 invoices that I'm receiving then I can check them off this way and create a deposit for it however I just have one that I'm gonna receive here so I'm gonna be checking this one off and I'm gonna say there's Anderson and let's go ahead and deposit that so this gives us our new batch deposit now we only have one item in the batch but you could have multiple items that that you were depositing this way and if you had multiple invoices that you were grouping together for example to deposit into the checking account at one time as we talked about with this issue with the undeposited funds you could batch them this way as well but you might have other things that you're grouping with it to like you might be grouping other sales with it as well that weren't just invoices like sales receipts so I'll put it through the clearing account in any case so we're going to say the date is going to be January 18th 2023 for the practice problem it's a deposit and we're putting it into not the checking account but rather the clearing account that we set up in this practice problem so that's going to be increasing the clearing account here because that's going to be a deposit the other side's going to decrease the accounts receivable not only that but it's also going to be decreasing the sub ledger for accounts receivable for the customer Anderson guitars so let's make the deposit and check it out so we'll make the deposit and then go on over to the balance sheet update the balance sheet so it's up to date and then we're going to go down and say let's check out there's the clearing account clearing account looks good and then the accounts receivable let's go into the accounts receivable here and check it out we're going to say all right we had the decrease so there's the received payment form decreased the accounts receivable that's good going back I'm going to open up another form notice there's no impact on the income statement right now because there was an impact when we made the sale but the sub ledger for accounts receivable will be impacted so if I right-click and duplicate a tab just to look at another report for the sub ledger of accounts receivable I'm going to go to the reports on the left-hand side you can also hit the drop down for the reports let's tight let's just search it down here we want the receivable it's like at the aged receivable summary aged receivable summary like a fine wine it has been aged well so now we've got that all we really want to look is the total here so we got it broken out by total and we have it broken out by customer 23 721 50 that ties out to what's on the balance sheet or it should 23 721 50 but we would probably be tracking it internally in the first tab now we could go to the accounting drop down if we go back into well let's go into the business drop down let's go into our invoices and now that invoice up top is no longer a waiting payment right so the invoice is no longer a waiting payment if I go into the paid area there's our paid invoice so that's one way we can track it we can also go to the contact drop down and go to our customers perhaps and we would like to see Anderson guitars going into Anderson guitars and we can see our detail in here so invoice approved and invoice paid alright let's do another one so I'm gonna go back up top and hit the business drop down and we're gonna go into the invoices and so oh by the way the others oh no I'm let's go do another one so Jones guitars let's go into a waiting payment over here don't get ahead of yourself we're gonna go into the Jones guitar so we'll add this one so I'm gonna select that one and again if I had those two at the same time that I think the payments gonna be grouped together when it goes into my my bank account then maybe I well I could I could so I could have selected both of those items together and had a grouped deposit that goes into my checking account and that's one method that we could use to solve kind of that grouping problem which is probably all you would really need as to a method and therefore wouldn't need basically the clearing account that were that were setting up because it's likely that you would get a lot of you would be processing all of your received payments through an invoices if that's your normal cycle however you can imagine situations where you got paid say cash from the invoices and then pays possibly got paid cash from a cash register receive payment type of stuff and in that situation you would still need like a clearing account so we're still gonna kind of imagine a clearing account situation just to get the concept of the clearing account alright so we're gonna be putting this in here we're gonna make the deposit and do this again so we're gonna say this happened on on Jan you wary I can hit the drop down this way January 18th again let's do that and 2023 I'm just gonna say deposit and we're gonna say this is gonna go into the clearing account again for Jones guitars looks good I'm not gonna have a reference number what's this gonna do increase the clearing account and the other side is because it's a batch deposit and we made the clearing account a cash type of account the other side decreasing the accounts receivable because we're paying off an invoice and we can connect to the invoice by the way if we clicked on it here just to check if we wanted to do that and it's gonna decrease the sub ledger breaking accounts receivable out by customer in this case Jones guitar being the customer let's do it let's deposit it and then hit that big blue button the green pops up because it's good to go balance sheet update the report we want up to date stats here stat so we've got our clearing account has the two items within the clearing account now so if I'm gonna deposit them together again if they were both invoices I could have deposited them into the checking account as one lump sum by selecting both of those invoices and making the one deposit I might have wanted to do that if for whatever reason due to credit cards or whatever the payment processing form I'm using is that it was gonna hit the bank account in one lump sum at that nine five nine nine so I could do the bank rec if they're gonna be hitting the bank account with two separate transactions and like this then I would like to see it in my system that way so once again I can tie out to the bank accounts and so so again the check the clearing accounts a little bit redundant in this system but again you can imagine that I'm also you could have a situation where you're gonna get when you're gonna also get receive payment forms money in forms like that were cash that you're gonna deposit together along with these items that are in the clearing account and therefore again you might have a grouping problem when you deposit it into the checking account so we'll just check that out conceptually the other side accounts receivable nineteen one twenty two fifty if I go to my aging account and update it then uh we're we're now at the nineteen twenty two fifty so that should now tie out to what's on the balance sheet if I go to the first tab then and look at this internally business drop down look at my invoices then we can see that we have the awaiting payment invoices have now decreased or there's one less of them the paid invoices are now here we've got the two in the paid invoices if I hit my contacts drop down and look at my contacts I can go to jones guitars and go into to that they still owe us some money but uh they paid off this invoice so invoice paid if i go into that invoice by the way you could see the detail uh of uh of the invoice so there we have it amount due uh no amount due so less payment i can click on the payment and link on over to the payment so here's the transaction batch transaction very very nice all right let's do one more i'm going to hit the drop down on the business again invoices and let's do uh smith here uh so let's go to a waiting payment a waiting payment and we're going to pick up this one this time that's the one and then deposit it boom we got a payment for that one and the date i'm going to say is again january uh 18th let's say reference deposit bank account is going to go into the clearing account and we're going to say that this will be there's the invoice for the eight thousand this will increase the checking account the clearing account this will decrease the accounts receivable and it'll also decrease smith guitars the customer sub ledger for accounts receivables let's deposit it and do it again we've seen this before let's update it so now we have in the clearing account 17 599 again if i would expect that all 17 599 was to hit the checking account and one