QuickBooks Online 2020 to receive payment forms, get ready because it’s go time with QuickBooks Online 2022. Online in our browser searching for QuickBooks Online test drive, we’re going into the test drive item, we’re looking at the US United States version and verifying that we’re not a robot sample file Craig’s design and landscaping holding control scrolling up a little bit to that 125%. We’re also opening up the 30 day free trial.
00:28
So we could see the business view on the left hand side, back to the Craig’s design and landscaping and prior presentations, we hit the plus arrow up top looking at the sales cycle or the revenue cycle or the accounts receivable cycle or the gip aid cycle, we then look at the invoice the invoice, then increasing the accounts receivable, the other side going to sales, now we’re going to be imagining that we receive the payment, so we’re going to get payment at some form, we’re gonna have a form related to that, because that’s going to be a standard process within the accounting transaction of the revenue cycle standard form for it.
01:06
So let’s first take a look at how that might work in terms of where you would go for the receive payment. One place, of course, if you got to receive payment, and you’re entering that information, you can go to the plus button and go to the forum here. You can also however, go to your sales items on the left hand side and to your sales tab. And you can go to your sales all sales information and look for the invoice then that you’ve received a payment on, I’m going to close the the hamburger up top by filtering by the invoices possibly.
01:39
And then looking at the Open Invoices most likely the ones that you have not received a payment on from which you maybe you got a payment on. And then you can go to the receive payment. Once finding the invoice and enter that way. You can also go to the Invoices tab up top which might be the faster way to go and do a similar kind of search, looking at the overdue items, the not not do items and so on and sorting for the invoice that that you are looking for.
02:07
And then recording the receive payment here. You can also go of course to the customer tab up top and if you got an invoice for a particular customer, then you could search for that particular customer, you got similar kind of sorting options up top and you could search for a particular customer go into that particular customer. And you can look for the invoice and have the receive payment for that particular invoice. Also, just note that in the free 30 day trial, here we got the latest and greatest of the views.
02:35
This is a business view as opposed to if I hit the cog the accounting view, and just remember that that section is in here and the get paid and paid information. So same kind of layout, but it would be in that in that area. If you’re using that kind of view. Back to our other tab, I’m going to open up a few tabs and we’re going to go to the end result and then drill back down on it.
02:56
So I’m going to go to the tab up top right click on the tab up top, duplicate it back to the tab to the left, right click on it and duplicate it again, we’re going to be opening up the balance sheet and the income statement. Within the middle tab, I’m going to go down to the reports and we’re going to go to one of our favorites close in the hamburger up top that being the balance sheet reports.
03:15
Then we’ll do a range change up top from Oh 10121 to 1231 to one run that report, then I’m going to go to the customer area. And we’ll close the hamburger Well, let’s first go to the reports and then close the hamburger. See my eyes go to that hamburger all the time because I’m hungry. And then we’re going to scroll up top and we’re going to go to the range changed from 101 to one to 1231 to one run that report. Let’s go back on over to the tab to the left, we’re focusing holding CTRL down on scrolling up a little bit the accounts receivable tab. Here’s the accounts receivable, the accounts receivable represents invoices that have not yet been paid.
03:56
And we would be tracking the amounts that have not been paid, and then hopefully getting payment on it at some future point. Let’s also see the supporting report on that which is going to be the accounts receivable that’s going to be broken out by customer. So I’m going to right click on this tab again and duplicate this tab. And I’m going to create one more report over here. That’s going to be the supporting reports of this accounts receivable line.
04:20
So I’m going to go to the tab to the right and scroll down to the reports again, closing the the hamburger scrolling down to our reports, this time looking at who owes you money reports. And we’re looking at the customer balance detail. Customer balance detail. Let’s do a range change up top we just want a custom endpoint because this is as of a point in time report 1231 to one run that report. And so now we got all the information with regards to customers and the total of this report. Five to eight 152 should tie out then to what’s on the balance sheet.
