 QuickBooks Online 2024. Receive payment transaction form. Get ready and some coffee because we get things done on schedule with QuickBooks Online 2024. First a word from our sponsor. Actually we're sponsoring ourselves on this one because apparently the merchandisers they don't want to be seen with us but but that's okay whatever because our merchandise is is better than their stupid stuff anyways like our crunchy numbers is my cardio product line now i'm not saying that subscribing to this channel crunchy numbers with us will make you thin fit and healthy or anything however it does seem like it works for her just saying so yeah subscribe hit the bell thing and buy some merchandise so you can make the world a better place by sharing your accounting instruction exercise routine 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 reports left hand side in the favorites right clicking on the balance sheet opening the link in a new tab right clicking the p&l profit and loss income statement opening in a new tab same with the trial balance right click open in a new tab if you don't have that trial balance in the favorites you can search for it over here tabbing to the right closing up the hamburger we're going to change that range for the first month of january 2024 oh one oh one two four tab two oh one thirty one two four tab and let's go for a run to refresh tabbing to the right closing up the hamburger and changing that ranging oh one oh one two four tab oh one thirty one two four tab and running it so we can refresh in a tab and it to the right and it closing up in the hamburger and then the ranges they are in changing we're going from oh one oh one two four tab oh one thirty one two four and run it one more time let's go back to the balance sheet remembering quick recap we set up the beginning information after we created our company file the setup stuff generally in the cog under the your company area we set up the lists chart of accounts products customers and vendors and the employees we then entered transactions typical for when a business starts first needing cash so we get cash either by putting the money in ourselves the other side going to equity or taking out a loan the other side going to a liability once we have the cash we took the cash to buy the stuff that we need to invest in to make money that was the property planting equipment so that we had our guitar shop that has all the cool furniture in it and then we bought the actual guitars starting with a purchase order that we then received the guitars with and wrote a check for so now we have guitars in our guitar shop we finally made some sales of the guitars now so we're actually generated some money last time or possibly not money but we have the sales so we go to the profit and loss last time we entered some invoices here now note that we still haven't actually received any money even though revenue has been recorded on the profit and loss because it was done with an invoice sent to the client so we're imagining maybe we shipped them guitar we didn't get paid yet for so we're hoping they pay us for the guitar and so now we're going to record the receipt of the cash on the guitar which would be a received payment type form quick look at the flowchart just to recap the sales cycle type of thing this is a desktop flowchart but it's just the flow of the normal operations for basic at most accounting systems so we bought the inventory with a purchase order which doesn't actually record anything and then we paid for the inventory putting it on the books and then we once had the inventory we made an invoice note that the sales documents are either an invoice or a sales receipt the sales receipt typically being the form used if you're in the store for example in a cash register type of situation you can imagine the sales receipt we started with the invoice which is an accrual form because it increases the accounts receivable this being typical to a job cost system often found in like a landscaping or in company or in a bookkeeping company CPA firm law firm and so on where we do the work first or in this case we're imagining we gave the inventory and we're going to collect the money on it so the next step is then the receiving of the payment so obviously the payment could be received in multiple different forms used to be most common that you get a check in the mail right but maybe that's not as common these days you might get some type of electronic payment in which case you would receive it to the bank account and you might put it into or see it come through say the bank feeds that would be quite common if for example you had the QuickBooks checking account and when you sent them the invoice you gave them multiple payment options that could make that receiving of the payment a little bit easier we have a whole nother course or section on that if you want to check that out but even if you don't have the QuickBooks checking account you could still possibly receive the payments with an electronic transfer which would still come through the bank feeds into your checking account and you would see it that way you might get a cash payment they could come into the store and actually give you cash they might pay you with a credit card which again you could imagine how you're going to set up basically the receipt of the credit card what kind of tool you're going to be using to be processing the receipt of the credit card the thing we want to point out here however is that when you receive the payment you have an option you can either put it directly into your checking account at this point in time with the receive payment form or put it into a clearing account called undeposited funds or funds to be deposited something like that so you might say well why why would i want to put it into a clearing account what even is a clearing account well notice if if you got a payment that was a check for example then you know that the check is going to hit your bank account in the same dollar amount that the check is given for so in that case you might just put it directly into