QuickBooks Pro Plus desktop 2022 bank feeds matching invoice to deposit. Get ready because we bookkeeping pros are moving up the hill top with QuickBooks Pro Plus desktop 2022. Here we are in our bank feeds practice file going through the setup process with a view drop down the open windows list on the left hand side company dropped down home page in the middle maximizing it to the gray area reports drop down company and financial looking at the balance sheet standard.
We’re going to be customizing it with a range change from Oh 101 to 112 31 to one fonts and numbers bringing the font up to 14. And okay, yes, please. And okay, reports drop down a Gan company and financial profit and loss standard with a range change from a 101 to 112 31 to one customizing that report fonts and numbers change in the font size. Bring it up to 14. Okay, yes, please.
And okay, reports drop down accounting and taxes trial balance with a range change from Oh, 101 to 112 31 to one customizing it fonts and numbers changing the font size up to 14. Okay, yes, please. And okay, opening up the bank feed center by hitting the baking drop down with a bank feeds bank feed center, we’re going to maximize that to the gray area as well.
And we’re going to go back on over to the home page, we’re now going to be considering a situation where we’re deviating away from being simply reliant on the bank feeds in order to record our sales on the revenue side of things. So last time, we talked about revenue we were looking at, and depending upon the bank feeds, trying to have a system where we wait till the deposits actually hit the bank,
before we record them with in essence, a deposit form using the bank feeds as revenue at that point in time. So now we’re going to start to say, well, what if I can’t do that, what if I have to basically record an invoice or a sales receipt, as I make that actual transaction, we’re going to start off with the invoice here.
Now as you make the invoice, that means that you’re going to be billing a customer, that means you’re in a type of industry, possibly like a bookkeeping service, or a CPA firm, a law firm, where you have to actually do the work before billing the client. And then you build a client with the invoice and you got to track the receivables to make sure that you get paid on it until you get the money and then you make the deposit the invoice,
then be in the form that records the revenue at the point in time the work was done and increases the accounts receivables so that you could track the revenue before and so that you could track the payment that you are going to receive from the customer then we have the receive payment.
The receive payment is typically the form that is going to be used when you get the payment for the invoice that you entered in the past. And usually that’s going to go into by default going into an undeposited funds type of account, which is a holding account that QuickBooks then uses. And then you’re going to take that money and put it into the big account with a deposit form.
Now, you might be saying Now why would we have that undeposited accounts? Why do I have this kind of middle step? Why do I need an extra step from here to here? Why is it going into undeposited funds, instead of going here directly into the checking account, you could put it directly into the checking account from here.
But they’re by default, having undeposited funds so that you have a clearing account that can be used to group the deposits into the same format that they’re going to be expected to see on the bank statement that making the bank reconciliation a little bit easier to do. So that’s the idea of this undeposited funds account being here and then making the deposit.
So then when you’re thinking about the bank feeds, the question is, well, I could put the bank feed in place after I make the invoice meaning I could make the invoice and then just wait till I get the money. Wait till the money clears the bank with in essence, a deposit through the bank feeds and see if I can match the deposit that we got to the invoice. That’s one way you could do the bank feeds.
The second ways you could say okay, I’m going to record the receive payment, put it into undeposited funds. And then I’m going to have the bank feeds match out when it actually clears the checking account to the undeposited funds that will actually record that final step taking it out of undeposited funds into the checking account or you could go through this full process,
put it into the deposit, then use the bank feeds to match out the fact that it cleared the bank to the deposit. In that case the bank feed transaction would not be recorded anything new, but simply matching to what has been done in the past. The last method you could use is you could change this set in to record directly into undeposited funds at this point.
And then once again use the bank feeds to double check that it hasn’t declared the checking account, the bank feeds not entering anything new. But just giving a double check that there’s been a clear into the bank account.
So let’s try this first, this first method, I’m going to create an invoice increase in accounts receivable other side, go into sales, and then see if we could make a bank feed that will basically take that money and record it as being received lower and accounts receivable, put it into the checking account, in essence, to do that, let’s go to my bank feeds. And let’s think about deposits.
So I’m going to go to the filters up top. And let’s go to the deposits. And let’s pick a deposit that we’re going to like assume is going to be revenue from an invoice that has been cleared. So let’s pick let’s pick then, let’s just take this one. So we got the the 8382 39 from Amazon. So I’m gonna say okay, let’s go back to I’m going to say at 339. Let’s make an invoice for that same amount, I’m kind of working backwards, obviously, the invoice would be created first before it clears the bank.
But what I’m going to do is put this into place, and then see if we can match it. So we’re going to go back to the invoice, imagining that this is what we would be doing first, I’m gonna say amazon.com Funny, and we’re gonna say this has happened, let’s say, Oh, 915 21. And let’s set up a new item, Item. Item, let’s say number three. And we’re going to set up a new item.
And I’m just going to call it a service item, I’m not going to say it’s subject to tax of no tax and the rate. Let’s just add the rate as we go. And I’m going to say that this is going to a sales account, let’s see the other side is going to be a revenue account or sales account. So where is this earned his sales? So we’ll say okay, and then we’ll have one of those and the rate was once again, what was it again 82 3980 230-982-3098 2.39. And we don’t have any sales tax down below.
