 QuickBooks Online 2023. Receive payment transaction and form. Get ready to start moving on up with QuickBooks Online. Here we are in our Get Great Guitars practice file. We started up in a prior presentation using the 30-day free trial. We also have open the free QuickBooks Online sample company. If you want the to open at the same time, we suggest using the incognito window or another browser. You can open the incognito window if using google chrome by selecting the three dots in the browser incognito window and then in the search engine search for QuickBooks Online test drive. Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website broken out by category further broken out by course. Each course then organized in a logical reasonable fashion making it much more easy to find what you need than can be done on a YouTube page. We also include added resources such as Excel practice problems, PDF files and more like QuickBooks backup files when applicable. So once again click the link below for a free month membership to our website and all the content on it. We're using the sample company to look at the difference between the sent the accounting view the view that Get Great Guitars is in and the business view the view the sample company is in. If you want to toggle back and forth between the two views you could do so by selecting the cog up top and the switching of the views down below. Opening up some tabs up top to put reports in like we do every time right clicking the tab duplicating that tab right clicking the duplicated tab to duplicate it again back to the tab to the middle as the one to the right is thinking we're going to go on down to the reports on the left hand side open up the balance sheet as we do every time if you're in the business view by the way the reports are in the business overview and then the reports on the left hand side we're then going to go to the tab to the right open up the reports again this time the other favorite that being the profit lost the P&L that actually has activity in it if I change the range which we'll do now closing up the burger changing the range from 010123 tab 123123 tab run it to refresh it there's the activity we have thus far tab it to the middle back to the balance sheet closing the burger changing the range in from 010123 to 123123 run it to refresh it that's the setup process we do every time last time we entered an invoice recording a sale now we're going to go to the receive payment for it so let's go to the tab to the left just remember the process if I hit the drop down up top when we're receiving or when we have the revenue cycle on the customer cycle a couple different ways that might happen the simplest way would be if you just got paid by like a youtube or a platform you wait till it clears the bank and use a deposit form possibly here possibly with a register possibly with bank feeds that would be the easiest thing to do in that type of industry if you're in an industry however when you have a cash register you're typically going to want to use the sales receipt form when you make the payment or receive the payments and make the sale and then record the deposit of the sales that you have made and then if you're in an accrual system which often would happen in a situation like you're an accounting firm or you are a a lawyer or a some landscaper then you have to do the work first and invoice if you invoice you have the added difficulty of course of tracking the payments to make sure that you can collect on them that's what we're doing now last time we entered the payment now we're going to collect on it so that means that from a financial standpoint if i go into the accounts receivable it's in accounts receivable so there these amounts are in accounts receivable now we're trying to collect on them how do we do that we could run other reports showing the accounts receivable broken out by customer and then in practice we'll typically go to the tab to the left and go into the sales area and this would be our customer center you can call it and we could go into the customers and close up the hand boogie if you're in the business view by the way that would be in the skit paid and paid area and then in the customers so that's where we are at in the business view and then we can search for those customers with our line items up top possibly those that have open invoices that we need to be collecting on so there we have our list of items there i can hit the drop down here i can send a reminder if i so choose we can create statements because you'll note that now these and these people have multiple multiple items that are open open so if we're collecting the receivables we might try to set up a system where we create statements every once in a while every month or something like that we might try to automate the statements which will not only send just the invoice but send kind of a recap of the outstanding invoices that are due at any given point in time so we can send them a reminder we can send statements out for our uh for our customers to remind them to pay us and then at some point we of course would hope that we're going to receive the payment which is what we're going to imagine happens at that this time we could go from right here to the receive payment button which if i was to do that if i open that up it's going to go to a receive payment form already selecting the customer and the two invoices are down below that are related to this customer i'm going to close that out without recording it we'll go into it again shortly i'm going to hit the uh hamburger over here we can also go into the sales tab and look at the the all sales transactions this is another way that you might track your receivables and then we're going to look for the open invoices this way this way we're looking at all the open invoices not just the ones you know by customer if you're in the business for you by the way it's a little bit different location it's in the bookkeeping and then within the bookkeeping you got the transactions up top and then you've got your sales transactions there's where it's located in the business view so that's those are the ways that you can get in there then we can we can sort all these items we could sort the transactions this way we can go to invoices which is quite common and then open invoices what is what we're often sorting for when we receive a payment then we can apply it out to the invoice so we could do we could do it this way with the receive payment but let's do it this way let's imagine we received a payment i'm going to hit the plus button and then i'm we we had an invoice now we're going to go to the receive payment now just as a side note you might think hey how does the bank feed fit into this situation if you have the bank feeds on if you