the checking account and you can then match the checking account to what happens on the bank side of the things because it's going to be the same dollar amount so that would work fine sometimes when you have electronic transfers that go directly into your account similar situation it's going to hit your account possibly for the exact same amount that you would see hitting the bank account so you can easily process that one and you might put it directly into the checking account but you might have a situation where you have a credit card company for example that's intermediary transaction another financial institution that one might charge you for the services and two they might group together multiple transactions that you have received and then give you the money in a lump sum therefore it will hit your bank account in a different total than if you were to have one received payment that's a problem because if you record the transaction as each individual transaction and the credit card company is combining transactions together then you're not going to be able to easily reconcile often done with the help of the bank feeds these days you won't be able to match up to the bank feeds because the bank feed will have multiple transactions that we entered that we need to add together to tie out to what what is actually hit the bank you can imagine it it might be easier to imagine with cash right if you got cash payments and people come into the store and gave you actual cash then when you deposit the cash into the bank account you're not going to do so each payment at a time that would be tedious you're just going to take all the cash you have and deposit it and one lump sum into the checking account that means that the checking account is going to have multiple sales transactions hit the bank with one lump sum you won't be able to reconcile what hit the bank to the books very easily if you record the received payments then one payment at a time you'll have to add the payments together in order to reconcile so that's the issue so we're going to use the clearing account how can you fix that you use a clearing account you put this information into a clearing account and then you transfer it from the clearing account into the checking account in the same grouping and format that's actually going to hit the bank so that you can do the bank reconciliation as easy as possible in other words if you go to your bank reconciliation and you try to reconcile what you entered on your side to the bank possibly with the help and use of bank feeds and you have to add things together in order to match what's on the bank side then your system is probably not as efficient as it could be and the way to fix it would be to possibly create a clearing account now if you're working with a credit card or some intermediate institution then you're going to have to figure out how it is that they're grouping things and possibly charging you fees so you can properly use the clearing account to group your payments together all right let's close this out let's get an idea of what i'm talking about if i go to this first half from a practical standpoint and if i go down to my sales areas which i would call the customer center and i close up the hamburger we can see that we have the invoices that are outstanding so we're tracking the invoices these are our outstanding invoices thus far that we're going to imagine we receive payments on we can also find them by going to the customer tab and i can filter here i can filter by the open invoices for example so these are the people that owe us money from the open invoices and i'm going to first look at anderson so if i go into anderson guitars then we could see that we have two open invoices for anderson guitars i could just select the received payment and it'll automatically open up the received payment and put the and link it to the proper invoice now i just also want to mention with regards to the bank feeds if the customer pays you with an electronic transfer you can imagine a system where you try to wait till it clears the bank feeds and then connect it to the invoice although that's probably not the way you would typically do it right i mean i can imagine they're going to give me an electronic transfer and then if i went into my bank feeds over here which would be under the transactions and if i had my my bank transactions connected they would be in this first tab and then as i see the bank feed come through i could try to match it basically to an invoice so you can imagine a system like that but usually what would happen is you're going to receive the payment record it first on your end back to the sales tab and then match it out with the bank feeds so the bank feeds wouldn't actually be recording anything it would just be helping you reconcile what's on your books to the banks which is something you really want to do because that gives you the that big internal control over your checking account as well as everything that everything else as well so let's go back to the open invoices let's go back into anderson i'm going to do it this way i'm going to hit the plus button up top and we entered an invoice let's do the next one down receiving the payment the next step in the process of the full accrual accounting system on the account on the on the revenue side at least let's type in anderson so there's our customer anderson if i do it this way then i'm going to see the two invoices down below that are currently outstanding so i'll tab through this let's put a date up top and the date is going to be let's say the 16 let's put 16 on the date and then i'll tab through again now the payment method you can add payment methods if you want if it was an electronic transfer or something like that then you can add an electronic transfer or or or you know whatever other payment methods you might have if it's going to your paypal account or something and you might put a note on your invoice to pay you in some in some electronic transfer way that you might put in here but it would be cash check or credit or like this or like