 QuickBooks Online 2023, sales receipt form and deposit. 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 with a 30-day free trial. We also have open the free QuickBooks Online sample company. If you want the to open at the same time, we suggest using the incognito window or another browser. Support a counting 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. You can open incognito by selecting the three dots if using Google Chrome in the browser. New incognito window then type into the search engine, QuickBooks Online Test Drive. We're going to be using the sample company to be looking at the accounting view, the view that Get Great Guitars is in versus the business view, the view the sample company is in. You can switch between the two views by selecting the cog up top and change the view down below. We're going to be opening a few tabs to put reports in, like we do every time, right-clicking the tab to duplicate it. Duplicating the last duplication by right-clicking to duplicate. And then back to the tab to the middle, we're going to open up the reports on the left. One of the favorites, that being the balance sheet, we're going to open that up. But what if you're in the business view? Where are the reports? If you're in the business view, the reports are in the business overview, and then the reports on the left. Back to the accounting view. Tab to the right, we're going to open up the reports again. This time the profit and loss, close up the hamburger, and then we want that changing of the range. 010123 tab, 022823 tab, changing the months, or the total only two months, and then run it to refresh it. There's Jan, there's Feb, there's the total here to date. Then we're going to go tab to the left, close up the boogie, and that range needs to change. Things need to change round here with that range. 022823, I'm not going to do the months thing, I'm just going to run it. Boom, there's the setup process that we do every time. We're now going to be entering a sales receipts, which are going to be the sales items that we make on like a cash-based system, and then we will make the deposit. So what do we expect to happen? Sales receipts, we expect to be increasing, not cash, because we're going to put it into that undeposited funds like account, or funds to be deposited, account, or payments to deposit. I think they're going to call it. And then the other side is going to go into the revenue account, and then when we deposit it, we're going to take it out of the clearing account and put it into the checking account. Let's go to the tab to the left to do this. Quick look at the flow chart. Just remember that if you're on the customer cycle, we expect money to be going into our checking account at the end of the cycle in some way, shape, or form. The easiest method or cycle we could have were in like gig work getting paid by like YouTube or something. And we just wait till it clears the bank, possibly recording with bank fees using just a deposit form. And that would be the easiest thing to do, although it's not really a full service accounting system, but it would be nice to do if we're in that type of industry. But a step away from that is what we're going to do now, the sales receipt form, meaning it's still on a cash-based system. We're not tracking accounts receivable, but we're doing a full service cash-based system because we have to typically because we're going to get receipts from a customer at like a cash register, for example. And then we want to be able to check the sales receipts for the day versus the cash that we have or the credit cards versus the grouping of the credit cards. And then we're going to physically make the deposit into the bank and we want our deposit in our books to match what we physically deposit into the bank. That's why it's a bit more of a challenge and you can't just rely on the bank feeds. And then the step away from that would be the accrual method, in which case we have to track the accounts receivable and enter an invoice, track the accounts receivable, receive the payment and then deposit. Remember that these two forms, the receive payment and the sales receipt, represent us receiving money and both of them, we can either put directly into the checking account. However, we might want to use that un-deposited funds like account payments to deposit as a clearing account to help us to then group the deposits in our system in the same format as will be put into the bank, either by us with physical checks or the cash that we physically put into the bank in a group or with the credit cards where the credit card company might group the deposits in a way to group multiple deposits together or multiple sales in one deposit that goes into our checking account. So let's go back on over. I'm going to say new on the left. We're going to go into the sales receipt. Sales receipt. We imagine whenever we're at the sales receipt, we're at like a check register in our shop in like our guitar shop. And then Garcia, we're going to say Garcia, we're going to have a new customer. Garcia Guitars. Guitars is going to be the new customer. Very creative name that I came up with with that one. I feel like our team came up with a really creative name on that one, Garcia Guitars, because it has two G's. So that's why it's cool. Anyways, we'll save that one. Obviously, we might want their email address and whatnot, but it's not as important because if we're making the sale in the shop, we might not even get their name because we're at the cash register. If it was a food truck or something, we probably wouldn't get their name. We would just have a generic customer called customers because no one wants to give us their name so that we can give them a peanut butter or whatever sandwich we're making. Whatever. You get what I'm saying. So then the date is going to be, let's make the date. Let's go with 0-2-20-2-3 for the date. And then this populates automatically, and then the location is necessary for the sales tax calculation, no tags, payment method. I'm just going to keep going with cash to imagine us grouping it. Remember that if we got an actual check, we would imagine that the check is something that would hit our bank account in the same amount as we would enter for the actual sale. In that case, we could use a deposit directly into the check-in account. But if you're doing, if you're working at a sales register, you're thinking, I might get paid by cash, check, or credit card, and so you probably want to keep your deposit system the same all the time, meaning