 QuickBooks Desktop 2023. Sales receipt and deposit. Let's do it within two-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 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. Here we are in QuickBooks Desktop. Get great guitars practice file. We started up in a prior presentation going through the setup process. We do every time maximize on the homepage to the gray area, going to the view drop-down, noting we've got the hide icon bar, open windows list checked off, open windows open on the left-hand side. Going to the reports drop-down company and financial, we're gonna be opening up the P&L, the profit and loss, changing the range, 010123 to 123123, customizing the report then. And we're gonna say fonts and numbers and let's change the font size up to 14. 14, yes, okay. Open up the balance sheet, reports drop-down company and financial, the balance sheet and then we'll customize it up top, changing the range 010123 to 123123 and fonts and numbers it, changing the font size, bring it up to 14. I'm gonna say okay, yes and okay. I'm also gonna open up the trial balance, reports drop-down accounting and taxes. Let's look at that trial balance too and get used to that report 010123 to 123123. Let's customize it and go to the fonts and numbers to change the font size up to 14 for it too. Let's make this one 16, this one I think we can get away with a little bit more action on it. Yes and okay, that's the setup process we do every time. Now we're gonna go back to the homepage, we're gonna be entering a sales receipt and then we'll follow that up with the deposit forms. Now remember we're on the sales side of things in the sales cycle and we could have multiple different types of sales cycles depending on the industry we are in, the easiest one being if we're just basically gonna rely on say the bank feeds for example to deposit into the bank before we record. We can only do that if we were doing something like gig work getting paid by YouTube or something like that, then we might wait till the deposit clears and use the deposit to record revenue. That is a step further away even easier than a cash-based system. In a cash-based system we would use the sales receipt, that's what we're gonna be looking at here. You can imagine that being a system when we're at the register for example, getting paid at the same point in time we do the work or when we give the inventory and then we have the full accrual system where we would invoice typically the case when we have to do the work first and then send the invoice to the client tracking the accounts receivable. We're now gonna go to the sales receipts noting that as we enter the sales receipt the default will be that it goes into undeposited funds, the funds that we receive as opposed to going directly into the checking account, that's often the case that you want when you have a register situation because you might get multiple payments of cash or credit card for example and when you put that money into the bank you're gonna go to the bank at the end of the day and group multiple sales receipt transactions together as you make the deposit or the credit card payments, the credit card company will group them together as they make the deposit into your checking account. Therefore you have to have the same grouping in the checking account as is showing on the bank statement to make the bank reconciliation as easy as possible. You also don't typically want to wait until you make the deposit and then record it if you have a check register type of situation because you want the internal control typically of recording everything as you make the transactions. You also get the added detail of tracking the items that you are entering as well as the customers that you are entering, which can help you to run subsequent reports with it and you'd like to be able to track out what you put into the system for the sales receipts and try that out to the cash, the physical cash that you counted which is another common internal control in that type of system. So I'm gonna open this up and we're gonna add a new person here that we're selling to just on the fly as we go. We got Garcia guitars, guitars. Now note that if you have significant sales, larger sales, then typically you're gonna want to set up more data for your customers, like who are they, what's their address, what's their phone number and so on and so forth. If you're selling something like a food truck or something like that, then your customers most likely won't want to give you all that added information. They just want, just give me my burrito, just give me my sandwich, just give me whatever it is that you're selling here. I don't want to give you my life's story or my contact information. So in that case, you might just set up like a one customer that you're always selling to. In that case, it would be a general customer. So I'm gonna just set a generic name up here. I'm gonna say quick add. It's gonna go into undeposited funds. Note that we have the option of putting it into the checking account because we turned that option on in the preferences, which you can find in the edit dropdown preferences and in the payments area and the company preferences. You've got this checked off typically by default, you have to uncheck it in order to get this item here as well as on the receive payment form. Closing this back out, but we're gonna keep it in undeposited funds, which is the default anyways. And then the types of payments could be cash, check, credit card, e-check and so on. We're just gonna stick with the cash here because we're gonna imagine that we might group the cash together with other sales receipts and then group them together in one deposit to the bank. Similar system could happen with your credit cards, but it will be dependent to some degree on the