 QuickBooks Online 2023 bank feeds. Match and receive payment form to bank feed deposit. Get ready to start moving on up with QuickBooks Online 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 our bank feeds 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 incognito window to open the sample company or another browser. If you're using Google Chrome, you can open the incognito by selecting three dots in the browser new incognito window typing into the search engine then QuickBooks Online test drive. We're using the sample company to compare the accounting view the one the bank feeds practice file is in and the business view the one the sample company is in. You could toggle between the two views by going to the cog up top and switch the view down below. Let's duplicate some tabs like we do every time putting reports in them right click in the tab to do so and duplicate right click in the tab to do so and duplicate back to the tab to the middle reports on the left hand side. Let's open up that balance sheet report on the left by the way if you're in the business view the reports are located in the business overview and then the reports just so you know where they are on that view. Let's tap to the right open up the reports on the left hand side this time the profit and loss the P and the L closing up the hand buggy change the range from 010123 to let's say 12 hold on a sec let's go from 010122 123122 and then run it and then I'm tapping to the middle scrolling up closing the hand buggy change the range 010122 tab 123122 and run it to refresh it also opening the bank feeds because that's where our focus is these days first tab let's go to the banking on the left banking up top closing the hand buggy if you're in the business view by the way the bank feeds are located in the bookkeeping and then in the transactions up top and in the bank transactions okay so now we're focusing in on the bank feed deposit the revenue cycle go into the flow chart to just get a recap of what we're doing here the revenue cycle depends on the kind of industry you're in at the end of the cycle we do expect the checking account to go up so it would link into the bank feeds in that way but it will be dependent upon the flow that is what type of business you're in are you in gig work where you can just wait till it clears the bank record revenue with the deposit are you out of cash register we're gonna have to record the sales receipts which we'll talk about later or are you in a system where you have to do the work first and invoice the system we're talking about with these presentations in which case you have to enter an invoice and then you're gonna have to receive the payment in some way shape or form from the client or customer and then you're gonna have to make the deposit where are the bank feeds gonna fit into that process we have at least three nodes it can fit into we can create the invoice increase in accounts receivable other side going to sales and then just wait till the revenue comes in through the bank feeds and connect the bank feed to the invoice and the the bank feed then will create the received payment making a deposit in essence with the receive payment we did that last time or we can have this time we're gonna have the invoice creates an increase in the accounts receivable other side goes to sales and then we can record the receive payment when we get paid so when we get paid we can record the receive payment here where we have two options we can make the deposit directly into the checking account with the receive payment and then use the bank feeds to double check that meaning we're just using the bank feeds to kind of do our bank reconciliation in that case it's not going to record anything new it's just going to double check what's on the bank to the books or we can make the receive payment go into a clearing account which is payments to deposit or like undeposited funds and then we can connect the bank feed to the receive payment which theoretically would take it out of the clearing account and then record it into the actual deposit with a deposit form now note that when you have the receive payment whether or not you're going to put it into like undeposited funds or the clearing account one of the main functions of that would be that you need to group your receive payments together because the credit card for example is going to group multiple payments together or because you have multiple cash sales for example that are going to be grouped together when you actually get the deposit going into your checking account on the bank side of things that's why you would need to put it into a clearing account and then record the deposit grouped together in such a way that it's going to be reflecting the same amount that's going to be on the bank statement so if you have that kind of scenario then you're kind of forced to record the receive payment and make it go through undeposited funds and then you're going to have to record the deposit on your end because you can't wait till it clears the bank because the the deposit that's going to clear the bank is going to be including multiple receive payments or multiple sales receipts right it includes multiple sales that are included that's where the problem is so you can have to figure out what the grouping is of the transactions so that you can match out what's on your books to what's on the bank's books but if you're in a situation where you're going to get paid with an electronic transfer or you're going to get paid by check for example or or even if it's cash but you get it's you know single sale by single sale mainly check or electronic transfer then you can record the receive payment here directly into the checking account and match it to the bank feeds because the dollar amount will be the same one transaction by one transaction type of thing so let's let's look at those options and hopefully that'll be making it a little bit more clear i'm going to make a new tab this time i'm going to right click and duplicate the tab let's pull this to the front and and i'm going to do my sales receipt in here now the one i'm going to use this time let's let's use this uh 420 so let's say we use that 420 so i'm going to go up top and say all right let's have a new item and let's say this time we're going to say an invoice first so let's enter an invoice and let's say this is for customer four just to change things up customer number four and