QuickBooks Desktop 2023 Complete Tutorial

would you like to become an expert in  QuickBooks desktop in less than four hours   would you like to become an expert from starting  with no knowledge at all of QuickBooks accounting   or computers and by the time you're done you know  QuickBooks better than anyone all you have to do   is watch this video a little bit each day and by  the time you're finished you will have complete   Mastery over the latest version of QuickBooks  desktop just sit back and relax and enjoy learning   like you're learning from your favorite education  Channel and if you want to learn better you can   even follow along step by step and there are two  ways you can do that you can use the same file   for the whole course the file we create at the  beginning if you do all of the lessons in order   or you could download the file for each individual  Lesson by clicking on the link in the comment   section or the description text to get the files  page where you can download and use a file for   each individual video Lesson in this full tutorial  you will know that you're learning perfectly if   the numbers at the end of one lesson are the  same numbers at the start of the next lesson   and you have the benefit of having a live teacher  because I answer all questions immediately all   you have to do is leave your QuickBooks questions  in the comments section below and I guarantee you   the clearest possible explanation for every topic  that you could need to learn and master QuickBooks   desktop and now without further delay I present to  you the best QuickBooks course you could ever take I do thank you for watching but we should take a  quick moment to see exactly how we can use this   video to benefit the most you should know that  this video is broken into four main sections and   each section has several video chapters the first  section is all about how to set up QuickBooks   then after you watch each of those video  chapters you will learn about how to manage   customers and receivables regarding sales  and income then you will learn all about   vendors and accounts payable for things  like expenses and the last main section   is all about banking features so that you can  become an absolute expert in QuickBooks desktop   you should be aware that each section has several  of its own video chapters within the section and   each video chapter is a separate topic that you  can learn separately from the whole course and   when you finish learning each of the chapters  in one section you can then move on to the next   section and watch each of the video chapters in  the second section and keep doing that a little   bit each day until you finish all the sections  and you become an expert in QuickBooks desktop   there are two possible ways that  you could follow along step by step   you could create the file with us in the very next  video Chapter and you could use that same file for   every video Lesson in the entire tutorial  as long as you do all the lessons in order   but if you want to go directly to a topic in the  middle and be able to follow step by step there   then you can go to the marksmolin.com YouTube  files page and you will be able to download any   file for each specific chapter and then open that  file so that you can learn that one individual   chapter step by step and you should also know how  to navigate this video to optimize your learning   you have to use the description field in order to  get to the topics that you want it's very simple   if you're watching the video on YouTube you have  to go below the video below the subscriptions Tab   and click show more that's located down here  once you click on the words show more you will   expand and open up the description field and  you will see a list of every topic in this video   if you want to jump directly to a specific topic  all you have to do is click on the time index link   next to the name of the topic and then the video  will immediately jump to that time index and show   you that topic in fact if you're watching this  video for a second or third time you can click   directly on the topic that you wish to review and  the video will go right to that topic and show you   it's as simple as clicking right here show  more scroll down now look what happens if   I click this time index the video jumps right  to that spot what if I click time index 3.18   click I'm right here at 3.18 and the video  is running and don't forget you still have   the benefit of a live teacher by asking me  your questions in the comments sections below   I hope you will support the channel by  clicking like and don't forget to subscribe   part one of this tutorial is all about setting  up QuickBooks and the very first chapter in this   section is really chapter three how to create  and manage a QuickBooks company file and just   for clarification chapter one was the introduction  at the very beginning chapter two was that little   bit about how to navigate the video and use  the table of contents so that's why chapter   three is this chapter how to create and manage uh  QuickBooks company file some of the steps you see   will be the same basic QuickBook setup steps to  prepare a file for any type of company regardless   we choose a sole proprietor and a wedding video  Service as our example however any other type   of company would do these exact same steps plus  any additional steps for that specific company   type for example if we sold merchandise you would  do exactly what you see here plus the merchandise   setup steps if we had to collect sales tax  you would do exactly what you see here to   begin setting up the file and then you would add  the extra steps to collect sales tax and so on   so you may well ask what is a company file well a  company file is in your computer and it is a data   file in the computer that is represented by an  icon just like a Microsoft Word document or an   Excel file or any other file that you can copy  to a USB stick or send as an email attachment   now you have to know that all of your company  financial information is inside that one file   that you can send as an attachment or copy  to a USB stick you have to keep it safe and   make sure that it's easy to copy anywhere so  you don't lose your accounting information now when we go to physically create the file  just answer the questions exactly as we do   just follow step by step and  pause the video if you need to   and the answers that we give to the questions when  we go to set up the file will be the simplest and   