 QuickBooks Online 2024, sales receipts form. Get ready and relax because it's so easy using QuickBooks Online. You'd think it'd be a crime, but it's not unless you're doing bookkeeping for bad stuff or something. Anyways, let's do it. Here we are online in our browser searching for QuickBooks Online Test Drive looking for the result that has Intuit.com in the URL, Intuit being the owner of QuickBooks, selecting the United States version of the software and verifying that we're not a robot. Opening up our major financial statement reports like we do every time. Going to the reports on the left-hand side, right-clicking on the balance sheet and opening link in new tab. Same with the profit and loss, otherwise known as the income statement, right-clicking and open link in new tab. Let's take a look at those tabs that have been created middle tab. First, a word from our sponsor. 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It's kind of like how in like the matrix when Neo learns kung fu or at least that's what the scientific survey is saying. So get one because the scientific survey participants could really use some extra cash. If you would like a commercial free experience, consider subscribing to our website at accounting instruction.com or accounting instruction.thinkific.com. Close in the hamburger. There's our balance sheet tab and to the right, close in the hamburger. There's our profit and loss report. Let's go to the first tab. This is the setup process we do every time data input on the first tab, looking at the results of that input on the tabs to the right in the financial statement and related reports. Drop down. We've been looking at the customer cycle. Remembering that customers for QuickBooks means the side of the table where we have our customers, people that are going to be ultimately paying us for goods and services that we provide and that could be done quite easily or be a little bit more difficult of a cycle depending on the industry that we are in and the possibly the size of the company. The easiest way would be a cashed-based system, possibly with like a gig work system, even easier than a cashed-based system in that we wait till the deposits clear the bank and just record them with a deposit form using the bank feeds and that would be the simplest system. But you might have a cashed-based system where you can't do that because possibly you're at a sales register and you have to use the sales receipt form because you want to record the sales as you make the sales. You want to have the double check of the internal control over those sales before you actually go to the bank and make the deposit and then use the bank feeds or bank reconciliation to double check the deposit. We talked about in prior presentations where we might have an accrual system where we have an invoice. The invoice is an accrual document. It increases accounts receivable and accrual form in which case we would then have to receive the payment at a later point in time. So this time we've done the accrual thing and we've looked at the deposits directly. Now we're going to the sales receipt type of format. Now that's the form you can kind of imagine as though you're at a cash register. You have a food trucks or a restaurant type of thing where you're making sales at a particular location and when you make the sales at the particular location you clearly want to record the sale as you're making the sale. In other words I can't make the sale at the food truck or something like that or I wouldn't really want to. I wouldn't have as good internal controls. If I then wait till I take the money after I made it during the day deposit into the bank and then wait till it clears the bank. The reason that's not typically the way to do it is because then I can't really track the receipts the sales as they happen and match them out and tie them to the deposit. So what we typically want to do then is record the sales as they happen and then make the deposit into the checking account in such a way that will match what actually physically goes into the checking account which again is more of a problem with the sales receipts because it's likely that we're going to get different forms of payment which might include cash and might include credit cards both of which are an issue that I can't record each transaction directly into the checking account because that's not how it's going to appear in the checking account due to the fact that we're going to group multiple sales transactions together when we make the cash deposits at the end of the day possibly or when the credit card batches the deposits together to go into our account. So let's check it out. We're going to imagine we're at a cash register. We'll go into the sales receipt here and let's just make a new customer again customer number one again. I'm making it again because I closed the file down and I'm opening it again and I'm not going to put an invoice in it. Notice that the sales receipt is less likely that it's going to be an external form. It might be you might still be printing this out and providing it to a client for example but it might also be more of an internal report as you record the transactions right. So I'm going to say this happened on 01 as opposed to an invoice which is clearly an external form because you'll be emailing it most likely or giving it in some way shape or form to a client. So I'm going to say 01 15 24 let's say and we're going to say let's say that this one is going to be a cash sale. So we'll imagine that we're getting cash. So we'll start the first one with like a check. Let's say it was a check and I'll say the reference number is the check of that and then if it was a check then maybe I don't need to go to undeposited funds but I can put it directly into the checking account. So if you were making if you were using the sales receipts for whatever reason and you were not having to invoice people but they were paying you for one thing at a time possibly a large purchase or something like that and you know that they're going to hit the bank with one at a time like a check with the checks going to hit the bank one check at a time. It's not like I'm going to group the checks together or if they're