05:00
Well after the five to eight 152 Now let’s drill down on this using the zoom feature going from the end item down and zooming in towards the source document holding control scrolling back down to 110%. We have then our invoices that we’re increasing this item accounts receivable. And then of course, we’ve got the payments, which will be decreasing the accounts receivable. So if I go into a payment item, I’ll select the payment item here, go into the payment.
05:30
Now if we enter in a customer name, such as this customer bills, windsurf shop, that sounds like a nice place I want to go Windsor, but in any case, then we’re gonna have the invoices that will be tied to it, that’ll populate then down below. So if I tap through what happened, we could type in the customer here, or we can create this receive payment form directly from the invoice and the customer or sales center or the Get Paid center.
05:54
And then we’ve got the date. And then we got the form of payment, which could be a check, we’ve got the American Express and Discover the cards, this is going to be the reference number and then the checking account is going to be the the account that’s going to be impacted here. Now note that this item is is the one that’s often confusing, because often by default, we will put this information that received payment into undeposited funds,
06:19
which is a clearing account, which we can then use to group those funds into the same format that are going to be shown on the bank statement and then deposit them. So you have the capacity here to record this as a deposit or add the added step of undeposited funds.
06:35
And then we’ve got our invoice down below, you can open up this invoice this is basically linking to the invoice so here’s the actual invoice that we are now getting a received payment on, you could show you can see that it’s paid, you got the link to the payment item here. If I close this back out, then and go back into that invoice. Let’s go back into the invoice again, there. I’m sorry, not the invoice, I’m going to close this back out, we’re on the received the payment, we’re on the payment item, go back into the payment item.
07:04
So there is our invoice on down below. And then we’ve got the due date, the original amount, the open balance, and then in this case, we’re getting a payment for the full amount. But if we got something less than the full amount, like $100, then you’d have to 75 then remaining in that instance. So I’m going to close this back out I’m going to say no here. Now I want to take a quick look at our flowchart.
07:30
Now this is the flowchart in the online version. I’m looking at the desktop version, just so we get an idea of this flowchart and how things might work with regards to the forms. So we enter the invoice. When we enter the invoice, the next thing we expect to happen is to receive the payment in some way shape or form, then that’s recorded with the receive payment form here. Now this receive payment form as we saw could go directly into the checking account.
07:55
Or we might use an undeposited fund account a clearing account and then deposit it. The undeposited funds account is often the most confusing account to most people that are moving from like accounting in a textbook scenario to accounting basically in in practice in a software type of scenario.
08:13
And it’s good because usually in a textbook scenario, we just call cash cash, we don’t really think about the bank reconciliation area until we do a bank reconciliation, and that section of learning the accounting. So just realize that when you’re putting information into your system with regards to the bank account, we want everything to line up in the same way as we expect it to be deposited in to the actual bank statement into the bank. So that we have the same groupings, making the bank reconciliation, a huge internal control work smoothly.
08:45
So if for example, you’re getting deposits that are just checks that you’re getting, and you’re putting those directly into your bank account at the same time, then you could just use this form to deposit directly into the checking account. But if you’re getting paid by something like you’re getting the the credit card payments that are going to be grouped by the credit card company in some way, or you’re getting cash payments, that you’re then going to group together and deposit into the bank account in one lump sum, then you have a difference in terms of your receipts and the groupings that there’ll be deposited into the checking account.
09:18
And we deal with that difference by basically grouping this information into undeposited funds. And then using the deposit function over here the next form to take it out of undeposited funds put it into the checking account in the group and we expect to see on the bank statement. This will become more clear when we do transactions in our accounting problem. You have a similar thing as we’ll see in a future presentation with the sales receipts.
09:43
And because you might be collecting cash at like a cash register, and obviously you’re then going to go to the bank and you’re not going to make a bunch of individual deposits of cash. You’re going to make one lump sum deposit, which is what’s going to show up on the bank statement which you would like to tie out to your books so that you can record out. So we got to be careful of that undeposited funds.