I'm going to put everything into undeposited funds or payments to deposit the clearing account and not try to pick and choose when I want to put it into the check-in account or not, right? Because if I got cash, then for sure, or almost certainly, I don't want to put it directly into the check-in account because when I make the deposit physically into the bank, I'm going to group multiple sales together at one time, and that'll mess up my bank reconciliation. Same with the credit card here. If I get a credit card, a credit card company might group multiple sales together and deposit them into my check-in account in some grouped format, I want to match that on my end. So I'm just going to say cash for the example problem and we're not going to put it directly into the check-in account here. We're going to put it into the clearing account. Just remember also that if you did put it into the cash account, then you also have the added kind of little bit of a complication in that in your transaction detail, you'll have sales receipts that will increase your check-in account as opposed to just deposits and possibly transfers. Not a big deal if you want to do that, but you've got to kind of remember that it's another little sorting issue that I like to have all the increases be basically deposits in my check-in account that it's easy to know what the increases are. They're all deposit transactions, but whatever. So now we're going to go down here and we're going to add the stuff, the stuff that was purchased. So we're going to say it's an EPSP that were purchased. So we've got that one. And so I'm going to say we've got how many of those? Two of those I'm going to say gets us to the 1200. It is a taxable item. And then the next one, the next line is going to be an ELP an ELP which we set up in a prior presentation. This is an Epiphone Les Paul and we're going to say that let's say we sell two of those too. So that comes out to the sales of 2,200. And then the tax is being applied based on the location. Let me click down here for it to reformat and calculate based on location. But I'm going to change it to our generic problem of just the 5%. You could do that if you want to do the generic problem by changing the math here and just override it to 5%. Or I set up this another item of just 5%. So I can make it generic and not related to just California. The concept and follow along no matter where you are. So then we've got the 200310 and so that looks good. So what's this going to do? It's a sales receipt so it's going to increase some kind of cash account. It's going to go for us into the clearing account like undeposited funds, payments to deposit. That's for the full amount 200310. The other side is going to go into revenue 2,200. The difference, the sales tax is not going to be revenue because it's just a tax collector. They forced us to collect taxes for that one. They said, we want protection money and you've got to give us 5%. And we're like, okay. So then we've got to increase the payable account of a liability of 110. And then also we're going to have the inventory go down not by the amounts on here but by the cost which is because we have a perpetual inventory system that was set up by the items that we put in place. And the cost to goods sold is going to go up by that same amount. The expense account related to us consuming the inventory that net income impact is going to be income minus the cost of goods sold. And the sub ledger for inventory is also going to go down by unit not just by the cost. Okay, that's a lot of action. Let's save it and close it and check it out. And we're going to go to the tab to the right. Notice how easy it was to enter that into the system, just like scanning your stuff at a grocery store. If it was a self checkout, you could do it yourself, but there's so much stuff going on because we set up the accounting system so well that it just does it automatically. So then we're going to go down here and say that we've got payments to deposited went up just like we said it would, just like I said it would 200310 by the full amount here. That's by the full amount. Am I right? Am I right? Yeah. So then going back and then I'm going to go back and then the other sides on the profit and loss, the P to the L and it went into the product and service income boom. And then we've got the two line items so there they are but it went in by the sales amount not including the sales tax scrolling back up, back to the form the other sides on the balance sheet again it's in the sales tax we're paying to California department and so on. You know those people over there that make us paying protection money 5% for protection money I just got robbed just last week. Dang it these people and they're still charging me this protection money whatever anyways the other side is going to go into inventory by going to inventory it went down and so we've got these amounts here for the sales receipt that we made in the inventory multiple line items because it's using the first and first out inventory method I believe and then we're going to go back and then the cost of good sold tab to the right cost of the good sold also impacted let's just go into the total here cost of good sold there are those the net impact on net income is the change in the revenue change in the revenue and the change in the cost of good sold net impact on gross profit therefore is that as well as the net operating income okay so let's also go back to the balance sheet and look at the inventory just to see that there's a sub ledger tracking by units not just by dollars tab to the right right click let's duplicate it and check that out and so I'm going to make another tab to do that and then go to the reports on the left hand side I'll close up the boogie and type in inventory just to look at the inventory valuation summary as of 022823 run it to refresh it so now we've got the units of inventory the asset value it comes out to seven thousand nine thirty eight does that tie out to what's on the BS balance sheet seven thousand nine thirty eight it does your dang right it does I don't know why I got upset all of a sudden anyway I'm going to go to the tab to the left and then let's make another let's make another one a sales receipt again so now we're at the cash register again someone else this is going to be Anderson Mr. Anderson that's a customer we've dealt with before Mr. Anderson guitars setting that up boom let's say this happened on 220 the same day no tags or anything down here payment method we're going to just