boom and bam and let's say this one is on let's say oh nine i think everything was in let's say 10 oh one uh 22 let's say and then i'm going to say i'm just going to create a service item again let's just say hours and let's say the rate is five what did i say it was again i forgot 420 it's 420 man 420 okay so there we have it so so this is going to then increase accounts receivable by 420 the other side is going to go to revenue by 420 and we're going to be tracking the sub ledger for the customer number four so that we can receive the payment on it just like normal on the invoice this would happen of course before we had the the receipt of the payment that we're tying out to in the bank feed so this would be the first thing that happens in our scenario in our story so we're going to say save it and close it boom and so then the next thing so now we can check that out if i go to my balance sheet and run it i'm going to say okay there's the checking account there's the accounts receivable accounts receivable there's the 420 invoice boom shaka locker all right and then the other side if i go back on up is on the income statement income statement services and if i go into that there's the 420 there okay going back up and then if i go to the first tab and i track this internally i can go to my sales my customers close up the hamburger and down to customer number four we've got our invoice the next thing we would expect to happen is to receive the payment by the way if you're in the business view where's that located it's under the get paid and pay area and then the customers on the left so the next thing you would expect is the receive payment option last time we connected the the deposit that cleared the bank directly to the invoice this time i'm going to record the receive payment and then try to connect the bank feed from there so we can also find by the way that open invoice we might track it another way by going to sales and then and then you might go to all sales and then sort your invoices this way by say the open invoices so that's another way that you could track that which is in a little slightly different place on the business view that's under bookkeeping and then transactions and then all sales that's where it is on the business view okay so given that then we could make our receive payment so let's do that so now we're going to say okay we got paid we're going to get paid by it so we're going to say all right got the money say it happened on this 10-2 let's say and let's say that we got whatever you know cash let's just say it was a check let's say now the options are at this point in time we can put it directly into the checking account right we can put it into the checking account which means we're going to have an increase to the checking account for which is going to be recorded not with a deposit but a receive payment and a decrease to the accounts receivable the receive payment will decrease accounts receivable that's like the defining factor of the form or we can put it into this clearing account which is called payments to deposit and then make the deposit into the checking account now normally when you put it into payments to deposit one reason you do that is once again because you might have multiple items that are being received possibly with cash or possibly by credit card which are going to be grouped together by the credit card company or you when you make the physical deposit into the bank and therefore you're going to have that clearing account to help you to tie out what goes into your checking account not only in terms of total dollar amount but the units of dollars so that you can do the the checking to the bank account possibly with the bank feeds to help you out with the bank reconciliation so if that were the case then I couldn't I couldn't really tie the bank feed to the receive payment I would have to actually make the physical deposit in my system so that I can do that grouping thing but you also might say well if I'm going to tie the bank feeds to the receive payments maybe I'm just going to put it into the payments to deposit as another double check so when I get to the bank feeds the bank feeds will take it out of payments to deposit and move it into the checking account so it'll still record a transaction so let's just see what that would look like I'm going to I'm going to save this see what are you talking about for crying out loud okay let's just see what I'm talking about here I'll show you so I'm going to go up top and we're going to say then this is going to decrease the accounts receivable so if I go into the accounts receivable we've got a decrease there for the payment that's good the other side didn't go into the checking account yet we put it into this clearing account which is the same as undeposited funds in the desktop view and there's the 420 payment so nothing happened to cash because I mean the income statement because income was impacted when we did the invoice now normally if you were going to make a deposit then if I hit the plus button and we're going to say the next step would be to make a deposit in our flow chart here if I was going to make it not with the bank feeds but just enter a deposit you've got this like list so that if there were multiple payment items you can group them together so that it will be recorded in your checking account in the same grouping as what's going to be on the bank statement because if you got multiple cash deposits or multiple credit card deposits you want to put them into your checking account in the same grouping as they're going to show on the bank statement that's kind of like the point but but now I'm going to say instead of doing that I'm going to say instead of doing that why did it what was that I don't I just want to log out of this deposit form we're going to try to connect the bank feed to it to record that transaction which should move it from here to the checking account so let's do that I'm going to go okay if I go to the bank feeds then and I look at my transactions here's the transaction it didn't pick it up it's not seeing it directly so let's go into it and the only way it would see it to match it is by by dollar amount and possibly by date so let's go into it and say okay I want to match this to an invoice if I go into the match then it's pulling up that payment so now you can see it saying okay now I see the payment that we're matching to so there's the suggested matches