 In this presentation, we will enter a sales receipt and the related deposit. In other words, we'll enter the sales receipt as if we made a sale within the store, the sale happening at the same point in time we got the money. Then we're going to deposit that into the bank along with any other funds that we currently have making that deposit in our system in a format that will match what we'll be seeing on the bank reconciliation. Time to get started with Sage, 50 Cloud Accounting. Here we are in our Get Great Guitars file. We're currently in the customer and sales section. We're going to be scrolling down and go into our receive money where we're going to have a receive payment. We're imagining we're going to be receiving that payment in the store, so we can kind of think like this is our cash register type of point of sale receiving payment like a restaurant type of situation but we sell guitars here and we would be making the sale at that point in time and then we're going to be recording the deposit. Now the way we're going to record the deposit is to put this into a clearing account first and then transfer it from that clearing account the cash on hand into our checking account in the same format that it will be seen on the bank statement. Note you can also do that with the ticket system as we've seen in the past and not have the deposit ticket on the receive payment but then use the bank deposit form in order to do that. We've seen that in prior presentations and we're going to use the clearing account here. So I'm going to go to the receive money, we're going to go to the receive money from customer. I'm going to maximize this screen and then we're going to be choosing our customer. We're going to have a new customer up top so I'm going to select the drop down and we're going to go into and then we're going to say new because we want a new customer and it'll open up the data input screen. Our new customer's name is going to be Garcia, Garcia guitar. So I'll maximize this and we're going to type in here then Garcia guitar and that's the one we want. I'm going to just copy that name and that's going to be the ID and I'll put the same in the name field. That's going to be all I'm going to put for the information here to populate it. I'm going to then say save. So there's are going to be our new customer and then close this out. Then we'll go back up top and I'm going to put a deposit. I'm just I'm going to put a ticket here. I'm going to say that it's going to be going to Garcia guitar now. So there we have that. So I'm just going to put a reference number and then we're going to say that the date is going to be the 14th again. So we'll bring this on back to the 14th. Once again, it's a popular day for us a lot of action that day. We'll keep it at cash and then I'm going to go down and put populate the inventory item. So we're going to say the quantity will be one and we want an epiphone, an ELP one of our standard epiphone less polls. So $500 we're going to have one of those. We will be applying the sales tax to it. So we'll apply the sales tax here and we're going to say that's the one we want. So there we have it. And that'll populate the amount then at the 54750. What's going to happen when we record this, it's going to be increasing the cash on hand, which is basically our clearing account that we will then put into the bank by the full amount of 54750. Then the revenue is going to go up by the amount that we charged the 500. The difference will be the sales tax 4750 increasing the accounts payable. We will also have a decrease in the inventory of the epiphone less pulled not for a dollar amount on this form, but it will be driven by this form driven by this inventory item. I believe it's 400. We've done this ELP a few times. So I think it's 400. And then the other side is going to be going to the cost of goods sold increase in the expense account, which will decrease net income net effect on net income increase in the revenue 500. And then it's the increase in cost of goods sold, which I believe will be 400 net income increase net 200 or 100. All right, let's check it out. We're going to say save. And then close this back out and let's take a look since we have seen this form before with the trial balance. So we're going to go on down to the general ledger reports. We are in the general ledger. We want to be opening the working trial balance will change the options up top. So we'll go up to the options up top in order to do so. And then I'm going to select the period. We'll have a specific period ending for the end of February. That being February 29, 29 days in February, I'm going to remove these zero balances. So we're going to remove those and say, OK, all right. So then the cash on hand should be going up. If I double click on the cash on hand, there's the 54750. That's for the full amount on the sales receipt. So there it is on the full amount, including the sales tax. The other side then going into revenue, which is going to be on the bottom of the it would be on the income statement, which is on the bottom of the trial balance. So we're in the 400 type numbers down here. We have the sales of income, the 2009, 67. There it is. It's increasing for 500. The amount that we charged, not including the sales tax, the sales tax then being the difference is going to go into a liability account called sales tax payable. So if we double click on the sales tax payable, then there's the 4750 that went into it from our