the balance sheet and run it to refresh it and then go into that ARR account. So there it is. It goes up with an invoice down with a payment. That's the pattern you're going to see and the accounts receivable. That's basically the only pattern that you should see. Those are the only two forms impacting it typically. So then if we go to the balance sheet or not the balance sheet, if I go into the checking account, I'm already in the balance sheet. What are you talking about? I don't know. I don't know what is happening. Here's our payment form. So our payment form will go into that. There's the received payment. Moe B to the end, BN. And let's go back on over. Okay. So there is that one. And then if I go to my tab to the right and we go into run the report, you could see that that amount is no longer customer one is gone now because they don't have an outstanding balance. And the balance is now down to 528152, which should tie out to the balance sheet 528152. And if I go into the first tab and I look at my customer detail here, we can now see that we have the invoice and the payment. If I go into the invoice, hold on a second, I went into the customer. If I go into the invoice, it's given, it gives me my tracking history over here open and then paid. And then we could go into the view payment. Let's go into the view payment. And so there's the payment. And then if I wanted to go to the invoice from here, I could actually click on the invoice here. And that'll show me the invoice. And within the invoice, it says paid. And it's also linked to the payment. So you can see how everything is kind of linked up. You might not be used to this as much if you're if you are coming from like an accounting side of things from a textbook side of things, we see everything with journal entries. So you want to make sure that you understand how these forms are kind of linked together because the form is doing more than making the journal entry. It's also linking all this stuff together. So from the internal bookkeeping side of things, we can tie everything out and see that everything's linked up and closed out. And so if a customer asked us a question, we can clearly see that we have the payment and we have the invoice basically tied together here. Okay. And then of course, if I went into sales or invoices that invoice, like if I went to the invoice here, it would been it would been moved out of the unpaid and then moved into the paid area. So we have the paid area. We should have that invoice that has moved in here. And here it is down here. Now let's let's now imagine that we do a couple invoices. And we're going to put them into undeposited funds instead of directly into the checking account when we receive the payment. So let's say this was customer number, number two, let's say customer number two. And we're going to just add that. And let's just run it's another scenario. Say this happened on the 20th. And we're going to say this was hourly service, hourly, hourly service, let's say, and let's say this was three hours at $100, that's $300. So let's make another one. So I'll hit the drop down or rise up. It's the rise up. It's not a drop down. So rise up. And we're going to say this is going to be save and new. And then we'll do it again. And let's say this was for customer number three, tab. Okay, tab, tab, tab, tab. Let's say that happened on the 21st, tab, tab, tab, tab, tab, tab. And this is going to be hourly service. And let's say four hours, $400. And let's save and close this one and check that out. Save it and close it. So if I go to the balance sheet then, and we run it to refresh it, we should see in the ARR account that we have these two in there now, $700 balance. These two are been tied out. This is a 700 balance remaining. Let's go back, income statement, run it to refresh it. We now have $900 in the services revenue. Here's the two that we just recorded now. Back, if I go to the tab to the right, and run this to refresh it, run it to refresh it, we've got customers number two and three now. And we have the total balance at the 598152, which matches the balance sheet at 598152. If I go to the tab to the left, and I was to take a look at the invoices and go to the open invoices now, the unpaid stuff, then we should have customer two and three, the two invoices that are now that are still unpaid. So then, if I receive a payment, let's say we've received payments from these individuals, let's actually make another one more for one of these customers. I'll make one more. I'm going to say this is for customer number three, and we're going to say this is for hours of another hour, $100. So I'll say save and close. Now let's imagine we receive payments for these items. I can go into each of these and go to receive payment, or I can go into the form up top and say I want to receive payment, and then I can type in the customer. So customer number three. Let's start with that one. And let's say the payment this time was a merit, it could be a credit card, or it could be cash, where you can have a similar kind of situation. Let's say it was a credit card, right? We've got a credit card payment. I won't have the reference number this time. I'm not going to put it into the checking account, but rather I'm going to put it into the undeposited funds. Why? Because the credit card company might group the payments together instead of one at a time, and so I want to be able to put them in the checking account as a batch or a lump sum amount. Now if I tag, if both of these got paid to me at one time, right, I can take both of those here, and then what's this going to do? It's going to be reducing the accounts receivable, and the other side's going to be going then to the, the other side's going to be going to income, I'm sorry, cash, but instead of the checking account into undeposited funds, that's a clearing account that we have here. All right, so let's try it. We're going to say save it and close it, and let's just do the other one as well. Let's say we received the payment for customer number two as well, and I'm going to put it here. It's also going to go into undeposited funds. So now we've got these three amounts that didn't go into the checking account. They're going into undeposited funds. Save it and close it. Okay, so then I'm going to close this back out and check that out. So if I go to the balance sheet, run it to refresh it. Now we have this undeposited funds account. And if I go into it, then there's the amounts that have been put into undeposited funds. So I'm going to go back on over. Now note that undeposited funds is basically cash because basically it's either credit cards that we got the money, but it hasn't been processed into our checking account yet, or