the quickest so that we can get through the setup  steps the easiest way and understand the most   now here we are in QuickBooks with no company file  open and just like any other software we go all   the way to the top left and click the file menu  and the very first choice in most of the common   and popular software is file new and now here's  where the answers to the questions come in first   you have to tell QuickBooks that you're doing  this for yourself and then you click Start setup now it's asking you to sign in to your  Intuit account but you can come down here   to the bottom left and click sign in later  and when bottom left and click sign in later and when we click sign in later the good option  is seven days so it doesn't Annoy Us to sign   in for a while click ok and here we are now  here we are in the company information window   notice there are only four mandatory fields  of information and normally we would put the   company's name and address in this section however  I'm going to skip the bottom part so I can show   you how to come back and change the company name  and address anytime you need so now let's just   put in the four minimum pieces of information to  make it the most simple setup that we can have now as far as industry type you can click help me choose and again we're  trying to do the quickest and easiest setup   so we will not let QuickBooks put in a  chart of account for us we will scroll   to the bottom here and click other none we  want to put our own chart of accounts so   that we learn it properly and we understand  it so after we click other none we click ok   same thing for business type we click help me  choose and then at the bottom to keep things   as simple and clear as possible at the very  beginning of Learning QuickBooks we click   other none and click ok now as far as an email  address you just have to put any kind of valid   email address that it will let you put and then  it will let you move on to the next piece foreign and now we have put the minimum information  necessary to be able to create the file   please note you must always click preview settings  before you save your file so that you can choose   the location of the file and in our example  we will make it Easy by choosing the desktop so we click preview settings and in the  preview window we click company file location   now QuickBooks remembers that the last file I  created was on my desktop but you can click change   location and choose the location of the file so  that you don't have to search for it later by name   by using your search tool inside your windows  so now you know where it is once you create it   and when you click ok and then  click create company now your   company file is being physically  created and placed on the desktop now once it gets created you can click the  start working button and you'll be able to   navigate around your new file now this is the  way your file should look on your desktop if   it's outside any folder and just sitting  on the desktop for the location that you   just chose however if you clicked on the file and  dragged it into a folder and then open that folder   what you would see is that that file with the  same name has then become two other files now why   is that that's because from the computer's point  of view one QuickBooks file is really physically   several files but you don't have to worry when  you look at this in a folder only the green   dot quick qvw file is the one that counts that's  the only one you have to click on if you want   to copy it to a USB stick or copy it over the  Internet or send it as an attachment you see these   other two files get automatically created every  time the green file moves to a different location   so you can just ignore and disregard them because  when you move the green file the computer will   copy them over anyway now I consider the last  part of setting up your file physically is   making sure you have the correct name and address  in the my company window so let's imagine that we   already put in the proper name but we did not  put the proper address now we have to put the   name and address together so that they will show  up properly on all the reports that we print and   all the documents that we create when we record  transactions and it's very simple to do that   from the main menu click company my company and  this is the my company window now you may notice   that it does not have an address or any of the  other details because we skipped over that when   we set up the file but we can put that in right  now if you click the pencil tool you see how to   manage the company information in the company  information window there are different sections   that you can explore and experiment with but right  now the contact information is the most important   thing let's make sure we put an address so  that will show up on reports and documents and of course we would normally  put a phone number and so forth   but if we just click OK and then click yes okay we are then asked to confirm  that that is our legal address then we click ok and our official address  has changed and you can change this   anytime your company moves or needs to print a  different address on its documents and reports   chapter four what are the preferences and how do  you set the preferences in the preferences window   now you may well ask what are the preferences  well basically they are the settings the   defaults the options in other words they are  the automatic behavior of the software until   you specifically tell the QuickBooks file  to behave differently and they also tell   you what features are available and we will  learn how to navigate this preferences window   from the main menu click edit preferences  and the preferences window opens up   you'll notice that when you click anywhere in the  left panel you change the category of preferences   you may also notice that each category that  you click has two sections on my preference   section and a company preference section the  my preference section are for things that help   you make QuickBooks more convenient and that's  just convenient by user so what might be more   convenient for you might not be more convenient  for a different user so they can set those   personal preferences differently when they sit  down to use QuickBooks but the company preferences   control how the file records transactions when  doing business and that's basically the difference   and we're going to do an example of each one so  first let's learn on some personal