 QuickBooks Online 2024. Receive payment and make deposit. Get ready and some coffee because we're going on air with QuickBooks Online 2024. Here we are in our Get Great Guitars 2024 QuickBooks Online sample company file. We set up in a prior presentation opening up the major financial statement reports like we do every time. The reports on the left-hand side in the favorites. We're going to be right-clicking on the balance sheet so we can open the link in a new tab. Right-clicking the profit and loss report, opening the link in a new tab. Also, the trial balance. Right-click, open link in a new tab. If you don't have that trial balance in the favorites, you can search for it. If you don't have as a favorite the balance sheet and the income statement, there's something wrong with you because this isn't a matter of, this isn't like ice cream flavors. Those are everybody's favorites. Anyways, let's go to the tab to the right. Close up the hamburger. We're in the balance sheet. We'll change the range up top going from 0-1-0-1, 2-4-tab, 0-1-3-1-2-4-tab. We will run it to refresh it, tabbing it to the right. Another round, another set, another rep. Closing up the hamburger and change that range. 0-1-0-1-2-4-tab, 0-1-3-1-2-4-tab. And running again. First, a word from our sponsor. Actually, we're sponsoring ourselves on this one because apparently the merchandisers, they don't want to be seen with us. But that's okay, whatever, because our merchandise is better than their stupid stuff anyways. Like this CPA thinking cap, for example. CPA thinking, CAP, you see what we did with the letters. And this CPA thinking cap is not just for CPAs either. Anyone can and should have at least one possibly multiple CPA thinking caps. Why? Because based on our scientific survey of five people, all of whom directly profit from the sale of these CPA thinking caps, wearing this CPA thinking cap without a doubt, according to the survey increases accounting productivity tenfold. Yeah, at least. Yeah, apparently the hat actually channels like accounting energy from the quantum field ether directly into your head, allowing you to navigate spreadsheets faster. It's kind of like how in like the matrix when Neo learns kung fu. Or at least that's what the scientific survey 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 accountinginstruction.com or accountinginstruction.thinkific.com and then repeat the process another set another rep another go closing the hamburger one more time we're going 010124 tab 013124 tab and run it three sets pushed them out right there. Let's go back to the balance sheet tab. And now we're going to be doing another receive payment form. And then we'll make the deposit for it. So we will recall that we're in the customer side of things at this point if we select the plus button, we have the cycles within the accounting cycles broken out by customer vendor and employee cycle. We've got the customer or sales cycle the one in which we would expect money to be coming into the business for goods and services provided in the past. Now we have the invoices that's when we have an accrual system when we send out the invoice and then we expect to get paid at some point in the future then the next part of that is going to be of course the receive payment. When we have the receive payment form that you want to think of it primarily as a reduction of accounts receivable. The other side is going to go into some kind of cash account but might not pass my go not go directly into the checking account because you might need to group things together so that you can then put them into the checking account as one lump sum. So remember if you get paid from an invoice with things like an electronic transfer or a check then maybe you can use the receive payment to put directly into the checking account but if you give other options other than that such as a credit card or cash payments then it's likely because of fees and because of combining the transactions together you will need the temporary account of payments to deposit which used to be called the undeposited funds. So let's give a quick recap once we enter the invoice that means accounts receivable goes up accounts receivable has a sub ledger this is the AR the R account the pirate account you know I'm starting to think that we should not be calling porch pirates porch pirates by the way because it gives them a bit of an ego they start thinking they're like captain jack or something they're like ha I stole that Tylenol right off your porch good luck sleeping tonight with that migraine I'm just like captain jack the scourge of the seven apartments you know we're just encouraging it by calling them pirates we should just call them like pill pop and porch kleptos or something it's more accurate whatever in any case we've got the account we have the sub ledger for the accounts receivable let's open that so we're going to go to the tap to the right right click on it and duplicate the sub ledger breaking out this information by customer so we're going to go down to the reports on the left hand side close up the hamburger scroll down we're looking for who owes you we're just going to do the classic customer balance detail report the classic sub ledger report and these are the people that owe us the money it adds up to a total of forty six eight hundred and thirty so this is where people should legitimately be trying to collect on instead of taking people's Tylenol off of their porch so then if I go back on over here that ties out to the forty six eight hundred and thirty on this side as well now oftentimes of course we will be tracking this internally by going to the tab to the left trying to receive payment on the invoices that are outstanding managing our communication with the customers in the sales tab on the left hand side closing up the hamburger we're going into the all sales area and then we could check it this way with the transaction drop down looking at the invoices and look at possibly the open invoices this is one way that we can track them and we can also then go to the invoices tab and track them this way so we want to look