stick with the cash thing it's going to go into the payments to deposit the clearing account and we're going to say that Mr. Anderson this time what do you want this time Mr. Anderson they're going to say they want some ukuleles diamond head ukuleles they want two of those for whatever reason and those are taxable and then I'm going to tab on through then they also want the EPR which is a epiphone Riviera so we've got that one and so that one we're going to say that we want how many of those three of those and then we want also a GI USA which is a Gibson USA and we want we want one of those okay so there it is and so I think that's right so that comes out to the 2,940 94 and then we got the sales tax based on location but I'm going to change it to the generic 5% which you can do here changing the math to overwrite it or I'm going to choose my 5% thing that I put down here there it is same thing what's it going to do real quick it's going to increase the cash account because it's a sales receipt but it's going into the funds for the total amount of 2,198 70 the other side is going to go into revenue of the 2,094 then we got the sales tax it's going to go up which is a pay about of one of pay about payable 10470 and then inventory is going to go down not by these amounts but driven by the item because the system know how much it should go down by and then cost of goods sold is going to go up which is an expensive account by the same amount and then revenue minus the cost of goods sold will be the impact on net income and the inventory accounts are going to go down not only by dollar amount but also by unit for the inventories that we sold let's check it out save it close it go to the tab to the right and see if that does do that so then we're going to go down here we've got the payments to deposit boom chakalaka I'm going to stop saying that boom chakalaka and then I'm going to go back up and say tab to the right run it to refresh it and then we've got the sales sales happened sales have happened mistakes were made you made the mistakes mistakes were made we're going to go back to the tab to the to the left and then we've got the sales tax there's the sales tax that looks like it's supposed to look which is good actually it's a sales tax doesn't look sales tax is kind of ugly but that's how it's supposed to work and then cost a good sold cost a good sold there's that and then the other sides on the P to the L to the income statement it's in here on the cost a good sold the net impact on the net income is the increase in the revenue minus the cost a good sold for those two items we also know that the inventory account should still tie out so inventory to the sub ledger tracking units as well as the inventory let's crash it so now we're to 6266 that should tie out to what's on the balance sheet and the payments to deposit this 5408 70 when we make a deposit I should be able to pull those two in and group them together those two sales receipts so that I can move it out of the undeposited funds into the checking account in one group movement so that it's in the checking account in the same format as I expected to be seen on the bank statement or through the bank feeds making the reconciliation easy so let's do that now let's go to the first tab now we're just it's the end of the day we're taking our money that we got from the cash register everything checks out from the cash register to our sales and we're going to go ahead and movie on shuffle on over to the bank make the physical deposit into the bank which is going to be a combination of the sales we made for the day from the cash register that are the cash sales and so if I go into here then I'm going to deposit these together at this point in time and so notice it gives us this nice little thing up top if I was making some other kind of deposit I would go down here and deposit to a particular account but the sales receipts are populating up top if I put them in the bank at the same time I'm going to make one deposit for 4500870 I know that's a lot for cash but the credit cards would work would work kind of the same and so I'm just getting the idea here of what you need to do to get the reconciliations to work so let's go ahead and save and close that this is going to increase the checking account for the dates correct and the other side is going to take the money out of that undeposited funds like account which is the the payments to be deposited is what they call it so let's go to run and in the checking account now if we check out the bank we should then have the deposit there's the one deposit showing as a lump sum which is what we want to see because that's what's going to be on the bank statement notice it's also increasing with a deposit form not with like a sales receipt form if I entered the sales receipt directly into the checking account it would have another form in here for an increase rather than just all deposits being the increase form not a big deal if you want to use that method you got to be kind of aware of that if you're going to sort your data to look for increases in the checking account when the increases are not all simply deposits and then the payments to deposit has gone back down to zero that's what a clearing account does not a temporary account mind you temporary accounts like income statement accounts income and expense go back to zero after you close out but that happens on a cyclical method like yearly or monthly this is going up or down based on when whatever we used it for is done which is usually a shorter range of time it increases when we make the sale and goes back to zero when we make the deposits so that is that one so let's just go to our trial balance to see where we stand at this point I'm going to go to the tab to the right right click on actually just let's just use this one this one will work I'm going to open the hamburger go into the reports on the left hand side and type in trial balance trial balance that's what I want to see close up the hand buggy change the range we're going to go from oh one oh one two three to oh two twenty eight two three and change the total to months so we can see the side by side for Jan and Feb so this is what we have here and we're of course are on the Feb numbers as of this point in time so if your numbers tie out and you're working along with us great if not try expanding the range it's often a date issue if there's a problem we will be running transaction detail reports at the end of the month data input to further drill down on any differences at that time