 QuickBooks Desktop 2023. Receive payment, transaction and form. Let's do it. We're into it. QuickBooks Desktop 2023. Here we are in QuickBooks Desktop. Get great guitars, practice, file. We started up in a prior presentation going through the set of process we do every time. Maximize on the home page. View, drop-down, noting we got the hide icon bar open. 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. When Windows lists checked off, open Windows, open on the left-hand side. Reports, drop-down, company and financial. Let's open up that P and L, that profit and loss, that income statement. Ranging, changing, 010123 to 123123 for the practice problem, January to December. Finally, there's some activity. Let's customize it then, font and number so we can increase the size of that font. Let's take it to 12. Let's take it to 12 just to be consistent here. Okay, let's go to the reports, drop-down again, company and financial. This time the balance sheet, customize it with the ranging, changing 010123 to 123123. Then we'll go to the fonts and the numbers to change the size of that font to 12 again. Okay, yes and okay, that's the setup process we've been doing every time. In prior presentations, we set up our company file, then we entered some transactions which are typically going to be unique to the setup process of the company, financing the capital to be used to buy the necessary property and equipment as well as inventory. We did that by increasing the checking account for investments that we as the owner put in and a loan that we took out in order to finance the purchase of the fixed assets that we need, which were going to be the property, plant and equipment. And then we also financed the purchase of inventory because we are the type of business that's going to be selling inventory. And then finally, we were able to make some sales last time and that recorded an increase to the accounts receivable, the other side then going to the income statement. However, although we have income, we have not yet collected on the income. We don't have the cash flow yet because we're using an accrual system and we invoiced the customer. Now then, we've got to be tracking the receipt of the payment, which is what we'll be doing this time. So if I go back to the balance sheet, we now have some amounts and we have some amounts from the beginning balances as well that we transferred in from the prior accounting system that we imagined we used prior to transfer into the QuickBooks entering those beginning balances in the ones we entered for accounts receivable were supported by the customers, QuickBooks in essence making an invoice for them so that we can receive the payment in the normal accounting process from this point. So we're looking at that accounts receivable. We can also see the breakout of that accounts receivable by going to the reports dropdown and then the customers and receivables. Let's look at it by the customer balance detail and let's customize this. Let's go to the fonts and numbers. Let's make this one a little bit bigger too because we might spend some more time on it. And so there we have it. I'll make this a little bit wider here. So this breaking out our receivables by customer matching out to the 2872550. If I go back on over to the balance sheet, that should be matching here. Now most of the time when we're trying to collect on payments for the receivables, we'll be doing so in the customer center which you can do by going to the homepage customer center here or we can find by going to the customer dropdown customer center here. And if we're contacting the customers and so on and so forth, we're probably going to be going to their customers and jobs. And then those individual customers and saying, Hey, look, we sent you out an invoice. We would like to be collecting on the invoice. I'm going to go to all up top. Make sure you got all checked off. And then we can see the invoice is this way. We can also sort the open invoices by going to the transactions, go into invoices, and then we can have all invoices or possibly just the open invoices to track the ones that we have not yet received payments on note. Also, we could go to the homepage as we're trying to track the invoices, because when we send out the invoice will probably mail the invoice invoice out when we create it. But then periodically monthly, for example, we might make our statements, which are which are going to hold on a sec, not that one, we might make our statements, which are going to allow us to kind of group all the outstanding invoices together possibly and send out reminders of the fact that the people were trying to collect on our invoices, which could be a tedious task when you're dealing with accounts receivable. So the next step then is going to be that we're going to receive the payment on the invoice as we can see with the flow chart. So if I go into the receive payment, note that although this is still a form kind of kind of thing, it's a form data entry form, it's usually more of an internal form for us to populate the connection of the invoice to the receive payment and then to have it facilitate, you know, the transaction. In other words, we're probably not as often giving this form to the clients or the customers, although we might as a kind of verification or receipt of the payment. So what we will do here is we'll connect this out. So this is going to be connected. So if I was to say, say, Mr. Anderson was paying us, the outstanding invoices would then be populated below and we can select an outstanding invoice. I'm going to select, for example, this one. If you do not enter an amount received, QuickBooks automatically calculates the amount as you select each invoice. So in other words, instead of me populating the amount I got, I'm clicking off the invoice here and it's populating the amount automatically. So I did it in kind of reverse order. I don't want to see that message again. So I'm going to say, don't show me that please, QuickBooks or paraphrasing. Okay. So there it is. So now it's connecting that invoice. Now, if I was to go into that invoice by double clicking it, you can see the invoice here. You can see it hasn't yet been a paid invoice. You can see more detail, the open balance and so on on the right with this little carrot icon closing that back out. And so we're connecting the customer payment to the invoice. Also just kind of realize the name of this