10:04
I’m going to go back up top, we’re going to go back to the report summary. So we’re back into the report summary. Obviously the other side that will be impacted in the accounts receivable would either be the checking account, or the undeposited funds, this undeposited funds, this is that confusing account. And just a quick note on it, a couple things about it, you would think it would be a cash account.
10:28
In essence, it is a cash account, but they don’t put it up here in the checking account area, because it’s not a bank account. And that’s kind of like a little bit of a glitchy thing with regards to the reporting of QuickBooks. Because in a functionality standpoint, we want the bank accounts to be usually the financial institution type of accounts, the ones that need the functionality for the bank feed information.
10:49
From a function standpoint, although this is a cash account undeposited funds, it’s not really a financial institution account. So therefore, it works like in the functional way in the system, more like an other current asset. So they usually put it down here and other current asset account, even though it’s kind of a cash account. So you got to take that into consideration, especially when you’re looking at the bank at the at the statement of cash flows.
11:15
And so we’ve got it down here, this then should represent something that we’re holding on to either physical cash checks, or something that we got paid for in the credit card, and that we expect them to be deposited into the bank in the future. If it doesn’t, then it’s most likely you have a problem that something has been recorded possibly twice, or something like that. If I go into the undeposited funds account, this account should be going up and back down.
11:41
This is what we call, I would call it a clearing account, which is different than a temporary account, a temporary account would be like income statement accounts, which close out into the equity section timing accounts. Whereas the clearing account should go up and then back down to zero in a very short timeframe, because it’s going to be clear in the payments that are going to be cleared out.
12:03
So in this case, we’ve got we’ve got the increases, they’re going to increase with the payments or the sales receipts. These are the two types of forms that we would expect to get payment from sales receipt, like at the cash register, I’m back to my flowchart and the receive payment the receive payments from an invoice we had in the past. And those are the two types that we might put into this undeposited funds. And then we’re going to deposit eight, which we’ll see in a future presentation was simply the deposit form which will take it out of undeposited funds, put it into the checking account, it’s an added step.
12:33
Why do we need why do we need that added step, because we’re trying to put it into the checking account in the lump sum that we expect to see on the bank statement. Scrolling back up, if I go back to the report would then the other side could be in the checking account. Now the checking account could go up, the main forms that it would go up with is a deposit, which would be the last thing that we did in the process or just using some deposit form for whatever deposit we have. Or we could have the payment that we have received.
13:03
So here’s a payment that was received directly. As you can see here, let’s go into that payment, and was put directly into the checking account. So we could do that if it was a check that we put directly into the checking account or transfer that we put directly into the checking account that we expect to show on the bank statement in the same app the same number, it also gets a little bit confusing, because that means that the increases that you’re going to see, when you when you do when you deposit these directly into the checking account with a payment form,
13:32
you can see that it’s actually using a payment form to do the increase instead of what you would expect every increase being a kind of deposit form. If you do the full service process where you basically first receive the payment or create a sales receipt and then do a deposit, then the only form that’s going to really increase the checking account typically will be a deposit. If you choose to then hit the checking account with the received payment, or the create sales receipts,
13:56
then you’re going to have increases to the checking account from those forms as well, which not not necessarily a bad thing, but it makes it a little bit different in terms of the types of forms that are going to be increasing the checking account. So we’ll get into deposit forms in a future presentation. But just recap, if I open if I go to the first tab, and I open up this icon, I’m going to go back to the customers information.
14:21
Just remember that you might sort these invoices by going to the sales tab here, and then again, sorting it through the invoices or possibly through the customers. And then once you find the invoice that you want, you might create the received payment form from that invoice, which will then populate the invoice and tie out
14:40
I’m sorry, populate the receive payment and tie out the invoice to it at the bottom that might be one of the most common ways that you would create it or you could just open the receipt payment and then type in the item here and of course again remember that in the new and the new fancy format for the business view that would be in the Get Paid area On the left hand side