 QuickBooks Online 2023, sales receipt payment received at point of sale. Get ready to start moving on up with QuickBooks Online. Here we are in our get great guitars practice file. We started up in a prior presentation using the 30 day free trial. We also have the free QuickBooks Online sample company open. If you want to have these two things open at the same time, I suggest using the incognito window or another browser. You can open the incognito window if using Google Chrome. By selecting the three dots in the browser, open the incognito window, type into the search engine, 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. QuickBooks Online test drive. We're going to use the sample company to compare and contrast the accounting view. The view get great guitars is in and the business view, the view the sample company is in. If you want to toggle back and forth between the two views, you can select the cog up top and the switch view down below. Going to open up a few tabs to put reports in like we do every time right click on the tab up top to duplicate it. Right clicking on the duplicated tab to duplicate it again back to the tab to the middle as the one to the right is thinking we're going to open up the reports on the left hand side. Then the balance sheet report and if you're in the other view the business view by the way the reports are located in the business overview on the left hand side and then the reports. So then I'm going to go to the tab to the right and open up the income statement by going to the reports on the left hand side. This time the profit and loss the income statement the P to the L and then I'll scroll up close the hamburger the hamburger change the range we're going from 010123 tab 123123 tab January to December 2023 run it to refresh it. That's what we have thus far. Tab it to the middle close up the boogie scrolling up and change that range from 010123 tab 123123 tab run it to refresh it. That's the setup process that we do every time. We're now going to be taking a look at ending entering a sales receipt before we do. Let's just take a quick look at a flow chart over here. This is the desktop flow chart but we're just looking at the customer flow of the types of forms that we would enter and they were differ depending on the type of company we are using. So I'm going to go from the easiest kind of flow to the most difficult type of flow and the easiest kind of flow when we're trying to get revenue we're trying to get money into our business by selling goods and services would be the type of business that you get paid by like a platform like a YouTube or something where you just get paid through the platform and then you might use bank feeds to record the revenue with a deposit form. You can only do that though if you're in that kind of industry. If you're in an industry however where you have a cash register which is what we're going to talk about now you're still on a cash based system but you're not an as easiest system as a cash based system that you can basically use the bank feeds to record your transactions because you're going to have to record the sales at the point of the register typically and then group them together and make the deposit. I'll come back and talk to that more in a second because that's what we're focused on here. Then we have an accrual system which is where the invoice comes into play which we looked at in a prior presentation that would be in the kind of business where you have to do the work first like an accounting firm or a bookkeeping or a law firm landscaping you have to do the work, invoice the client for the time and services and whatnot that we're put in and then you've got to go through the process of collecting on the receivable and then making the deposit. So now we're focused on like a cash register type of situation. So in our case we're in like a store you might be in a situation where the guitars are being brought up to you at the cash register we want to make the data input as easy as possible which we did in the past by setting up the general ledger accounts and the products and services so we can populate the kind of cash register data input as easy as possible. Now note you might think well why can't I just wait till it hits the bank still and basically use the bank feeds to record the sales. You could do that and we'll talk more about bank feeds later but usually you don't want to do that because what you want to do is have someone working the cash register that you have some internal control over even if it's yourself to determine that nothing was stolen or anything like that which means you would like the system to be printing out the sales that you've made for that day and you would like that to match out or you'd like to be able to tie that to the cash sales that you are making as basically an internal control. Also when you make the sales receipt here we're not going to deposit it directly into the checking account in our system because you can imagine for example if we made $5 sales of whatever it is we're selling we might have $105 sales here that if we entered directly into the checking account would go in there one at a time. But then when the physical deposit goes into the bank we're probably going to group those $5 sales into one group and then put them into the bank and that's when you have this reconciliation problem we want to make sure that we're doing bank reconciliations reconciling will be more difficult if we have this kind of difference in the grouping therefore we're going to have to go through the system of putting it into undeposited funds with the sales receipt or whatever the system is calling it deposits to be made or whatever they call it here and we'll talk about that in a second and then grouping those to put into the deposit form in our system in the same format that will match what's going into the bank and therefore when we have the bank feeds if we're using those we can match them up to the deposit here using it as a helping tool to reconcile as opposed to a tool that we use in order to record the transaction. So in other words we're still going to have to record the transaction on our end doing a full service bookkeeping system instead of waiting till it clears the bank and then just using the bank to record the deposit usually and that's just because of the nature of the business that we're in that we have a cash register situation. The credit cards are a similar thing if we get paid by credit cards then the credit card company might not just put all the deposits in our system one sale at a time so we'll have to group the credit card in a similar fashion. Okay given that we're going to hit the plus button up top last time we hit