 QuickBooks Online 2024, entering the sales receipt form and deposit form. Get ready and some coffee because QuickBooks Online is even quicker to the trigger than QuickDraw McGraw. First, a word from our sponsor. Yeah, actually we're sponsoring ourselves on this one because apparently the merchandisers, they don't want to be seen with us. But that's okay whatever because our merchandise is better than their stupid stuff anyways. Like our Accounting Rocks product line. If you're not crunching cords using Excel, you're doing it wrong. A must-have product because the fact as everyone knows of accounting being one of the highest forms of artistic expression means accountants have a requirement, the obligation, a duty to share the tools necessary to properly channel the creative muse. And the muse, she rarely speaks more clearly than through the beautiful symmetry of spreadsheets. So get the shirt because the creative muse, she could use a new pair of shoes. If you would like a commercial free experience, consider subscribing to our website at accountinginstruction.com or accountinginstruction.thinkific.com. Here we are in our Get Great Guitars 2024 QuickBooks Online sample company file. We set up in a prior presentation opening up the major financial statement reports like we do every time the reports there on the left. We're in the favorites. We're right clicking on that balance sheet so we can open a link in a new tab. Same with the profit and loss otherwise known as the income statement and right clicking the trial balance to open those in a new tab. If you don't have that trial balance in the favorites, you can search for it. Let's tab to the right, close up the hamburger and change the range up top. We're going from 010124 to 022824. Let's do a side-by-side month breakout here and then we'll run it to refresh it. Tapping to the right, closing up the hamburger and same activity of 010124 tab 022824. And then let's see a month-by-month side-by-side refreshing the report one more time on the trustee trial balance. Closing that hamburger and changing that range 010124 to 022824 and then we'll run it to refresh it. We could do this one side-by-side as well although it's not as useful on the month-by-month breakout. Alright, let's go back to the balance sheet. This time we're continuing on with the second month of operations. We're into our normal sales cycle so some of these forms will be repetitive but we'll enter them a little bit faster. We'll add some more people, we'll add the customers as we do the data input and we'll link some of the transactions together in one presentation so you can see how the flow goes through multiple forms. So this time if I look at my flow chart over here, this is the desktop flow chart but we're using it for the online because we're just looking at the flow of the forms which is basically the same for any accounting system. We're on the customer side of things now recalling that when we're selling stuff we could have a very easy sales system if you're in like gig work or something like that and you're just getting paid let's say by YouTube or something then you could just wait till it clears the bank and record the sales with a deposit form but typically in a full-service business you're going to need to use the sales forms either on a cash-based system where you're at a cash register or something you might enter the sales receipts form or if you have an accrual system where you have to do the work first invoice the client then you're going to have to enter an invoice and track the accounts receivable to then receive payment on the invoice. We will imagine this one here we're on the sales receipt we're in the store at this point in time we're collecting the money at the same time we do the work we're sick of trusting people trusting people for suckers we get paid at this point in time and then we give you the inventory because and we have locks on the doors and bars on the walls and whatnot so that we because even though we have a really nice couch and stuff so it still looks nice and don't be just don't want to come in to buy some guitars and stuff but it's secure that's people feel safe so now we've got the the sales receipt now when you enter the the information into the cash register note that it's going to record the sale at that point in time cash is going to be received or a credit card payment or some kind of electronic transfer possibly a check you could put this sales receipt directly into the bank account but typically if you're at a cash register you don't want to do that because part of the payments you might be receiving is like cash payments for example in which case if you deposit them directly into the checking account they're not physically in the bank and you're going to take those multiple cash payments at the end of the night because we do it nightly here because we don't want to hold on to too much cash because it's dangerous we're in we're in California for crap so then we go to the bank and we deposit it into the into the bank account as one lump sum rather than as a bunch of different sales deposit so that when we reconcile we can see it come through the bank feeds a similar thing will be the case if you have say credit card payments because the credit card company will batch your payments together deposit them into the checking account as one lump sum so you're going to want to then use a clearing account to go in and out of so that you can record the deposit as one lump sum that will match the bank reconciliation so we'll do both of those transactions in one one presentation this time let's go to the first tab selecting the good old drop down we're in the customer area we're not going to the invoice we're doing the sales receipt I'm not going to give you the guitar before you pay me this time I've had enough of that I've had enough of that kind of business I see where we're at now I see what's happening here so we're going to say this is going to be Garcia guitars is going to be our new customer now if you're at a cash register you might not even know the name of the people you're selling to because all you really you might have a generic customer because you would like their name for the mailing address or what but but they might only be one off customers depending on what you do if you sell if you sell at a food truck or something you're probably not collecting people's names unless you need to call out the name to give them you know the food so in any case I'm going to say tab and so we've got the information here so that looks good we would like