electronic transfers of some kind and you know they're all going to hit the bank one amount at a time and not be grouped together by like a credit card company or by grouping cash deposits together then you might be able to put it directly into the checking account which would be the easy thing to do although note that when it goes into the checking account it'll show us a sales receipt form instead of a deposit form and that makes it a little bit more difficult when you're searching for the increases to the checking account it would be nice if they were all deposit forms but we'll see that in a second. So let's go ahead and say this is going to be let's say this is for hourly well let's let's make this one a service item so I'll do this one a service so we'll just call it service item item one and I'm just going to make up this would be the easier kind of transaction with a service item as opposed to an inventory item we'll do both of them here let's start off with a service item and we're just going to say it's going to be a dude price 150 let's just say it's just going to services income I'm going to say that it's not sales tax because it's a service item possibly not subject to the sales tax to make the first one simple and then we're going to say save it and close it and so there we have it 150 so there's our basic sales receipt with no sales taxes would be the easiest one that we can see we can add lines if I had multiple lines similar to an invoice we can clear the lines we can have a message to display to the sales receipt if we were to provide it to a client that might be something you want to add message displayed to on statement you have the attachments you can cancel you can clear you can print or preview let's check that out we're going to print or preview it here so we'll print and preview it and so there it is so you can check that out we're going to close it back out and then you can make it reoccurring if it's a reoccurring transaction you can customize it if this is a form that you're providing externally it might be worth customizing you can copy it in the more section void delete transaction journal history we have the save and we have the save and send and what is this going to do well it's a sale if I do that just a normal journal entry over here just to say sales receipt what's it going to do it's going to go right into the checking account because that's what we made it do this time instead of an undeposited fund and the other side is going to go to some kind of income and we said it was for $150 so there's the journal entry you could check it out cash is going to be going up and income is also going to be going up so net income is increasing down here so let's record it and check it we can save and close it we can go into our balance sheet run it and we're going to say okay let's go into the checking account checking out the checking close this out and hold on I'm going to go back and change the dates I need to change the dates running the dates let's go from 010124 tab 123124 tab run it to refresh it going into the checking account once again and so there it is there's the 150 if I go into that 150 that will take me to the sales receipt closing that back out back to my reports on the income statement range change date range that is 010124 tab 123124 tab run it to refresh it there's the 150 now note with the sales receipt we don't have as much detail we don't have this accounts receivable we have to track so we don't have that sub ledger that I have to deal with which is nice if I go to the internal documents it's less likely that we're as needed to track the information over here but we might have some issues right so if we go into the sales and I want to track the sales receipt I could go into all sales transactions I'm going to close the hamburger for now and I could look at I could look at the sales receipts closing this back out and there's the sales receipt that we had we can check it out but we don't have to collect on it so it's not as vital as the invoices it doesn't have its own tab over here because the invoice is if a customer had a question about a about a transaction we can go in here and we can go into that particular customer and check it out as well now note if you're at a food truck though or what any kind of one time one off sale type things you might not have repeat customers and you might not have all of their information because you're just creating a receipt so you might have everything under there as one customer and create you know but as you're creating basically receipts or something like that in which case you wouldn't have all the details for each particular customer it would depend on the industry as to how how much detail you would have by customer so so if I go back on over now let's imagine that we do it again but this time it's going to go into undeposited funds because and we'll make a couple of them going into undeposited funds I'll also make it a little bit more oh that's an invoice hold on let's do it again with the sales receipt I'll also make it a little bit more detailed in that we'll make it an inventory item noting that the sales receipt is basically the similar form as an invoice the these are the two sales documents sales receipt invoice invoice increasing accounts receivable sales receipt instead we get paid at that point of time increasing therefore either the checking account or some clearing account like undeposited funds so so the look and feel of it will be very similar in terms of the sales side of the transactions down below so we'll sell an inventory item so this is going to be customer number two and I'm just going to set that up and tab in through it if we wanted to email it we have an email address I'm going to make this on the 16th 17th let's say and let's say this was cash this time so let's imagine we're selling these things for cash well if I sell it for cash I don't want to put it directly into the checking account because it's going to be in my check register not in the checking account and because when I put it into the checking account it's going to be grouped as one lump sum with multiple cash sales right so I have to put it into undeposited funds similar thing with a credit card