 QuickBooks Online 2022 Rental Income Customer Deposit. Get ready because it's go time with QuickBooks Online 2022. Here we are in our GICRA Guitars practice file. We set up with a 30 day free trial holding down control, scrolling up just a bit to get to the 1-2-5% currently in the home page, otherwise known as the Get Things Done page. The business view as compared to the accounting view, if you wanted to change to the accounting view, it's something you can do by going to the cog up top, switch to the accounting view down below. We will be toggling back and forth between the two views either here or by jumping over to the sample company file currently in the accounting view. Going back to the Get Great Guitars, opening up a few tabs, going to the tab up top to do so, right-clicking on it, going to duplicate that tab so we can put some reports into these tabs. That's why we're doing it. Tab to the left, right-click again, let's duplicate another tab. Tab to the left, let's do it one more time and duplicate another tab. I'm going to jump on over to the sample company file just to locate where the reports are at in the accounting view, which is right on the left-hand side, reports right there. Going back then to the business view, second tab, the reports are located here in the business overview section and they're in the reports. Closing the hamburger, we're going to open up the balance sheet first, the big balance sheet. Going back up top to range the change, we're going to go from 0101222, 123122, run it, tab to the right and now we're going to go back to the business overview. Let's open up another report here and close up the hamburger. This time the profit and the loss report. Let's do a little bit of a difference here. Let's say we do a comparative profit and loss so I can see the two months on the same report. Let's do this from 010122 to 022822 and let's make the drop down here. Let's make that go into months and then we're going to go ahead and run that. Now we've got the January, the February, which we're currently working on and the year to date on the right-hand side. That leaves us the tab to the right where we can open up the trustee trial balance which we can get back into practice of opening up because it's an excellent report. Closing the hamburger and typing in trial balance to open it up. There it is. Open it up. Ranging the changing up top 0101222, 123122 and run it. Last time we went up in our epic novel about get great guitars back to the first tab that we were thinking about having rental people come in and rent some band equipment and we set up our items to do so. We did that by going into the get paid area and we went then into the products and services which if you were in the accounting view would be under the sales area and the products and services and we said we're going to imagine hold close on the hamburger that we have the set baseline of a band set which had a couple guitars, an amp and a drum set that people could then rent were imagining and then they can add to it if they wanted to with the with the adding of an amplifier and another guitar or something like that. So now we're going to imagine someone comes in and requests us to reserve the rental equipment for say the following weekend and we're going to have to and we're going to collect a deposit on it so we might then determine what the deposit is and set the date with an estimate to make sure that we're keeping the equipment reserved for them and then collected a down payment on it so that's what we'll do now. Okay so we're going to imagine someone calls in I'm going to select the item up top we're imagining someone's calling in they're saying I want to reserve some rental equipment and we're going okay let's make an estimate we're going to need a down payment from you then we need we need a payment not just a payment but a down payment that payment's down okay we're going to go then this is going to be customer number five you've I've just given up on on cool names customer number five customer number five here and we're going to save that and we're going to say then that this happened on let's say the 27th let's bring it bring it to 02 27 22 February 27th that is and then we're going to go on down and say that they what do they want well we got the baseline you're going to have to buy the standard band set and that's going to be 200 $2,000 and then they're saying we need an extra guitar in our band set so we're like okay we can do that we can add another guitar rental add a guitar add one guitar and so they want they want two more guitars okay two more guitars at $50 each that brings us up to 100 and then we're going to add an amplifier too so we're going to add an amplifier these are the items we set up last time and they want four amplifiers I don't know where I came up with that four amplifiers that what they want it to be super loud surround sound amplifiers so we're like all right we need a down payment though we need a payment with like bitcoin so it's down so it's a super down payment said no and we need a we need the payment upfront in other words so we got the 2002 60 let's imagine we calculate the down payment on it I'm just going to make up the down payment but we might basically say it was it was like 10 percent of whatever we think the rental is going to be or whatever something like that so then we're going to calculate the down payment I'm going to save and close this and then this estimate will help us to reserve the time frame and know what they want when they come in and pick pick the item up so we're going to then say if I went into my for example get paid and paid area close up the hand boogie and go down we've got we've got then I want to go to the customer section though that I'm going to go to the customers area and then close up the hand boogie and then we could go down to customer number five number five there's the estimate that we have pending for our new customer so we're going to say that they we need $200 down in order to reserve it so I'm going to go okay let's go up top and there's this is where we got a couple different ways that we can record this because we were running into the same issue of the unearned revenue and this is another area of unearned revenue it's similar to the kind of system that you might have for like rental of a building or something like that if you had rental of apartments or something like that then you might collect a a down payment or you might collect a last month's rent for example and when that happens you didn't actually do the work but you've got money so you're going to have to put it into the bank account but the other side is going to go then to not income but some kind of liability account because you actually owe something back at that point in time so we could do that a couple different ways we had two methods that we looked at in order to do that I think the easiest method for my bookkeeping standpoint is actually to create a negative receivable as opposed to a positive liability because the negative receivable allows us to then track the the information in the customer area a little bit more clearly and we can then tie out the invoice to it a little bit more clearly in other words these two things integrate naturally within the accounting system whereas if I create another account then it's it's a little outside the system that's trying to track the information by customer so in any case we're going to have the receipt payment if you want more detail on those two methods however you could take a look at our prior presentation on it and so we're going to say we've got