one connected so now I'm going to record this which should record the the the deposit so the next transaction so I'm going to it's actually going to do a transaction so I'm going to save it and so now it's recorded that and if I go to my balance sheet and run it I should have a checking account item within it for that for that deposit of the 420 let's check it by dollar amount over here there it is right there so now it's recorded with a deposit form here and it made the deposit for so if I go into it it made the deposit form and it looks just like that deposit form that I was gonna that I was showing you that we could have done on our side all right and then the other side decreased the clearing account the other side decreased the clearing account and the payments to deposit and boom it's back down so now it actually made a transaction now the other way that you can do this is if I wanted to connect it to the second node is I can record the receive payment and make a deposit at this point in time so let me just show you that I can say okay let's go to the let's do that again this time I'm gonna do it for this time I'm gonna do it for the $300 so I'll go first tab we'll say let's make another invoice boom invoice and I'm gonna say customer four five customer number five I don't know why I even need to make a new customer I could just but no I just want to want to make it all differentiated by customer makes perfect sense stop questioning my method me stupid head trying to tell me how to do my thing I figured this what was the dollar amount again the dollar amount was 300 300 okay so this is going to increase accounts receivable the other side's going to go to sales because it's an invoice and the sub ledger for customer five will also be reflecting that as well so let's save that and close it let's go to the balance sheet just to double check it so now we've got the accounts receivable went up customer number five 300 boom other sides on the income statement I got to refresh it if I want to see it which I do so I'm going to refresh it and go into customer number five there is that one there's the 300 okay going back on over then the sub ledger is impacted and if I go into the first tab and look at my customers over here I now have customer number five with an outstanding item the next thing we would expect to happen is we receive the payment so again you could wait till it clears the bank and try to connect the bank feed to the invoice but we're going to record the receive payment and deposit it directly into the checking account with the receive payment thing this time instead of using the clearing account so I'm going to say let's do a receive payment we got paid we're going to record it on our end and I'm just going to not put it into the into the clearing account but rather directly into the checking account so now it's going to go into the checking account with a received payment form instead of a deposit form but the transaction will go into the bank that means when I check it to the deposits it's just like I'm checking a normal deposit doing normal bank reconciliation stuff right because I'm not actually going to record a new transaction with the bank feeds now it's just going to verify the transaction that I did record ties into what happened on the bank side so that's just normal bank reconciliation stuff so I'm going to go back on over to the balance sheet and I'm going to say all right now if I go into my checking let's check out the checking then this one was for $300 I should have a sales uh receipt it should look a payment type of form there it is I think that's the one for 300 so if I go into that there it is for customer number five and I scroll up to the top the other side decreased the accounts receivable so I go into the accounts receivable and we can see that uh what happened there we go so that has decreased so we've got the increases and decreases this is what happens in accounts receivable you should be able to take and tie stuff off it goes up and then it goes down invoice and then you get the payment and then the other side is going to go on to uh if I look at my my detail over here on the customer side of things for customer number five now I've got the invoice and the payment so if I look at the invoice it has now been paid matching the payment so that looks good and then if I go to my bank feeds and I wait till it clears the bank I might refresh it and maybe that'll help it to kind of see it so if I refresh it maybe then it might pick up maybe it'll pick it up automatically so then I'm going to go down let it think yeah it does so so there it is it picked it up just by the dollar amount so then it said hey I found a match that's what it's saying I can I speak quick books so I'm interpreting it for you says it's just like that it's like hey dude I found a match so we have the match here so now this isn't going to do anything when I record it because I already recorded in essence a deposit so this is just saying this is just matching which helps me out with my bank reconciliation which is the full service accounting system we're not using quick books in this case to to make the financial statements we're just using quick books to double check to verify the transactions in the checking account which helps us out with just a normal bank reconciliation so I'm going to say match on that and there it is no no our difference happened over here to the to the to the actual transactions in my bank statement it just verifies so now we've we've tied it we've tied a deposit to the invoice we've tied a deposit to the received payment whether we put it into undeposited funds where it records a new transaction taking it out of undeposited funds with a clearing account payment to be deposited pushed into the checking account we've tied it to the received payment that acts like a deposit where the bank feed doesn't do anything except match help us out with the reconciliation and then next time maybe we'll do one more and record the actual full service where we record the actual deposit and then we tie the bank feeds into that and this would be something that you would have to do if you deal with like credit cards that are going to make deposits comprising of multiple received payments or multiple sales receipts or you have cash that you're going to deposit which comprises of multiple sales receipts or multiple received payment forms we'll dive into that more next time