 QuickBooks Desktop 2023. Rental Estimate and Customer Deposit. Let's do it within to it. 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 guitar practice file. We started up in a prior presentation going through the set of process we do every time maximize the home page to the gray area view drop down high icon bar open windows list checked off open windows open on the left reports drop down company and financial PNL profit and loss change that range 010123 to 123123 and customize funds change 14 oh yeah K and reports drop down company balance sheet standard with the customization range and change in 010123 to 123123 and font in to the numbering changing 14 in OK yes and K there it is that's the set of process we've been doing every time going back to the home page in a prior presentations note that our primary source of revenue has been with the selling of inventory and that's primarily our focus because inventory is often more complex as we have to track the inventory but we also touched in on the service items and we thought about kind of a job cost system that might be similar to a bookkeeping company or a law firm in our case us having a staff in essence guitar teachers that we're going to bill out their time they enter the time we bill it out now we thought about kind of a rental setup so we've got our guitar equipment we're going to have people come in and rent the equipment we'll set up an estimate when they call in and request the rental we're going to want a down payment when they request it so that we will hold on to the equipment and if we're not going to give it to somebody else and make money on it elsewhere we want to make sure they're committed to the transaction that's why we want the down payment and then we can then create an invoice that will will seal the deal when they pick up the equipment or possibly when they return it and then of course we'll deposit and so on so uh we set up in a prior presentation in the list drop down item lists the kind of things that we would need to rent so we could have for example all of our equipment is rental a bowl and we're gonna and then maybe we'll make groups of those equipment but that's quite complex it's a lot easier oftentimes to say hey look this is the base rental set that it has two guitars it's got a microphone it's got an amplifier a drum set that's what you get for the set price of the 2000 if it's more than what you need it is what it is that's the baseline that we have here if it's not enough to what you need then we've got some add-on stuff for for like a drum set we added on it like a drum set or i'm sorry we added up an advance for the for the amplifier and another guitar for example so that's the general setup so there's there's our items now let's imagine someone calls in they're saying hey i'm calling in i want a drum set so we're going to say okay let's go to the estimate here and say well let's make an estimate to see how much it might cost you and and then we can we can go from there so let's say this is customer i'm just going to make another generic customer you're not even trying anymore with these generic i know customer number five customer number five quick add on the customer number five tab this is going to be on 227 let's keep that as the date this is our first estimate so it's it's populating just like an invoice i'm going to say okay so you want a band set you want to rent the band set number one and that's uh two thousand dollars there and then we've got the uh they want let's say they want another guitar or they want to increase the value of the guitar they're saying those guitars suck we want to step up and that's okay that's okay that costs another fifty dollars if you want a rental add on for the level up of guitars that you want so they're gonna want that and let's say they want two of those two level up guitars and then we're gonna say okay and then they also want another amp so we're gonna say they're gonna rental they not when they want another amp because they really want to piss off the neighbors and the one amp's not enough let's say they want four of those just for just for the hell of making our estimate here so let's say the the estimate then comes out to the two thousand three hundred let's actually make the equipment like this one a different let's make that forty dollars for the amp instead of fifty i'm going to make a change that i'm going to go to the list drop down i'm going to go to the item list and i'm looking for that rental that rental amp let's make so so this one the amp is forty dollars let's go back to my estimate yeah i got the wrong one this should be the amp there it is okay sorry for the confusion so it looks like an invoice but it's not an invoice it's not actually going to record anything but can be used then to populate the invoice what we might do from this point is to take that two thousand two hundred and sixty and say i'm going to have some set amount that i want to collect as a down payment and then we can enter the down payment and base it on the estimate if you want to follow through with the with this estimate so first let's let's just record it i'm going to say let's record the estimate save it and close it and so now if i go back to the home page we've made the estimate it's not going to have any impact on the financial statements but if i go to the customer center here and i go into the customers and i go to customer number five we now have this estimate so if they call up or if they come in asking for the guitars you know what they what they requested we can go into the estimate and check it out and make an invoice from it here so what we want to do now is to enter a down payment so what i'm just going to imagine it's two hundred dollars you might want to base it on the actual sales price like whatever 10% of the sales price but we're just going to make a generic two hundred dollars we're going to say okay if you want us to hold on to the guitars let's go back to the home page you need to give us some money up front so i'm there's a couple ways we talked about how to collect this advanced payment so you can go into those two ways this is basically under unearned revenue that we're entering at this point in time because we're going to get money before we invoice we created an estimate but we did not invoice because we haven't yet done the work we haven't rented out the stuff so we're getting paid before we do the work the easiest way to do that from a bookkeeping standpoint is to record the received payment first which makes a negative receivable which isn't completely proper from a financial reporting standpoint but