the standard payment methods if i i'm going to say this time i'll just say cash because i want to imagine it why we would use the clearing account if it's cash you might not have any reference number if it was a check then you might put the check number in here and then the deposit account now if it was going directly into my bank account i could just use the checking account i would use that if i got say like like a a check or an electronic transfer that's going to go directly into my checking account if it's a credit card or if it's cash then you might want to use the payments payments to deposit meaning this is a clearing account that we're going to use to group the payments together to put in the checking account in one lump sum that's what we will practice doing here and then i'm going to select the invoice that we want down below which is going to be the five thousand notice the payment populates automatically for the full balance when i click it off but if you want something other than that if you want to make it something lower than the five thousand that you're going to pay at this point you could make it lower and they'll still be an outstanding balance on that particular invoice if they paid off both of these then we can check them both off if i was to click on this invoice it would link us to that actual invoice of course which is nice because all this whole thing is tying together nicely note also that this receipt payment is usually an internal document meaning we don't often you don't need to basically give it to the client oftentimes but rather it's a form that's used for internal recording which is going to record the transaction of us receiving the payment what does that transaction look like the receive payment form the first account you want to think of is generally accounts receivable going down this is the second step to the invoice accounts receivable is going down where's the other side going to go into some kind of cash account possibly into the checking account but instead we're going to put it into this clearing account payments to deposit which used to be called undeposited funds same concept all right so we have the cancel clear print save and close save and send if you wanted to send it you can and then we have these or save and close i'm going to say save and close let's check it out let's go to the balance sheet let's run it and then it didn't go into the checking account instead it went into this clearing account payment to deposit boom we'll go into that there's the transaction detail there's the payment form notice it shows up here as payment on the transaction type form and if i go into here it says receive payment so they have a little bit weird or different terminology depending on what you're looking at but it's useful to know that term what it means it's the receive payment form or the payment form or the second form that you're going to use to receive the payment on the invoice going back on over we can then see the other side is going to the accounts receivable accounts receivable should be should be always doing the same thing it goes up with invoices it goes down with the receive payment forms if i bring this back to 2023 you could kind of tie this out there's the 5000 here there's the invoice so they should kind of match out that's all you really see in the accounts receivable going back out we're going to exit this one the receivable will also have a sub ledger that will be tying out by customer let's open that up just to see that go into the right right click on the tab out here duplicate it so we can open another report and we'll go to the reports on the left close up the boogie scrolling down we're looking at who owes you and i want just the classic customer balance detail just a straight sub ledger and let's make it the dates fine so there's anderson there's uh so anderson only has the one outstanding item at this point in time because the other one was paid off the total is at the 23 7 21 50 that should tie out to what's on the balance sheet 23 7 21 50 if we go into the internal documentation now and we can look at this multiple ways if i look at let's we could look at you know all sales transactions and then filter by say the invoices and then maybe on the invoices we want status and just the open invoices here's the open invoices if i look at the closed uh in here's the invoices and i look at the open uh the paid invoices there's the paid invoice we're probably going to do that more likely on the invoices tab over here so we have these automatic kind of filters up top but i can go down here to all invoices and then unpaid invoices and then the paid invoices so there's the one that we paid and we can look at it by customer and we can go in by customer and say these are the open invoices with this little filter and we can also look at the ones that were recently paid so here's anderson that was recently paid if i go into anderson look at these forms and we look at this invoice so i could say this one's the one that's paid gives you a nice little indication that it has been paid here that's great if i go into it it gives you the the history of it and there it has been paid it has not yet been deposited so that's going to be the next step and then i can also basically if i wanted to edit if i go into the edit i could see the actual form which has the little indication that it has been paid there so that's nice i'm going to close this back out and so then if i go to the payment form payment form says it's closed if i go into it it gives us the detail on the right and then you can view or edit it going into the view or edit and there is the form there's the invoice so you can see everything's basically linked together and that's the point of using the forms you've got to use the forms to track the accounts receivable because you want this to be the case you want the payments to be tying out to the invoice so that quickbooks knows that the payment that payment should be tied to the invoice if that wasn't the case what could happen you would end up with payments that are that