credit card company, for example. And then I'm gonna say this happened on the 20th. I'm gonna bring it on up to the 20th of 2023. That looks good. Items, I'm gonna sell an EPSP, and we're gonna sell, that's an Epiphone Standard Pro that pulled in because of the items that we entered into the system. I'm gonna sell two of those, subject to tax, $1,200, and we'll sell an ELP, our go-to guitar, which is an Epiphone Les Paul. Two of those times 500. The sales price gets us to the 1,000. It is taxable as well. What's gonna happen when we record this to the financial statements? It's a sales receipt. That means accounts receivable is not impacted. It's gonna go to some kind of cash account, in our case, undeposited funds account by the full amount, 2,310. The other side is gonna go to sales, but it will not include the sales tax, just the 1,200 plus the 1,000. The sales tax is gonna go to a payable account, sales tax payable. Also, inventory is gonna go down by an amount not showing on the sales receipt, but driven by the items cost of goods sold is gonna go up by that same amount as well. Net impact on the income statement, sales price minus the cost of goods sold, there will also be an impact on the sub ledger for the inventory items, which will be adjusted for the units of inventory items that we have sold here. Let's save it and close it and check it out. Go into, let's just try to look at it just with the profit and law. I mean, I'm sorry, with the trial balance this time, which helps us to drill down just with one form to double check our entries. So I can go in here and say, okay, the undeposited funds, double clicking on that, here's the undeposited funds, there's the sales receipt, that's for the full amount right there, closing that out, closing that out. That's a cash account, but it's in other current assets instead of the checking account, but it's up here in the assets section we can see. Then I'm gonna go down to the income statement side of things in the sales area. Notice the balance sheet stops at owner's equity, income statement starts at sales. So I'm gonna double click on the income statement account. So there we have this one, the sales receipt, have these two items, same invoice number, two separate line items due to the fact that we had two separate kinds of inventory items sold. And that was the 1,002, the 1,000 does not include the sales tax closing it out, closing it out. Then we've got the sales tax, we can see it's a liability, I can scroll up and say it's a liability because it's a credit. If you know your debits and credits, but also the assets end at furniture and equipment. So here's the sales tax payable. So I can go into that. It is two separate line items for the state and the city closing it out. Then we've got the inventory, which is an asset account up top in the asset area, double clicking on it. There's the adjustments for the two line items because two separate items were sold or inventory items. Notice that these amounts are not on the sales receipt but are driven by the items. And then the cost of goods sold is down here in the cost of goods sold, double clicking on it. That's the cost of us selling the items, cost of goods sold is down on the income statement, the first expense account typically closing it out. Now note that I can't really change this trial balance for just the month of February. So that's kind of a restriction. If I go to the profit and loss, I could look at the profit and loss for 020123 to 022823. And now I can see the detail for the month of just February, the net impact on the income statement would be the sales price minus the cost of goods sold. Now let's try just taking a look at the balance sheet and just to say that inventory number, we could see that also is gonna be in the sub ledger report, drop-down inventory. We've got the inventory valuation summary and if I change the date to 123123 has now been updated. We now have a negative GSB, which is an unusual situation but we won't worry about that right now. We've got the 7,938 and if I go to the balance sheet, 7,938 ties out, so that looks good. Let's do another one. Back to the home page. Now note we've got one item here representing the items in undeposited funds that we're gonna group together. Let's do another one so we have something to group it with. This time, that's the sales, hold on a sec, we want the sales receipt, not the receipt payment. Sales receipt. So this is gonna be another sales receipt. This is gonna be Anderson guitars, which we've already set up. Undeposited funds looks good. This is gonna be on 220 as well. We imagine this happened on the same day that we made these two sales. It's gonna be cash, we're gonna say, and I'll just add the items. DUC, which is gonna be a diamond head, a ukulele, we imagined that Mr. Anderson just brought these up to the cash register. Two of them, 34 gives us the 64, it is a taxable item. We've got an EPR, which is an Epiphone Riviera. We're gonna say that there was three of those, gives us up to the 1,650 and then we've got a G, hold on a sec, tax. This is gonna be a GI USA, Gibson USA, one of those 380, so there's the 380, it is taxable. There we have it. What's this going to do? It's a sales receipt. Therefore, instead of increasing accounts receivable, it increases undeposited funds. The other side that for the full amount, including the sales tax, the other side going to sales driven by the item, not including the sales tax, sales tax goes up to the payable account, then inventory goes down by an amount not on the sales receipt, but driven by the item, cost of goods sold, goes up, the expense account for that same amount, also the sub ledger account of inventory will be adjusted for the items that we have sold, saving it, closing it. I'm not gonna email it or print it, I'm just