the invoice we're in the customer area and so this time we're just going to go to the sales receipt this is the form it says a receipt so you might imagine it as the thing that you'd get from a cash register or something to help you remember which form does what we're going to add a new customer here I'm just going to call it string music so I'm just making up the customer now if we're at a cash register then you might not have you might not get the customer information if you're at like a food truck or something you might just have a generic customer item here because you're not going to get the name of everybody if you have repeat customers or if you sell larger things it's more likely that you might be able to get their personal information and whatnot and send them your newsletter but we're just going to add just enough information to populate our customer field here this is the required field right there so I'm just going to post that that's got the asterix I'm going to save it and the email might not be as important as with an invoice because we're making the sale at this point in time but if we can collect the email it would be nice so that we can send them our newsletter and everything and then we're going to say that this is on the 19th so I'm hitting the plus button bringing it up to the 19th and so I'm tabbing through we'll keep the sales receipt populating automatically the location like with the invoice is necessary in order to calculate the sales tax if sales tax is applicable tags we're not going to have anything on the tags with the payment type this is an informational field I'm going to imagine it's going to be cash here for the same reasons I want to group my cash together when we make the deposit to show you this this concept with the undeposited funds and so on but you can have check you can have credit card and if you have an electronic transfer or something you can add another one if you would like that another one it doesn't really change how the transaction is going to happen the accounts impacted in other words but it's an informational tool I'm not going to put a reference number and then the deposit to this is the key we could put it into the checking account but if we're making multiple sales at our cash register and we deposit them directly into the checking account and then when we physically make the cash deposits and the same would be the case with the credit card because the credit card company will likely not deposit into our checking account one by one sale but with some kind of grouping process so we're going to have to talk to the credit card company to figure out how they're grouping it so we can come up with a system that will work if we're making the cash deposits we're not going to go to the bank and cash deposit one five dollar bill at a time we're going to put them into the bank usually in one lump sum so if we do that then when I do the reconciliation it's going to show up on the bank statements possibly with the bank feeds or through the bank reconciliation as one lump sum so I don't want to put it directly into the cash checking account typically but rather go through the payments to deposit which is like the undeposited funds this is the same thing when we talked about the accrual process when we had an invoice and then the receive payment but when you're doing another sales receipt at a cash register you're even more likely to need this step because it's likely you're getting cash and therefore you need that added payments to deposit or it's likely you're getting credit cards at that point in time if you were getting electronic transfers then it's more likely that you can just enter it directly into the checking account because it's going to show up on your bank statement with just that one number or if you're getting a check it's more likely that you could put it directly into your bank account that way as well because it's going to be in there one lump sum the other thing that's kind of interesting and why I kind of still like using the payments to deposit instead of going directly to the checking account with a sales receipt or the receive payment is because when I organize the data in the cash account as we will see it's kind of nice to have all the increases only be from deposits because then you can just search by deposits and you can look at the increases possibly there'll be a transfer that could be an increase as well but that limits your fields if you have sales receipts that are also increasing the accounts and other kind of then it becomes a little bit more difficult to sort but that's kind of a technical minor detail okay then we got the products we'll enter the items that we set up in a prior presentation just like with the invoice so we're going to sell an ELP so that's going to be our epiphone lust poll we imagine they bring these up to the shop and we'll just say one of those bring them up in the shop to us and this is actually I want a GS let's do a GSB a GSB not an ELP and have one of those that's a more expensive guitar so we up sold them to them okay here we go and then the other one is going to be and then we'll have an ELP as well let's do an ELP too so an ELP and let's say we have three of those for whatever reason and 500 so that comes out to a total of the 2277 those are both taxable items so that looks good and then it's trying to tax down here on the location so there it goes and then I'm going to hit the drop down and I'm going to use my 5% tax to make it generic so I'm just doing that to make it a generic problem you could also if you wanted to change it to match what we're putting in here you can hit the sales tax item here and you can edit it generally in there if you were on the at location one and you can overwrite it if you want just so you can match the numbers out for our generic problem purposes so there we have it what's this going to do when we record it well it's a sales receipt that means that there's going to be payment that happened at the point of sale so there's going to be an increase typically in some kind of cash account this case not the check-in account but we put it into the payments to deposit which is like the undeposited funds account because they changed the term of it but it's basically the same thing if you've worked with the undeposited funds account then the other side is going to and that amount's going to be the full amount including the sales tax and then the other side is going to go to the revenue accounts driven by the items by the 2277 the difference is going to go not to revenue but to a payable because we're acting as the tax collector of the 11385 and then we're also going to have a decrease to the inventory by amounts not on the