to collect their email possibly for our mailing list but we don't need to send out this form to the client we could though we could give them the receipt by email as well but we're not going to put the email in tab and through it tab and through we're going to say this happened on the 20th let's say O2 for some O2 20 24 let's say and we'll tab through numbers populating automatically the location will help us with the sales tax calculation if you're in California or if you're in you know the United States which will be dependent on the location that you're at because it's a state and local tax now the federal tax and then the payment type so if we get a check then it would be pretty clear that the sales receipt would enter our bank at the same amount as the check amount but if we get cash that's where we might have that system where we're going to have to deposit the cash at the end of the night we might end up depositing it like three times a day here considering considering because that's just a safer thing to do considering where we located our store but you know that battle group that deposits together now if you have a credit card then again you're going to have to use the clearing account so if you have multiple forms of payment then you're probably going to use one system in other words you don't want to use like deposit the clearing account for some of your sales and then the checking account for others because it's likely that you'll mix them up as you're communicating with a client you want to keep it on one or the other so if all of your payments are in electronic transfers and they're going to hit your bank account in the same format as you receive them then you can go to the checking account but if you get multiple forms of payment like cash versus credit card versus checks versus electronic transfers then you're probably just going to want to use one system the clearing account so that you're not toggling back and forth between the two so I'm just going to pretend it's cash again even though it's going to be a large dollar amount because the cash I think is easiest to visualize so then we're going to say that it's going to be the product we're going to have is alright so we're going to be putting it into the clearing account I think I said that instead of the checking account and then it's going to be we want an EPSP that we're imagining we're selling at the cash register of the store we're selling two of those so that's nice those are expensive that's a $600 guitar accord and this is not real epiphone you can't buy it for that I don't know how much it costs okay this is just a practice problem so this is an ELP that's our standard guitar we sell a lot of those that's like our go-to and so we're going to sell two of those and so that times 500 those are both subject to sales tax this being populated by the system because we entered our items in a prior presentation so now we're in month two everything flowing along nice and easy I can have someone do the data input that doesn't know anything about anything they basically sleep under the counter until someone brings them a guitar and then they can punch this in without having to with one eye still in sleep mode and that's how easy it is because we set up all the other stuff so then over here we've got the amount now the sales tax that we're going to have is based on location I'm going to change it to the generic 5% for our practice problems so generic 5% on the sales tax which is a state and local tax in the United States similar to a usage tax in other areas what's this going to do it's going to be increasing the not that accounts receivable it's like an invoice except that accounts receivable doesn't go up we're going to be getting paid 2003 10 in the form of we're imagining cash that we're going to be receiving the others I know that's a lot of cash it's kind of weird but that's the thing and then the other side is going to go to the revenue account but it's going to be going to it for the 2200 what we earned the difference the 110 not going to the income statement but being a balance sheet account for sales tax payable because that's the price of us doing business you're supposed to be protection money but I don't feel like my stuff is safe but any case that's going to the for protection money to the state and local and then and then we also have the inventory that's going to be going down not by the amounts on the form but driven by the items and then the cost of goods sold which is the expense account related to us selling is going to go up the net impact on net income being the 2200 sales price minus the cost of goods sold and the inventory sub ledger will be impacted going down in unit as well as dollar amount who that's a lot going on let's go ahead and save it see all that's happening even with that half asleep worker that just crawled out from under the counter to ring up the thing because someone brought a guitar up so now we're going to go to the tab to the right and check it out let's go to the run the report and we put it not into the checking account but we put it into the payments to deposit so we're going to go into there and there it is there's the 2003 10 that's the full amount including the sales tax let's go back let's go to the income statement and run that one and we can see in the sales of product there it is February sales that's for the 2200 on the sales receipt that is in two lines because we had two different line items it's trying to track I think the inventory on a item by item first in first out method and then the difference between those two went back to the balance sheet not on the income statement for what we have to pay for the protection money to the government even though I don't feel very protected so we have over here the that's going to go to these items because that's who we pay the money to so that's they're going to be the sales tax and then we're going to go back to and then also the inventory is going to go down so if I go into the inventory and we go into that then we could see a decrease of the inventory by amounts that aren't actually on the form because they're driven by the items notice there's two items here and you see three items over here you might ask why is that the case I think they're trying to track on a first in first out basis method which has different layers and whatnot so I think that's kind of why that's looks like that in case you're wondering if you go to the tab to the right then the cost of goods sold is the other side of that so if I go into the cost of goods sold boom we