form is a little tricky because if you go to the homepage, it's called receive payment. And then when you go into the actual form in the data input in the data input field, it's called a customer payment. And then when you when you try to see it in the ledger, as we'll see when we, when we drill down the transactions on the financial statement, it'll just be called payment, I believe. So there's kind of different terminology. You got to be able to tie those things together. It'll make it a lot easier to understand what is going on with it. Now, if we receive payment from Anderson, we're imagining they paid us $5,000. And then the date, let's pick it as 01 18 23. And then the question is, how did they pay us? Now for many cases, this is going to be kind of a reference tool, meaning if I choose cash versus check, it'll give me some different options down here to add a check number, but there's not a material difference in the transaction that will be recorded in the financial statements because I'm just recording the same transactions that will be impacting the same couple accounts. However, if I wanted to sort by payment form, then this could be another nice sorting tool when I start to sort my reports. So if I choose cash, you get the reference number field. If I use check, I have a check. That means I got a check from the customer in the mail possibly, and I'm choosing their check number, not the checks that we write, the check that they gave us for reference visa, we got the payment information, the card and the expiration and so on with it with a credit card. And then an each check format, if it was an electronic transfer of some kind, and then you could add other payment options. If there were other payment options, you can go into the list and add more payment options if you if you would like to break those down in a different way. Note the default goes into under deposited funds here. Also note that if you don't see this field at all, then that's because we turned it on in the preferences to see it, which is in the edit dropdown preferences. And if you go into the payment down here, payments and then the company preferences, this I believe is checked off by default. And if it is checked off, QuickBooks will not give you this option right here to change things. It will automatically default to undeposited funds, which I call a clearing account as opposed to a temporary account, a temporary account being one like an income statement account that rolls into the income statement periodically at the end of the month or the end of the year. A clearing account is one that I would say clears out in a shorter period of time, having a different goal other than the timing of the income statement versus the balance sheet. It's used for some specific purpose to go up and then back down to zero. So I'm going to close that back out. That gives us the option of undeposited funds or we can put it directly into the checking account. Now note in this particular transaction, if they're given us a $5,000 amount, then it might be the easiest thing to like posted into the checking account because it's likely that they paid us with a check or some kind of transfer that's going to be independent in and of itself when it hits our bank account, which is more likely something that we can put into the checking account. However, we can imagine a situation if it were cash or possibly some kind of credit card transaction where they would pay us and then the credit card or the cash would be grouped together with multiple other payments before it actually went into our checking account. In that case, we don't want to put it directly into the checking account here because doing so means that the item in our checking account will be grouped differently than what will show up on the bank statement, which will have multiple payments grouped together because the credit card company will do that or because we cashed different check amounts in one lump sum deposit. That's where the undeposited fund is going to be quite helpful. It's also kind of helpful as well because if you go to the homepage here, note that at this point in time we're receiving the payment we could deposit it directly into the checking account at that time. But if we do so, the checking account has an increase that's now not a deposit form but a received payment form. And the natural form to increase the checking account is a deposit form or a transfer form. And I think that's another reason like QuickBooks kind of defaults to using a deposit form as the only form other than a transfer form or journal entry, but usually the only two forms that are going to increase the checking account. If you use this form then when you look at the transaction details, it's not going to show as a deposit, it's going to show as a received payment. It's not a big problem, but it gives you a little bit more sorting issues when you're trying to see all the increases if I was trying to filter by the transactions that are increasing the checking account. But the main reason you put it into undeposited funds is so that you can then group the deposits together in our system so they'll show up in our books in the same format in the same grouping as will be done on the bank statement allowing us to check our books to the bank statement in the bank reconciliation process. So that's going to be the general idea. So if I go back on over to the received payment, that looks good. So what's this going to do then? If I record this, it's a customer payment. That means by definition it's connected to an invoice. Therefore it's going to decrease the accounts receivable. It's going to link to the invoice showing the invoice has been paid and then it's also going to be going into some kind of cash account. We're going to put it into the clearing account of undeposited funds and see what that looks like. So let's go ahead and record this. Now usually there's a button to record down below, but because I'm zoomed into 150, it's not there. So what I'm going to do is I'm going to close it out like this and then I'm going to save it. You have not recorded, I'm going to say record it. Okay, then we're going to go to the balance sheet and check it out. So we know accounts receivable went down. If I double click the accounts receivable, there's the payment. Notice it shows up in the type as a payment now. So we've got those three different names. It shows up here as a payment. If