 QuickBooks Desktop 2023. Receive payment form. Let's do it within 2-its. QuickBooks Desktop 2023. 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 then 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. Here we are in the QuickBooks Desktop Sample Rock Castle Construction Practice file provided by QuickBooks going through the setup process we do every time. Maximizing the home page going to the view drop-down open windows list on the left hand side open up the financial statements with the reports drop-down company and financial P&L profit and loss or income statement tab 010124 to 123124 that's January through December 2024 we're going to customize that report up top fonts and numbers change the font size up to 12 okay yes please okay then go to the reports again company and financial this time with the balance sheet changing the date from 123124 or that is the date customizing it up top so we can go to their fonts and numbers and change it to 12 okay yes please okay that's our setup process go into the home page now in prior presentations we focused on the customer section which is or can be also known as the sales cycle the accounts receivable cycle the revenue cycle remembering that customers ultimately are people we expect to be paying us at the end of the cycle for goods and services we provide them we are customers to to our vendors but from a QuickBooks perspective we're not customers the customers are the people that pay us for our bookkeeping we talked about the simple to more complex bookkeeping systems driven by the industry we're in such as gig work for example where we might be able to wait till something clears the bank before recording the revenue a cash based system like a food truck or something like that where we might have to record the sales at the point in time we made them and then deposit them into the bank and we're starting now on the most complex system when we analyze each of the actual forms that being an accrual system where we have to do the work first like a bookkeeping firm a law firm landscaping or something like that and then we build the client for the work that has been done that invoice being that form that we use to do that which records an increase in the accounts receivable and just note that the invoice is another term that we can use if if when we receive something that is a charge we call it a bill so these terms in practice you can use them kind of interchangeably we build the the client for for work that we did when we bill them though from a quickbooks perspective it's an invoice so notice that we might receive an invoice from a vendor that says invoice on the top of it and but from a quickbooks perspective that's a bill so we got to kind of keep in mind the terminology in terms of the quickbook system in which side of the table we are on with regards to the forms that are being used so the invoice increases the accounts receivable records sales at that point in time which we talked about last time and then we're going to have to receive the payment so we might receive the payment in the form of a check in the mail an electronic transfer of of some kind or something like that we might get cash for example and that means that when we get the payment we of course have to decrease the accounts receivable because the customer no longer owes us the money and then the other side of the transaction is the money that we got but it's a little bit more confusing than you might think in terms of normal accounting like like an accounting school you usually just have cash up top meaning if i go to the balance sheet you just have instead of checking account you just have cash as a general thing was like well we got cash but now you got to think well is it going directly into the checking account when i receive it when is it going to go into the checking account and when it goes into the checking account am i going to be able to group my bookkeeping system to what actually clears the bank in the same format so that i can reconcile with the bank so going back to the to the homepage then uh normally the default system in QuickBooks is to actually means that we're going to put it into a clearing account like undeposited funds and then deposit it in cash with the checking account into the into the checking account with a deposit form and the reason we do that is to make sure that if i receive multiple payments like from credit card payments or something multiple that i have to group separately and i want to make sure i group them on our system in the same way they will appear on the bank statement or if i receive multiple cash uh payments that i'm then going to go to the bank and deposit at one time i want to record them in my system in the cash account as one deposit not multiple deposits so that i can compare to what's going to be grouped on the bank statement that's kind of the issue that we have to deal with there so let's imagine then that we create an invoice and then we're going to receive the payment one way we might do that is we might say okay i'm just going to go into the receive payment here and then choose the customer that we got paid from and that should tie back to any invoice that will be populated back here or another way we might do this if i close this back out is it's likely that we're going to say let me go into the customer center which could be done here or it could be done up top i usually go up top to the customer center and then this is our list of invoices on the left hand side we might find the particular customer we might hit the drop down and say where's my customers with open balances find that particular customer and then look at that particular invoice i can open up the invoice and then i can say that i receive a payment from it receive payment which will populate that particular customer and that invoice so oftentimes that's a nice little link to have within the system the other way you might do it closing this back out and closing this back out is you might then go to the transactions and you might look for the open invoices this way go into your invoices possibly then hit the drop down look for the open invoices find the invoice that you got a payment for and then once again receive the payment for it which will generate the the receive payment form so that's that's the general idea now let's let's look at this one here let's close this back out and let's just say i'm going to close out the invoice the invoice let's pick this one Albert up top and so so our lord so i'm going to just create another i receive payment instead of linking it here just so we can do the full data input so i'm going to go let's go we can also find