 being unearned revenue. Down here you usually have invoices that we're going to apply the payment to, but this time we don't have an invoice because we didn't make the invoice yet because we haven't earned the revenue yet, but it still has something down here because it's pulling in the sales order. That's the new thing. That's how QuickBooks is tying this stuff together. So let's say that we're going to be collecting then the whole, the whole thing. And how much was it? $188.56 because it's a subscription model. So we're going to get this upfront right here right now. That's when we're going to get it. And we're going to say this is going to happen on 0703 27. And this is clicked off down here. So what's this going to do from a journal entry standpoint? Let's let's check it out. We're going to say from a journal entry standpoint, cash is going to go up. It's going to go into unearned revenue, but we're just going to call it cash here for the amount of how much was it. It was with the sales tax included $188.56. So let's wait. This needs to go over here. Cash $188.56. So this is the receive, receive, prepayment. I'm going to try to call it something different because this is the receive payment form, but you have this prepayment little button over there that makes it different because it's not going to increase the accounts receivable, but the liability instead, the liability is now going to be called. Let's just change the name. It's not going to be customer deposit. We're going to call it unearned revenue. You're not entitled to that revenue yet. You think it's, you think you're entitled to it, but no, you didn't do, you haven't done the work. You haven't done the work to and be entitled to that revenue. Okay. So we're going to put it in here into a liability account until you do, until you do have, have done what you need to do to bring it on down from unearned revenue into the income. We do that with the invoice. So if I go back on over here, let's record it on this side. I can't do it because I can't see the button. So I'm going to say, let's bring the size of the screen down to 125. And then I can see the button, save it and close it. And hopefully I did that right because you can't change it. It said remember. And then I'll make it super sized again and close it out. And so there we have it in the internal documentation. And let's see what happens over here. We're going to go then to the balance sheet. And it went into unearned revenue or undeposited funds. So I get those confused sometimes because they have the on in front of them. But there it is undeposited funds. And the other side did not go into a negative receivable but rather should be going into a liability account, which we are now calling unearned revenue unearned revenue. So there we have it. So that looks movie B to the end. If I double click on that, we get into our payment closing that out looks good. So that's the differentiating factor here. So last time it went into the negative receivable. Now if I look at that from a reporting standpoint, it actually is a little bit more confusing because because usually when I'm looking at my customers, if I want to look at the reports, I would look at a sub ledger for accounts receivable like we did over here. If I go to my customer balance information, remember this is the similar scenario we did with a negative receivable before where we would see the negative amount and then the payments apply to it. When I look at this new one, it's not here. It's not here at all. But we have another sub ledger for the open prepayments. So if I go to the customer dropdown, and we go to the customers and receivables, we've got this customer prepayment report. Boom. And there it is right there. So we have this added report, which makes it a little bit more confusing. But you know, but on the plus side, it's recording it properly from a financial reporting perspective. Internally, if I go to the customer balance or the customer center, it looks pretty much the same internally. So if I'm trying to manage this and just manage it from an internal perspective, which you would normally do over here from the bookkeeping side of things, it looks pretty much the same, right? We made the estimate, we did the sales order, and now we have the prepayment. Whereas this scenario, we did the similar process, we had the estimate with the sales order, and we had the payment. The only difference is that this payment now is now posting, it was posted to negative accounts receivable. Now it's posting to the unearned revenue. But like on a bookkeeping side, I might not even be looking at the reports, right? I'm kind of looking in here to just to see what's happening. And from that perspective, these two things are are running the same pretty much the same process thus far. Now the next step does add a little bit more complexity. So the the pros here being that thus far, it looks pretty, this the process is pretty much the same. And the benefit is that now when I look at my reports, I don't have to do an adjusting journal entry for those negative receivables at the end of the month for external reporting. I already have it posted properly into a liability account, as should should be the case. That's great. From the cons perspective, it's it's a little bit more confusing when I look at the reports because now I have two sub ledgers and I have to look at a liability account to see the sub ledgers. And I'm adding on the level of complexity where people can mess things up because they might post something to unearned revenue instead of to revenue or something. I have another account that could cause people problems. And I have two kind of forms that look like a received payment form that are basically different one of the received payment forms being for deposit versus the other received payment form that can cause a little bit of confusion. And then when I when we finish this off, they're going to have to pull in this amount that's in that's in the the unearned revenue. Where did it go? They are going to have to pull that in and net it against the receivable, which is going to cause a journal entry and another clearing account. So it does add some levels of complexity to to to the system. But it works pretty well. I mean, there's no way to kind of get around that. I'm not trying to save it. But that's, you know, the kind of the pros and cons of the prior methods still, it might be appropriate for basically smaller companies or companies that are more comfortable doing that adjusting entry at the end of the period still works pretty good. The new method those is looking pretty similar from a bookkeeping standpoint, but it has a couple of those things that do add a bit more complexity just from the internal bookkeeping side of things. So we'll continue on and finish this out next time.