payment okay so let's make a new product down here I'm just going to call it item one so we're selling item number one I'm going to add that and this time I'm going to make it an inventory item we'll talk about adding inventories more in detail when we get to the to add to the part of the course where we do a new company file but let's just take a look at it now we've got an item no SKU we're not going to add an image not a category quantity on hand I am going to add a quantity I'm going to say there's 10 of them on hand already this will create a journal entry in practice normally we wouldn't do that because normally we would want to buy them and with a bill or a check form but here we want to focus on the sales form so I want to put them on hand here let's put it as of the beginning of the month of December and reorder point I'm not going to add one inventory that's going to be the account impacted increasing when we purchase inventory decreasing when we sell the inventory we are selling the inventory at this point sales price let's make let's say we sell them for like fifty dollars and it's going to increase the sales account when we do that that's what we're doing right here we're selling them the sales tax is being generated so it's going to be calculating the sales tax so we'll allow that to add a little complexity and let's say that we purchase them for 35 let's say 40 dollars we purchase them for 40 so we buy them for 40 we sell them for 50 all right let's save it and close it and let's say we're going to have uh let's let's say just one we'll just say one of we'll sell one of these so there's our thing that we're selling and so so then this is going to be a little bit more complex of a transaction similar to the invoice when we sold inventory because now we're tracking the inventory and we have the sales tax so what's this going to do it's going to be an increase not to accounts receivable like the invoice but rather to some kind of cash account this time undeposited funds because it's not going directly into the checking account because we have a cash payment so we want to take it in and out of a clearing account that's going to be for the 54 the other side then is going to be going to the income account but only for the 50 dollars the amount that we charge the difference four dollars the tax is going to be going to a liability account and then we're going to also have a decrease to the inventory of I think 40 dollars which isn't on the sales receipt but it's no one because the item is telling the system that and cost of goods sold is going to be going up by 40 dollars the net impact on net income being the 50 dollars minus the 40 dollars or 10 dollars and you can have the inventory tracking for the item that has been set up on a sub ledger tracking by item so it can actually be a fairly complex uh transaction now you might also ask why don't I record the revenue at 54 dollars instead of a liability of the sales tax and then when I pay the sales tax it would be an expense of doing business that would kind of make sense the idea is that the tax is imposed on the customer not on you the business even though they're just making you the tax collector so it's not income to you the idea is that's going to be off the income statement on the balance sheet increase in the liability and then you decrease the liability again your client a client if you're a bookkeeper might ask you why don't I have a sales tax expense as a deduction when I'm doing my taxes I pay a lot for sales taxes I should have an expense for it and the reason is it because if you do it this way the income of the sales tax also didn't go on the income statement both of them are on the balance sheet okay let's let let's record it over here just to check it out this way if I did if I did it this way let's just modify this one I'm going to say okay so now we had what's going to happen here well cash is going now it's not cash but I'll put it into cash it's really going into undeposited funds but cash and then we have the sales and then it was for 50 dollars and then sales tax sales tax payable is going to be equal to the 50 times 0.08 I think it was 8 percent a negative sum of that so that means we're getting 54 dollars and then the inventory is going down and cost of goods sold is going up for 40 dollars and so cash is going to be going up although it's going to go into undeposited funds in our practice problem I'll just you know we'll have a different step but then we're going to say then the income down here is going to go into income and sales tax payables up here on the balance sheet sales tax payable and then we're going to have the cost of goods sold is going to go up and inventory is going to go down nothing is currently in inventory so I get a negative inventory impact on net income the 50 dollar sales price minus the 40 dollars and then we owe the sales tax in the future right so let's check it out save it and close it and check that one out so I'm going to go to the balance sheet and run it to refresh it and we'll say that this time we put it into undeposited funds undeposited funds goes up by the full amount 54 dollars scrolling down there's the 54 dollars moving B to the end BN closing this out back going to the income statement running it to refresh in it and we can see there's the 50 dollars in the sales not including the not including the sales tax and then let's go back on over find the sales tax where did that go went into the liability and over here to the board of equalization because that's who we owe the sales tax to there's the four dollars on that one let's go back and then we know that the inventory is going down let's go into the inventory we have a decrease of the 40 dollars that 40 dollars is not on the actual sales receipt but is known by the item because the item set up we said it was 40 dollars for the cost closing that back out back to the balance sheet the other sides on the income statement cost a good sold 40 dollars net impact on the income statement 50 minus 40 10 dollars let's go back to the balance sheet and look at that inventory which now would need to be tracked on a perpetual inventory method if that's what we're using remembering every time you deal with