at the status of the unpaid invoices typically that's another way that we could track the invoices outstanding we can also go to the customer tab and then we have the filters up top and we want to take a look at the open invoices here and there's our list of our invoices we're going to be going into Anderson let's go into Anderson guitars and we now have this open invoice that we have created so obviously once the invoice is in place at a future time we might then be sending out reminders of the invoice now notice that this is something that you would want to look and see about automating meaning you could possibly automate a couple of reminders that would be sent out after the due date of the invoice and you also have the ability to make statements which will possibly combine multiple invoices together which you which you might do say like on a monthly basis or so so those are the two things that you want to make that that collection process as easy as possible if we're dealing with invoices now if I was to open up a receive payment form and type in Anderson guitars it would give us a pop-up to populate it or I could just go right into the receive payment here and then it'll give us our receive payment form already populated in part so I'm going to say it's Anderson guitars dude dude dude we're going to say the date is going to be let's say the 21st let's keep it there happens to be the 21st we'll keep it is that what I want though let's make it the 25th I can't see my other screen we're going to keep it on cash because I want to imagine that we have a system I'm not going to put it directly into the checking account if we got a check we could put it directly into the checking account if we got a if we got a electronic transfer that went right into the bank we might put it directly into the checking account in which case the checking account detail would show an increase not with a deposit form but with the payment form and that would be fine but if we have multiple formats of payment including cash and other forms we probably want to keep the same system meaning you probably don't want to be switching back and forth between checking account and payments to deposit if all of your transactions are going to hit your bank account the same in the same dollar amount as you receive them you might want to just have a system where they all go into the checking account if you have transactions where some of them are going to go have the same dollar amount and some will not then you probably want to put all of them into the payments to deposit so that you're not toggling between these two accounts and you always have the same system that's what we'll do here we'll put it into the clearing account I think cash is the easiest thing to imagine because we can imagine receiving multiple cash payments although we usually wouldn't have cash payments for this high of a dollar amount but you can imagine getting the cash depositing it into the bank you have similar issues and problems with the credit cards because they might charge you fees and group the payments into your account as a lump sum so what's this going to do when we record it notice it's linking to the invoice here that's the invoice if I clicked on it it would go to the invoice we're going to pay the full amount out what's this going to do when we pay it well it's you want to first think accounts receivables going down that's what you because this form is linked to the accounts receivable the other side is going to go into a cash account either the checking account or the clearing account in our case the clearing account let's save it and close it and then we'll check it out and then we'll go to the balance sheet over here we will run it once again and if we go into checking out the checking going into the checking to check out the checking we could see that we have the deposit down here wait a sec is that what we just did I can't no no no no no no back we're not going into the checking account we didn't put it in the checking account we put it in the clearing account get your head in the game for crying out loud all right I'm a little tired today it's it's Sunday I mean payments to deposit so there it is there's a payment so so there it is that's the one all right let's go back the other side is a reduction to the ar the our account the pirate account are and so we're going to go down and say that we've got uh the the payment there looks good let's go back we also have the sub ledger account which should still tie out so if I go to the sub ledger on the right I run it again Anderson disappears because Anderson does not have an outstanding balance we're at 43207 50 that should still tie out to what's on the balance sheet 43207 50 if I go to the first tab then and look at all the sales transactions then the open transactions it has now disappeared if I go to the paid transactions that's where it still lives and you can see it's paid and everything there if we do that on the invoice side we can check it internally there so if we had to communicate with the customers we could say we're currently looking at the unpaid this one was paid boom Anderson's there's the Anderson's let's go to the customer we can look at it in the customers and this one is not open anymore but has been recently been paid so I could use that filter and then here's Anderson let's go into Anderson here and we could see the payments have been made so that payment was for if I go into that payment it gives us the detail on the right I'm going to close that and then if I edit it or view it on the left or on the right that was there's the invoice invoice 1001 I can link to that invoice if I close it out and open the invoice this way or if I just click on the invoice you could see what has happened it was open it's been paid it has not yet been deposited if I was to edit the invoice we could see it that way Tom be in as well and so we see it that way as well. Mui be in very nice Mui super cool be in I'm practicing my Spanglish with the Spanish and English Mui super nice be in okay then next all right let's do another one I'm going to go back to the