QuickBooks Online 2021. Now, receive payment and make related deposits. Let’s get into it with Intuit QuickBooks Online 2021. Here we are in our get great guitars problem, we’re going to be recording the customer payment and related deposits. So in other words, if I hit the drop down here, we have the customer information, we had an invoice in the past, now we’re gonna have the payment on that invoice, we’re going to take those those payments that we have received in the money now in undeposited funds, and then deposit them into the bank.
Let’s check this out real quick in the flowchart that’s on the desktop version, you don’t need the desktop version to follow along, we just want to take a look at the flowchart here. So we have the invoice that’s going to be created, we’re imagining we’re receiving the money that that was on the invoice that would be decreased in the accounts receivable, the other side could either go directly into the checking account at that point in time, or it can go into undeposited funds, you might put it into the checking account, if you receive something like a check an individual check that you’re going to put into the bank account as one lump sum.
Therefore, it’ll show on our books as the same way as it will be on the bank statement. Otherwise, if it was something like cash, or if you have to sort out your credit card payments in some way, then you might need to go through undeposited funds, which we will practice here and then take those payments, which might be more than one and deposit them into the bank possibly in some kind of lump sum, the goal being that the deposit will be in the same format in our books, as shown on the bank statements so that we can do a bank reconciliation as easily as possible.
So let’s go back to our report here or back to QuickBooks. Let’s open up our trial balance, we’re going to try to do this by just going back and forth and checking the good old trial balance, we’re going to right click on the tab up top and duplicate the tab going to then to the reports on the left hand side. So we’re going to open up the reports on the left hand side, typing into the find window, the trial balance the trial balance, and then we’re going to open that up, we’re going to range change it up top ending at 1231 to one, go ahead and run that report.
I’m going to close up the hamburger. Let’s go back to the first tab now go into the first tab, I’m going to go down then to the invoice item or I’m sorry, the sales item, which is basically our customer center. And then we could see these invoices in a couple different ways. Meaning we might go to the invoices items here and look for the open invoices when we receive a payment on them. And I might go to the status up top and say I want to see the the unpaid items either overdue or not yet to do I’m going to go to not yet do and these would be the open items, we can then record a receive payment here, we might also go to the actual customer.
So it might go to the actual customer up top. And then say I got a payment from Anderson guitars go into then Anderson guitars, which is another common way to take a look at this. And then we could take a look at the items that are outstanding or the invoice. Here’s an open invoice here, which you could also search for and filter for if you so choose using the filters, looking at transactions. So you want the open invoices, for example, apply that out, we can run the receive payment here. Or you might simply just create a receive payment you might say,
Hey, I got the payment here. I’m just going to go up top and say I want to go to receive payment form, receive payment form and then type in who you receive the payment from which is in our case Anderson guitars. And then it should populate down below say hey, there’s an invoice I’m paraphrasing, like QuickBooks is showing you here like hey, there’s an invoice related to Anderson, is that the one you’re looking at, like you’re referring to here, and we’re gonna say yeah, check it off.
That’s the one. So we’ll check that out. There’s the 420, I’m going to bring the date back up to the 19th. Now, I’m just going to assume cash payments here just because I want to just emphasize the fact that we’re we’re grouping the payments together that could be multiple payments and then deposited into the bank. If it was a check. For example, you might easily just basically scan the cheque or something like that to your bank account, and not need to do the added step of the undeposited funds and then group multiple deposits together from multiple received payments and or sales receipts into the bank account.
So that’s why I’m choosing cash here. And then we’re gonna put it into undeposited funds as opposed to the checking account once again, so that we can group multiple possible deposits together multiple accounts together as we put them into the bank account together. So there we have that what’s this going to do when we record it, it’s going to increase the undeposited funds account the other side then go into a decrease in the accounts receivable. Let’s go ahead and run that. So we’re going to save it and close it. And let’s check it out on the good old TB trial balance over the over to the TV up top.
We’re going to go ahead and run that report once again. And I’m going to hold down Control scroll up just to like 110 percent This time, and if we go into the undeposited funds, we see the increase in the undeposited funds. So we see that there it is down here, there’s the payment we got, if I go into that payment, we’re gonna see it also in terms of our received payment, there it is closing that back out, scrolling back up top, going back to our t be trial balance, the other side then go into the the decrease in the accounts receivable right here, accounts receivable, we got paid that 424 Anderson, there’s the payment once again, scrolling Back up, back to our trial balance, let’s then right click on this tab up top,
I’m going to make another report for the accounts receivable. So we can see that detail. So we’ll go into another report here, reports tab on the left hand side. And then we’re going to be looking for the customer report. So who owes you and I’m looking for the customer balance detail customer balance Detail Report. Now I’d like to see the actual payment that was made, not just the open invoices. So I’m going to customize this report up top, go down to the filters on it.
And I’d like to see then the paid the paid, I want to see not just the unpaid but all of it, I want to see everything. So all run it. And there we have it. So now we’ve got the Anderson is back down to zero balance, but we could see what happens, right, it’s gonna invoice and then it’s paid and then when invoice and then it’s paid. That’s kind of a trend that we should see in these things. If I go back down, we’re at the 34 811. Going back to the trial balance to check that out, we add in the trial balance to 34 811. there as well. Let’s go back to the first tab.
If we go back to the first tab, then we could see under Andersen if I go back to the Anderson item, or if I remove the filters here, let’s remove the filters. Then now we see the payment that took place. And we could see it in basically the activity under the Anderson customer. Let’s do this again. So this time, I’m going to do it another way, I’m going to go to the sales tab, which is basically our customer center, I’m going to go to the customers tab up top.