sale. We also know that the inventory will be going down. So if we go on up to the inventory item up top, here is our inventory item. Double click it on that item. We see that the inventory would be decreasing by the amount of the 400. So there's the 400 decrease. Say I knew it was 400. And it was not in that amount isn't on the actual form, but it's being driven by the item. So that's decreasing by the 400. That's back out, closing this back out, other side on the income statement in the form of cost of goods sold, cost of goods sold, double clicking on that item. It being increased by the 400 here. Let's close that back out. Now we're going to record the deposit. So now we're going to record the deposit. What's going to happen? The cash on hand is going to then be going down and we're going to put it into the checking account. It'll then go into the checking account in the same format as we expect the grouping to be on the bank statement, making the bank reconciliation process easy. Let's repeat this process first for a service item and then we'll record the deposit. So I'm going to go back on over. I'm going to close the reports. We don't need that. I'm going to go back on over and say, let's say a receive payment. We're going to receive another payment here. And this time I'm going to make the ticket up top. We're going to say that we'll choose an existing customer this time. Let's say a string music and then we'll populate. I'm just going to pick a reference number and receipt number. I'm going to say this happened on the 15th. Let's say let's get off of the 14th since we have a lot going on on the 14th. And this time let's pick a service item down here. So I'm going to say quantity. Let's say four on the service item and we're going to be picking up a service item, which will have the hour service. So our service and that'll bring us up to the five hundred and sixty. So this one, what's this one going to do? Increase the cash. The other side then going to the revenue account for this, for the service items, no sales tax, no inventory, no cost of goods sold. Let's go ahead and save that. So we're going to save that. I'm going to close this and check it out. So we'll go on back to our trial balance. We then see an upcrease or an increase in the cash of the one thousand four oh seven. There's the string music that we put in place. This one I believe is the one five sixty. The other side then going to revenue, which is going to be on the bottom of the trial balance. So we're on the bottom. We're in the service items. So within the service items, we'll see the revenue of the five sixty. Okay, so now let's close this back out and let's make our deposit now. So we're going to take it out of the cash on hand, put it into the checking account. So we're going to go back on over to our, our information on the left. I would typically do this. I'm going to do this with the banking section on the left hand side and go straight to the register. So I want to go to the account register going to open that up. I like to see the register for the cash on hand account because that's going to be the clearing account that everything that's in there, I'm going to remove. So there's one thousand four oh seven in it, fifty and fifty cents and we're going to take it out of there and we're going to put it into the, into the bank, into the checking account. So let's make this as of the sixteenth, let's say, so I'm going to bring this on back to the sixteenth. This is going to be a payment from this account going out of this account into the checking account. The, the reference number, I'm going to say transfer and then the pay is going to be, it's going to be a transfer. And then I'm going to say the GL number is going to be the same as the transfer up here. So it's one zero two zero, which is our checking account. So it's going into our checking account. And then I'm going to say tab, I'm going to call it a transfer. The payment is going to be for the full amount that's in there right now, which of course, once again is that one four oh seven fifty. So one four oh seven point five zero. So there we have that. And that looks good. Let's go ahead and save that. Then our balance should, should go down to zero. So that transfer number has already been, I'm going to say, okay. And now that makes the balance go back down to zero. Let's check it out in our, our financials now. So I'm going to go back over to the financial statements and you'll see that the cash on hand went to zero. If we go into the checking account, double clicking on the checking account, see the deposit here of the one four oh seven fifty. So there's going to be our deposit. Double clicking on that takes us to our register, closing this back out, closing this back out. Then the other sides in the cash on hand account, we can't see it because it's now at zero. If we wanted to see it to double check it, we could go to the options up top. So we could still use our kind of drill down feature on it. And that's a, hey look, I'd like to see the zero balance amounts and then say okay. And then we can go into the zero balance amount and use our zoom feature to see the transfer. And that's what should always happen with this account. It should, it should, you know, it goes up and then it goes back down, right? It's going to go up and then it's going to go back, back down because this will be a holding account in the format that we are using it. That's going to be it for now. Let's get out of here.