QuickBooks Online 2020 to receive payment transaction and form, get ready because it’s go time with QuickBooks Online 2022. Here we are in our get great guitars practice file that we set up with a 30 day free trial holding down control, scroll that up just a bit to get to that one to 5%.
We’re currently in the homepage otherwise known as the get things done page. In the business view, as opposed to the accounting view, if you wanted to switch to the accounting view, it is something you can do by going to the cog up top.
And going down to the accounting view, we will be toggling back and forth from time to time either here or by jumping over to the sample company file, which is in the accounting view. To see where things are located in the two views.
Let’s open up some reports by going to the tab up top right clicking on it duplicating the tab, go back to the tab to the left, right click on it again, duplicate the tab, go back to the tab to the left one more time right clicking on it, duplicating it again,
as those are thinking going to jump back on over to the accounting view in the sample company just to note where the reports are located, which are on the left hand side, very straightforward in the accounting view.
And back on over in the business view the reports are located we’re currently in the second tab and the business Overview section. And then we’re going to be into the reports on the left hand side.
Let’s open up our standard reports the balance sheet first the good old balance sheet, and then we’re going to close up that hamburger. And then let’s do a range change from Oh 101 to two to 1231 to two and run it. And then let’s go to the tab to the right and now do the same thing with the Profit Loss business overview.
We want to take a look at the P and L the profit and loss and the income statement. Close up the hamburger scrolling up top reins change from Oh 101 to two to 1231 to two and run it and then go to the tab to the right one more time.
Back to the business overview this time to the trial balance which I’m trying to convince people is a good report to use to practice with the data input you’re going to type in up top trial balance to find it because it’s way at the bottom, which isn’t fair because it should be a favorite it should be people’s fav should be like amongst the faves.
And then we’re going to close up the hamburger scroll up top and do a range change from a 101 to two to 1231 to two and run it running Okay, so last time we entered some invoices, and now we’re going to go to some receive payment items.
So let’s go back to the left to receive the payments, we could go to the plus button and we hit invoices last time we expect them to receive payments given the fact the invoice means we made a sale on account. And therefore we expect to be paid at some point in the future.
At that point, we enter the received payment item to track the invoices however you might do so in practice by going to the get paid or paid area here would that’s what it looks like in the business view. If you were in the accounting view, it would be in the sales area. And then you might go say to the customers and the business view, you would go into the Get Paid area and then go into the customers and close up the hamburger.
And then you might go to the particular customer that you’re getting a payment from, for example, such as Anderson guitars, close this thing up. And then we might see some there’s an open invoice here. Here’s an overdue invoice, we can then receive the payment and we could create the receive payment form directly by clicking on this button.
The other way you might track for the open invoices that you might say, Hey, let me just give me a list of all the open invoices How about that, we can open up the ham burger here and to do that, they don’t put it in the same area in the business view they put it up in the bookkeeping area.
If I want to just look for open items or invoices in the Transactions tab. If you’re in the other view of the accounting view, it’s in the same area which I would call the customer center and then you would move over to the sales area or the invoices area. Two things you could do to sort basically for the invoices, so I’m going to go to the transactions items and then
I’m going to go to the US all sales area and then I’m going to close up the hamburger you can also do some filtering down here and say let’s let’s go to the drop down and let’s say invoices and let’s say the status is open invoices and apply those and then we’ve got our invoices in this format
Once you can hit the drop down instead of receive payment. So for example, if we wanted to receive a payment for this one, you can say, Okay, I’m getting a payment, I got paid in some way, either electronically or with a cash or cheque or something, I’m going to say receive the payment,
I could click here, and that would then open up the receive payment form and automatically check off the related invoice that we tied it out to or closing this back out to get to that same area,
I could then hit the hamburger up top, and go into the plus button or the Add Item. And then the next step would of course be to receive the payment in our series of steps on an accrual type of transaction related to the receivables or customer cycle.
I can then type in here, Anderson, Mr. Anderson, tab, and then down below, let’s tap through it, we’re going to say this is as of the 18th. Let’s say we received the payment, and the method is going to be let’s just say it’s cash just for general purposes on the method.
And then the question is, do I want to deposit it into the CAC the checking account directly? Or do I want to put it into an undeposited funds account? Which they don’t they haven’t populated? They didn’t give us an undeposited funds account. But I’ll talk about that shortly here.
Notice that down here, you’ve got the invoices. So I can actually link to the invoice if I want to I can open up the invoice this way. Do you want to leave without saving? I’ll say yeah, let’s check it out. Go into it. There’s the invoice that we’re we’re basically timed out to.