actual sales receipt but driven by these items and then we're going to have an increase in cost of goods sold by that same amount the impact on the income statement will be the increase in revenue minus the cost of goods sold which isn't on this form but driven by the items and we're going to have a decrease to the inventory accounts sub ledger by units for the guitars that were sold so a lot happened in here but notice the data input could be done by just someone working out of cash register right they could just populate that charge and we're good to go so let's save it now obviously if you go down here you can you can add lines message to display message display on a statement you can add attachments and so on you can cancel you can clear you can print preview let's look at what it looks like this you can use this form to provide but it's not probably as likely that you're going to give it to the customer or as important as say an invoice but it isn't a form that you might provide externally as well so if you could customize it whatnot so make recurring and you can customize and then you've got your more options copy void delete trans transaction journal audit history and then the options here save and new save and close save and send we're going to save and close it okay then we're going to go to the balance sheet tab let's see what happened what happened k-passo and then so now we've got the increase in the payments to deposit which is an account you would kind of think would be under the checking account as we discussed before but it's down here because it acts more like an other current asset even though it's basically a cash account if I go into that now we've got this amount for string music the other side is a split account because we had two line items on the sales receipt so if I go into that there's the form boom that's for the full amount 2390 also note that if you deposited this into the checking account note that it would show on the checking account as an increase but not with a deposit form but rather a sales receipt form that's what I'm talking about about sorting the transactions it'd be kind of nice to have all your deposits in the checking account or all your increases in the checking account be from deposit forms because then you can sort for the increases by deposit form if you have a bunch of other stuff that are increases to it then you got to make sure you pick those up if you're trying to find all the deposits or increases alright let's go back and then the other side is on the income statement the P&L let's run it to refresh it go down to the sales item and there it is we got the sales receipt two line items the 1500 the 777 and there they are notice the tax is not populated so I'm going to close that out that's because the sales tax is going to be back on the balance sheet in the middle tab scrolling down scrolling down I put it under the California department I didn't put it there they made that account but that's our sales tax account because that's who I said that we were paying for the sales tax they're worse than mobsters over there anyways there it is we're going to go back and then we're going to go back and say say then we also have the inventory going down so inventory assets we'll go into that and inventory has decreased so it's decreasing down here we've got two line items for it notice that these two amounts 1200 is not on the sales receipt but the system is recording it from the sales receipt because it's known by the items that we set up closing that back out scrolling up again back and then go to the income statement finally the cost of the goods that are sold has those two amounts there as well the impact then on the income statement was the increase to the sales minus the cost of goods sold now also note balance sheet we now have these payments in payments to deposit that amount 22, 8, 90, 85 if I go to the first tab and then go to the plus button and if I was to I'm not going to deposit it right now but if I look at the deposit form notice that they populated all these items that are from the payments and the sales receipts that I put into the undeposited one so the funds to be deposited or whatever they call it right there the 22 or 8, 90 so it gives us a nice easy little system QuickBooks does for us to check those off when we make the deposit and group them together so that they can be deposited in a lump sum so it's kind of a nice tool so I'm going to close that back out and that's that back to the balance sheet also inventory was impacted let's take a look at the sub ledger for inventory the units go to the tab to the right right click on it duplicated so I can open up another report another report we can never have too many reports because they're so cool I'm going to close the hamburger I'll type in here inventory valuation summary and date 1231 I'll just make it the end of the year but just and then the year to date I could say but there it is there's our our units and we're come out to 38878 38878 so that looks good I think that's what we have right so now we don't have as much of a we didn't have any impact on the accounts receivable so if you're at the cash register and you're just getting paid at the point of sale if you're at like a food truck then you're probably of course not doing as much calling people over the phone and trying to get them to pay you and that kind of stuff tracking internally but if you do have a discussion with a with a client then you would go to the tab to the left and you can sort these transactions if they come in you can go to your sales tab over here and we can go into our customers and we can then go down and see if we make that sale to string music and we can say yeah there's the sale that we made and so on and so forth if you were in the business you by the way that would be under the get paid and paid tab and then you'd have your customers in the get paid area now you could also find the same information if I hit the the hamburger and go into the sales in the sales stuff closing that out and then you can sort by the sales receipts so you could say transaction type and sales receipt boom and so there's that if you were in the business view by the way that's in a slightly different location and bookkeeping and then transactions up top and then the sales receipts and you can locate it there so a little bit different location on the business view alright let's do another one ultra vase one more time we're gonna hit the plus button up top and do it again we're gonna say sales receipts someone's coming to the register they got something that they're buying a guitar or something and I'm gonna type in up top a new one Sam the guitar man we're just gonna make up a