 QuickBooks Online 2023, deposits to check-in account from payments to deposit or undeposited funds. Get ready to start moving on up with QuickBooks Online 2023. Here we are in our Get Great Guitars practice file. We started up in a prior presentation using the 30-day free trial. We also have open the free QuickBooks Online sample company. If you want these two things open at the same time, we suggest using the incognito mode or another browser. You can open the incognito mode if using Google Chrome by selecting the three dots in the browser. Open incognito window. Support accounting instruction by clicking the link below giving you a free 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. Type into the search engine QuickBooks Online test drive. We're going to be using the sample company to look at the difference between the accounting view, the view that Get Great Guitars is in and the business view, the view the sample company is in. You can toggle back and forth between the two views by selecting the cog up top and the view change down below. Opening up a couple tabs to put reports in by duplicating right click in the tab up top to duplicate like we do every time. Right click in the tab up can up top again to duplicate it again. As the tab to the right is thinking I'm going to tab to the left go to the reports on the bottom open up the balance sheet report. If you're in the business view by the way the reports are located in the business overview on the left and then the reports. Then I'm going to tab to the right open up the reports on the left again. This time we want the income statement the P&L the profit loss the income statement closing up the hand boogie up top changing the range from 010123 tab 123123 tab run it to refresh it tab it to the middle close the boogie scrolling up changing the range like we do every time 010123 tab 123123 and run it to refresh it. That's the setup process that we have been doing every time in prior presentations. We entered some sales transactions both on a cash based system and a cruel based system and that ended up with some amounts in the payments to deposit which is kind of like undeposited funds which we're now going to be putting into the checking account moving them from here up to there but doing so in such a way so the grouping will match what we expect to be on the bank statement. So let's just get a quick recap of that by looking at our chart of accounts. This is the desktop chart of accounts but we're just looking at the flow remembering that in our customer cycle we might have a different you know setup depending on the industry we're in easiest industry gig work or something you got paid by YouTube you get paid by a platform you just wait till it hits your account. You might use the bank feeds to record the revenue as a deposit that would be a cash based system but even a step easier than a cash based system one in which you're recording your books based on the bank rather than using the bank to double check your books which is the full service accounting system and then two you might have a cash based system but one which you're going to be doing the full service accounting system in essence recording the transactions first and then double checking them with the bank and that system you might be at a cash register you might be getting paid you might be getting money at the cash register or you might you might be getting credit card sales and so on there instead of depositing with the sales receipt directly into the checking account oftentimes you're going to want to use the payments to be deposited the undeposited funds type of account so that you can then make multiple sales that you will then group together either by the credit card company if credit card sales or bundling the cash together if cash sales when you make the physical deposit into the bank and then you're going to want to then enter the deposit in our system which is what we're going to do now so that the groupings are the same that will be shown on the bank that will allow us to do a bank reconciliation a very important process for every type of business large small any industry and so that's what we're going to do at this point if you're in a full accrual service system you've got the invoicing then you've got to receive the payment and when you've received the payment you're in a similar spot as with the create sales receipt now with the receive payment form it's more likely because you invoice someone directly that the payment is going to be paid by like an electronic transfer or something in which case it might hit the bank account in the same format as you received it in other words you're less likely to get a bunch of five dollar sales or something that you're going to have to group together with one lump some deposit so i would think most businesses if you're using a full accrual system would be more likely to be able to record this sales receive payment directly into the checking account then most companies that have to use the create sales receipts at a check register would because if you're a check register it's quite likely that you're going to have cash sales or credit card sales which you're going to have to bundle up in some particular way to match what's on the bank statement so therefore you kind of have to use that undeposited funds or amounts to be deposited i still like using them either way because because then all my deposits into the checking account will be done with a deposit form as opposed to with amounts increasing the checking account that could be sales payments or receive payments sales receipts or deposit forms or transfers so when we sort the data it could be a little bit easier if you do the full service system now notice how do the bank feeds fit into this system usually the bank feeds if you turn them on are are just going to match out what you already did which is the full service accounting system you enter it into the system you use the bank feeds to help you with the reconciliation process rather than to record the transaction although as we'll see when we get to the banks section section or course you could have a bank feed that matches up possibly to the invoice after you create the invoice or after you make the the receive payment or after you create the sales receipt we'll talk more about that later but let's go back on over and i'll go back to the to the first tab now this amount that's in the payment to deposit if i go to the first tab that's 28 70 85 and i go to that plus button we've entered invoices we've received the payment putting them into that undeposited fund and we entered sales receipts and put them into that undeposited funds or amounts to be deposited now we're going to go to the deposit which note is over here in the other not in the customer center although you kind of think about the deposit as part of the customer cycle they put it over here i think in part due to the fact that you might have deposits that aren't from customers such as those from you or those from a bank but like getting a loan but typically this is part of the customer cycle hopefully we're going to be putting it into our checking account so there's our checking account and we'll say the date i'll just keep it at the 19th for our practice problem so that looks good and then we've got these items down here notice that these items are pulled in automatically so it's kind of nice as opposed to these items down below so in other words if i'm making a deposit that's coming directly from a payment or a sales receipt then i really want to use the deposit form so i can use this future to group them together if i'm making a deposit that's not related to a payment or sales receipt form then i could use the bottom part of the deposit form and just record the account that i'm going to like a loan account or an equity account if i put the money into the business or i might just go to the register and enter the deposit into the register if i'm just doing something like that but i have to use the deposit form in this case if i'm trying to group them together from the amounts that are in the amounts to be deposited because i got this nice feature that allows us to do that so let's imagine now normally how this would work is if you were at a cash register you would be making sales during the day and then you'd go to the bank at the end of the day you would count the cash you'd see that