And then if I go back to this invoice, and I wanted to then receive the payment, this is the other way you might you might look at this, I’m in the invoice, I could say receive payment here, which will create the receive payment form once again with Anderson. And I’m going to change the date to the 18th.
And then I’m going to say the payment once again is cash. And so there we have it, and now it’s checked off that item. So that means we’re going to receive the payment. Now the question here then is going to be do we want to put the payment directly into the cash which I’m going to say is our checking account?
Or do we want to put it into an undeposited funds account and then put it into the checking account. And note that they’ve changed the name of the undeposited funds account to just be called the payments to deposit account.
So if you hear the term undeposited funds that’s still used in the desktop version, it used to be used in the online version, same concept, the idea being Do you want to put the deposit directly into your checking account at this point in time?
Or do you want to put them into a clearing account and then move it into the checking account so that it aligned up with what’s being matched on the bank side of things. To see that more in detail. Let’s take a look at a flowchart.
This is a flowchart from the desktop view. But it’s just a flowchart of the transaction process the flow, and we have basically the same format names in it. So I think it’s a good tool to use. So in the past, we entered an invoice which increases the accounts receivable.
Now we’re getting paid on the invoice. And the question is should I take this document and put it directly into the checking account at this point, you can do so it could be more simplified. But there’s a couple things to keep in mind.
One is that if you use this form to make the deposit into the checking account, when you look at the transaction detail, instead of having all the increases in your checking account coming from a deposit form, you can have some increases from the deposit form and the receive payment form.
Not a big deal. But you want to keep that in mind when you’re sorting your transactions and trying to look for the increases adds a little bit more of a nuance in that a little bit more of a confusion in my mind from it.
The other thing, the big thing you want to keep in mind is in my entering the data into my account in the same format as it’s going to be shown on the big statement because I want to be able to do a bank reconciliation, matching out what’s in my system to what’s on the bank because that is a huge internal control.
If you’re getting payments, for example, from a credit card company or cash payments, it’s likely that you’ll need to use some kind of clearing account, like payments to deposit or undeposited funds, so that you can then group those deposits together and format them in the same format as you expect to see them deposited on the bank side of things.
So that when you then tie out your accounts to the bank accounts in the bank reconciliation process, it will be as easy as possible. If on the other hand, you’re receiving just simply a check, for example, or one electronic transfer, then it’s likely that that’s exactly what it will look like on the bank side of things as well.
And you might simply be able to put it directly into the checking account. At this point, we’ll have the same issue with the receive payments item which is the cash basis kind of issue, in that we might get cash payments at a cash register,
for example, or credit card payments, both of which we’re usually gonna have to group together because we’re going to make the deposit into the checking account, which will entail multiple sales items,
and we therefore want to put the undeposited funds transferred into our checking account In the same number or format, as we expected to see on the bank statement, so let’s go back on over, then I’m going to use the undeposited funds or clearing account or in this case, they changed it to the payments to deposits.
So remember, this is a bit is basically an account, it’s going to be an account, that’s a clearing account, a holding account.
And you might have heard it called in the past undeposited funds, same concept. So what is this going to do, it’s going to decrease the accounts receivable. And it’s also going to decrease the sub ledger for Anderson guitars,
and it’s going to put the money into the clearing account, which is a payments to deposit account, which we will then deposit at a future point, it’s also going to create a link to this invoice to show that that invoice has now closed has now been paid.
So let’s go ahead and save it and close it and check it out. So we’re going to go back back on over and I think I went over to the second tab to do my transactions because I got I got kind of messed up with that undeposited funds thing.
So I’m going to open this tab back up, I’m going to go back to the business view on it and open my report back up. Okay, so I’m back in action. Now my reports back up, if I scroll down, we see that we’ve got this account in other current assets,
that is called payments to deposit same thing as the undeposited funds that just changed the name just like most of the changes that this is the kind of thing that you can expect to happen with QuickBooks Online.
They’re a B testing, they’re using new names, undeposited funds, we don’t like that they put in the payments to deposit, these are the kinds of things you would adjust. But again, the double entry accounting system,
it’s the same. So it’s just a matter of what kind of differences what kind of changes did they make to the surface level, which is generally moving stuff around to the website, and basically name changes to sound a little bit more hit, you know,
or something like that. But in any case, if we go into the 5000, here, we could go into that there’s our payment form. If we drill down on that, that’ll take us back to the the source document. So drilling down on that takes us back down to the receipt payment form. Closing that back out, I’m going to scroll back up top and go back to our report. And I’m holding ctrl scrolling up just a bit.