have the bank feeds and you have to invoice somebody there's no cash related to the invoice you've got to track the accounts receivable which means even if using bank feeds you got to you got to see where the bank feeds are going to fit in the system now you might say well you could kind of match the bank feed deposit that's going to happen to the invoice and we'll talk more about that in another course or section with the bank feeds or you could receive the payment and then try to attach it to the receive payment or most likely if you're invoicing you're going to invoice you're going to receive the payment and then we'll put it into undeposited funds we'll talk about shortly and then we'll make the deposit and then you're going to use the bank feed to check double check on the deposit which is basically means you're just going to use it as part of your bank reconciliation process okay so let's go into the receive payment and we can type in up top anderson anderson guitars so if we do that we get our invoices down below so let's tap through it before I get ahead of myself though the receive payment means that the accounts receivable is going down basically the customers have paid us therefore the receivable is decreasing let's make the date up I'm going to hit the plus button here and bring it up to 18 and then the payment method this is kind of for internal use payment methods so we might get a check we might have a credit card if you wanted to add something like an electronic transfer or something like that you can add a payment selection up top I'm going to put cash for the purposes of our practice problem even though it's unlikely would have such a large dollar amount in cash because I want to use it to explain this next item which is where are we going to deposit this to we're receiving a payment that payment could be in the form of multi you know we could get a credit card we could get cash we could get a check so where do we want to put it to we could say normally we would say well it's going to go into the the cash the checking account here however oftentimes you might I have another account that you want to put it into like an undeposited funds a clearing type of account and the reason for that would be for example if you received multiple payments for many different sales that you had and they were all cash payments then if you deposit them directly into the checking account then they're gonna they're gonna show up in the checking account as multiple line items however if you group all those payments together when you physically go to the bank it's going to be in the bank as one group some amount and therefore you can have this reconciliation problem it might be easier to see that if you go over to our flow chart we created an invoice here now we're going to go into the receive payment so within the receive payment we could deposit it directly into the bank account at this point in time however oftentimes you might want to put it into an a clearing account undeposited funds and then make the deposit now with this receive payment more and more it's becoming likely that you might receive the payments that are are going to be deposited directly into the checking account if you have like electronic transfers and you might more easily be able to deposit it directly into the checking account here without a problem where the problem arises is when you have multiple payments that are cash payments or the same thing happens with credit card payments and then when you when you deposit the money physically into the bank not into your QuickBooks but in physically to the bank you're going to group those deposits together as cash deposits of one lump sum or the credit card company is going to group those deposits together when they then put it into your bank account so that means that you want to do the same thing you want to be able to group your receive payments into your account when you make the deposit into QuickBooks in the same grouping as will be reflected on the bank statement and therefore on the bank feeds if you're using them or on the bank statement when you do the bank reconciliation so that you can match out what we're doing to what's on the bank side with a reconciliation as easily as possible the bank rec is a huge internal control over not just cash but everything else so we want to make the bank reconciliation as easy as possible now this clearing account might be even more easily seen when we do the sales receipt because when we do sales receipts that's when we have payments that happen at the same point that we do the work at like a check cash register you can imagine selling food or something like that for five dollars a piece and collecting a bunch of five dollar sales if you put all those five dollars sales into the checking account as you make the sale and then deposit them into the bank as one lump sum what you have in our system should tie out in total to what's in the bank but we won't be able to easily reconcile because they've been entered in our system as one at a time and they're entered into the bank as one lump sum that actually can be quite problematic credit cards again have the same issue because the credit card company might group your your transactions differently so you want to have some kind of system to line that up with the credit card company so that you can make it you know as easy as possible also note that if you if you adjust the sales receipt to make a deposit into the checking account directly then when you look at your increases in the checking accounts you're going to have a sales receipt form as well as deposits that are potentially increasing your checking account so now you have two transaction types that's not a big deal but it can make your sorting a little bit different when you sort it we'll see that shortly however if you go through undeposited funds then basically everything in your checking account should that's going to be an increase will either be a deposit or possibly a transfer which could simplify your sorting a little bit so we'll take a look at that as we do the data input so i'm going to go back on over and what i'm going to do then here is i'm going to switch this to the to the what they call it now is a payment to deposit so this is just another terminology quickbooks online is changing their terminology and and trying to you know ab test i guess uh what the best thing is if you use the desktop version it would be called undeposited funds it's basically the same concept that they're using here just a different name i'm going to select the invoice so there's the invoice if i was only receiving a partial payment i can put the partial payment here and we still have an outstanding amount of that invoice if i clicked on the invoice we would link on over to