gonna save it and close it. And then let's look at those on the trial balance. So now we've got undeposited funds, now it has 4,508 in it. So these two items are the new, I'm sorry, this one item is the sales receipt right here, 2,198, so 2,198. The other side going to sales, down here on the trial balance where the income statement starts, first account on the income statement. These four items represent the same sales receipt. So there it is, doesn't include the sales tax, closing this out, closing this out, sales tax is a liability. So I know the liabilities start at the accounts payable account right here, sales tax payable is right here in the liability area. So there's the two items for the sales receipt for this one, and then closing that out, inventory up top is an asset account, double clicking it. So it has been adjusted for this one, we sold three different types of assets. Those amounts on the transaction aren't in the sales receipt because, but they are driven by the items. So these three amounts here are not actually on the sales receipt, but it's known by the system from the items we set up and then cost of goods sold is on the income statement. It's the first expense item on the income statement down below. And so there's these items. If I go back to the profit and loss, we can see the impact sales went up, cost of goods sold went up, the difference between the two is the impact. Now I'm looking at just February here. That's why we have different numbers than on the trial balance, which was the year to date, January and February. And then we can look at the balance sheet. Let's just take a look at the inventory accounts, which should have updated. So if I go to the inventory sub ledger, we're now at the 6266 and balance sheet we're at the 6266. So the sub ledger ties out. Now let's deposit these two. So notice in undeposited funds, we've got this 4500870, representing those two items in undeposited funds, which we can see on the homepage are now indicated by this little red item here. Now remember, if you're using this full service system, if you were to use bank feeds, you've got to kind of be careful and say, where's the bank feeds going to fit into the system, given the fact that we've got these links between the create sales receipt and the deposit. We talk more about that or we will in the course on the bank feeds or the section on the bank feeds. But just to note that here, I'm going to go into this to connect this out. We get a pop-up. This pop-up allows us to check both of these off because I want to deposit them together because that matches the deposit that physically went into the bank, the amount that's going to appear on the bank statement, which I want to tie out to when I do the bank reconciliation, the bank reconciliation, being a huge internal control, tying out what we put in our books to that of what the bank is saying on their side. So we've got the checking account, the deposit, we're going to say that happens at the end of the night. So now we're kind of imagining what might actually happen in more closer timeframe. So it's the same day we got multiple payments that we were imagining are in cash, which is not likely with this dollar amount, but we're going to imagine those are cash and then we're going to deposit them at the same time at the end of the day. If I had all that money in cash, I want to make sure that I go to the bank and make the deposit for it. So there's the deposit and then the other side's going into undeposited funds. What's this going to do? It's going to increase the checking account by the full amount, 4500870, and show it as one amount instead of two. And then in undeposited funds, I believe it'll still show the two amounts so that we can take and tie off the increase and decrease in the clearing account of undeposited funds. Let's save it and close it and check it out. If I go back to the, let's do the balance sheet on this one. Well, I can't see undeposited funds here. So that's another reason why the trial balance is kind of nice because by default, the trial balance shows us the undeposited funds if there was activity in it and I can drill down on it and I can see the increases and decreases here. Notice that that one deposit is showing the two lines of activity here so I can take and tie out the sales receipts and the deposit, even though they were deposited in one lump sum. The other side goes into the checking account in one lump sum as we can see here with that deposit even though there's two line items because this is what's gonna show on the bank reconciliation which we need to tie out to the bank statement making it easy to reconcile. So let's close that out. Now, if I did wanna see the zeros on the balance sheet remember that you could customize the report and go to the advanced and I can show all or just show the active accounts which is typically what you wanna do if you show all of them, then you're gonna have a bunch of stuff because we have a bunch of unused accounts. But you can do that and you might wanna save this if this format as your internal report format by memorizing it so that then you can always use that same kind of format of the report when you're doing your internal checks. All right, so let's just take a look at our trial balance and I'll run the trial balance for the January through December and so this is including the two months on the income statement and you can check your numbers here if they tie out, then great if there's an issue then try changing the date range and see if it's a date issue on it. Remember you can drill down and make any adjustments necessary. That way we will be going through the transaction detailed report at the end of entering the second month of data which helps us to hone down drill down in on and find any problems at that point.