So that is that notice it’s an other current asset. So it’s really a cash account, but they have to put it down here and other current assets, because that’s going to be the tool that they need those two separate accounts, I believe, to link it to the deposit form to automatically kind of pull it in to the deposit.
And so and also the cash account has its own kind of functionality with regards to how it’s going to be formatted. In other words, it could be linked, for example, with bank feeds. So that’s going to be that the other side went to the accounts receivable, decreasing it.
So the A to the are the accounts receivable goes down right here, which is great. But that’s indicated by the date, I would also like to see this information by customer. So let’s go back to this report. Let’s make another report, go into the end of this, I’m going to right click on it and duplicate it again.
And make another report, which is the accounts receivable subledger, the accounts receivable summary the customer summary. So let’s go into the reports. And let’s close up the hamburger let’s scroll down to who owes us stuff. And then go to the customer balance detail. It’s kind of the customer balance Detail Report.
And there it is. So Mr. Anderson, is here and now we’ve got our invoice. This is the only invoice remaining, we can see the detail, I want to see more detail than that, we can go to the Customize up top and say let’s do some filtering options here and say I’d like to see the the AR paid information. So I’m going to say all here and then run that.
So I can see what I just did. So there it is, there’s the payment for that 5000. That’s what we expect to see 5000 We paid it off, we can also see that information if I go back to the left. And we were then to go into like the Customer Center, which would be in the Get Paid area in the Get Paid area. That’s how you say when you’re cool, instead of the sales area, the customer center.
And then you’d go into the customer center here, that would be the old view. But now in the business view, we’re in the Get Paid section, and then the customer area. And then you can go into the Anderson guitars. And then you see here’s the 5000 and the 5000. And now this invoice has now been paid.
And if you go into that invoice, it’s going to show that it has been paid with a little indication payment made. And if you click on the payment made it links on over to it or it gives you this thing that then links on over to it so you can click on that.
And everything’s all tied together. All nice and neat. You can also find that information you might want to track by your invoices, for example, which in here is in a whole different section. They put that down in the bookkeeping section. If you were in the accounting view, it would still be in the sales section.
It would be here If you’re in the in the business view, it’s going to be in the bookkeeping transactions item up top. Oh, I just had to hit a fly there. I got it. Okay, it was more of a NAT wasn’t not too hard to hit a NAT. But in any case, so it’s in here, we’re going to then say all transactions are all sales transactions, take a look at the invoices.
And let’s say all invoices at this point, all invoices. And then there’s our invoice and this one is indicating as has been paid. And we still have the open ones here, which have not yet been paid. That’s that’s what it means when it says it’s open.
When you paid it, you closed it, they don’t say you would think it’s a closed here. But no, it’s open, and then you paid it. So one other thing that take a look at that is next, we’re going to make a deposit, we’ll make that deposit later.
But just note that if I go into the deposit form, because I put it into that undeposited funds or things to be deposited, it pops up here. So this is when you want to use the deposit form instead of the register.
So in other words, if I go back to my flowchart over here, this deposit form, you want to use that actual deposit form, the actual deposit form itself, when you’re depositing things that are going out of the clearing account, which would be undeposited funds, or the deposits that need to be paid whatever you want to call it.
Because that is the link. That’s the thing that’s going to pull those in there and help you to group that stuff out. So anything that’s in that clearing account, that’s when you want to use the deposit form, which we’ll see in a future presentation.
Okay, I know what you’re thinking. That was great. Let’s do it again. Let’s do it again. This time for Jones. Okay. Okay, we’ll do it again. So we’re going to go to the Get Paid section. This one’s for Jones.
So let’s receive a matching, we got a payment from Jones guitars here. So if we went into Jones guitars close up the hamburger, we’ve got then we’re looking at this one, this time, we could hit the receive payment right there from Jones.
Or you might find this by going then you could say I’m just going to look at the transactions detail, that might be the way you like to do this, you’d like I’m going to go into my transactions.
For the sales, I got a payment on an invoice that’s open, let’s filter this thing by my invoices and just look at the open invoices and run it. And then the one I’m looking for is right there.
That’s the one that’s the one I got the payment for right? The Actually no, it was this one, this is the one that’s the one. So I’m going to go ahead and run it the receive payment that’ll open up the receive payment form, which you can also get to by going to the hamburger to the receive payment and then type in in Jones guitars. And you would get to an essence the same part or the same place.
So we’re going to say this is there, I’m just going to say cash just for the ease of the thing it’s going to go into once again, the payment to deposit the clearing account is what I’m going to use here.
And then going down below, it’s already checking off the invoice which was the beginning balance invoice that we entered when we first entered the beginning balance for this particular customer.
