 QuickBooks Online 2023 QuickBooks Payments for Invoice Processed with Batch Pending Get ready to earn the skills needed to boost your bankbooks 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 QuickBooks Online test company file using the accountant view as opposed to the business view You can toggle between the two views by going to the cog up top and switching the view down below Let's duplicate some tabs to put reports in like we do every time Right click on the tab up top to do so duplicate that is Right click the tab up top again to do so again duplicate that is Back to the tab to the middle reports on the left hand side Let's open up the favorite reports the financial statements starting with the balance sheet as it's thinking tabbing to the right Reports on the left again This time the profit and the loss the p and the l the income statement closing the hamburgers I'm just going to put that range 2010123 tap 123123 and run it to refresh it Tabbing to the left closing the hamburger again and change that range. It needs to be the same 010123 tap 123123 and run it once again So in a prior presentation, we sent out some invoices which had our payment options On them now, so we're going to go back to the left hand side and check that out just for a quick recap So if I go down to my sales on the left We can search the sales by the the sales tab over here Which is basically our activity or we might search it by customer for example, and we've been dealing with customer number two Customer number two and I'm looking at the transaction detail so in a prior presentation We made these three invoices and noticed that I didn't do the second step Of receiving the payment which we had to do when we're doing more of a manual system But now the payments have been made and they're being processed at this point in time Which means the system quickbooks made the next step for us already, which is the payment which is that's really pretty nice So in other words the invoices that we created we made these invoices We turned on the payment options. We we gave them the capacity to pay us in these ways Now note that if they use something like a credit card Then you're you're going to it through another third processor that's going to have to possibly bundle those Payments together before they actually hit our account Which means if I as we have in this example got payments for multiple payments by credit card Then they're going to hit our bank account not deposit by deposit invoice receipt by invoice receipt But be grouped together. So that's one of the major things that this system could help us with and basically Automate so this invoice when we entered it like any other invoice increased The accounts receivable the other side went to the sales And and so then the next step normally if we didn't have the received payments on Then we'd have to receive the payment in whatever way that they're going to give us send us a check If they if we received a check we would then enter the receive payment form We could still automate it possibly again without the without the payment Options being turned on if we had bank feeds and they sent us an electronic transfer without the payment options On but we saw it come through our bank feeds and try to connect it to the invoice But again that becomes problematic If they pay with something like a credit card or something like that with the batching problems And when fees come into play Then the dollar amount that hits our bank account might not match exactly the invoice which makes it problematic Which means under a manual system without the automatic payments We oftentimes have to enter the receive payment form here Possibly put it into undeposited funds and then deposit it into the bank and the same grouping as The credit card statement is going to be formatted in and or the cash deposits or whatever the grouping is going to be in Here we of course didn't do that step instead because we used the payment options It automated the system and created these payment forms So once the payment is made and it detects it on the quickbooks side It's going to record the receive payment form Just like we did manually before so the receive payment form up top Date and then it checks off that particular invoice and it puts it not directly into the checking account Notice it didn't put it in the checking account here It put it into the payment to deposit which is the clearing account Using the common practice we typically do which is that clearing account So we can then batch the deposits in a fashion that will match What is on the bank statement? So it did that for the three deposits here So each each each of them have now had the receive payment But it's not yet hitting the bank account because it hasn't been fully processed to clear yet So if I go back on to the balance sheet what has happened on this point Uh, we know that the accounts receivable when we enter the invoices Went up right here's our invoices for the accounts receivable And then when the payments came in the payments got recorded and and reduced them back down Now note the dollar amounts don't exactly tie out because the payments were a little bit higher Then the actual amount billed because of the payment options we had to put So that would result in a credit meaning an over payment by the customer Which we might be able to apply to a future invoice but the amount is it should The invoice should increase it and then they go back down When the payments are made is uh the general idea so scrolling back up And exit this Then then when the payments were received it didn't go into the cash account It went into this payments to deposit which is a clearing account Which is gonna gonna go up and then when we can batch these amounts together to deposit them in the bank It'll go back down. So here's the three Dollar amounts which again don't tie out to the invoice. They're a little bit higher But these are the payments from the invoice which are in here now that need to then be going into The checking account which again, hopefully will be an automated type of process We'll take a look at a future presentation Now if I go back to the sales tab over here and we go into sales You have this deposit tab now If you've got the payments on if we go into the deposit tabs, it says here Deposit from QuickBooks payments because we have QuickBooks payments turned on here And so it says this deposits processing payments three transactions Those are the three invoices we made that payment has now been made But and that and therefore it made a received payment form However, it has not yet cleared and therefore the the batch is pending What does that mean the batch is going to be the three payments that are coming through most likely together Which will hit our actual checking account not as three individual payments But as one lump sum payment So so they're going to move it out of the clearing account just like we would do manually And then put it into the checking account in the format of that one lump sum payment So that when we tie this out to what happens on the bank feeds or on the bank statement when doing bank reconciliation Everything should tie out Nicely So that's the general idea just one more time Just want to point out what some of the some of the benefits And the pros and cons of using the system right obviously the cons are the fees The pros are are that you can have the customer pay you with the with multiple different options Which should hopefully help the turnaround time for the accounts receivable And then of course if you have that batching problem This system can help you to automate the receive payment and then the batching to put the deposit in a format That can help you with the bank reconciliation. Those are two big benefits Also, uh, we'll might dive into later that you can you might be able to Give them links instead of invoices which which will create sales receipts instead of invoices for possibly faster payment options Clearly if they're going to write you a check, it's likely that they only write checks every Every once a week or twice a month or monthly and therefore they're going to wait till the end of the month Possibly to pay you as opposed to paying you What right when they receive the invoice a couple of the things just to note here when they do get the invoice Oftentimes they have the capacity to pay When they actually go to the to the pay options over here To to schedule a payment either today or in a future point So they might be able to have that scheduling option Which could be useful to the person that is paying And the payment options might also allow us to automate payments in like a subscription type of basis So that we have reoccurring payments and that could be of course A useful tool as well, which we might take a look into in future presentations Also, just a quick note when we look at this deposit screen again That that they have the amount here for the processing and we'll take a look at this more detail later But at four dollars and seventy five cents and then the fees are coming out to That 89 cents for the net amount of the three dollars and eighty six cents