it ties out or see if it ties out to your sales receipts for the day and then you'd make a deposit at the end of the day for all of the sales that you made and then we would check them off and here all the sales that were made in the system and group them in this case it's coming out to the 7,570-85 we imagine that's what was actually put into the bank account physically so that when we do the reconciliation either with the bank feeds or the reconciliation process it will tie out obviously we did a couple sales before making the deposit because we wanted to kind of group transactions into the same into the same groupings and show you how this kind of works so we're going to deposit these two first and so let's just say then you got your options down here you got cancelled clear you can you can print it you don't really need to print a deposit form normally because it's an internal document not an external document it's just for data input recording the transaction not for providing to customers typically and then we've got the save and close or save a new i'm going to go to the save and close and then let's go to the balance sheet let's run it to refresh it let's go into the checking account now and in the checking account we've got the deposit form now this is what i mean by the checking account going up with the type of form if we entered these two forms receive payment and create sales receipts directly into the checking account then you would have increases to the checking account that could be three different types of forms and when you sort for the form which you can do by going up top which is common in a cash account because cash has so many different transactions in it you can then say okay i'm going to customize the report it's common to use your filtering options and then filter by transaction type so if i'm trying to look at all the increases to the to the report here i'd like to just check off deposits as opposed to also having to find all the other things that could be you know an increase the sales receipts and so on and so now i've got the increases that are all deposits it's not too difficult if you if you're using sales receipts you can add the sales receipts and whatnot but that's just one added little little quirk that's uh it's kind of nice to use the the amount to be deposited or whatever they call it the undeposited funds type account so if i go into it there's our deposit form it's showing as one lump sum not two line items if i then go back the other side should be in the amount to be deposited payments to be deposited they call it which is now down to 20 500 and we see the decrease here notice that they put it in here as two line items instead of one lump sum which is nice because in here you can see the increase and the decrease there's the sales receipt i should be able to check everything off at the end of the day this clearing account which is different than a temporary account a temporary account are the income statement accounts that close out at the end of the period on a regular basis what i would call a clearing account like this one goes up and then down usually at a very short time period from zero up and then back down in this case when we put the deposits in to the point when we actually make the deposits into the checking account now let's just do the rest of them now i've got 20 500 here so if i go to the first tab and i say the plus button and i make deposit again i'm going to say it's going into the checking account let's put it on plus plus for the 21st and then i'm just going to check the rest of them now i could check them one at a time i could hit the check all of them and it'll check all of them off here so now they're all the payments are included and here's the payment methods that they have that could help you to organize these because if they were credit card payments then you might use that to kind of help you to sort with your credit card company notice that credit card payments can be confusing it often messes people up when you have these intermediary kind of systems because then you have to work with the credit card institutions to see how they're going to group something before they actually put it into your account and you may also have fees and stuff that you have to deal with so what you what you need to do is figure out a system so that you can match on your end by grouping your sales accounts and whatnot what they put in on their end so that you can reconcile and so with the so that's what our goal is so here we got the 20,500 same thing this is going to increase the checking account the other side's going to decrease that payments to be deposited they call it like the undeposited funds account let's save it and close it and then go to the bank account and check it out and see if that is indeed what happened let's run it to refresh it and we're going into the checking account check out the check-in and so there it is the 20,500 in there as one lump sum we expect to be able to match that out to the bank using the bank reconciliation or the bank fees or both and then we got the payments to deposit notice that this zero is still here because QuickBooks by default I think very nicely these days is showing the zero balances if there was activity notice that if you went up top here and you you changed this item to say I don't want any zeros then it's not it's not going to show here it's still showing there let's run it there it doesn't show so for external reporting you might want to get rid of that zero but I think they properly did active item by default because for internal reporting that zero is important because then I can click on it and I can see the detail of of the increases and decreases in the account which is great that's what I want to see went back down to zero just like a clearing account should so that looks good now I'm going to imagine I just changed the date on this other one we put in here just to show you how you can change it if I go into the the cash account and I determined well the date on this one was wrong I'm going to bring it up to the 20th I'm just going to click on it so this would be if you're following along with a practice problem I'm just going to hit the plus button bring it up to 20 QuickBooks is quite forgiving on that but be careful doing that in practice but often you're going to have date range issues in a practice problem so so you so you want to you know be aware of that that you can drill down and adjust the date and that can fix stuff if you're doing that in a prior period in in practice then you want to be very careful but just just note that you have the capacity to make those adjustments okay let's go to the trial balance I'm going to tap to the right notice there was no impact on the income statement by the way we just transferred it from one cash account a holding account a clearing account to another we recorded the sales when we made the sales either with an invoice or sales receipt the things that are creating the income statement are the invoices and the sales receipts sometimes deposit forms can be used to create the invents the income statement if you're just recording sales with a deposit form such as if you got paid by youtube like gig work or something but that's not natural to the system most the full service accounting systems would use invoices and sales receipts invoices for the cruel system sales receipts for a cash based system to record the revenue side on the income statement okay so then we're going to go to right click on the tab duplicate it and let's go to the reports on the left hand side and then close up the buggy and type in trial balance because I want to open the trial balance so you're going to type that in so you can find it so then you can open it and then we're going to go from 0 1 0 1 2 3 tap 12 3 1 2 3 tab run it to refresh it this is where we stand left leg being the debits right leg being the credits if you match out to what we have here great if not try changing the date range if there's a change on the range when you change the range then you might want to drill down on the data and possibly change the date again something that could be quite useful in practice a practice problem but be careful in practice when doing that we'll do a transaction detail report at the end of the month's worth of data input which will help us to check our numbers for that month of data input as well