 Create a sales receipt and let's say this is coming from string music This is a new customer. So I could get there by going to new customer this way. I often just type it in here string music I'm gonna say string music is our new customer and then tab It's gonna ask if we want to add it Oftentimes we might want to go to a more complex set up if we plan on giving them our newsletter or Shipping the guitars to them or something like that We possibly want their phone number for future reference and whatnot But I'm gonna do just a quick add right now so that we have the minimum information Which is just the name which in some cases if you're in like a restaurant or something Your customers probably don't want to if you're doing a food truck The customers don't want you to collect their whole life history You know as you're trying to buy a taco or something or a sandwich, right? So in any case it's gonna go into undeposited funds. That's the default note The same setting that we looked at last time with the invoice with the payment receipt is here So in other words if I go to the edit Preferences and we go to the payments and I go to the company preferences That is checked off by default and if it is you won't see this Option here and you also won't receive it in the received payment area The reason it's under the payment area and not the sales receipt area is because that kind of covers both bases because At this point in time you're still receiving the payment at the same point in time that you're making the sale So I'm gonna close that back out. We have the same kind of options We might then choose Depositing directly into the checking account from here instead of going to the clearing account of undeposited funds But if you're collecting at a register It's more likely that you're gonna want to use the undeposited funds even then if you're if you're using it the full accrual system because it's likely you're gonna get paid in cash or Credit card payments of some kind here and both of those are most likely not going to be going into your bank account on a One-by-one sales basis But rather be grouped together the cash then being grouped together with all the cash We collect in the day that we will then deposit in the bank in one lump sum the credit cards being grouped together by the credit card Company that then is going to deposit them into our bank in some kind of grouping method Which we have to determine we want to figure out so that we can make our deposits to match what's going to be on those Those payments because that's going to make our reconciliation process as easy as possible So we're going to keep it going into undeposited funds here Which is the default and then we're going to say I'm just going to keep it on cash We have the same kind of payment options these differences cash Versus check versus credit card doesn't have a material impact or any impact on the actual Transaction that's going to impact our financial statements meaning the impact on the financial statements balance sheet and income statement But give us a good reference tool to help us to sort the transactions by different methods So I'm going to keep it on cash here for our purposes We're going to then say this happened on the 19th. Let's say 1 19 23 Sales numbers sold to we don't need any address or anything because we're selling it in the shop Although we might want to collect it if we could and then we've got our items, so we're going to say we sold an ELP ELP tab because the item is set up It's easy to populate if they bring that guitar up to the cash register I should be able to identify it even if I don't understand items and how they're set up or how this is going to impact the financial statement I should still be able to do my job of collecting the money recording the transaction I'm going to say we got three of these So 500 times 3 is 1,500 and then we're also going to sell a G a GSB which is a Gibson SG We're saying one of those at 777 so there is that So there's the transaction tax is applying the taxes applying Automatically because we turned on the sales tax in the same way as with the invoice and we set up We set up the grouping that needs to apply here the items are taxable items Therefore the tax is being applied thusly All right, so what's going to be the transaction when we record this what's going to happen? Well, it's a sales receipt that means instead of accounts receivable going up It's going to go to some kind of cash account in this case undeposited funds, which is not a checking account It's in other current assets, but it still represents an increase in cash in essence We could put it to the checking account, but we're going to undeposited funds That's going to be for the full amount 2390 85 the other side is going to look a lot like the invoice. It's going to be going to Revenue driven by the account specified by the item to the revenue accounts, but not including the sales tax Then the sales tax is not going to hit the income statement because the tax Theory theoretically is imposed on the customer. We're just the collection agent, so it shouldn't be recorded as income We also shouldn't have a sales tax expense. We're just going to record it on the balance sheet It's a non-income item increase in the liability of the one one three eighty five We're also going to have a decrease to inventory for amounts not shown on The sales receipt because we don't want to show this to the customer if we're going to give them the actual sales Receipt as in essence a receipt but the system knows what the cost is because we put that in place when we made the items in the item list Then the other side is going to go to cost to get sold which is in essence an expense account Which will be recording the expense of the use of the inventory that we needed in order to generate the revenue And we're also going to have the sub ledger of inventory impacted counting the quantity of inventory that's still going to be on hand