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Go ahead call me a robot again see what happens QuickBooks I'm sick anyways I'm gonna hold down control scroll up on the scroll wheel we're currently at 125% on the zoom and also note that if you hit the cog drop down we're in the account view as opposed to the business view we'll try to toggle back and forth between the two views we're gonna be opening up a few tabs duplicating those tabs that is in order to put reports in we're gonna right click on the tab up top to do so and duplicate it tab to the right right click on it and duplicate it and then we'll go back to the middle tab and we're gonna go to the reports on the left hand side opening up the balance sheet report and then we're gonna go back up to the top reports on the left hand side this time the income statement profit loss P&L scrolling up change in the range I'm just gonna do a manual change highlighting it from 010122 that's January 1st 2022 tab to 1231 22 December 31st 22 tab run it to refresh it close the hamburger tab to the left close the hamburger scroll up and then we're gonna choose the 010122 tab 1231 22 tab run it there's our setup process we do every time back to the first tab where we're actually doing the action and hitting the plus button we've been focusing in on the customer cycle noting that the customer cycle we expect at the end of the cycle to be getting money generally to be increasing our checking account the way that will happen the flow that takes place will differ depending on the type of industry we are in the easiest kind of business would be like gig work you're getting paid by like YouTube or something and you're just going to get the money and then record it possibly with a bank feed like it as a deposit the second easiest system would be a cash-based system but maybe one where you have a cash register where you'd be recording the sales receipts at the point in time you make the sales and then making the deposit and then we've been focusing in now on the full accrual system which means that you would be creating an invoice and then you're gonna be receiving payment on that invoice and then you're going to be making the deposit into the bank or that's the typical flow that you would be expecting to happen now you would only be invoicing people if you had an accrual system that's typically driven by the type of industry you're in if you have to bill people such as such as a bookkeeper an accounting firm a law firm landscaping and so on those are the type of businesses that are going to have to enter the invoice and then track the invoice and then try to collect on them receiving the payment and then make the deposit last time we talked about the invoice this time we're going to talk about the receive payment but we're going to create a custom invoice to start out so that we can follow that invoice along so I read we closed up the file and opened it back up again so the work that we did last time is not included in this file we're just going to redo it from the same point every time so everybody has the same information I'm going to create another invoice I'm going to call it a a a tab that'll put the customer at the top of the customer field going to save it with just the name we would need an email if we were going to send it by email the terms will be 30 days meaning it's going to be due in 30 days the date of the invoice will be 1222 it's going to be due 30 days later 121 in this case and then I'm just going to create and make up a service item I'm not going to be dealing with inventory because I'm really focused just on the collection side of things at this time which isn't really focused on the inventory side of things so let's just add an item and let's say that it's going to be a service item I'm just going to call it service one I'm going to copy that and then tab tab tab tab I'm going to put that in the description right there and then we'll say that it's good old $110 let's say and it's going to go to a service income I'm going to say it's not taxable because it's a service item and that'll make it a little bit easier so we'll say non-taxable and save it and we'll just say that we got let's say three of those so that brings it up to 330 there's no tax involved what's this going to do when we record it it's going to increase because it's an invoice accounts receivable it's going to increase the sales driven by the item which went to service revenue and the sub ledger which is what we're going to track will increase by customer the AAA which is a sub ledger of accounts receivable giving more detail on that line item of accounts receivable let's save it and close it save and close we're going to go to the tab to the right scrolling up run the report again hold control down and scroll up a bit I'm zooming in in other words and I'm going to go into that accounts receivable so once in there I'm going to zoom back down a bit so I could see that better and then scroll down so there is the 330 clicking on it takes us to the actual document and so there we have it and we've got the 330 increasing closing that back out scrolling up to the top back to the balance sheet the other side is on the income statement tab to the right holding control down I'm scrolling in again and then zooming and we got the service item so there's the service item the services and there's the income on this side notice the income was recorded even though we didn't get the money that's what happened on an accrual system that's how the accrual system works because we earned the revenue the point of earning revenue is when we do the work and the invoice is the closest form to when we did the work it's still not perfect on an accrual system because we might have done the work and then didn't invoice them till like the next month but and we'll talk more about that in the adjusting entries area but that just note we're recording the revenue that's how it works with an invoice typically we've recorded even though we didn't get the money yet so then if I go back to the first tab note now we've got the AR so now we've got a track that the next thing I expect to happen is to get paid now as we're tracking the AR that the next step is going to be the plus button and I'm going to hold control and scroll down a bit the receive payment right there but we're gonna have to track it in order to receive the payment so if I go to the tab to the right I'm gonna right click on this tab and duplicate it just to look at the subsidiary report for accounts receivable which we can find in the reports on the left hand side closing the hamburger scrolling down to who owes you money let's go to the customer balance detail report and we'll keep it as of that date that's fine so there's our AA they owe us money the point here is that we're breaking the same information out not by date of transaction but rather by customer and if we add up all the customers that owe us money there's the five thousand six eleven fifty two that ties out to what's on the balance sheet so now normally in practice when we're working in the accounting department