would end up with credits that are outstanding that need to be tied to something because quickbooks if quickbooks couldn't see that it matches out to the particular invoice so this is the typical pattern that we would expect to see in the customers invoice is happening and then payments made for them if we're doing something on an accrual basis where we invoice the clients otherwise we would have the sales forms if it was a cash based system of simply the sales receipts which would be like sales at a register for example now i also just want to point out if i go into this balance sheet account this amount to be deposited when we actually deposit that we'll deposit it with a deposit form which might include multiple payments so if i go back on over here when we make the deposit we noted that you could do that with a deposit form we saw that it might go through the check register and you might use a check register to help you with the deposits or you might enter it directly into the register and i i would like to point out that normally i'll use something else like the register or the bank feeds oftentimes to make deposits if they're not part of the normal accounting cycle meaning if they're not tied to the receipt payment and the sales receipts but if the deposit you're making is part of the normal customer cycle tied to the receipt payment and the sales receipts then you're generally going to want to use the standard deposit form because when you go into it now you'll note we have another tab up top so it's going to go into the checking account but now up top it says select the payments included in this deposit so this payment here is coming in from the payment screen and it gives you if there were multiple payments i can check multiple payments off and therefore the total would show up in the checking account for multiple payments so this is a great tool to kind of match up the deposits that we're receiving to put them into the bank account whereas if i was just depositing something directly into the bank from like a loan or from our investment as the owner you remember that we just entered an account such as the loan payable account that we did before in a prior presentation or the or or the equity account for an investment so those are going to be so that's that let's take a look let's do another one here i'm going to say do you want to leave yes i would like to leave without saving it and then if i take a look at the next one we can go into the invoices we can look at the outstanding invoices at this point in time we could say not paid we want to say unpaid and we've got the jones guitars that's the next one let's look at it by customer and then i'm going to do the same thing here for inventory for invoices let's go into jones guitars here and then i'm going to look at this one this is the one that we want this time instead of hitting the plus button and making the receive payment form let's just go into the receive payment from here which is probably what most people would would tend to do that populates the customer automatically for us and then we have find by we could find by the invoice number accept payments online again if you if you do that quickbooks is probably going to lead you again to other forms of payment collection which might mean you know trying to sign up to the your checking account and whatnot so then we're going to say 18 let's make it on the 18th it's the 18th is that what i want yeah let's do that and then let's say make it cash again because i want to imagine that we get multiple cash payments that we're going to deposit together to get an idea of why we would use this account the payments to deposit the clearing account as opposed to the checking account which you might also do in a similar fashion if you had credit card payments or some other processor intermediary financial institution that's going to be grouping your payments together before they hit your checking account or possibly charging you fees of some kind that you're going to have to deal with so then we've got the invoice down here it's selected already the full payment is going to be made it's a received payment form what's that mean what's it going to do the first account that you want to come to mind is accounts receivable this is the thing that's connected to the invoice the invoice means increase to the accounts receivable receive payment means decrease to the accounts receivable the other side's going to go into some kind of cash account but possibly not the checking account instead go into the clearing account of payments to deposit let's go ahead and save and close that one go to the balance sheet and i'm going to say run it so now we have it not in the checking account but down here in the payments to deposit by the way you might be saying why is the payment to deposit account down here when you're holding onto cash we're imagining this is physically cash in our case because we said we got cash from it so you would think that it would be part of the accounts up here from a normal reporting purpose for a balance sheet because usually this account is not called checking accounts for normal external reporting we would call it cash and cash equivalents which would include the cash that we have in a cash register or something although that would be a lot to cash them cash rush but but it's not doing that because for quick books this standpoint this is a checking account that has its own special needs it has its own separate account type because it could be connected to the bank feeds and so on whereas this although it's still cash acts like an other current asset account there's it doesn't connect to the bank or anything like that so they dump it down here so it's kind of weird like that from an external reporting standpoint however this account should not have much in it at any given time because you're just using it as a clearing account as soon as you get that money in there by the end of the day we're going to deposit it into the checking account we're going to walk to the bank we shouldn't be holding on to that cash