 QuickBooks Desktop 2023. Rental income invoice from Estamante. Let's do it within two-its QuickBooks Desktop 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 QuickBooks Desktop. Get great guitars practice file we started up in a prior presentation going through the setup process we do every time. Maximize the homepage to the gray area view drop-down. No team we've got the hide icon bar open windows list checked off open windows open on the left. Reports drop-down company financial P&L profit and loss change that range from 010123 to 123123. Customize it we want to go to the fonts and numbers I'm going to increase the size of those fonts to 14 okay yes and okay reports drop-down again company and financial again but this time the balance sheet customize it font in to the number in to change it to 14 oh yes K and hold on a second we got to customize the range 010123 to 123123 is the range okay that's the setup process we've been doing every time we're going to go back to the homepage remembering that our primary source of income for this practice problem has been the selling of inventory we've been focusing in on the inventory because that's usually the most complex thing to be dealing with because we have to track the inventory but we will also want to think about a service item so we've entered a couple different service items we've thought about a job cost system where we're going to basically have like a it would be similar to a bookkeeping or law firm where we enter time use that time to create invoices and then last time we thought about a rental kind of setup in our case renting out equipment where we made the estimate first someone imagining someone calls in for the rental of banned equipment we set up some items to drive the process of us entering estimates and invoices and we then took a receive payment getting a deposit which is a form of unearned revenue we have a couple different methods we can deal with unearned revenue you could take a look at presentations on unearned revenue for more detail about them now we're imagining that the person comes in and is actually going to rent the equipment we're going to give them the equipment so we're going to create the invoice at that point in time so now we're going to make the invoice from the estimates we'll be able to practice that making an invoice from the estimate and we'll also be dealing with the fact that we have an outstanding in essence credit for the customer we can apply then to the invoice let's recap what we did last time by going to the customer drop down customer center taking a look at this particular customer being customer number five there's the estimate that we made if I double-click on it we could see the estimate looks a lot like an invoice except that it's an estimate and if there's no impact on the actual financial statements but I can see you know what we need to do or what the invoice will look like in essence we imagined we then took this estimate to calculate what the down payment should be which we said was 200 we kind of just made up 200 as the down payment amount now we're going to create the invoice we're imagining they come in they're gonna actually get the equipment and we're going to make the invoice now we could go into the estimate here and then create an invoice this way from the estimate I can also close this back out if someone came into the store and I didn't know who they were something like that I could go to the transactions and look at the estimates this way find the transaction there or I can simply go into my home page and create an invoice or go into the invoice in any way we so choose and type in customer number five customer number five I got the correct customer this time and then it says here that we have an estimate to the invoice so here's our estimate if I want to select that to create the invoice then it's going to populate that stuff on over to the invoice I'm going to change the date to 022722 customer number five terms let's say it's net 30 on the terms our standard terms and there we have it it pulled in our our rental stuff which we said we set up an item for a standard band two guitars and amp we're saying drums set microphones and then they wanted some added guitars and added amps to really blast out the stuff so now we've got our invoice at this point in time populated from the estimate fairly straightforward at this point with regards to the invoice except that we now also have to apply out the credit now a quick look on on the credit we saw it on the customer center here and here there's the $200 so we could see the payment that needs to be applied out also just realize if I look at the balance sheet and I look at the sub ledger for the accounts receivable by going to the reports drop down and going to the customers and receivable the customer balance detail report and I look at customer number five here it shows up as a negative amount that's what I mean by saying it's not exactly right for reporting purposes at this point in time because it should be a positive liability not a negative receivable but it matches out great when we're trying to make an invoice from it and apply this 200 out to the invoice which we will do now after that point in time it's not a problem anymore because now the accounts receivable would be correct so it's a timing kind of difference issue any case let's go back on over and say okay let's go to the invoice and let's say we want to add or apply a credit so the changes to this I'm going to say okay save the changes you've changed the terms yes I changed the terms and there's the credit so we're going to apply out that $200 that's the one that we want so I'm going to say done there it is now notice it changes the total down here to 2060 which is great because now we can give this to them and that shows what is actually owed but this 200 is really kind of more of just an informational type of thing also note before I forget now that it says pass due that it should be 2023 up top not 2022 sorry about that but so there it is okay so what's this going to record then it's an invoice it's going to increase the accounts receivable not by the 2060 but by the 2060 the 200 credit is already on the accounts receivable it's just showing here on the form for informational purposes what needs to be happening to our finances are the 2002 60 needs to increase the AR the other side is going to go to sales and it's going to be applied out by the amounts up top not including any sales tax although there is no sales tax and then so so it therefore is just going to be the 2002 60 and then there's no sales tax there's no impact on the inventory and the customer sub ledger will be impacted as well by the 2002 60 because there's already 200 there for the prepayment then it'll bring the proper balance to 2060 let's save it and close it and check it out so their payment supplied yes okay so if I go back to the