the invoice that is now being pulled over so this payment what's it going to do it's going to reduce the accounts receivable it's going to reduce the sub account for for the customer related to that accounts receivable and it's going to record a deposit not into the checking account yet but instead to the payments to deposit the clearing account so that we can group them so let's go ahead and check that out so i'm gonna i'm gonna save it and close it we'll check it out save it and close it let's go to the balance sheet then and run it and then if i go there's nothing in the checking account yet if i go into the accounts receivable we see that we have the payment there's the payment form notice here it's it's has the indication of the transaction type as a payment that means you know that we've received the payment these terms can get a little confusing because which side of the table are we on with the transaction we're receiving the payment form here so if i go in if i go into it then it's going to decrease the accounts receivable there it is because we got the payment but we didn't put it into the checking account yet back to the balance sheet but instead we put it into this clearing account the five thousand right here so there it is now notice that this is a basically a cash account this clearing account and this is the other kind of confusing thing about it same as the undeposited funds account in essence you would think it would be up here for financial reporting purposes under cash but you don't really want it under the bank accounts or QuickBooks doesn't put it there because the bank accounts specifically have this ability to tie out to the bank feeds so it acts functionality function wise like it's an other current asset even though if for financial statement reporting purposes it would be up here in the cash accounts so that's a little bit wonky but you just have to be aware of that it should be back down to zero as soon as you make the deposit this is not a temporary account it's a clearing account I would classify it as meaning a temporary account is like the income statement accounts that roll out and start over every year they roll out to the balance sheet to retain earnings the this is a clearing account that goes back to zero as soon as we make the deposit it just goes up and then back to zero the next step that we would expect to happen related to this account if I go to the first tab is we're going to group deposits together and then make the deposit so if I hit the plus button we would expect the next step I'm not going to record this just to show it here is to make the deposit and notice that because we used that that technique it pulls over this amount which is represented in that payment account that undeposited funds like account I keep on forgetting the name they call it the payments to deposit of five thousand right here so so it gives us this nice little section to help us group these payments together when we make the deposit so we can make the deposit in the lump sum that will be equivalent to what we physically deposit into the bank making the reconciliation process as easy as possible so then if I go back to my my hamburger and we go to the sales tab and we go to the customers and I close this back up now we did this one for Anderson was it so I think we went if we go into Anderson there's our payment so the payment is now there if I go into the payment there we have our payment and it's obviously linked to the invoice down below so there's the invoice and then if I go into the invoice it was this invoice now being indicated as paid so if I go into the invoice so there is the invoice indicated as paid and it's got this nice link to the payment which is great so we have that I'm going to close this back out and if I go back into the sales and then the all sales we can then search by the the invoices that are open now or the invoices that have been paid this one has now been paid if I go to the balance sheet we've got our accounts receivable here also note I can look at the sub ledger right click I'm going to duplicate make another report just to see the sub ledger tying out by customer reports on the left hand side scrolling down to who owes you let's do an account receivable aging summary report close the burger range and change in 0101 let's just end date 12 31 2 3 run it so now we've got it broken out by customer the totals at the 23 7 21 50 that should tie out to what's on the balance sheet and just realized that even though we got paid now there's no impact on the income statement why because on an accrual system because we're using invoices and invoices are an accrual thing we recorded the income when we did the work which is usually closer to when we make the invoice the invoice is the thing that records the income then when we receive the payment we're just moving it from accounts receivable to the cash that we're then going to put into the bank account at some point all right let's do another one I'm going to go back to the first tab so I so now I'm going to imagine we got a payment from Jones from Jones guitars so if I got a payment from Jones guitars whatever format that is in I could go to the plus button and then say receive payment just like we did before and say Jones guitars and then down below the invoices will be down below but instead this time what you what many people might do is say I'm going to find Jones guitars first and then link so I might go then to the customers sales and you might go to the customers and you're like I got a payment from Jones guitars so I could then just clear all the filters down here and look for Jones guitars or I might it might be easier to find Jones if I go up and say I want open invoices because I know this is an open invoice and there's Jones guitars and then go into it and then I'm going to say okay I got a payment and I'm going to say it was this payment these are these invoices that were created by the way when we did the opening balances so you'll note that because we did the opening balances the way we did QuickBooks created an invoice like thing for it so that we can now do the easily received payment which is the next step if I did this with a journal entry it would cause a problem because the received payment doesn't link to the journal entry as it does with the invoice so now I could do the received payment by just clicking this then and there's the received payment and it's already checked off Jones guitars is been picked because we selected Jones guitars so if I go through this we're going to say there it is we'll say the 18th let's keep that the payment I'm going to say it's cash again just to show the the concept of putting it into this payment to deposit which is like undeposited funds instead of directly into the checking