And this time, let’s look at who we got the payment from. we’re imagining, okay, we received a payment, we’re gonna imagine cash here. So from Eric music, so then I go into Eric music, and I’m gonna say, All right, I’m going to go into there and apply it out to to one of these items that are owed to us at this point, let’s open this one, this is the one actually this one’s closed, by the way, just this one. And then I can just make a receive payment form right from there. So I’m going to say received payment, it starts to populate for us, there’s the Eric music.
And if we tab through this, I’ll keep the date the same, it’s going to go into undeposited funds. Once again, I’m going to say it’s cash again, even though these are large dollar amounts. But I’m going to check it off, there’s the there’s the amount, there’s tied to them the invoice. And once again, it’s going to what’s it going to do increase undeposited funds.
And I want to emphasize just the cash so we can group them together and then make the deposit even though there are large dollar amounts, which we would probably get in some other format in this particular instance, but then the other side is going to be decreasing the receivable account. Let’s go ahead and save it and close it and then check it out.
Save it, close it back to the trial balance tab. Let’s refresh it. So we’re working with fresh stuff again, we got the accounts receivable should be going down. So accounts receivable going down by that to 26 to 64, the Eric music this time and you see it, you know there’s the increase with the invoice and then there’s the payment. And then the other side, if I go back to our our balance or trial balance, the other side then is going to the undeposited funds.
So if we open up then the undeposited funds, which is right there, there’s the undeposited funds, we see that item as well. So we’ve got the payment of the 26 to 50. Scrolling back up, going back to the good old trial balance, we can also see the activity if we go to the accounts receivable report, the detailed report, run it or refresh it, take a look at the music or Eric music down below. So we’ve got Eric music where we have the 26,000 invoice and in the payment, the total at the bottom at now 8005 6170.
Back to the trial balance, we see the amount of the 856 170 there as well. Now we have this 26 670 in undeposited funds. So now we’re gonna imagine go into the bank deposit into the bank in that one lump sum, even though they’re constituted or coming from two separate received payment items from two different customers. So we’re then going to go back to the first tab again. And we’re going to say that we’re going to deposit these items. So I’m going to go to the drop down up top. We’re going to go to the other category to make a deposit.
Now we have to do it this way as opposed to just going right to the check register and entering the deposit because if I To go to the check register, I’m not linking it really to the payment forms. And that’s what I want to do. So remember, if I go back to the desktop version, just to look at the flowchart, when we go to the deposit form, if they’re linked to these items, these items are the ones that could then be increasing undeposited funds, and we want to make sure to then go to the deposit form and make sure that we’re linking out, if we’re making some other kind of deposit that is not linked to undeposited funds created by a sales receipt or the receipt payment form, then that might simply go right to the register into the deposit there.
So we’re going to go back in and I’m going to say these two items up top, we’re going to check those two out, this is going to be increasing the checking account on one, let’s say 23, let’s bring this up to the 23rd 123. So we’re gonna bring them up there. Remember that we’re checking these two items off, if we were doing some other kind of deposit that wasn’t related to undeposited funds wasn’t related to a payment or sales receipt, then we might go at the bottom down here and record some just some accounts, such as if we had a loan, it might be a loan payable account, or if we had like the owner, putting it in, it might be like an equity type of account.
So what’s this going to do, it’s going to be increased in the checking account, of course, and then the other side is going to be decreasing undeposited funds going back down to zero, showing the undeposited funds acting as basically a clearing account a temporary account, not only a temporary account, but a clearing account, a very temporary account that goes up and down, hopefully, like in the same day, back down to zero. So I’m going to say save it and close it.
And then we have that let’s go back to the trial balance and see if see what happens here. If I refresh running the report again, to make it fresh. And then we see that the checking account should be going up. Now the checking account goes up by that 26 670. It’s now grouped with both of those together, which is good, because that’s how we hope to see it on the actual bank statement, making it easy for us to reconcile and the bank reconciliation, our book to the bank, even though it’s being built from these two items that actually kind of took place to different customers that we received payments from closing this back out, scrolling back up the other side, then it’s going to be decreasing the undeposited funds, which is currently at zero.
And that’s what we expect to happen. It’s not just a temporary just remember the terminology. This is kind of confusing, because a temporary account is one that goes to zero from time to time. But those are typically going to be thought of the income statement accounts, they close out to retained earnings and they usually open for at least a month or a year until you close them out right?
A clearing account, I would say it goes up and down in a very short period of time. In this case like the same day you’re hoping right? If there’s a zero in the undeposited funds for a long period of time, something probably went wrong, because it should be increasing and decreasing. Or at least if there’s something in it, it should reflect some kind of payment that you have received but have not yet deposited. So if we go into that item, we see the activity here, down below.
And notice we have the two deposits now, or it’s not two deposits, but it’s reflected as two different line items for the same deposit that happened on the same date, so that you can kind of tie them out to the payment form. So here’s the 26 to 50 payment form the 26 to 50 payment, the 420 payment form the 420 deposit. So then if we go into either one of these of course we’ll get to that same deposit which has both of those items included in it.
So then we’re going to close this back out, scroll on back up top. Gonna take it on back to the to the form here, there’s our trial balance so as you could check your work here and see if if you’re following along with it and or we should be printing this out whenever we remember to do so after the end of the presentations, which we’ve been doing pretty good so far to do and you can check your work there as well.