 So now the invoice usually increases accounts receivable but it's zeroed out so we're not going to increase the accounts receivable. All of this stuff is going to increase a revenue account because that's what the items do and then the other side is instead of going to AR is going to go to work and process. So we just made a journal entry in essence with an invoice. Alright so let's save and close it so then if I go back to my reports we can see then what happened K-Passo the work in process is impacted here which is what we want to have happening and I can see it broken out by class because I signed classes to it so it's a classy report which gives us a little bit more information if there are multiple accounts with work and process in it that's useful. Tap to the right and we can say okay now over here I've got my revenue broken out this way in March so it's it's applied to the proper time frame now because I'm saying this is the costs that we incurred in order to generate that revenue and that's that's basically what we want that's kind of what we're looking for we can also do if I duplicate this our profit and loss by class we can do a classy profit loss let's take this for the whole year 12 31 25 and do this for the whole year because then I can see the multiple classes so now you've got the multiple classes that add up that's quite useful when we're trying to analyze like our full job report that's why the classes I think add another level that is useful. Alright so now let's let's go to the next step and we'll since we'll just continue on here we're gonna build the client now so now we're over here this has been done dishes are done dude sorry that's in some movie I can't even remember what movie that is but I think it had anyway what am I on over here I'm on the I'm on we're gonna build we're gonna build now for the for the next month for the 30,000 so this was done and now I'm on this one boom so let's do that we're gonna build them I don't have much room on my worksheet over here because I don't want to keep going down so I'm gonna add another worksheet to the side so to do that I'm gonna put my cursor let's put it on P and I need like one two three four so I'm gonna put it on P one two three four and then I'm gonna right click on those columns and insert boom and then what I'd like to do is format them like these ones so I'm gonna put my cursor on K over to over to N K to N and then format paint and I'll put that right here so it widens out those cells okay one two three four home tab format painter one two three four okay so that looks good looks good okay so then I might be able to hide these ones so do I need to hide it maybe I'll just keep them there I don't really need to hide it I don't think it's not gonna throw us off we can see what's happening so then we're gonna say accounts receivable is gonna go up because we're just gonna build a client this is gonna be an invoice that actually goes out but the other side I don't want it to go to revenue this time because this is just one that I want to get paid on and and not and not one that I want to record the revenue because I record the revenue with the other format according to the revenue recognition thing so this is just gonna be paid according to our payment schedule of 30 000 because that's what we told the client that we were gonna pay them and we're gonna stick to that this isn't a government job that we completely underestimated because that's what you do with those ones we have clients that are actually want competent work done it's not we didn't we didn't get it because we know we know some politician or something and that's how we got the job any case we're going to say f2 plus f2 is going to be 30 000 all right and then the billing down here is going to be f2 plus f2 and 30 000 so there we have it let's go and do that over and in uh quickbooks and so we'll just build the client so now we're going to actually send out the next bill for the following month in accordance with our payment structure so i'm going to send out another invoice but this is the invoice that's actually going to go out to the client and i'm going to base this one on the estimate that we originally made using our progress invoicing this time the percent will be 30 30 percent 30 percent pulls it in boom nicely structured this is going to be date of for one and you've got this beautiful structure down here of our of our items that we're going to be invoicing for okay so that looks good this would increase the accounts receivable for that 30 000 and the other side would be going to the revenue accounts and in this case we want accounts receivable to go up so i need a 30 000 down here but i don't want the other side to go to revenue so all of these i could like replace these with one line item that doesn't go to revenue but i kind of like the detail of having these line items here so i'm just going to say reverse that back out with just like a little journal entry at the bottom here reduce the revenue for the total amount of negative 30 000 and this is going to be class number two and then i'm going to put the other side into where i want it to go which is the billings account the billings account boom and that's going to be for 30 000 and job number two so now it's still going to increase accounts receivable because i have a balance down here of the 30 000 but the revenue is still going to go up by these amounts but also right back down so the detail will have this and then minus this and then back down to zero and then the other side will go where we wanted to go which is into the billings account so let's that's the plan at least let's save and close it and see if that is indeed what happens let's go to the balance sheet to check it out and we know that then the accounts receivable is up to the 30 000 that looks like it should right and then the other side went into the billings account which is here sorted by class which is nice because because now if i had multiple items in the billings account i could sort it by class here or i could go into it and sort it by customer and the detail report if i wasn't using class tracking and i can sort it this way in order to sort it this way by the way you need a customer name field and if you're using journal entries you might not have a customer name field and you won't be able to sort this quite as easily likely okay so i'm going to go back on over go to the go to the revenue so we didn't recognize revenue with that one because we didn't want to recognize revenue based on that we want to recognize revenue based on when we when we earn it in like a percentage of completion kind of conceptual concept all right now let's just assume that they pay us the accounts receivable that's why we sent them an invoice in that format because it's easy for them to turn around and pay us with it and that would just simply be cash goes up and accounts receivable goes down and that would be for the 30 000 so let's do that i'm going to say f2 f2 f2 and then this one is going to be f2 plus f2 30 000 we record that one out accounts receivable goes back down goes into the checking account that's a straightforward transaction no no funny business happened in here straightforward so we're going to go back on over and say we just received a payment 15 days later for that invoice we just sent out to the client let's bring it up 15 days and we'll say it goes into the checking account this is a received payment so it's going to be increasing the checking account and the other side is going to decrease the accounts receivable save it close it check it out tab into the right scrolling up running running it accounts receivable goes down and the checking account uh goes up that is it i think that is it all right