this form in the drop down so if i go to customers and i say there's a receive payment receive payments boom and we've got our lord so there it is so because i have the invoice already open it open it automatically but we'll keep it there so if i tab through this the payment that we're going to receive we're going to say the 14 510 so there's the 14 510 and the date is 12 15 24 and then you got to determine how you were paid where you paid with a check now this this is kind of an information field it may not have a big impact on on the data input but it gives you a little bit more information as you record the receive payment if you have cash that you've received then it's more likely that you're going to need to group that cash together in an undeposited fund before putting it into the checking account so that you make sure that you put it in the checking account in the same grouping we'll talk about that in a second if it's a check then it's likely that if you deposit it directly into the checking account that it might you know it might be okay because that's how you would expect it to clear the bank as one single check if it's a if it's a credit or debit card then you've got to deal with the credit card company which is going to basically be grouping the sales that they make and depositing them into your bank they might have fees as well with relation to the credit card so you have to come up with a system possibly using the clearing account of undeposited funds to make sure that you're grouping things properly when you deposit into the checking account so that it matches out with the bank statement and then you could get like an e-check you get paid online which again you might be able to deposit that directly into the checking account because you would expect it would appear on your bank statement as the same amount and then you've got your more options here so a reference number if there's a reference number applicable if it's a check it will be a check number this isn't a check number that you're creating because it's not a check you're writing it would be the check number from the person that paid you and then it checks off the amount down below which is representing an invoice so it's tied to the invoice and so if i double click on this it opens the related invoice so that's the general idea if i close this back out and what's going to be the transaction that is recorded with this it's a customer payment and that means it's going to decrease the accounts receivable because the customer has paid off what is owed the other side is not going to go to revenue because this is an accrual statement form that decreases the accounts receivable we recorded revenue when we recorded the invoice the other side is going to go either to the checking account or to that clearing account of some kind undeposited funds up top we have the the information we've got a new one we can delete the transaction you can print it you can have an email payment and attach files you can add the attachment look up customer invoice unapplied payment discount and credits applies discounts and credits to the highlighted invoice add credit card processing and then the formatting you've got the preview if i select the preview looks like this although notice that this form is generally more of an internal form so you might not be providing this form to to someone else you might have like a thank you payment or receive payment kind of thing but the invoice is generally of course something that you're going to give to the customer and this form might be an internal form just to help you to do the data input that you have received the payment and be able to match that to the actual invoice you might have different templates and customize the data layout reports you got the quick report you got the transaction history you've got that journal and this one you must you must first highlight the transaction in the report journal it won't let me do the journal okay well that could give you a journal entry oftentimes but this one's fairly basic typically accounts receivables going down the other side's going to undeposited funds processed and you've got a couple other report options here the process payment receipts you got the view the open invoices reports these reports can be generated through the reports area typically or you might be able to find some of this information in the customer center and then the payments given you that add credit card back to the main page i'm going to close this out one more thing i want to i want to look at i'm going to say no and i'm going to close this out i'm going to go to the home page now when you have the receive payment you got invoice next thing is receive payment if you wanted to deposit this directly into the checking account notice that you don't have any kind of option right here you could add the option and you could do this by going to closing this out edit up top and then go to preferences and then i'm down in the payments area and company preferences we'll talk more about these preferences later but notice that by default i believe this is checked off use deposit use undeposited funds as the default deposit to account if you uncheck that then it'll give you an option to deposit it somewhere else such as the checking account so i'm going to say okay it's going to make me close all the windows i think so it closes all the windows i'm going to say all right close all the windows company file opening the home page back up give me that home page back maximizing it now if i go into the receive payments it's going to have then this drop down so i can i can then deposit it into the checking account or into the undeposited funds i have the option of going directly to the checking account if i so choose but by default it's going to take you to the undeposited funds which you can see and the flow chart and it's kind of nice even if even if like you don't need the undeposited funds to use it sometimes because that means that everything that goes into your checking accounts will typically be a deposit type form instead of having some of the stuff that's going into your checking account via receive payment type form which can kind of make it easier to sort in some ways but that undeposited fund is something that often causes people a lot of confusion so just be aware of that let's go into the reports and see and analyze it from the end result and then drill back down i got to open them back up because it closed them up when i did that change i'm going to go to the pnl and we'll say from 010124 to 123124 i won't do this i'll do the same process of customizing and so on okay i've opened up the reports again