I close that out, if I go into the homepage, it shows here is a receive payment. And if I go into the form, it's called a customer payment. So that's kind of weird that it has those three different kind of names, but it is what it is, a payment. It's kind of the same, I guess, and they just shortened it to one. Then we've got undeposited funds. Now this fund is one that people often get messed up all the times, right? One, they don't know what the undeposited fund actually does. So they end up recording transactions twice. And two, they get kind of confused, or we get kind of confused sometimes to have undeposited funds down here when it really represents cash, because if you were to report cash on a normal balance sheet for normal reporting purposes, you would report it up top. All cash accounts up here, savings account, checking account, cash account, petty cash, and so on. But it put it down here in QuickBooks. Why? I believe it's because up here, these are not just the cash accounts. For QuickBooks, these are the checking accounts. Checking accounts have specific needs, meaning the register might be a little bit different, and there are accounts that you can connect to bank feeds. The undeposited funds account doesn't connect to bank feeds, so the functionality of it is more like just an other current asset type of account as opposed to a cash type of account for QuickBooks. So they put it kind of down here. If you were to format your financial statements formally for external presentation, you would think that your checking account, you would rename it to just cash, right, and then group all your cash stuff together, which would include the undeposited funds. So that's a little bit confusing, but note the undeposited funds should clear out, it being a clearing account, to zero periodically once we actually make the deposit, once we take the check that's in our hand and put it into the checking account, once we keep the cash that's in our hand and take that to the bank, or once we see the credit card transactions be grouped together in such a way that we can then post it into the checking account the same way it will appear on our bank account. So if we go into here, here's the payment of the 5000. Let's close that back out. If I go then to the customer center, I can see that particular customer. I can then go and say, okay, Anderson guitars, we now have the payment. There's the payment. If I go into the original invoice, which is this one, then I can see it's been paid now. So as you see this connection between the payment and the invoice helping us to kind of tie this stuff out in the detail on the right hand side, closing that out. I can also go to my transactions invoices. I can look at all invoices, or now I can look at just the open invoices that one now having been removed. We can also take a look at one other report, which is the customer balance detail, which is kind of the same thing that you see in the customer center, and you see this payment. And you can see the activity by customer that we would typically expect to see an increase with an invoice. We should be able to tick and tie off the payment goes back down. We still have the invoice outstanding here. We expect to see the payment in the future and bring it back down to zero. That's the trend. One last thing to note, if I go to the homepage note here, the deposit form has this red item that indicates that something went into undeposited funds, and that can only happen with a receipt payment and a create sales receipt that has a nice little link here. So when you make the deposit, you're going to actually want to use the deposit form, not the register because it'll have this pop up that then tells you the payments that you have from the payment and the sales receipts, which you can group together if there are multiple of them so that they are grouped together in the same way as you will be depositing them into the bank. Closing this back out, closing this back out. Let's do another one. This time we could go in here again, but let's go to the customer center. Let's go to the customer center and then customers and let's imagine we're going to Jones guitars and let's imagine that they paid us. So we received a payment and I'm going to say, okay, they paid us for this invoice. I can see the 7,500. I'm going to double click on the invoice. There's the actual invoice. And then I'm going to say I received a payment for it. So I would like to go to received payments where it will then generate the received payment form and connect it to the applicable invoice. So there we have it. That's another way that's quite common to do the transaction. You got Jones guitars, the payment of 7,500. Let's make the date. Let's keep it there at the one 1823. And once again, it's going to go into undeposited funds. I'm going to keep it as cash, even though it's unlikely that 7,500 would be paid in cash, probably be a check or electronic transfer. But I want to imagine a situation like cash or the credit card where we would have to go through that undeposited fund grouping multiple transactions together because we're going to deposit them into the bank in a grouped one lump sum, which is what we want to be clear about so that we can match it to what's going to happen on the bank statement, making the reconciliation as easy as possible. Notice it checked off the one that we wanted here, but it still has another one outstanding. So it shows the other invoice. If I was to double click on that invoice, you could see it here. You can see it has not yet been paid closing this out. What's this going to do when we record it? It's a customer payment. Therefore, it's going to decrease accounts receivable if being connected to an invoice. The other side is going to go into undeposited funds because we have it indicated here. I'm going to record it by exiting out and saying yes. And then we're going to go then to the balance sheet and I can go into the accounts receivable. And so now we've got this other one. This was this was Jones. If I drill down on that takes us back to the customer payment back to the source document. So that looks good. The other side's in undeposited funds going into undeposited funds. I've got two of them. If I then go to the bank and deposit these at the same time, 12,500, if it was all cash, right? Then I go to the homepage. I can see the two deposits. I could go in here. I'm not going to record