balance sheet we go into double clicking on the good old AR accounts receivable then down here there's the 2002 60 if I double click on it note once again it's not recording the 2006 but the 2002 60 that 200 is here already because it was there on the payment that happened before so I'm going to close this back out if I go to the customer detail we could see it here as well so there's the 2002 60 again the full invoice is applied and the payment is now being tied to the invoice that's what we would expect to see normally in reverse order however the full invoice and then the payment after but look how nicely it works out here that we get to see the full invoice and then the payment tying out to it that's great from like a bookkeeping standpoint I can also see that in the customer center I can go into customer number five I could say okay there's there's the estimate we made there's the prepayment that we had and there's the invoice and the balance do at this point in time is the total of the 2006 so if someone if they asked us questions or if someone is talking to the customer pretty straightforward everything looks basically normal even though it happened in a bit reverse order than a normal kind of sales type of transaction okay so there is that if I go back to the let's go to the profit and loss the other side of it was recorded in rental income now note that we decided when we set up the item to not just put it into service revenue but rather into rental income want to just reiterate that that's not a bad that's that's a matter of our personal choice as to how many income accounts we want but remember that we want the major big categories of income accounts we don't want to have like a separate income account for every service item we have if we're using a full service bookkeeping system because if we're using sales receipts and invoices we will have the sub reports which can be found in the reports drop-down sales sales by sales by item and if I change the date from 010123 to 123123 so now I've got the added items here and it'll give us the total revenue 68711 which should tie out to the 68711 here and give it by item that we sold so we don't want all these different line items as different income accounts just the major groupings of income accounts which we decided that the equipment rental income was large enough different enough to have its own income line item now let's just go back to the customer center real quick and I can see it like if I double click on this estimate we could see this estimate was the one that was used to make the invoice and you can see a bit more detail on the left hand side where we have the summary so the open balance that's still open on basically the invoice that we have and we've got the recent transactions down below I'm going to close this back out we then have the invoice which is currently open at this point in time so now we're going to say that there's a payment let's assume that we got the payment on the invoice we can apply the payment by going to receive payment in the open invoice here or we can just go to the home page and say we've received a payment from the customer and I'm just going to type in customer number five customer number five gave us a payment and this is going to be two or I'll just click on it down here they paid us the full amount to zero 2060 on 228 let's say 228 it's going to go into undeposted fund so this is the normal process at this point customer payments decrease in the accounts receivable for customer number five on the sub ledger and it's going to decrease for the amount that's remaining the 2060 the full invoice was 2002 60 we already got the 200 down payment therefore the 2060 is what is now remaining we'll keep it as a cash payment notice I have it for 2022 that should be up to 2023 we're working in 2023 I'm going to say okay and then I'm going to close it out this way and say close and then say yes to save it and then if I go into my AR on the balance sheet accounts receivable then I should have this amount there it is there's the payment there's the invoice there's the payment closing this back out the other side is going to be going to the undeposited funds which is right there the 2060 the sub ledger for the customer balance detail let's say now we've got the pre payment that happened here then we invoiced and then we've got the payment so these two payments are applied out to that invoice if I see it in the customer center then I could say okay number invoice number five here's the invoice that was created from the estimate we had the down payment and then these two payments assigned to it so if I go into this invoice we can see it's been paid here so we have it as having been paid I'm going to close this back out and let's go ahead and just make the deposit now so I'm going to close this out and finish this this whole cycle up so now we have the received payment putting it into undeposited funds which we saw in the balance sheet the one here represents what's in undeposited funds which has been created from either a sales receipt or in this case the received payment let's go into that and just finalize this imagining we're going to the bank at the end of the day check it off the 2060 we're going to put in the bank okay that's the only thing we need to include so we'll keep it let's change the date this time 2023 can you get the date right for once for once in the for crying out loud okay I get it so so this is going to increase the checking account the other side's going to go undeposited funds bring that back down save it close it pour five or balance sheet checking account zoom in in and going down in to the deposit in 2060 looks good movie being closing that back out how you being i'm movie being any case the other side's in undeposited funds which we can't see right now so I could see it by going to the customize up top and we can go to the advanced and let's say we want to see the active stuff okay okay and then there's the undeposited funds checking it double in clicking it there is the deposit so everything looks hunky to dory I asked dory how it looks and doors like this is hunky says dory it's hunky dory anyways so now let's go and check our numbers reports drop down accounting and taxes trial balance let's do the range change 010123 to 123123 let's customize the report to the fonts to the numbers to change the font up to 14 okay yes and okay so you can if everything ties out great if not try changing the date range you can see that I made some date issue problems which was totally intentional just to demonstrate what normal people have problems with sometimes even though I don't have any problems with anything ever but what so in any case uh you can drill down and make changes to stuff and we will take a look at the transaction detail report uh which will be better to help us to drill down and find any other problems or discrepancies that may exist