it's an actual check that we have but we haven't put it into the bank yet, or it's cash, like actual cash that we have on hand, but we haven't deposited it into the checking account yet. And so why do we put it into undeposited funds? Because when I put it into the checking account, I don't want to put it in there as these two separate line items, but rather possibly as one line item. Why? Because that's how it's going to be appearing on the bank statement side of things, because that's how it got deposited into the bank as one lump sum possibly from the credit card company, or because I combined the cash together and deposited it at one time in one lump sum. So that's going to help my bank reconciliation. That's really important because if you have your bank feeds on, or you're doing a bank reconciliation, and you deposit into the checking account, these $2 amounts instead of $1 amount, and it shows on the bank side as $1 amount, then when you do your reconciliation or your bank feed checking, you can have to find the matches at that time, which is a pain. That's not what you want to do. What you want to do instead is find some kind of system so that when you deposit into the checking account, you deposit in the same grouping as is going to appear on the bank statement. If you have cash deposits, then obviously when you make the deposit, it's pretty easy to then take it out of here and put it into the checking account according to what you deposited. If it's a credit card issue, then you have to deal with how you're going to deal with the credit card company so that you can get that batching figured out properly. You might have to actually work with the credit card company to try to make sure you get that batching process down so that you can make the reconciliation as easy as possible. Now also note that they put it down here as an other current asset. You might say, well, it should be a checking account. It should be up here in the checking account, and you're right. I would think it should be a cash or cash equivalent type of account for external reporting purposes, but I think QuickBooks has kind of an issue with putting them up here because these accounts that are under the bank accounts have special utilities from accounting or software side of things. They act like bank accounts, and this undeposited funds isn't going to be connected to a bank feed or anything like that. It acts more like an other current asset account. So I think that's kind of why they had to put it down here in other current assets, even though from an external reporting standpoint, you would think it would be kind of up here in the cash. So when you do external reporting or when you count your cash, you got to remember to pick up that undeposited funds. Now hopefully that's not really an issue because usually undeposited funds is a very short-term clearing account, meaning it goes up and down in a short period of time because now we're going to of course make the deposit and we're just going to take it out of here and put it into the checking account. And so that deposit is what we'll take a look at in future presentations, but just let's do one here. Let's go boom and then we're going to say bank deposit. So we'll talk more about deposits later, but let's go into it now. This is going to have the checking account and then I'm going to say that we have this one and this one that we're going to deposit together. So there's the 500 and the 300 we're going to deposit together. Now note that this deposit form has up top these items that were created from generally invoices and then down here you could make a deposit directly assigning an account. So I usually use the deposit form when I'm tying out to something that was created from an invoice or a sales receipt because then you get this nice matching thing. Otherwise, if you got a deposit and it goes directly into your checking account and you're not tying it to a sales receipt or an invoice, you might be able to use bank feeds to make the deposit or you could actually use the check register. It's a little bit faster. Or you can use this deposit and assign it to an account directly. If it was a loan, you might put it into here. If it was from the owner, you might put an equity account in here because it was a deposit from an owner investment. We'll talk more about that later. What's the deposit form going to do? It's going to increase the checking account and the other side is going to decrease that clearing account of undeposited funds. So let's go ahead and do that. So we'll say save a new. I should have closed it, but save a new. Let's go to the balance sheet. Let's run it to refresh it. And the undeposited funds should have gone back down now. So we have undeposited funds. Hold on. Did I refresh this thing? K-PASO. There it goes. I refreshed it again. Okay, so there it is. So you can see here, they put it one by one. So you get to take and tie it so I can take and tie these out, even though I deposited them together. But when I go into the checking account, it should be for the full amount, 5, 6, 7, 8,000 or 800 in the checking account. Let's go into the checking account. And so now we've got the deposit for the $1 amount of the $800. And that's going to be important because when I do the bank reconciliations, what you might do with the help of the bank feeds, for example, if I go to the tab to the right or left, close up the hand boogie, go into the transactions. And if we go into the bank transactions, you might see once they clear the bank, you're going to see the receive amount that's going to come into here and it should match out. You should have that matching thing. So if I had this deposit, then I should be able to match it out, find a match, and we should be able to tie things out properly. So we'll talk more about that in the bank feeds. But if you find yourself having to match to multiple things, because if I deposited this into the checking account with $2 amounts because I deposited the receipts directly in there, then when you're matching over here, it's going to be a mess because you're going to have to find the two things to tie out to the one deposit that cleared the bank. And you might also have the credit card fees that actually mess things up as well, which will also mean that it won't even tie out exactly. So if you're running into that issue, then part of the solution is going to be clearing account usually and trying to figure out a way that you can come up with a system so that you can take it in and out of the clearing account as you make sales and deposit it into the checking account in a way that matches the way the deposits are being formatted from the credit card company or from your cash deposits.