it, but I can go in here. That pop up shows those two so I can then deposit them as one lump sum, which if that's the way it was going to show on the bank statement is how I want would want to do it. Closing it back out, closing it back out. If we go to the customer center on the left hand side, going to the customer for Jones. Now we've got that that invoice. I can see all transactions, all transactions. I could filter it by invoice here, for example. And so I could have all invoices for the whole, I got to say all again, or I could look at just open invoices. For example, this is the only one open now. I'm going to go back to all transactions. The invoice that was paid off was this one, was this one. So if I double click on it, it says paid. So it's been paid. We can see some more detail on the right hand side here. So I'm going to close this back out. And if I go into transactions on the right side, invoices, here we have open invoices and versus all invoices. We can also have overdue invoices. We don't have any of those. Let's go back to all invoices. All right, let's do another one. This time we'll do it this way. There's multiple ways we can get there. We could go to the home page. We could go receive payment. And we're going to say we've received it from Smith guitars this time. But I'm going to do it this way. Go to the customer center. The other way we could do it, as we did last time, is go to the customer and say, okay, Smith guitars is here. And then go to all transactions. And all this is the invoice that we got a payment for. So we can open that and say receive payment from there, generating the receive payment from the invoice. Or I could go to transactions, look at the invoices and say, I would like to look at open invoices and then pick up the one I'm looking for, Smith guitars. Let's do it this way this time. Opening up Smith guitars. And then I'm going to close the icon on the right. I'm going to then say receive payment because I'm going to imagine that we got a payment of $8,000. We'll imagine it's cash again, but probably a check or a transfer of some kind. But we're going to say Smith guitars. It populates for us due date on 118 or the date. We'll keep their cash. I'm going to keep that the same because I'm going to imagine we group these together when we make a deposit. It's going into undeposited funds. If I double click on the invoice, there's the invoice that was used to generate the payment. What's this going to do when recorded? It's going to decrease the accounts receivable. That's what a customer payment does, linking it to the invoice, showing the invoice as paid. And then the other side is going to go into undeposited funds, increasing in essence a cash account, even though it's an other current asset type of account. I'm going to record it by saying X out a tub and say yes. I want you to record it. And then we're going to go to the balance sheet. And then I can go into the receivables, double clicking on the receivables. There's Smith guitars. I can double click on it, drilling back down to Smith guitars. I can close this back out. I can then close this back out. We could go to the, well, let's go to the undeposited funds. Undeposited funds has 20,500 in it. We're imagining we're sitting on a pile of cash like Scrooge McDuck or something, but we need to take that to the bank because that's really not safe. You shouldn't have a whole thing of cash in like a box that you swim in or anything that doesn't, that's going to attract criminals. So we're going to take it to the, so we've got that. And then if you go to the customer balance here, we can see the activity for Jones. So there's the payment total is now at the 822-150, which should tie out to the balance sheet, which is at 822-150. That looks good. If I go to the customer center, then the first tab, we've got Smith, we've got the payment, and the invoice looks like we got the payment on it. If I go into the invoice, it says it's been paid. That looks good. I can see more detail from the activity on the right hand side. You've got also a nice little C history thing here. You can see, you can see, you know, a little track record of what happened, the invoice created and the 800 received and so on. But, and then we get a deposit it. So right, we haven't gotten to that point yet. So I'm going to close this back out. And then I'm going to close this back out. And so that is that. We can also see it in the transactions area, invoices. So I could look for all invoices. I could look for the open invoices now. So these are the ones that are open, the ones that were there from the beginning balances. Those are the ones that were basically receiving the payments on at this point. And then if I go to the homepage, now we've got these three items. If I click on it, if I was to deposit all of them, imagining their cash, a lot of cash, then we could deposit them all at one time, grouping them together. I won't do that quite yet. But that would be a large deposit. And if that's how it's going to show up on the bank statement, that's how we'd want to group it in our books so that we can easily reconcile our books to the bank. So I know everybody's probably itching to make that deposit right now. I would be because I don't want to be I don't want to be holding on to this 20,000 with all those crazy people out there these days going to try to rob me or something. But we're going to wait till a future presentation to do that. So hold off on that right now. For now, we'll go to let's go to the trial balance and just check our numbers. Let's go to the accounting trial balance and then take this from 010123123123. Customize the report, fonts and numbers. Let's bring it up to like let's bring it up to 16. That's we've never done that before. This is like, this is unheard of the notches that we've brought it up to. So there we have it. So you can check your numbers here. And if anything does not tie out, you probably want to adjust the date range. And then if you see something that's off by date or any other factor, possibly drill down on it by double clicking on the item, this one doesn't have anything in it. Let's go to the cash that always has stuff happening. Cash is cash is crazy like a popular nightclub. You got people stuff in there all the time. So then so then you can change the date or whatever needs to be changed. So we're going to close this back out, close this back out there. And there it is.