 In this presentation, we're going to record a customer payment and deposits. In other words, we've recorded the invoice in the past. We're going to be receiving payment on that invoice, that payment that we receive. We're going to apply to the invoice, then we're going to take the deposits that we currently have, put them into the bank, recording that into our accounting system in the same type of format as we expect those deposits to be grouped on the bank statement. Rise above the crowd with Sage50Cloud accounting. Here we are in our Get Great Guitars file. We're currently in the customer and sales section. If we scroll down through the customer and sales section, we have our flow chart down below that includes the entering of the invoice and then the receiving of the payment. That's the flow chart that we're looking at now. The invoice first, increasing the accounts payable, recording the sales and the revenue at that point in time. Now we're imagining that we are receiving the payments. The invoice went out. We're now getting the payments on them. So we're going to go to the receive payment form. We're going to go into the receive payment. The first payment we're going to receive from is going to be from a customer and it's going to be musicstuffstore. I'm just going to put a deposit ticket for the purposes of our practice problem. Musicstuffstore, we're going to tab over. Notice what happens is it then populates to the right-hand side here or the left-hand side where we're going to apply out the amount of the invoice. So the amount of the invoice we're going to be applying out here. I'm just going to put a reference number and number here for the purposes of the practice problem. We're going to bring this on back to the 26th and then I'm going to just check off this amount. I'm going to check off this amount. That will be the 547, the 547, then we'll be populating up top, the 547 up top. Note the other side is going to be going into the cash on hand, cash on hand rather than the checking account. That means we're going to put it into the cash on hand, kind of like a clearing account that will then transfer to the bank account when we group this information together and then put it into the checking account. So let's do this first. We're going to go ahead and say save and I'm going to say OK. Actually before we check the statements, let's do this again, we're going to make another one of these. So we're still on the receipt payment form. I'm going to make another deposit here just for the purposes of the practice problem. It's going to go into the to the clearing account here. We're going to make this going to be the vendor or the customer, the customer, not vendor of Anderson guitars. So Anderson guitars, then we have these invoices down below related to the Anderson guitars. Now I'm going to make this deposit on the 26th as well. I'm just going to give us a number up top and then it's going to go into the cash on hand. Now you'll recall here's where we had the 54750 and then the 250. That was the deposit. This was the down payment. So the order that this happened in was this is the store, the scenario some customer came in. They wanted a guitar. We didn't have it in the right color. So we ordered the guitar for them but said, hey, we'd like a deposit of the 250 first to make sure that you are committed to purchasing this guitar. We recorded the deposit first and then we recorded the invoice once the guitar came in. So before this is the remaining outstanding balance. So if I check then these two off, then we're going to say what is remaining the 29750. So 29750 is going to be remaining. That will say that the invoice is going to be totally paid off now. So we'll pay off the invoice once we get that 29750 and the 250 will then be applied out as well. The deposit will be applied out. So what's going to happen with this same kind of thing is going to happen. It's going to be increasing in terms of the journal entry, the cash on hand, the other side decreasing the accounts receivable and it will go through that process of applying out correctly with our documents down here with regards to the invoice being paid at this point in time and matching out that deposit that we needed to do as well that prepayment that current deposit. Let's go ahead and say save on that one. So I'm going to say save. Now let's take a look at our forms. So I'm going to close this back out. It's going to go back up top. We're going to go to our reports. Let's take a look at this time at the trial balance. I'm going to go to the general leisure. We're going to go down to the working trial balance down below the working trial balance. We're going to go to the options in order to adjust the options, which is in the options cog. And then I'm going to say we want to remove the zeros. We're going to remove the zeros. We could change the date up top and have a specific date. We want the end of February, which is one day later for me right now. It's the 28th currently when I'm working this, but I'm going to say, okay. So there we have that. And then what we just entered is the receive payment. So if we go back up into the cash on hand, double click on that cash on hand, we have the deposits from the music stuff store and Anderson for the 547 50 and the 297 50 respectively closing this back out. The other side then it's going to be in the accounts receivable double clicking on the accounts receivable. We see those two amounts here as well. So notice it's breaking this out that we see the 250. That was the deposit. Then we have the 547 50, the 547 50. If I double click on that item, that's going to be taking us to our ticket, which has the 250 and the 547 50 on it closing this back out. The other one was with the music stuff store, which is this item up top. Double clicking on that. There's the 547 50 there as well. And I just want to jump over back into the cash on hand. Just remember that the cash on hand for Anderson is this 297 50 because if I double click on that, that's going to be including these two items down here, which is the 547 50 minus the 250. Okay. So that and that will, those were broken out separately when we look at the receivable account closing this back out, closing this back out back to the trial balance. So also just realize that the accounts receivable will also be supported by the subsidiary ledger, which is going to break this information out by our customer as well. Now we want to go in and take this cash, this 1,395. We're going to imagine we're going to the bank now. So we're going to take it out of the cash on hand. We're going to put it into the checking account in the same format that it is showing here so that we can easily do our bank reconciliation to do that. Let's go back to our data input screen and we're going to go down to the banking. This is where I typically like to do it in the banking section and then I'm going to go to the account register. We're going to go into the account register. I'm going to make it large so it's easier to see when it's big. So then I'm going to go to the cash on hand. We want the cash on hand. I like doing it from this one because then I get to see what's in there and I'm going to take all of it out and transfer it to the checking account, to the checking account. So that's what we're going to do here. So I'm going to say this is going to happen. Let's keep it up to 28. That's fine. It's going to be a payment. But we're going to say it's going to be a reference. I'm just going to call it a transfer and it's going to be a transfer. And then the general ledger is going to be just like these other transfers up top like this one, which is going to be one zero two zero, which is the checking account tab, tab. It's going to be a transfer. And then the amount is going to be the amount that's in there, which happens to be this amount, the one three nine five. And there we have it. So notice the trend here, of course, uh, this, this account goes up and then it goes back down to zero, right? It goes up and then it goes back down to zero. And this is going to bring it on back down to zero again. So we're going to say save. And that reference number, that's okay. I'm going to say okay. And there it, there it is. So now let's take a look at the transfer. I'm going to close this back out. Let's go back to our financial statement back to that balance sheet report. Back in the balance sheet report, you'll see that the cash on hand has now disappeared. And if it hasn't, then you want to hit the refresh button and then it should disappear. And if it doesn't disappear, then then some, some's wrong, but we're going to go into the checking account then I'm going to go into the checking account and there's the transfer. It's on the 28th, not that last one. If I double click on it, there's going to be our, our register again. So if I close that back out, it's strange that that happened to be the same amount as this is a loan payment we did at the beginning. It's funny that those numbers are the same just happened to be that way, which little, little unusual. But anyways, we go up to the options again. Just note that if I want to see the cash on hand, then I have to include the zero balances. So if I want to say zero balances so that I can see that cash on hand, even though it's a zero balance, why would I want to do that? So that I can double click on it and then check the detail and say, so there it goes up and then it goes back down to zero. It goes up, goes back down to zero. This is the one taking it back down to zero here because we transferred it out of here. Put it into the checking account as we entered that information from the cash we were holding on to into the bank. That's going to be it for now. Let's get out of here.