it works quite well to link that to the to the invoice so again if you want to get into more detail on unearned revenue you can take a look at those two methods in the prior presentation again from a bookkeeping side i think this is a good way to go okay so we're going to say this is going to be customer number five customer number five tab we're going to say that we want 200 dollars from them on the 27th we'll keep that it's going to go into undeposited funds i'm just going to keep it in cash as our default there's no invoice to tie it out to because we're getting paid before the invoice what's this going to do when we record it well it's going to decrease accounts receivable even though it's not tied to a specific invoice creating what they call a credit something that can then be applied to a future invoice and the other side is going to be going into unearned revenues indicated here let's save it and close it and check it out so i'm going to say save it yes it's saying a credit for the overpayment will remain on the customer's account now a credit just just so you know the terminology if you know debits and credits it can get kind of confusing when you start talking to like like accounting software here saying it's going to be a credit or when you talk to the bank and they say they're going to credit your account and whatnot you start to think of credits as meaning something other than like a debit or credit but notice the all this came up from just debits and credits which don't have any positive or negative meaning originally because this this customer represents a receivable to you generally an accounts receivable and a credit would mean that we're lowering the accounts receivable so it's going to be a credit or a lowering of the accounts receivable so i'll just so you know for the terminology let's say okay let me show you what i mean here if we go to the balance sheet we're going to say okay let's go into the accounts receivable and if i go down here to the payment we got a payment down here of the two hundred dollars now i put it to customer number one i'm going to change that to customer number five let's do customer number five because that's i'm going to double click on this and let's change this payment let's bring it to customer number five and see if i can make that and say okay yes okay so there it is now it's going to customer number five all right let's close this back out and so there we have that so you can see it decrease the accounts receivable so if you think about this from a debit and credit standpoint the credit is a lowering of the accounts receivable that's kind of why from a bookkeeping standpoint it's a credit it's a lowering of the accounts receivable that has not been applied out to an invoice which is going to have to be applied out to a future invoice would be the general idea because of the accounts receivables a debit balance account we lowered it we credited our accounts receivable account okay so then obviously from the customer standpoint when i say i'm lowering i'm crediting your account i'm lowering the amount that you owe us that's kind of a good thing oftentimes so if you go to the credit card company and say and they the credit card company says we're gonna waive the fee i'm gonna credit your account well that's a good thing we start to see that as a good thing because that means our account that we owe them is going down but it really comes from you know just bookkeeping debits and credits debits and credits aren't good or bad but in any case let's let's go into the customer receivables and go into the customer balance detail and we can see here for customer number five now that we've got this negative balance that's where it's not exactly proper from a financial reporting standpoint because we should be reporting a positive liability not a negative receivable for customer number five however from a bookkeeping standpoint we have the support ledger of accounts receivable it works quite well from a bookkeeping standpoint and we can always do adjusting entries at the end of the year to properly match out receivables and payables if we want to use that method using basically kind of like adjusting entries process so we talked about that in prior presentations if i go to the customer center for customer number five now we can see what's going on here we got the payment the prepayment that we can tie out to the invoice when this customer actually comes in for the guitar renter rental or possibly when they bring the equipment back or whatever and then we've got the estimate that we can use to create the invoice when they come in actually rent the guitar now the other side of this transaction went into the balance sheet for undeposited funds let's just go ahead and make that deposit now so i'm going to go back to the homepage and finish this transaction i've got a one in the deposit area representing the one sales receipt so i'm just going to go into there and say we imagine we deposit it at the end of the day that's the only one we have thus far checking it off okay as of the 27th this is going to increase the checking account and decrease undeposited funds back to zero save it close it check it out we've seen this transaction in the past i'm doing it a little bit more quickly double clicking on the checking account we've got the deposit then being made undeposited funds has gone down it's not visible because it's a zero balance if we want to see zero balances with activity we can customize advanced and i want to see active stuff okay yes and i want to see it so i can drill down on it and see that it went in and out of the undeposited funds so that looks proper closing that out now in the future if i go back to the homepage we expect customer number five to come in for the rental and then we can create our invoice from the estimate applying out the received payment to the invoice you know at that point in time so that's what we'll we'll look forward to in future presentations let's first go to the reports drop down and check our numbers at this point with the accounting and taxes trustee tb trial balance 010123 to 123123 customize it changing the fonts up to 14 so we get let's go to 16 okay yes and let's see where we stand on our two legs of debits and credits here see if those two legs are strong so we're going to go through here and say if you tie if it doesn't tie out try changing the date it might be a date thing and use your drill down zoom in feature to make any changes necessary we will be doing a transaction detail report at the end of the month's data import to double check our numbers a bit more at that time