customer and we're gonna say tab Sam the guitar man that's not that same that same the guitar Sam the guitar man there it is ok so there it is Sam the guitar man and we're not gonna put an email address we're gonna put the date let's keep it at the 19th there's the location looks good no tags I'm tapping through it by the way I'm hitting tab which is a useful way to kind of see all the sales as you go through the form to see make sure you're not missing anything we're just gonna do the same thing as a cash sale for the payment methods for the purposes of our practice problem we're gonna be taking it to the undeposited funds as opposed to putting it right into the checking account because of reasons that we talked about in depth before and I won't bore you on again now this time up we're gonna pick up our service items just to show the difference between the sales tax and the service items and I know these service items are kind of generic right now they sound more like a car service item than our guitars so we got a diagnostic here on the guitars that we're gonna have but we just want to show the difference basically between the sales tax and the difference in the ease of recording a sales receipt without tracking the inventory and the sales tax to one that does and we'll get into more service items later that might be more applicable to some businesses such as like a job cost system will kind of assume that we have guitar players or teachers that we're gonna bill out like you might bill out in a law firm or a accounting firm in that way but for right now we're just gonna pick these generic service hours we're gonna say hourly service I'm gonna say hourly service one and remember that as you're doing these service items notice it becomes a lot easier if you're no matter where you are if you're in a shop or something like that and you can see it on a car service shop like a jiffy lube or something where they're gonna do oil changes and they have specific things that they do if they can if they can populate the cost per service as easily as possible then you can have someone not agonizing over how much it's gonna cost to do any particular thing because you already have it populated in the system if on the other hand you're saying it's gonna be hourly service well it depends on how long it takes me to do whatever I'm gonna do then that's gonna be more agonizing for both you and the customer often times although sometimes that's the only way you can go if you're going into a law office and someone has a case and you have no idea what it's gonna look like that you have really no other option often times then to say it's gonna be an hourly charge but if you can break it down to more systematic charges because you know exactly what you do in general instead of having more ambiguous stuff then you can move away from the hourly if possible might be an easier thing to do is my general concept here but you've heard that before so I'll stop talking about that now so there we have that notice that no sales tax has been added so we've got the 680, the 2100 and the 2400 that comes out to 5180 notice there's no sales tax because we're gonna say there's service items and not taxable items the system knows that because when we set up the items we told them they were not gonna be taxable items so what's this gonna do when we record it it's gonna increase some kind of cash account because it's a sales receipt we're at a cash register but it's not gonna go to the checking account but rather to payments to deposit which is like undeposited funds the other side's gonna go to an income account but probably not the same one because these service items will put it to a service income account with a sale of products so let's check it out let's save it and close it and then we'll check it out we'll go to the tab to the right and run it to refresh it and then if I go down into the payments to deposit which is like the undeposited funds which is basically a cash account even though it's down here and other it's right there there's the sales receipt to Sam the guitar man Sam the guitar man and then we'll go out that amount and undeposited funds if I go to the first tab and just check out our deposit form if I go into plus button deposit form bank deposit just to see it when we deposit it later we've got 2807 and I can select each of these to see what grouping of deposit I'm gonna actually physically make into the bank account so we can match it out as easily as possible the other side's gonna go to the income statement run it to refresh it otherwise known as the P&EL the profit and the loss we've got another income item because the item told it to go to the services not the sales of the products that's set up by the income item three lines because we have three lines on the sales receipt and there they are no taxes that's it so much easier to deal with when you don't have the when you don't have the government shaking you down the sales tax you want protect you need protection in this town is what they say you got to pay us 5% off the top like ah man that messes up my whole accounting thing and we don't have to deal with the the inventory and the cost of goods sold and everything so then if I go to the first tab here on the sales side of things we can go to the all sales and now we've got these two items if I search by sales receipt again less likely that you're gonna need to go into these to these areas then if you're if you aren't an accrual system trying to collect from customers that you did work for but it's nice to have it here because you it might be the case where someone asked you about a sale that happened in the past and you're like yes Sam the guitar man we made a sale right here on 1923 sales receipt paid in full and there you go so that is that let's go to the let's open up a trial balance and just see where we stand now just go to the tab to the right and then I'm gonna hit the and go down to the reports the reports are way down here because I'm zoomed in and then I'm gonna close up the hand buggy I'm just gonna type in trial balance for the trusty T to the B trusty T be change the range in a 1 0 1 2 3 tab 12 3 1 2 3 tab and run it this is where we stand at this point in time you can check your numbers if you're following along if you have the same numbers we do great if not try changing the range expanding it to see possibly if the numbers change if they do drill down on that change number and see if it's a date issue which you can change in the practice problem but be careful doing that in actual practice and then we'll actually do a transaction detail report at the end of the first month of data input which can be helpful to drill down on any other differences