we're gonna be tracking this internally go into the tab to the left by searching and what I would call the customer center which under the accounting view is in the sales area business view it would be under the get paid and paid area and we can sort them multiple different ways so you might like going into the sales item here and this has all your sales transactions this is under the bookkeeping view under the business view bookkeeping tab I think and then you can track this has basically all of your sales kind of forms in it all of these forms not just the invoices but you can clearly sort for the open invoices and the overdue invoices by going to the open invoices here and there's our AAA you can use your sorting options this way as well and then your sub-sorting down here open overdue and so on down below and then you can find the ones that are open and take any action that you need at that time the action hopefully will be receiving a payment but you can also hit the drop-down and you might have to duplicate it if you wanted to make another invoice that's similar if you have these long detailed invoices then maybe it's easy to copy one and then make the new one you can send it so if you need to send it out you can send a reminder on it and so on as well you can also possibly select all the ones periodically that you need to get information from and try to possibly send them a reminder as well in a group kind of format so and then we can also go to the invoices area where we have basically similar information in here but focus directly on the invoices so if I scroll down to the bottom of this one well let's just sort it by customer here I just sort it by customer there's our AAA item here so it gives us some more detail this is another area that you might like to go to to kind of sort your open invoices or you might prefer going to the customer field which gives you your customer information and then you can go into the customer but even here you could sort basically your open invoices which is quite nice and then you can you know receive payment on those invoices and you can sort all these items and batch batch them and create statements as well which could could be a useful tool if you're going into there periodically to try to collect on them so then you can go into the actual invoice so there's the actual invoice which once again I can select that actual invoice and receive payment so to record the receive payment then I could go here and then hit the receive payment and there's our receive payment form or I can close this out and I can go into the receive payment form multiple areas but oftentimes the main one would be the drop down up top we did the invoice the next one would be the receive payment and when I type in AAA as the customer so we're imagining we got paid by AAA and now we want to tie it to link it to the invoice then we see the invoice down below here so if I had multiple invoices out for AAA then I can select the applicable invoice but the point is I'm going to tie it out to an invoice there it is on 222 the payment method this is more of an internal kind of document if it was something like an electronic transfer you can hit the plus button and add something different if you wanted to a reference number if applicable and then whether it's going to be deposited into the checking account directly or into something like a clearing account like the undeposited funds now notice what this is going to be doing this it's a receive payment so the receive payment form is always going to be reducing the accounts receivable and then the other side is going to go to some kind of cash account it could either go directly into the checking account or we might want to put it into a clearing account so that we can then put it into the checking account in the same grouping that we expected to appear on the bank statement also it's going to be closing out typically tying out to an invoice so it's nice with the forms that you have these nice linkages so we're not just thinking debits and credits here we're not just thinking you know the accounts receivable is going to go down we want to think about that but we also want to think from a bookkeeping standpoint when I go into the invoice the invoice should be linked to the payment I can see that it has been paid I can talk to someone on the phone and be able to say yeah we we had an invoice and here's the payment that's linked to that invoice so these are the connections happening between the forms often not fully appreciated by people that learn accounting just in terms of debits and credits but don't work as like a bookkeeper doing the actual accounting internal accounting processes okay so then there's this issue of putting the money into undeposited funds or the checking account now if you got paid by an electronic transfer or you got paid by by a check then you might be able to put this directly into the checking account here because that's going to be the same format meaning you expect the bank to be hit with the 330 the same amount which will allow you to tie out the checking account to the to this this amount here for the receive payment however it's still a little messy to do that because now when you look at the checking account you're gonna have the increases to the checking account which are usually just deposits and sometimes transfers but now you're gonna have these receive payment forms that will be increasing the checking account so when you sort your data you're gonna have to be aware of that so I still kind of like going to the undeposited fund and then using a deposit form to put it into the checking account but it could be easy to do that the other reason you might want to use the undeposited funds which is this one which is a clearing account is because you might get multiple payments of like cash or you might be going through a credit card for example and a credit card or cash like if you had cash then you might get multiple payments from different customers that you're then going to go to the bank and deposit in one lump some so if that's the case I don't want to be putting the 330 directly into the checking account on my side if when I deposit it into the bank it's gonna be grouped with other deposits and be like $500 deposit total but what I want to do instead is going go into undeposited funds and then group them together deposit them into the checking account in the same format they'll appear on the bank statement or through the bank feeds so that we could reconcile so I typically still use the undeposited funds by default so we will typically we will do that we're gonna say save it and close it let's check it out and if I go to the balance sheet second tab let's go ahead and run that report again and so now we've got this undeposited funds now the other thing that it's a little bit annoying on the undeposited funds is that you would think they would be up here in the cash account so there's some differences in reporting from like a bookkeeping standpoint to external reporting for like a company reporting to their shareholders or something like that