have that and we could see the net impact on net income of the sales receipt is this 2200 minus the 1760 gets us the net income impact of the 440 now if you asked the guy that crawled out from under the counter to put the data input to input this invoice and make the sale would they know any of this no the guy wouldn't know a thing but he could still do the data input that's what that's how good the system that we have is to that's set up all right now we also have a sub ledger if I go to the tab to the right and then I right click on it and duplicate it we can track the inventory which went down on a sub ledger so let's open that up and let's go to the reports on the left and close the hamburger and type in inventory valuation summary and so there we have it so now we've got the units of inventory and the cost adding up to is this the current day I need to bring it up to 0 to 28 to 4 because I'm working in the future I don't work in the present I work in the future 7 9 3 8 so that should tie up to what's on the balance sheet for inventory 7 9 3 8 very nice now if we track this form internally I'm going to go to the first tab and I'm going to go into what I would call the the customer center or the sales on the left it's less likely that we'll need to go in here because we're not tracking the invoices but we might want to see our sales over here as well so if I go into all sales I could then search by the by the transactions of sales receipts and there's our sales receipts I don't need the whole invoice tab if I'm making my payments or if I'm working at a cash register because I'm not tracking the accounts receivable thank goodness because that's kind of a difficult thing to do but if I have to track accounts receivable often in my own business so so I'm not against that that's you got to do what you got to do but it's easier not to have to track the accounts receivable and just say I want you to pay me when I do the work right here right now will shake hands things and then that's it but then I can go to the recently paid items and then Garcia guitars here we have it if I go into that and then we have the sales receipts so it's been paid it's done good and done ready to go okay so let's do another one note that it's in it's in undeposited funds now so the next step is to take it out of undeposited funds or deposits to be paid however I'm going to make another sale so that we can see the grouping system that we need and why we need to use undeposited funds why we didn't put it directly into the checking account that is let's go to the tab to the left and just note if I was to look at the deposit right now which is the plus button then you can see that that sales receipt is now being populated up top so let's add another sales receipt let's say we're sitting at our that person went back to sleep under the under the under the sales table but then someone else bought a guitar and they woke him up and so he's like okay I'll enter the guitar dude so we go into a sales receipt he's like what do you want what's your name Anderson repeat customer Mr. Anderson so oh I know you dude well another guitar that's great your great customer and then Anderson's got all these guitars that we're going to purchase so the payment we're going to say it's cash again most likely it would be like a credit card would be a similar kind of thing but I'm just going to imagine cash because I think it's easier to visualize the physical payment that's why we're putting it into payments to deposit instead of directly into the checking account and then we're going to say this is going to be a DUC which is a ukulele so he wants two of those at $32 and then we're going to also say that he wants an EEPR which is an epiphone Riviera guitar it's like okay oh dude that's a cool one I was playing it in the store like a second ago is really good GI USA this is going to be a GI USA a Gibson USA that's a classic man that's a classic okay alright and then so if we add that up we're going to say that that comes out to 2094 and the sales tax I'm going to have to click down here to have it calculate I'm going to make it go to the generic five so what's this going to do it's the same thing it's going to be going when I record this it's going to be increasing not the cash account but the payments to deposit for the full amount similar to an invoice but instead of AR going up the deposit account because we got paid at this point in time 2001 9870 the other side going to the revenue account the amount we charge not including the sales tax 2094 the sales tax being a liability account going up for $104.70 then inventory is going to go down not by the amounts on the sales receipt but driven by the items and the cost of goods sold the expense account related to us selling these guitars is going to go up for that same amount that the inventory went down net impact on net income is the sales price 2094 minus the cost of goods sold and the inventory units will be going down as we in units as well you you got that store sales guy that's going to go back to sleep under the counter oh yeah dude that's cool I can totally explain that and so we're going to say save it and close it and then let's go back to the balance sheet and run it ok so then in the in the payments to deposit we're going to see then that we have our deposit for the full amount for the next invoice that includes the sales tax back if I go to the profit and loss we now have two amounts that are in here in the sale of product it put them in here possibly in multiple line items but we can see the number so we can see all of these are the sales price not including the sales tax the difference between the sales price and the amount that we've received or collected is going into a payable account for the the state over here it's our protection money we send to the state so they can laugh at us when our stuff is stolen they just laugh in our face haha give us more sales tax and then we're going to say that's going to be up here and then we also have the inventory what is that the right spot yeah and then inventory is going to go down and so we have inventory if I go into the inventory and we see there's Mr. Anderson inventory is going down by amounts not actually on the sales received but driven by the item so the system knows just like when you check something out at like the grocery store and you have that auto check out you know the sales price but you know the systems actually doing more work and recording the cost to and then we go into the cost of goods sold on the income statement and we have then