you know in our cash especially with all the criminals around here stealing stuff right we should be taking it out of here and put it into the bank that's the safer thing to do and when that happens this account will go back down to zero of course let's go into the payment deposit here and check it out and so so now you've got this one so now these two are making up the total amount here if i if i go back on over the accounts receivable is the other side if i go into the ar r the pirate account now we can see the increases and the decreases let's bring it back to 2023 and just so we can see how it kind of matches out so the 5000 the 5000 the 75 the 75 that's the pattern we'd expect to see let's go back on over and look at the sub ledger exit without saving for the accounts receivable this is the accounts receivable by customer run it so now you can see jones only has one invoice outstanding the total is at 16 22 150 that should tie up to what's on the balance sheet 16 22 150 if we look at this from an internal perspective on the first tab we can see in the all forms we can sort here by by the invoices and we can we can see the uh invoices this way all invoices or the open invoices or uh uh the the paid invoices we can look at the invoices here do a similar thing here are the unpaid invoices here are the paid invoices we can look at the customers and we can look at the uh the overdue invoice open invoices here and then these are the recently paid invoices and we recently paid the invoice or the or the one that was recently paid for jones guitars let's go into that one and so now we've got the recent activity and here is the invoice it's marked off as paid if you click on it it gives you the detail on the right has not yet been deposited it's in undeposited funds at this point in time in other words you can edit it to go into the actual invoice you can see that it's been paid we can close that out and we can see that the payment has been closed out as well why is it important to say the payments closed out you would think of course it's closed out because you paid the invoice but it's possible that they gave you a payment before you build them like a prepayment a customer deposit which means you would end up with a credit or a payment that needs to be applied to a future invoice this is showing you that that's not the case it's been paid if you go into it has the detail on uh the right and then if I was to edit or view that one then we can see the activity and the invoice that it was linked to so it should be everything should be tied out on these internal forms you can void it or you can delete it if you need to all right let's do one more so i'm going to go back and say okay let's go back to our customers and i'm going to say open invoices and let's do one for smith this is the other one that these are all the ones that we had in place from like our starting point like from the prior accounting system these are the invoices that were put in place on our beginning balances that we're taking care of at this point in time in case uh so we didn't actually make these invoices in the current month we imagine they were made in the prior accounting system and now we're basically paying them off and they were put into our system as an invoice to support the accounts receivable balance which is great because then we can pursue and collect payments on it just like we normally would if we entered the invoice in the current you know system so it's out this isn't this is our invoice and i can say okay the same thing we can say receive payment so i'm going to say receive payment for that invoice from smith guitars bone tab tab 18 we'll keep it the same payment we're going to say cash we're going to say it's going to go into the clearing account payments to deposit and then it's checked off down here what is this form going to do it's a received payment form first thing that comes to mind accounts receivable decreases other side goes into cash possibly the checking account but not this time it's going to go into the clearing account payments to deposit which we will then deposit into the checking account in the same grouping as will appear on the checking account so let's go in on the bank side that is let's save and close it go to the balance sheet and check it out run it again and we're going to go down and say that the ar let's look at the ar first this time the our account and we can see that if i bring it back to 2023 we can see these three payments there's the five checked off there's the seven it's an invoice seven five checked off seven five with a payment there's the eight thousand it's an invoice checked off it was paid with a payment that's the pattern we expect to see that's all we expect to see in the accounts receivable basically let's exit out of there you can also imagine that pattern same pattern happening when you look at a sub ledger account by a customer if i look at a my sub ledger over here uh and update this one now smith is gone because because because he doesn't have an open invoice or she or whoever smith is and so the total is now at eight two two one fifty let's go back to the balance sheet just to note that there's the eight two two one fifty by the way if i go back to this balance over here and you want to look at the detail another report that shows the increases and decreases are in the reports on the left closing up the hamburger who owes you we can look at the invoices and receive payments and that that gives you at least some detail about the activity so if i look at this for the month oh one oh one two four two oh one thirty one two four so now you had this is what has happened we have the payment and then or the invoice and then the payment right the invoice and the payment so invoice payment so that's the activity that we would expect to see on an on a customer by customer basis as well so this is a nice report although it doesn't give you the the totals here it just gives you the you know the activity but you can see both sides of the transaction now if we want to see both sides of the transaction