and done all all that process so when we receive a payment we would expect that accounts receivable is going to go down so if i double click on the accounts receivable and change the first date 010124 then we got the invoices increasing and then the payments decreasing and that's the payment form notice the names are a little bit kind of weird with this particular form if i double click on this on this payment then you could see here it's called a customer payment and when you go into the homepage it's called it's called a receive payment so i don't know why they they chose a different name for every place they reference the same form for some reason but here it's called a receive payment form on the homepage and then when you go into the transaction detail it'll just be called payment which kind of makes sense because it's just like a short title and then when you go into the actual form it's going to call customer payment it's like okay well those are all referring to basically the same form remember this is an internal form typically uh that that you're going to use to kind of link the payment to of course the invoice closing that back out closing this back out the other side if i go to the balance sheet is not going to the income statement at all because we already recorded income when recording the invoice the other side then going to either the checking account but by default it's typically going to go to undeposited funds unless you change the default undeposited funds for means that you got paid you're holding on to the cash for example either cash or it's a credit card transaction that you haven't yet entered into your system for the for the to the bank account yet for example so if i double click on that or it's a check that you haven't you know entered into the depositage yet 010124 so undeposited funds go up with the payment amounts so they go up here and then of course when we make the payment or deposit they go back down into the into the checking account so that's that middle step we got to be very careful of if you go to to someone's books and they have a bunch of money in here it should be represented that should be representing money they're holding on to cash or some kind of credit card transaction they haven't yet processed over into the checking account or something like that that's the general the general idea now the reason that's kind of important let's just kind of recap on that if i go back to the home page if for example every transaction that we had here we just deposit directly into the the checking account right here let's say we use receive payment to just deposit them directly into the checking account and i get something like cash or i get something like credit cards then i might get multiple customer payments that are going to be grouped together in some way by us when we deposit cash or the credit card company when they deposit the money into our checking account that will be different because i recorded them one by one here then what will be in the bank account that's going to make the bank reconciliation a problem that's why the undeposited fund is useful so the next step would be to take that receive payment that's in the undeposited funds and deposit them this being the form for undeposited funds so when i go here then which will do in a future presentation i'm going to check off the amounts that are going to be deposited at the same time so that they in such a way that they're going to be reflected on the bank statement which will make the bank reconciliation easier closing this out closing this out now notice when you think about bank feeds in this process it gets more complex right so where do the bank feeds fit in i could i could you know try to say i'm gonna i'm gonna deposit things when i receive the payment with the bank feeds or i can deposit everything and just use the bank feeds to kind of double check what i've been doing which is probably the most common thing right if you have a full accrual system you're probably going to be creating the invoice and you could try to wait until it clears the bank if they're going to give you an electronic transfer and then try to connect the bank feed to the invoice right or you could record the receive payment to undeposited funds and try to wait till it clears the bank and record the the amount from undeposited funds to the checking account with a bank feed or you can actually record the deposit yourself which is probably the most common thing in a full service accounting system and then use the bank feeds to double check that it has been recorded using the bank feeds in that case more as a reconciliation tool as opposed to a tool to actually construct the financial statement which is what the the bank was traditionally used to do as a double check not as the thing used to create the financial statements this number two here by the way represents the fact that you have two things either the receive payment or create sales receipt that are currently in undeposited funds and need to basically be deposited with that and we'll talk more about that in future presentations before we wrap things up here but just let's take a look at the balance sheet and just look at the impact on the receivables here remembering that there's a sub ledger that will be impacted so oftentimes if we're talking to a particular customer about a payment that they have paid we might go to their customer center and go to their actual balance go into the customer center and go into to their balance for example this is the most likely place we would go if we were actually talking to someone to see if we're recording that we received their payment we might go into the transactions here and look at the invoices and look at the the invoices that are our open invoices for example and of course we can go to the reports up top and look at that detail reports under the customers and receivables for customer balance detail and this then is going to give us by customer and you could see within each customer this is what happens with the receivables right it goes up with it with uh with an invoice typically it's going up with an invoice and then we receive a payment on it see one that's a little bit more clear this one goes up with an invoice and then it goes down when we receive a payment that's all we expect to happen in accounts receivable we should be able to take and tie things out uh although it can get kind of complex but you could see it more clearly by a customer because you could be able to kind of take and tie things out and the total comes down here to the 9300793 balance sheet 9300793 so you can see the impact there on the accounts receivable