So what’s this going to do, it’s going to decrease the accounts receivable, decrease the sub ledger for Jones guitar and put it into the clearing account of undeposited funds prepping it to be grouped together in whatever way it needs to be when we make the actual deposit form, which will match the bank statement. So let’s save it and close it, save it and close it and then check it out.
So we’re going to again go to the balance sheet over here hold down Control, I’m going to run it again just to make sure we’re working with some fresh stuff, we’re going to go into this payment to deposit which is a clearing account used to be called undeposited funds. But that’s not undeposited funds, that’s lame, we need a name change and then we’re going to go into the 5000 and then there it is.
There it is that looks good. Closing this back out. Scrolling back up going back to our report. The other side is in the accounts receivable the A to the are going into the A our accounts receivable and this one is going to be for Jones Jones seventh 1500.
That looks good. And then going back on over we have the sub report for the accounts receivable the A to the R right here, let’s freshen it up running it so we could see the detail for
Jones there’s the payment and there’s the invoice link in those two two things out let’s go back to the first tab and just take a look at our our centers let’s go to the Get Paid center, get paid center and then go down to Jones guitars. Jones so there we have it so now we’ve got this one is closed because it’s been paid.
If I was to go into the invoice if I was to go in to the invoice here We would then see the the amount of the payment, and then I can link to the payment if I wanted to by doing that, and that will link us to the payment.
So that looks good. We can also run this report and check it out by the transaction detail, you could say, let’s check it out by the transaction detail.
That’s how I like to see it. So let’s go to the transactions up top, close up the hamburger, go to the sales transactions and check a look at our invoices. Invoices, let’s just look at all the invoices.
So we can see the ones that we paid and the ones we didn’t. So we’ve got these two have been paid. And we’ve got the overdue for Smith there. Lastly, let’s take a look at our deposit information. If I was to deposit this, then I should have these two items that are popping up because those are the two items that are in that holding account.
Do it again. Okay, one more time. But this is the last time this is the last time we’re going to do it one more time here. So then, if I’m here, I’m going to search for the open invoices.
So I can filter this. And I could say let’s just look at the open invoices. And then I still got this one that’s overdue. So I can do that by hitting the receive payment here. Or I could see this as for what’s that name Smith guitars.
So I can hit the plus button and type in or make a receive payment type in Smith guitars, Smith guitars, tap it on over. And then this is on the 18th to we’ll just do the same thing cash. And it’s going to go into the clearing account the payment to deposit otherwise, or used to be called undeposited funds.
So same thing different name. And then this is going to be decreasing the AR decrease in the sub account for Smith guitars and the other side’s going into our clearing account, which is now called payments to deposit. Let’s save it and close it and check it out.
This time, let’s check it out with the trusty Trial Balance, just to get used to looking at it making sure it’s fresh over here balance sheet on top of the income statement, we can say okay, there’s the payments to deposit right there going into it. And we’ve got our three payments.
There it is. And there’s the last one we just did right there 7005. And the 8000, I think was the 1000 was the last one. And the other side is going into the accounts receivable the A to the AR going into that one to eight of our accounts receivable. And so there’s the payment for that one looks good.
Scrolling back up, we know that if we look at the other side of the detail for the AR by going to the detail account, and then we can see the total for Jones was it that we just did here, or Smith less, we got to freshen this one up and these freshening. Run it again, make it fresh. There it is. That looks good. So it went there back down.
That looks good. Let’s go back to the first tab. And just check out the Customer Center on the Get Paid center. Let’s take a look at our get paid center over here, customers. And then we can go down to Smith guitars, we could see the activity there looks good. The invoice has now been paid. If I was to go into the invoice, we can then see that it’s been paid with a little link and the giant paid thing there.
So it’s not very, you can’t really miss that one, they could have made it red, maybe make it even more out there. And then I could then say if I hit the plus button, and we went to the deposit, which we’ll do in a future presentation, we’ve got these three amounts in there now which total up to the 20,500, which are those three payments, that represents what’s currently in the payments to deposit which used to be called undeposited funds.
So if we were going to deposit all that at one time I imagined it’s all cash which again, we probably wouldn’t have 20,005 in cash. But the idea being that if we were to deposit it at one time, we want to put it all together at one time in the deposit. So it’ll match what’s on the bank statement making the bank reconciliation.
Easy. Let’s go back on over to our trial balance just to see where we’re at. This is where we stand at this point in time. The debits our left leg, the credits our right leg, and we’re standing on them.
So if your numbers tie out to this numbers and you’re following along then great if not try changing the date range, it’s often a date issue. And we’ll be looking at the transaction detail reports at the end of the section. So that is another way that you can diagnose any differences.