the received payment and this is going to be from customer number five customer number five it says hey we don't i'm paraphrasing it says hey we don't have an invoice to apply that to and we're going to say that's okay because we want you to make a credit out of it in other words an advanced payment that you can then apply to the invoice that we will make in the future i'm just going to call it a cash payment it's going to go into the deposits payments to deposit which is just another name for undeposited funds if you know undeposited funds from you know working with QuickBooks in the past that's what they used to call it just a clearing account that will be holding the cash until we make the deposit we're going to make it for $200 what's this going to do it's going to increase or let's say decrease the receive payments decreases accounts receivable but there's no invoice to apply it to so for this particular customer customer this should be customer number five customer number five make sure it's customer number five for this particular customer then you're going to have a negative receivable the other side then it's going to go into the clearing account of payments to deposit which used to be called undeposited funds so let's save it and close it save it and close it you didn't select an invoice i know and we're going to say okay let's go into the balance sheet and see what has happened and we're going to let's let's run it so to make sure that we have a fresh we're working with fresh stuff and then we have the where did it go payment to deposit there's the 200 right there that's where it went it went right there it's right in front of your face and then we've got the accounts receivable ar going into the a to the r scrolling down a bit we're going to see that we have then customer number five the 200 that looks good it doesn't of course flip the accounts receivable balance total into a negative but when i look at that one individual customer i'm going to have a negative balance so for example let's make another report on the right hand side right click on the tab to the right and duplicate it this will be the sub ledger the sub report the customer balance summary for the accounts receivable by going to the reports on the left hand side closing up the hand boogie and then we're going to scroll down we're going to look for the who owes you money stuff who owes you money we're looking for the customer balance detail customer balance detail and then let's uh let's change the date customizing it because i'm working in the future 12 3122 12 3122 i got everything done in the present and i work in the future now to get stuff done so anyways we're in number five customer number five down here we could see the payment for 200 with a negative amount so now we've got this negative receivable which for financial statement purposes is not exactly correct because it should be a positive liability not a negative receivable however when we then add the invoice it will be tracked and linked quite nicely using the negative receivable and if we want to report externally then we can do an adjusting entry which will be adjusting this negative receivable to a positive liability that's not the adjusting entry you might be used to if you worked in accounting problems that are tracking unearned revenue where unearned revenue goes up during the period you figure out how much has been earned and then you decrease the unearned revenue record revenue for the amount that has been earned that's a typical book problem we have a different problem kind of here with regards to linking the payment to the invoice which internally works quite well having this kind of negative receivable component so in any case let's go back to the first tab and see how it looks in our our customer number five area what why is this doing this go away thing that didn't look right hope i didn't mess anything up here we go so then we've got the estimate down here and now we've got the payment and so when they when they when customer number five comes into play here this whole family customer the customer family when customer number five comes in then we can make the invoice with the estimate we can apply out the payment to it and hopefully provide them their equipment which they can rock and roll with let's go ahead and record the deposit now so if i go back up top we've got this money in and if i looking at the balance sheet we've got this money that was put into the 200 into the payments to deposit the clearing account let's go ahead and just make that deposit into the checking account now go into the tab to the left to do it we're going to say the the the hamburger we're going to go into the plus button and choose the bank deposit so we're imagining that this is the only item that we have thus far that we need to deposit at one time it's going to hit the bank statement at $200 in other words so we're just going to be putting that $200 into the bank in our system so that we can reconcile it easily this will be increase in the checking account decrease in the clearing account of what used to be called undeposited funds now funds to be deposited or something like that whatever it's called i forgot let's go ahead and save it and close it and then go back on over and we can see what it's called because it'll be right here let's run it again run it so we're fresh let's go into the cash which should now be deposited deposited cash down here $200 looks good going back up top other side should be on the the short no the what do they call it payment to deposit payments to deposit is back to zero and if i go into that one we can see that $200 going up with the with the payment form and then back down with the deposit so that looks good going back to our report notice that this whole time there has been no impact on the income statement so we haven't been able to look at our super cool you know month by month income statement over here but next time next time that will come into play so even though we got money we didn't earn the revenue that's the point that's the point of the unearned revenue type of situation let's go to the trustee trial balance and see where we stand thus far thus far this is where we stand so hold on a second we've got to change the date range up top 010122 to 1231 222 run that and i also have one adjustment that i think there's the system it tried to adjust the sales tax last time i went into it so i'm going to go into this accounts receivable right here and i'm going to scroll down i'm going to scroll down to this string music which was in a prior presentation and i think quickbooks adjusted the sales tax last time i went in there so i'm going to go back into that and put it back at our generic five percent so everything will match out when we do our bank reconciliations and everything so i think it adjusted it right here so i'm going to change the math on this one and we're going to go down and say i want you to override and put that generic five percent because it's a practice problem and stop changing that quickbooks it's a practice problem that's why it's a practice problem save it okay so we're at the 530 i'm going to save it and close it so there we have it that's where we stand at this point with that one i'm going to go back to the trial balance and this is what we have thus far with the trustee tb at this point holding control scrolling up if you're tied into these numbers great if not it might be a date issue take a look at uh the date ranges and uh we'll be looking at the transaction detail at the end of the section which is great for diagnosing any differences