So this is a simple invoice, we don’t have any, any inventory we’re tracking, it’s just going to be an increase to revenue, the other side go into sales. So I’m going to say save it and close it. Okay, and let’s check it out on the financials go into the balance sheet, we should have accounts receivable going up double clicking on the balance sheet, accounts receivable, we have an increase of the 8239.
Closing that out the other sides on the income statement, if I go to the profit and loss on the left hand side, and I go into my sales, we have the sales the invoice for the 8239 here, closing that back out, we can also see if I go back to my balance sheet, we’re tracking the receivable.
So if I then go down to my customer drop down and the Customer Center, we can now see the receivable here in the Customer Center for Amazon. Amazon company is the one we used. There’s the invoice that we have created here, we can also make a sub ledger type of report reports dropped down.
And we could go to the customers and receivable accounts receivable or customer balance details to a customer balance detail. And there’s the 8239 here the total adding up to the 142 39. That should match what’s on the balance sheet one 242 39. So now if I go back home, the next step you would expect is that we’ve received payment.
And if we were doing the full service system, we would record the receive payment here that would increase undeposited funds other side decrease in the receivable, and then record the deposit, decreasing undeposited funds putting it into the checking account. But let’s say we waited and just waited till it cleared the bank, we just wait till this thing clears the bank and see if we can then match up what clears the bank that deposits to the invoice that we have made.
So we can go to the bank feeds and see if that is possible to do so I’m going to say here it is here’s the deposit. Now obviously we entered the invoice kind of like after so it might not automatically match it if it automatically matched it, I’m going to close the carrot up top, it would have moved it over to recognize or possibly partially recognized. And if we did it in the in the proper order doing the invoice first and then doing this it might then have matched them.
But it’s a little bit more difficult for it to do it because really it’s has to match on just basically the dollar amount and the fact that this is a deposit. So notice that the matching isn’t going to be perfect all the time, because it doesn’t have a whole lot to really match the invoice to the deposit on other than possibly the customer but we haven’t assigned a customer here that this name Just like in the memo field of bank jargon,
it’s not the payee at this point in time. So it doesn’t have a lot to match it. So what we’re going to do is say, let’s go over here and say we want to match and see if we can match this out. And say, we’re going to match this to the invoice there it is, there’s the invoice, I’m going to say match it out to the invoice. And so we’ll save it. And so that’s it. So it should then take this deposit match it to the invoice.
So let’s save it and close it. And so it has done that if I go to the to the added to register, it has now done it, we expect accounts receivable to go back down, because now we’ve received the payment. So I’m going to open up the caret again. And we will then go to we will then go to the balance sheet, the accounts receivable should have going back down, if I double click on it, we’ve got it going down.
Notice it went down with a payment type of form, as opposed to a deposit form. So if I double click on this, and I go to that payment type form, there it is we’ve received the payment. Now notice that this payment type form by default, increases undeposited funds doesn’t go directly into the checking account. In other words, this form, decreases accounts receivable and puts the money into undeposited funds.
Meaning if I close this back out, it’s the same if I go to the Home tab as if we hit this step. And when I go to this step, it doesn’t go directly into the checking account, which is where we actually receive the payment. So it would be it would be in the receive payment area.
And then if I go to the, to the balance sheet, so that’s that’s where it put it went into undeposited funds, let’s let’s actually see undeposited funds on the trial balance. So the trial balance over here, because that’ll show me zero accounts. Here’s the trial, bouncers undeposited, it’s back to zero.
But you could see what it did hear is it basically put it in there with a payment. And then and then it made a deposit. So it actually did two transactions. In other words by us link. And if I go back to the homepage, by us creating an invoice and then recording the deposit through the bank feeds, the system did two steps, it recorded the receive payment, and then it recorded the deposit.
And so we could see that if I go to that detail, it went in and out of undeposited funds. And then it goes out with a deposit form. Here’s the deposit form. And the other side closing this back out is going into back to the balance sheet into the checking account here. It’s going into the checking account. And there we see it’s it should be increasing the checking account somewhere
What was the date of that thing it was on. I forgot I forgot the date that was on 1129 1129 is going to be down here. There it is right there. So that’s one way that you could you can kind of add the bank feeds.
So that’s one way you could do it, go to the Home tab, we could possibly have an invoice and then try to wait till it clears the bank and then record record the bank deposit through the bank feeds connecting it to the invoice the system then creating a receive payment and the record deposits using the matching feature.
Now, I’m not sure that would be the best system to use because you kind of like to be able to record the receive payment. But it’s possible to do that. Next time we’ll talk about the next step where you could say well what if I receive the payment, and then wait till it clears the bank so that we can record the deposit.
And then we’ll do the matching system that we already have the deposit and we’re trying to match that out so we can get an idea of the different kind of ways you can kind of put the bank feeds into a full service, more of an accrual type of system if you have to invoice customers, and then we’ll talk about the Sales Receipt situation, how deposits can fit in there as well.