customers notice when I go back to the customers here I'm not going up top I'm using the internal I don't have to use this up top because QuickBooks basically has all of the navigations within the website so then we're going to say let's do another one and look for the open invoices again open invoices this time we want Eric music let's go into Eric music and so we can see we have an open invoice very easy to see I do in 32 days okay so I could make the receipt payment here or let's make the form this time and do it that way drop down we did an invoice let's do a receipt payment and then we'll just type in up top Eric music Eric music tab and then there it is it populates down below I'm just going to tab through it we want it on the 25th that's good it's going to be a cash payment as well because we're going to imagine taking these out of the undeposited funds and putting them in at one time or the payments to deposit it formerly called undeposited funds until the QuickBooks wanted to change it I think randomly just to change something they could put it on the time clock the time clock that the that they did something yeah we were working on this stat and the other thing we had to change this stat and we put it we changed the account name from here to the other name we build that out at like three three months worth of work and whatnot and so you know that's how it goes that's why we have all these changes with QuickBooks online I think but in any case it is what it is it's it's it's an improvement they're going to get it perfect okay there's the 30,400 so it's a received payment form so what's that going to do it's going to reduce accounts receivable the other side's going to go into a cash account in this case not the checking account to the payments to deposit account and the sub ledger of accounts receivable will be also impacted tracking it by customer let's save and close it and check that one out go into the balance sheet get it right this time it did not go into the checking account see I'm I've got my head in the game my head is in the game all right and then we're down here Eric music there it is it's a payment form looks good let's go back the other side reducing the a to the r the r we've collected it collected on it and we we didn't have to steal their car or their you know all their Tylenol off of their porch for the last month to pay off the guitar bill so that's nice but even if we did at least they we they owed us the money this time so we put our pirating skills to actually good use collecting that debt but in any case if I go to the sub ledger and I run the report or or the pill popping klepto we put our pill popping klepto skills to work for good that time uh any case so we have our two we've got our two customers we're at 12,750 750 that's the new balance if I go back to the balance sheet there's the 12,750 750 there as well if I go to the internal forms and check that out we can go into the all sales and we can we can say it's the the paid items so now we're in the paid items we have Eric music in here we can look at it in the invoices as we know the paid items are what we look at are looking at right now there it is if we go into the customers then we can say recently paid customer and we're going to say recently paid Eric music we can go into it we have a we have a beautiful uh image of what is happening we can see exactly what is going on here because these the everything is connected together so if I go into uh this one for example I can see the history of it if I view or edit it I can see the invoice here if I and I can link to it if I close it out I can also take a look at the invoice I forgot to look at what the invoice was but it was this invoice of the other two are bills you can see it's paid haven't yet deposited it and if I view the invoice by editing the invoice you can see that it has been uh paid in full very nice muy bien muy be to the super cool and muy super cool be in uh any case that wasn't that good of spanglish deals for the love of god meos do better okay uh what was I doing then oh also note that if you go to the deposit form up top if I go into the bank deposits now you can see that with these deposits I have these two deposits that add up to the amount that is in the undeposited funds or funds to be deposited and we can deposit them at one time so let's do this now we're going to deposit it into the checking account we're going to say it's the end of the day so now we're imagining that we got the money during the day we're imagining their cash money even though it's way too much for normal cash transactions but we're we're going to say we have the money but when we go to the bank we're going to deposit it in one lump sum and this would be similar to what a credit card does the credit card company would compile the money for a certain time period and then deposit it not one at a time into your checking account but in one lump sum so we can imagine that as a similar process to us physically collecting cash and then depositing it into the bank as one lump sum so this is also why we would want to use the deposit form as opposed to the shortcut ways to make a deposit form which would include possibly the bank feeds directly or the the check register why because this deposit form has this section here which allows you to to combine these payments so now we see these two payments that we can combine if there were sales receipts meaning sales that happen like add a check register those are also things that would populate in here and that again that 34.7250 is what is on the balance sheet in the clearing account so if it was all cash then we're going to go and we're going to deposit it in cash if we had multiple different kinds of payments here note that you might because we might have a system where where we take all of the types of payments and put them through the clearing account so in here all the ones that are cash we would combine together because we would deposit them at the end of the day as one lump sum and then we would combine a different ones if they were credit cards we would combine them together in accordance with