 QuickBooks Desktop 2024 customer prepayment purchase order bill invoice and receive payment forms. Get ready and some coffee because we're locking into some non-stop QuickBooks Desktop 2024. Here we are in QuickBooks Desktop sample company file. We set up in a prior presentation using the enterprise version of the QuickBooks Desktop software so we can practice using the unearned revenue new feature within it. Under the view tab we've got the hide icon bar selected, the open window selected, open windows open on the left hand side. Under the company drop down we have the home page open going into the reports so we can open the major financial statement reports like we do every time. Company and financial looking at that balance sheet standard report. Let's customize the report, change that range from 010127 tab, 123127 tab, fonts and numbers changing the font to bring it up to 14. Is that okay? Yes, okay then. Then we're going to go to the reports drop down again, company and financial. This time the P, the L, the profit loss, the income statement. Change the range. This time from 010127 to let's go to 06327 and then I want to see this one on a month by month breakout month by month and then customize the reports, fonts and numbers changing the font up to 14 and okay, yes and okay. So that's the setup process we do every time. We've been running the multiple scenarios here, the standard scenario in January. Then we did a couple scenarios with a negative AR February and March or March through May and now we're running our new scenario here in June. Let's recap what we did thus far. Home tab, we're looking at a situation where we're selling a large product, in our case a surfboard, a psychedelic surfboard because it's got a crazy air brush on it and we want to then, we made an estimate for it. So we're imagining the customer came in, wanted the surfboard, we made the estimate and then we made a sales order which basically locks in the estimate that has been made and then we asked for a deposit because we're going to go up here and order the custom surfboard and we want to make sure this guy's locked into the sale. So then we jumped over and received a payment skipping as the arrows are saying here the invoice. So usually when we do that under the old method that would make a negative AR which would be okay from an internal reporting standpoint or bookkeeping standpoint but for external reporting purposes causes a problem because it should be a positive liability and so the new method QuickBooks allows us to make a positive liability. So let's just check that out. Balance sheet, instead of making a negative accounts receivable over here it made another account down below and we called it customer deposit. There is our $50. When I look at the sub ledger reports under the reports dropdown if I go to the receivables we now have two of them we need to track. We're going to go to the customer balance detail. This tracks the accounts receivable. Let's customize it. Let's make the fonts and numbers. Let's just bring it up to 12. Let's not get crazy with the 14. Yes and okay. It's not here yet because it's under the it's a liability. So we have another report now with sub ledger for the customers and receivables and this is going to be the open, what did we call it? Open pre-payments. There that is. Let's customize this report. Fonts and numbers. Change the font up to 12 as well and okay, okay, okay. Then if I go into my customers dropdown, the customer center. This is where our customers are hanging. They're hanging out over here. So there is our customer. We could see that we made an estimate. We had the sales order and then we got that payment. We should now be able to apply that payment to the invoice, which is what's going to happen next on the customer side. But before we do that, we have to actually buy the product. So we're going to go over here and say we don't have it yet because it was a custom order. We made a sales order. Now we want to make a purchase order from the sales order so that we can then go to our vendor and purchase the product. All right, so let's do that. Let's go back into the customer detail. I think the easiest way to do that would be from the customer center. We go into the sales order and then I'm just going to say make a bill, a purchase order from it. So create a purchase order. So we're going to the purchasing side and it says create the purchase order for all allowed items. That's what we want. Pull the whole thing in there. There's just one thing. And then this is going to be, what did we call it? Customer prepayment vendor, which is a funny name for a vendor, but I'm just trying to say everything has that name so that we can tie it to this scenario that we're running out. This is going to be 06, let's say 0427, tab, tab, tab, tab. This is another internal document. Not going to record anything. It's only for $100 because that's the cost of the surfboard, not the sales price, which was $175, and no sales tax is being applied here because we're going to apply the tax on the sales side. Internal documents that we could track in Excel. This is just going to be the PO or purchase order. Purchase order, no financial transaction happening. We track that internally. So I'm just going to save it and close it. Where do we track it internally, closing this out? We track it not in the customer center, but in the vendor center. So we go to the vendor dropdown, vendor center, and we can see there where we can see it somewhere. Somewhere because I should have named the vendor's name with a four so I could have seen it easier. What did I call it? Customer prepayment. So I should have put a four. That's what I was doing before, but that's okay. Here's the open purchase order. And then the next thing would be we would have a bill that when we receive the surfboard. So let's do that. I'm going to double click on this and we would then we could say create a sales receipt. I'm just going to go directly to a bill. I'm going to close this out home page and let's say now we're going to receive the inventory with a bill. We got a box with a surfboard in it's got a psychedelic air breath that was ordered for and we want the and it's got a bill with it. So this is going to be the customer, the vendor. What did I call it? I call the vendor customer prepayment vendor. And then it says there's an open purchase order. Do we want to add that? I'm paraphrasing. I'm going to say yes, we do. I would like to do that. Quick books. Thank you for working asking. This is going to be oh six. Let's make it oh seven to seven tab, tab, tab. There's the hundred dollars and there's the item down below. Now what's going to what's this going to do? It's a bill and therefore it's going to increase the accounts payable. That's what bills do. It's going to increase the sub ledger for this vendor. And.