on and so you would think up here you wouldn't call this this bank accounts normally for external reporting you would call it you would call it cash and then all of your cash type of accounts cash and cash equivalents would be up here but from a bookkeeping standpoint we have to keep the checking accounts different than other accounts because the checking accounts have those special characteristics of being able to connect to the bank so in other words you would think that the undeposited funds would be up here in the cash area instead of down here in other current assets but from a functionality standpoint the undeposited funds is not a checking account so it's it actually functions more like an other current asset so it's down here but it's just a clearing account it should just go up and then back down to zero after you make the deposit so you got to you kind of got to be okay with that you know if you're gonna you just if you're tying out to cash unlike your like on your statement of cash flows you got to include the undeposited funds as part of cash even though it's down here okay so I'm gonna go into the undeposited funds hold down control and so there's the payment so if I go into that that'll drill down onto the actual form so that looks good closing that out scrolling up back to our account undeposited and the other side went to the accounts receivable so if I go into the AR and I hold control and scroll down we're gonna say there's the received payment so notice what happens in here we're gonna have the invoices increasing and the payments decreasing that's what happens with accounts receivable that's the only types of forms that you expect to basically see in here so let's go back on over so that is that and if I go back to the first tab and open up my my reports I can go into the sales area and I can go to my sales transactions and I can sort my invoices my my invoices let's go for the open invoices it's no longer an open invoice right so you got the open invoices are no longer there and recently paid so you've got the recently paid they're the recently paid items I can also find that so it's under this item here and if I go into that it gives me a summary so it says we've been paid but not yet deposited if I want to edit the item I can go into the item here and there's the actual item notice it says paid up top and it's got this nice link to the actual payment again those links are quite nice from a bookkeeping perspective because that's usually what you're concerned with whether or not you've got paid on it or not but we also want to keep in mind from the bookkeeping perspective that these all this information here is really like a sub ledger so if I go the tab to the right and I look at it from the sub ledger report breaking out the receivables by who owes us the money we could see a AA is gone because we got paid by them the total down here for this report five two eight one fifty two still ties out to the balance sheet over here five two eight one fifty two from an internal perspective we're usually dealing directly with the clients and just trying to get paid by them so we're tracking this information internally I'm gonna hit the plus or the button up top and let's go now to the sales area and then let's go into the invoices so we can track in a similar fashion here the invoices so here's that amount and it has been paid and we've got similar kind of filtering options up top so we're currently in up top a not deposited area so if you could so that's another way you could sort through those items and then of course we can go to the customers and we can sort by our customers and I'm gonna go up top and say clear the filters and there's a AA up top and you've got your open invoices it's no longer open that's why it wasn't there before and then paid the last 30 days so it's in that category or you can clear all the filters and then if I go into AA and I and they had a question that I can say okay yeah there's your invoice and then the payment there's the payment that has been linked to the invoice these are kind of the connected items okay so the next step in the process would then be to make the deposit because now I've got this money in undeposited funds that should go up and go back down so you can imagine I've got cash on hand from multiple payments or I'm going through some kind of payment processor like a credit card and I'm trying to group my money in undeposited funds before I actually deposit it into the checking account so that I can deposit it into the checking account in my system in the same grouping that will happen on the bank statement because that helps me to do the bank reconciliation which is a huge internal control which we really want to do if you don't do that and you get like amounts coming coming through a credit card feed or you're making deposits with cash that are different than what's gonna show up on the bank statement meaning you're recording into the checking account for example for each sale that you make each $5 sale and then the credit card is going to group like $25 sales together or whatever then when you bring in the fees for the bank fees you're not going to be able to match them out very easily you can have to do all this ticking and tying kind of trying to tie things out at that point you don't want to do that you want to come up with a system that you can make the deposit on your side that matches what goes on to the bank side and that's what we'll do next time so then the next thing if we hit the plus button up top is going to be making the actual bank deposit over here and as we make the bank deposit this first section shows those things that are in basically the undeposited funds so you can see here this ties out to the undeposited funds so now you can pick the ones that you deposited together to try to come up to the same grouping of the lump sum deposit you put into the system so we'll talk more about that in a future presentation let's just go back here to the cog drop down and let's look at the business view just to locate these same areas we've been talking about under the business view so if we were going to the business view the home is the get things done page we opened up the reports in the business overview and then the reports and then we've been working mainly in the the get paid and pay center which I would call the sales center or the revenue center but they've got the revenue and vendor centers together we've been looking at the customers that sorts our information by customer we looked at the invoices here which is another way we can sort our items and then we had in an external area another area under the bookkeeping tab that's where they have this transactions up top and you would want to go to the sales transactions when we're talking about those sales items and this is the one that has all of the all of the transactions in essence that you can kind of filter through here which oftentimes you would be filtering for invoices or possibly if you're using estimates for customers those would be the common two areas you'd be looking at through in this area