account the invoice we selected is already checked off this is going to decrease accounts receivable decrease the sub ledger for the customer and increase the cash account but the deposit clearing account undeposited funds like account the payment to deposit as they're calling it here in QuickBooks online so let's go ahead and save and close it and then check it out back to the tab to the right that the let's run it to refresh it and then if I go into the accounts receivable the a to the r has now got these deposits 7500 let's go back and then we can see that the payments to deposit undeposited funds like account the cash kind of on hand that hasn't hit the checking account yet has been increased with the payment form going back that account is supported now by if I go to the tab to the left if I was to make a deposit with a deposit form those two amounts I could check them off and they add up to the total deposit so if I was to deposit them at one time I can check both of them off grouping the deposits to one account which is going to show on the bank statement making it easy to reconcile so that is going to be that one and the sub ledger for the receivable should tie out 1611250 if I run this by customer 1622150 I think I went dyslexic on that one 16221 not 112 and if I go to the tab to the left then if I hit the arrow we've got the sales item and then we've got the customers and if I was to clear the filters close the hamburger that was jones guitars if I go into jones guitars now we've got the payment and we've got the invoice related to it if I go into the invoice it says it's paid and we see that it's clearly indicated in here as paid it's got the link to the payment so everything everything links up and it's great so we're going to close that out and let's go back to our sales let's do one more the last one for that that invoice that was outstanding from the beginning balances so we could do it again I could I could go into it this way this is going to be Smith guitars so I could go in and find Smith guitars and then say I want to receive a payment or I can I could go to the plus button and I can say that I'm going to have a receive payment and then type in Smith guitars or the other method is we can go to the sales tab we can go into the to the invoices here but I tend to go to the all sales and then close this back out and then go into the invoices and then I want to see the open invoices now so there's our open invoices if you were in the business view by the way just remember that that the sales transactions in a little bit different location it's under the bookkeeping remember and then transactions and then you've got your your sales transactions on the right for that one okay so then so let's go into it here and then say that we've got the transaction and we want to be picking up this one the opening balance one so I'm going to say receive payment from here receive payment and it'll create the the report once again just like we saw before so let's just do the same thing here so we'll keep the same date payment I'm just going to say cash again just for the purposes of thinking of it increasing the payment to deposit even though it's a large dollar amount this is going to do the same thing let's say what it's going to do it's a receive payment that means it's going to decrease accounts receivable and then it's going to decrease the sub-account for the customer the other side's going to go into some kind of cash account not the checking account yet because we told it to go to the payment to deposit which is like undeposited funds the clearing account so that we can group that money together in the same format that it's going to be physically deposited into our checking account let's save it close it check it out one more time tab it to the right let's run it to refresh it we've got the a to the r going into the ar and so there's these three smith is the last one if I go into that one then of course there's our form closing it back out scrolling up the other side is going to go to the payment to deposit opening that up there it is and there we've got these three payments so if we deposit them at one time into the checking account it's going to be deposited at 20 500 if I was to have made these individually put into the checking account I would see a payment form instead of a deposit form for three separate amounts and that might make it a little bit more difficult to reconcile to the bank account if I'm depositing it physically into the bank account as one line item if I go to the tab to the left and hit the plus button and hit the bank deposit it's got this nice system within Quick Books that anything in undeposited funds adding up to that 20 500 has been put in here should the payments and the sales receipts will kind of show up in here so that we can easily click them off and group them in that way so that they so we can deposit them properly hopefully and make it easy to reconcile so closing that back out there are those and then the accounts receivable sub ledger if I run that is now at 8001 1 250 that's what should be tying out to this 8002 250 8002 250 that's what I meant and then let's go to the first tab in this tab now if I look at the open invoices these are the two remaining open if we look at the paid items this is what happened in paid and of course we can track this in the sales side you can also look at similar information in the invoices here in the invoices tab and do similar processes within here and then we go into the customers and if I was to look at all the customers I can go down to Smith and say okay Smith if they were to contact me and talk to and I'm communicating with them I could say okay yeah the invoice has been paid if I go into that invoice I can see that it's been paid it's has a link to the payment that's been made everything lines up very nicely okay let's open up the trial balance just to see where we stand I'm just gonna do it in this tab hit the hit the hamburger reports and we're gonna say this is the trial balance the trustee t to the b and change the range from 010123 to 123123 run it to refresh it close the boogie hold down control scroll up this is where we're standing these are our two legs the left leg we call debit leg and the right leg we call the credit leg and then you can see if if you line up to what we have if you don't try to change the range if there's a difference when you change the range then when you expand the range drill down on the data see if it's a date issue that you can then change in the source document which is good to do in a practice problem but you'd be careful doing that in practice and then we'll we'll take a look at the transaction detail reports at the end of entering the first month of data input to double check our numbers at that time too