for one particular customer then we will typically do that internally go into the left hand side going into our customers and we could look at the sales transactions now and we could say all right these are the ones that have been paid versus the open invoices now we just have those two that we made in the current period here's the invoices tab we can look at it this way as well so these are the ones that have been paid these are the unpaid ones the two ones we made in a prior recent presentation and then in the customer tab we can look at the open invoices so we only have these two customers that have open invoices now the recently paid items includes Smith guitars if I go into Smith guitars we can see that we have the invoice if I click on it it gives us our tracking trail hasn't been deposited yet closing that out and we can see that I can edit it and check it out this way so I can see that it's been paid in full closing that out I can look at the payment it's closed out as well I can see the trail of it if I click on it and if I click and edit it I can see the actual payment linking out to the invoice closing this back out back to the balance sheet the other side of the transaction went into the clearing account of the payments to deposit 20,500 so if this was cash this would be a whole lot of cash right that we're holding on hands here so we probably want to deposit that pretty quickly so we're going to so there's the 20,500 if I go back on over now note the next step would be that we're going to deposit it into the bank I don't want to deposit it as three different deposits because when I reconcile it to the bank the bank's going to show it as one lump sum deposit again I think it's easiest to see that when you think about taking your cash sales going to the bank and depositing it as one lump sum but the same concept applies with any intermediary financial institution like a credit card company or something that's going to group your payments together before it hits your checking account in which case you need to do something to line up to the credit card you have to talk to the credit card company and say what what is your process so that I can mirror that on my side so I can properly enter the information into the checking account so that I can properly reconcile possibly with the help and the use of the bank feeds because if the bank feeds show 20,500 deposit but we put in our system these three deposits five thousand seven five and eight thousand then when when I match up to the bank feeds I'm going to have to match three separate payments to the one bank feed you could do that that's possible to do but it's messy and so what you want to do is get a system where you don't have to do that the reconciliation the bank feed process and matching to the bank feeds should be easy if it's not if you find yourself doing that then it's likely that you can have a better system that will give you less headaches by finding using the clearing account and figuring out how you can group your payments in the same format as whatever's causing you the problem the credit card company other financial institution or cash payments so you can fix it when you make the deposit not when you do the bank reconciliation possibly at the time that you're matching to the bank feeds okay so if I go to the tab to the left select the drop down just so you can see we will not record the deposit but just note if I look at the deposit form now you have these automatic things that are in here this is telling you hey these things came in from the payment forms and or if you had if you had sales receipts they would also be here and these are things that are in undeposited funds there's the 20,500 you need to match these out to the same format that you're going to use to put them into the checking account and so we'll take a look at that in future presentations so let's close this out I'm not going to save it and let's check out our trial balance to see where we stand at this point in time let's make sure we run it to refresh it this is where we stand we're standing on our two legs we're standing on our own two legs the debit leg and the credit leg and then you can see if if your two legs are as muscular as my two legs over here or at least have the same shapeliness on your side and if so if your numbers line up to these numbers then great if they don't then you might try to increase the date and see if it changes because it's often a date issue and if it does change drill down on the number that changed go to the source document and you can generally change the date which is a great thing to do in a practice problem but you got to be careful of course doing that kind of thing in practice but you can do that and then if things still don't line up by the end of the first month of data input we will run transaction reports which possibly could help to tie this out as well but just remember this is the balance sheet on top of the income statement checking account asset account accounts receivable asset account inventory asset account investment asset account payments to deposit asset account we've got the accumulated depreciation contra asset account still an asset but it brings down the total asset balance furniture and equipment asset account accounts payable this is where the liabilities start you can see all the credits lining up you got that credit but that's an outlier that's a contra asset these they're all the credit side this is what the company owns this is who has claimed to it we've got liability people having claimed to those assets accounts payable the vendors the credit card company the government with the tax sales tax sales tax loan payable the bank has has claimed to those assets and then we have claimed to the asset as the owner in the form of the owner investment account the owner's equity account and the current income why does it have a debit over here because this could be crunched together as all part of equity meaning the income statement is the 7,830 minus the 6264 which is all part of equity retained earnings or owner's equity