 Here we are in our QuickBooks Online test company file using the accountant view as opposed to the business view. You can toggle between the two views by going to the cog up top and switching the view down below, duplicating some tabs to put reports in like we do every time. Right click the tab up top to duplicate it. We're gonna right click again to duplicate again. Back to the tab to the middle. Go down to the reports on the left hand side. Let's open up the balance sheet report as it's thinking tab to the right reports on the left. And this time we want the P and L, the profit and loss report. I'm gonna close up the hamburger. We're gonna look at this. This time I'm gonna look at it for October. So 10, 01 and two, five. That's where I have the data for the current example. Then we're gonna go to 10, 30, two, five and let's run it. So nothing's in it though. Thus far that's what we wanna see tab to the middle closing up the hamburger, same thing. We're gonna go from 10, 01, two, five to 10, 30, two, five and run that one. Okay, let's tab to the left. We've been thinking about e-commerce situations selling inventory but not on ground in a store but online with the help of third party applications for example, Shopify or Amazon. And we've kind of been focusing in on a Shopify situation here. We might look at Amazon in more depth in a future presentation. So in a prior presentation we looked at the concept of using a journal entry to pull the information from Shopify into our system and this mirrors what many applications. So even if you're using an app method you might have a similar kind of process so it's useful to understand this method so you can kind of see what's happening with the app because a lot of apps are still gonna be confusing because they're pulling in a lot of information and trying to summarize it possibly in some way, shape or form. So the general idea is that we had our income from the Shopify side of stuff and we can look at our reports and we can compare those to the payouts. So what we did is we looked at the payout. We looked at the items that were included in this payout. The payout is gonna actually hit our bank account and then we thought about the reports that give us more detail such as the sales reports breaking that information out. So instead of waiting for the payout to just hit the bank feed because we do expect the payouts to hit the bank feeds if we just add it as revenue when that happens then we're gonna lose some of the detail. So what we wanna do manually what we did last time in Excel manually or in a prior presentation is to mirror this data from Shopify into the system here make a journal entry which posts all of this information into a clearing account. And then when we see it hit the clearing account hit our bank account using the bank feeds will decrease the clearing account. So let's actually put this into our system. And again, this will kind of mirror what some of the applications will do. So just a quick recap we imagined that the sales side according to Shopify for a particular deposit included multiple sales that were kind of grouped together with gross sales of this amount minus the discounts no returns for this example. And then we had shipping that we charged for the shipping expenses and sales taxes that we collected for a total of this amount but then that would be the total amount of like the sales that we had and what we collected on it. However, the payout methods that we had and we're managing our Shopify store were not just Shopify payments but we allowed people to pay us with PayPal. So if they pay us with PayPal then we're gonna say this amount was paid out through PayPal which is a third party processor which is gonna charge its own fees. And then we had the rest paid out by Shopify and then the Shopify payments because they're through Shopify now another third party we know what the fees are because we can see them in the reports in Shopify and that gives us our payout that we expect to hit on the bank account. So then we made a journal entry of all this data so that we still tie out to this payout but we have all the detail from these reports that's what we want to do. So we're gonna say the Shopify sales here is coming from, if I use my little things here it's coming from there and then we had our discount that is coming from there and then no returns, the Shopify shipping income and then the sales tax and then the payments let's clear this out here and then the fees and then the Shopify payment clearing account and then there's nothing here. So that's gonna be our journal entry that we posted last time. Let's make that green to our worksheet so we can see how it looks like in an Excel kind of format. Let's go ahead and put this into Excel now. And again, as we do this remember that this is something that is similar to what some of the recommended softwares will typically do in trying to group this information. So whether we do it manually or software we gotta kind of understand these clearing accounts to some degree. What we're gonna do is we're gonna enter a journal entry. So I'm gonna go up to my new button up top and I'm gonna say that we're going to make a journal entry. Now a lot of people if they're not accountants don't like journal entries but when you have a very long complex transaction there's not really any other way around it. We could probably use another form but it would just be just as complex as just doing a journal entry. So we're gonna have to do the journal entry. So we're gonna say this happens on 10, let's say 10, 15, two, five. And the journal entry you can come up with a template if you use this should be pretty much the same all the time. And then you could just plug in so you can memorize the journal entry so you can see what the debits and credits are and then plug this stuff into the journal entry. So we're gonna say we have the Shopify sales. So Shopify sales we're gonna have here. Let's just make sure I've got, now if you don't have these accounts set up you can make these accounts as you go adding a new button up top. So you can do that but I'm kind of copying this from the accounts that are gonna be set up when we use the app. So if you set up a new account it would be an income type of account. So the bottom line is it would be an income type of account that you'd be putting the money into. So then we're gonna say according to our thing here that that was 162489 so I'm gonna say all right. And that's gonna be a credit because revenue goes up with a credit and now it disappeared. Shopify sales is gonna be a credit of 1624.89 and I should maybe put a description on the date of the deposit or to group it to know what it is but I'm not gonna do it here. For the example I'm gonna say all right and then we had Shopify discounts. See if I have Shopify discount. So here's our discount. Now the discount if you would have set this one up would generally be also a revenue or income type of account. So if you went new item revenue or income type of account and this one is actually gonna be a contra income account meaning it's gonna bring income down so you might think it should be an expense but it's generally netting out from the revenue side of things. So it gets down to net sales that we'll get to instead of having it as an expense even though the expense would get to the same bottom line. So that's gonna be 1699 according to our worksheet and then we didn't have any returns so I'll just skip that one. But if you had returns you could say Shopify returns. So I don't have Shopify. Let's just make this one up. Shopify returns. And I'm gonna say tab. And if I had returns you might have another account for that would also be usually an income account because it's gonna be a sales returns and allowances. So it's gonna act like an expense but in the income area usually I'm gonna make it another primary income. Shopify returns. All right but we didn't have any so I'm just gonna put a zero there.