the cost of goods sold broken out net impact on net income sales minus the cost of goods sold and if I go to my inventory we have a sub ledger for the inventory 6266 breaking it out if I go to my sub ledger boom we've got the inventory 6266 and our units of inventory broken out alright so now we're like okay we've got all this money and we know that we know that our protection money isn't going to be helping us out and so we're hanging on to too much cash man you're hanging you're pulling too much time you gotta pull you gotta put that money in the bank so we've got this money we're going to the bank we're going to we're going to we're going to look out and make sure that the coast is clear and then we're going to go to the bank with our $4,508.70 and see if we can make it make it there so then so so so I'm going to pull that out of here and we're going to put it into the checking account so we can do that with the deposit form so if we go back on to the first tab we're going to say that if we go into the deposit form bank deposit form then where it's going to go into the checking account let's put it at the same day so it's the end of the day now but not too late we don't want it to be at night because it's risky at night you know you got to be in the middle of the day and you have our escort we have an escort helping us out to transfer the money and take it physically to the bank but we're not going to put it in the bank as of these $2 amounts but rather combines them together into one deposit so I'm going to select both of these why do we need to do that because if it showed in the bank account as these two separate deposits we wouldn't be able to tie it out to the bank feeds or bank reconciliation because the bank reconciliation is coming from the bank which will have one deposit of $4,508.70 instead of two deposits of these two amounts and we'd have to you could combine them together when you do the bank feeds or the reconciliation but if you do that it gets complicated so that if you find yourself doing that you're combining things together when you do the bank feeds or bank reconciliation your system probably isn't optimized that process should be easy and the way you make it easy is you use this clearing account now we did it with cash here but you might do the same thing with a credit card payment which could even be a little bit more complicated because you'll have to figure out how the credit card payment groups the payments together and then gives you the deposit and you have to work with them to get the system set up and they might charge you fees so you might actually have to add a fee down here going to like a fees account like bank service charge or something bank fees and services and then you might have something that would be like a negative $50 or something in here $50 boom and so then it would bring it down so you might end up needing to do something like that if you're dealing with the credit cards or some other intermediary that's helping you to collect the deposits the money group them some other financial institution and then get them over to your bank the bottom line is we want it to be hitting our bank in the same format in our system as will actually be in the bank reconciliation alright so we'll do that this is going to increase the checking account by that dollar amount and decrease the funds to be deposited account and so let's save and close it and then if I go over to the balance sheet and run it we're going to say let's go into the checking account and so now we have the deposit happening the deposits happening on the 20th here it's kind of thrown us off because I have this one at the end because we kind of went out of order for that for the loan payment so we can see in both at the same time but there's I believe the deposit we just did and then if I go back and we take a look at the payments to deposit we can see it's back down to zero like a good clearing account should be it should just go up and then right back down again and it shows you the ins and outs it doesn't show us a one lump sum but this one gives you the detail so you can tick you can tie and that's what should happen it should go up and back down you should be able to tick it out tick and tie it off and it goes back down to zero that transaction had no impact of course on the profit and loss because the transaction that had an impact on the profit and loss was the sales form because that's when we actually did the work alright it's time to check out the trustee trial balance this is where we stand this is where we stand on the balance sheet this is where we stand on the P&L and we can combine them both together and just think about the trustee trial balance to see where we stand and so here here is where we are this is where we are at at this point in time remembering the trial balance balance sheet on top of the income statement assets liabilities equity income and expense checking account asset we've increased the checking account in this one we didn't have to use the accounts receivable that's the other asset for invoices we have inventory we dealt with inventory here it being an asset we have the investment account asset payments to deposit an asset account kind of like a cash account but it's in other current assets prepaid insurance asset accumulated depreciation contra asset that's linked intimately to the property plants and equipment in our case furniture and equipment then that assets represent what the company has liabilities represent who has claimed to them liabilities and equity who has claimed to the assets liabilities third party accounts payable visa the government for the for the sales tax the government for the payroll tax and then our claim opening balance equity investments are orders investment in our equity account like retained earnings if it was a corporation and everything from equity down to the income statement income and expense accounts down below could be squished into one number everything from here down below is the income statement so if I was to take the credits minus the debits I would have a credit balance of net income and that net income could be thought of as part of owner's equity or retained earnings so the balance sheet is one number should be one number of retained earnings in essence and then the investment rate so if I can see that let's just show that if I go up to 010125 and 010125 just to show that process every time so now the whole income statements been squished together in the owner's equity similar to the retained earnings account if it were a corporation