inventory you have to ask how you don't have to do it this way a perpetual inventory method you might be tracking it outside of QuickBooks using a periodic inventory system within QuickBooks possibly tracking it on your Shopify store or Amazon if you're doing that kind of thing or in a spreadsheet but we're doing the full service perpetual system here therefore we have a sub ledger let's right click on the tab to the right duplicate it so that we can look at our sub ledger let's go to the reports down below and type in inventory valuation summary closing up the hand boogie changing the range up top from 0 1 let's let's go to 12 3 1 2 4 run it to refresh it now when we put the item on the books we said there were 10 of them so that means QuickBooks did a journal entry to record 10 items at the date we said we we purchased them or put them on the books and then we sold one of them resulting in nine remaining so this is the inventory items there's the 956 25 of all the inventory which should tie out to the balance sheet 926 25 now let's do one more sales receipt so we can see them kind of grouped together if i go back on over here and i make another one let's make another simple one another another sales receipt let's say this one was customer customer number three tab save and another cash payment it's going to go into undeposited funds and i'm just going to make this the service item one to make it a simple one so let's say the service item was uh was this is design service i thought i made a serve service item one and there's a 150 let's say we had two of those so that comes up to 300 what's this going to do it's sales receipt it's going to be increasing undeposited funds and the other side is going to be going to the revenue so let's go ahead and save that back to the balance sheet check it run it undeposited funds going into undeposited funds we now see the 300 and the 54 back on over the other side went to the income statement running it so in the income statement the service item we now have that added 300 for that one back so now the point is if i go back to the balance sheet if i take it out of undeposited funds and into the checking account i can use the deposit form to group those two items together so i can then go back on over and say okay let's go into the drop down and make the bank deposit which i typically can't just simply wait till it clears the bank feeds because when it clears the bank feeds these two deposits will be combined together so what i have to do when i go into the end of the night when i make the physical deposit into the checking account i'm going to go in here and check both of these off so that now it goes into the checking account at 354 dollars so when it comes through on the bank feeds i can simply match it to the amount here the bank feeds then helping me with the bank reconciliation process instead of actually recording a transaction so if i say let's record this save and close go to the balance sheet run it that should be coming out of the undeposited funds you can see oh it didn't do it again hold on a sec i need to refresh it again give it a second give it a second quick books i thought you were quick quick books i thought you were quick what so this is going to be 54 ticking and tagging them off 300 minus the 300 and you can see them ticking and tying off but when it goes into the checking account it's going to show up at that one lump sum and so there it is at the 354 that's the that's the point so that that lump sum is what's going to show up on the uh on the bank statement so that when i go to the first tab when i go into my transactions when i go into my checking account and my bank feeds when i see this come through it's not going to come through as two separate deposits but instead that one deposit so i don't want to go into my checking account again i know i'm stressing this point because this happens fairly often people get frustrated you go in here and you have to tie out different things to match out to here if you have a credit card to they might take out fees which means your deposit won't even match right so you have to make sure that you have some kind of system on a cash based system if you collect cash for those sales and you deposit it into the checking account you're going to you can easily make a deposit based on the cash deposit that you made instead of one sale at a time if it's a credit card company then you have to come up with some kind of system that you can match the batching process of the credit card company taking it in out of the undeposited funds and depositing it into the checking account in the same amount so that you don't end up with a mess when you either do the bank reconciliation and or the the bank feeds trying to match out the bank feeds to your actual uh deposits now note that so that's that now it's possible we might talk more about the bank feeds later that you could enter the sales receipt and put it into undeposited funds or something and then try to use the bank feeds to move it over to uh to the deposit to actually record a transaction we'll talk about that more on the bank feeds section but that's not like the normal process people would do also i just want to point out over here in the checking account that noticed like one of these deposits was the first way we did it was depositing the sales receipt directly and that would happen if you had just checks or something like that you can possibly do that but then you have a sales receipt in here as an increase as opposed to all the increases being deposits not a big deal but when for example we noticed that we could enter the received payments as a deposit and we noticed that we could enter a deposit as a deposit and we don't have the sale the sales receipt that could be entered as an increase to the checking account so that means when you're sorting your checking account over here to try to look at increases to it you have not just deposits but now sales receipts and uh payment and receive payment forms and whatnot which can make it a little bit more tedious to deal with if you're trying to search for something then if you use the system where you make everything a deposit form and then all the increases are basically the deposit forms