 QuickBooks Desktop 2024 negative AR customer prepayment deposit estimate sales order receive payment. Get ready and some coffee because we're locking into some non-stop QuickBooks Desktop 2024. Here we are in our QuickBooks Desktop sample company file. We set up in a prior presentation using the enterprise version of the QuickBooks Desktop software so we can practice with the new unearned revenue feature within it. Under the view tab settings we have the hide icon bar selected, open windows selected so we can see the open windows on the left hand side, home page open. You can open it by going to the company dropdown and home page. Opening up the major two reports like we do every time by going to the reports dropdown, company and financial let's start with that balance sheet standard report and change that date to 123127 and then I will customize it to make it a little bit bigger, fonts and the numbers changing that font size up to 14. Okay, yes and okay. Then reports dropdown again company and financial this time the P&L, the profit loss, the income statement changing the date range from 010127. I'm just going to go out to 022827 this time for two months so then I can select the dropdown here and see it by a month by month breakout and then I'm going to go to the customize reports, fonts and numbers, font change, change font to 14. Okay, yes and okay. Okay, so last time we ran the normal scenario where we can see here we ended up with the $75 of the net income. Now we're going to run the second scenario in February so we'll see it broken out in February back to the home tab. So last time we just did the normal cycle, meaning we started with an estimate, had no transaction recorded for it and then we went to the sales order which kind of locks into the estimate. We imagined that we were selling a psychedelic custom surfboard so we had to then have a custom order. We created a purchase order for the vendor that we were going to buy the custom surfboard for and then we entered the bill and then the sales order was used to create the invoice once we have the surfboard and could actually sell it and then we went to the received payment. So now we're going to go to a similar process but this time we're going to say that hey, this guy's creating this psychedelic, why does he want a psychedelic surfboard? This guy's kind of weird. Do I trust that this guy's going to pay me? I don't know. So maybe before I order the surfboard then I ask for a deposit to lock this thing in because I don't want to be stuck with this crazy psychedelic surfboard if no one's going to buy it because we're going to lock in a deposit at this sales order point. So let's look at it from the standpoint of our Excel worksheet. So within Excel this was what we did last time and these three points, the estimate, the sales order, purchase order and no transactions related to that, then we entered a bill to get the inventory, then an invoice and then we received the payment. Let's copy this over. I'm going to double click on this tab. I'm going to call it 1135 this time and I'm just going to delete everything in blue and I'm going to delete everything in this middle bit right here, delete the middle bit. These two, maybe these shouldn't be blue. I just want it on the data input side of things. Let's unbluify that, unbluify and unbluify it over here too so that everything is properly there. Okay, everything needs to be represented well. Okay, so then let's go back on over. So we're going to do the same thing starting with an estimate, starting with an estimate. This time I'm going to call it another two and I'm going to call it a negative AR prepayment customer. I know that's a weird customer name but the idea is that we're going to try to keep everything separate so it's related to this practice. Quick add to the customer and we're going to say the date here sometime in February, 020127. Tab, tab, tab, tab, the item, same thing, two negative AR prepayment item. We're going to set up a new item, in other words, tab and we're going to order the psychedelic surfboard. We're going to call it an inventory part and I'm going to say that this is going to be same name down here, item. And then we're going to say it costs 100. I'll make it the same as the last one that we did. 100 cost a good sold was here. And then 175 is what we sold it for, right? 175, that's what we did last time. Am I right? Am I right? Could you help me out here? I forget. I forget sometimes. Okay, I think it's good. And then tax will be applied, so let's go ahead and do that. The income account, I'm going to make a new income account just so we could separate it. Income this time is going to be income and with that same name, number two, AR, negative AR setting up. It's going to be an income type of account, negative AR. I'm not going to put an account number that'll make it even easier to find. We're not going to put any inventory on the books yet because we're going to use this to make the purchase order two. So we're going to say, okay. And there it is. So this looks like it should record something, but we know from last time it doesn't. We're just telling the person that wants the psychedelic surfboard, that's how much it would cost if you were to do that. So if I was to record it and go into my customer center up top. Now I could say, okay, there's my new customer. There's my estimate. I can mail out the estimate to the customer. I can look at my reports and see the open estimates and whatnot. If I so choose and so on, just like we did last time. If I was to look at it in terms of journal entries, same thing up top. We have an estimate, no transaction happening at that point. Same, same, same. Then we're going to go back on over and say, okay, now that they say he's locked in, he's going to order that he's good to go with that. So we're going to say, okay, we're going to create a sales order, but we want you to give us a down payment, right? So we're going to say, all right, we'll make a sales order and we want a down payment at this point in time. And he's like, okay, dude, I've got the money. And so we're like, all right. So then we want number two. And then this is going to be as of 020127, tab, tab, tab. We don't have any purchase order to tie out to in this case. So we're just going to say, okay. And then we're going to say the purchase order would be if someone was ordering like ordering from us with the purchase order to another business, for example. But we're saying this is the end customer. And then the item is going to be the two. Oh, no. And it says I don't have any of those on hand. That's okay because I'm not giving it to them right now. I'm going to make a bill for it shortly. So I'm going to say, okay, that's cool. And then so there's my sales order. Now the sales order is not going to record anything again, but it's kind of like making the estimates solidified now. This is the step that you might not see if you haven't used the enterprise version. And you might have just gone from the estimate to the receipt payment of the sales order. But this time we're going to say that we recorded here. Now the new step is that I could go to the receipt payment, turn on the prepayments from here, and then use that to record the prepayment, which would record it hopefully to a liability rather than a negative receipt.