what matches the credit card combination system and if they were electronic transfers then we might deposit those one at a time because they might hit our bank in exactly the same dollar amount that we received the payments for so we're going to group them in accordance to the way that we're going to put them into the bank so they hit the bank in the same format as will be seen on the bank side of things which we will have to deal with when we reconcile possibly with the help in the use of the bank feeds remember if there are any fees if it was a credit card and they charge you fees then you're going to say well what now I have something less than 34.7250 because the credit card company took out fees before they put it into my checking account well you can put the fees down here simply directly as an account so it would be like bank charge fees and then you're going to reduce the amount you might need a negative number here right to reduce the amount you're going to say well they charge me 50 dollars and then so the total if I tag these two off then uh would go down right so there's 34.72 minus 50 34.22 okay so that's the general idea but we're not going to have any fees we're going to deposit both of them in place what's this going to do well it's a deposit form the deposit form clearly means that the checking account is going to go up typically if that's what we assigned it to but if you're using this top half of the deposit form and not the bottom half of the deposit form it also means that the clearing account is going to go down and when I use a physical deposit form that's what I'm doing so that's what I'm thinking in my mind when I'm going to open the deposit form I'm decreasing the undeposited funds account otherwise if it was some other kind of deposit like from me or a loan then I would use the bank feeds the shortened deposit form or the the register which would still create a deposit form but when I do the data input I'll usually use the shortened form and only use this form when when I have this issue of taking money out of the undeposited funds or funds to be deposited let's save and close it and look at that one let's go to the balance sheet now we can go into the checking account now we have the money the money has finally arrived there's the deposit it's in there as one lump sum which is what we want because that's what's going to appear in the bank account that's what we can match with the bank feeds that's what we can see in the bank reconciliation going back we can see it in our online checking account match it out we don't have to tie anything together add up numbers do anything funky if you're doing funky stuff in the bank rec or bank feeds then you probably don't have a good system here this is back down to zero payments to deposit that's fine I could still drill down see the detail and we can see that the deposits are here so so it's going out here on the 25th I believe these are the two there and this is one at a time so we can see them going in and going out we can tick and tie them off we can see the increases we can see the decreases and the the the payments are going to be the increases or the sales receipt forms also increases and then the deposits in this case are decreasing because we're taking them out of undeposited funds or funds to be deposited and putting them in the checking account okay let's check out the trial balance and see where we stand so here's the balance sheet this is where we stand on the balance sheet nothing happened to the income statement we just collected some money there was already an asset we got one asset and we got a better asset right there was it was people owed us money and now we receive the money accounts receivable went down and then and then the cash went up and then we're going to go into our trial balance so we can check it all out in one place if your trustee TB trial balance ties out to ours great if not try changing the date increase in the date range see if it is a date issue drill down to the source document if it is possibly change the date which is a great thing to be able to do in a practice problem but you got to be careful with it actually in practice all right remember that the trial balance is just the balance sheet on top of the income statement cash is an asset account accounts receivables an asset account inventories an asset account investments asset account payments to deposit asset account accumulated depreciation funny contra asset account but it's tied intimately to the fixed asset of property planting equipment furniture and fixture in our case the accounts payable this is where the liability start note that liabilities and equity are basically credits whereas the assets are basically debits two sides of the same corn what the company has for the assets who has claimed to those for the liabilities and equity liabilities third party claims like the vendors the financial institution of the credit card company the tax the government and then the the bank with the loan payable and then we have claimed to some of our own assets as well represented by equity in the format of our investment account our owner's equity account like retained earnings and then the whole income statement can be squished together in one number which would be part of retained earnings but it's currently being broken out here telling the story not of the life of the business but just the last year of the business otherwise it would be too long of a story and nobody would want to listen to it if we told the whole story be like a like a 40 hour movie or something so that ties out to 14 815 that's what's on the on the income statement and then if I was to move it up a bit these numbers will roll into equity let's just show you how that works 7 7 8 9 6 if we add that it should be 92 7 11 if I bring this up a year 010125 to 12 3125 we run it to refresh it and then we get the 92 7 11 it's been closed out QuickBooks does the closing process automatically but only on a yearly basis not on a monthly basis that can cause a bit of confusion and I'm saving you the trouble of being confused by telling you about it now