preferences   let's turn off all the pop-up messages for  QuickBooks paid Services well that's very simple   we click edit preferences then we click the  general category and in the general category   make sure you select my preferences the check  mark is right here turn off pop-up messages for   products and services and by clicking to put  the check mark in there and then click ok to   make sure QuickBooks makes the change now you  will not be distracted with commercials from   the QuickBooks company as you do your business  secondly let's make sure that it auto refreshes   the reports so we don't have to close and reopen  reports if we added transactions edit preferences   and select the category of reports and graphs  and again in the my preference tab we want the   computer to refresh the reports automatically  so we don't have to reopen a report to get new   numbers after transactions are recorded click OK  and that preference has changed very simple now   we don't want QuickBooks to save the windows that  were open from the previous session some people do   want it but we don't want it in this course so to  make sure the computer does not do that we click   edit preferences and then we click the category  of desktop view and then click don't save the   desktop by the way in this very same window we  don't want QuickBooks to pop up the home page   every time we open the file that would be very  distracting and that's a setting that's right here   so we will click this check mark to remove it  so it says don't save the desktop and remove   the check mark that says show home page when  opening a company file and then when we click   OK we will no longer be distracted with this big  mess in front of us that we're not going to use   and now let's try changing some company  preferences so you can see how that would   affect the QuickBooks file let's turn off the date  warning for pop-ups for transactions we record in   past or future dates that are extreme in other  words QuickBooks constantly warns us that the   transaction we're recording is more than 90 days  in the past or more than 30 days in the future   it doesn't understand that we know what we're  doing and that these are only examples so we click   edit preferences and click the accounting category  of preference now we're changing a company   preference remove these check marks because if you  leave these check marks you will constantly get   pop-up warnings every time you put in the sample  transactions because the sample transactions are   dated more than 90 days in the past and for  some people or more than 30 days in the future   so to make sure we save these preferences we  click ok and lastly we want to allow this file   to record deposits when customers pay the money  directly into the bank account now we will explain   more about this in the banking section later but  believe it or not the QuickBooks file is set up by   default to not let you record receiving money from  customers directly into the bank account let's   fix that edit preferences and in the category of  payments we click the company preference and we   remove this check mark use undeposited funds click  to remove the check mark and we will not use this   feature on deposited funds until much later in  this tutorial when we get to the banking section   but by removing this check mark QuickBooks will  allow us to record transactions directly into   the bank account click OK and congratulations  you've set the preferences for your QuickBooks   company file chapter 5 how to input and manage  the QuickBooks desktop chart of accounts in the   days before the computer the chart of accounts was  called the general ledger basically it was simply   a book where each page in the book represented  a different account and an account was simply a   category of transactions and you would categorize  your transactions by recording them into the   proper account on the proper page for example page  one might be called video income and every time   you earned money from a video service you would  record that line by line on page one but if you   also offered an editing service you might record  each transaction with editing on page two and you   would have an entire book of these pages to record  everything you need to record for your transaction   categories for example page six might be this one  delivery expense and every time you paid UPS or   every time you paid FedEx for a delivery you would  record it in the delivery expense account page so   that you could get the total and find out how much  you paid for delivery regardless of who you paid   now this is what vonda's chart of accounts  looks like and these are the accounts we're   going to put into QuickBooks desktop you may  notice that you have to put the account name   and with the name you also have to put an account  type now account name might be self-explanatory   you could name your accounts anything you want  however exactly what you type in when you name the   account is exactly what will show on the financial  statements so be careful how you spell them   now account type is something different it doesn't  matter what the account name is the type of the   account determines what kind of transactions can  be recorded into it and it determines where it   appears on the financial statements for example  if we make Only One Bank type of account it does   not matter the name that you give it matters  that when you go to record a check that will   be the account that the check gets recorded  into no matter what name you give because it's   the only account that is a bank type of account  and it's the same thing with accounts payable   if you only have one accounts payable type of  account these are where this account is where   all the vendors bills will be recorded into and  it does not matter what you name the account   so when you first open the chart of accounts you  should see only these four accounts because when   we created the file we told QuickBooks that we  do not want a sample chart of accounts we want   to put the accounts ourselves to open the chart  of accounts you click list chart of accounts   then you can see these four now the two in  the middle we will use the two payroll related   accounts we will not but if we try to delete  them QuickBooks won't let us look we click here   and the bottom left button of the account of  the window controls the window and if we click   delete account we get a message that we cannot  so how do we remove The Unwanted accounts if we   can't delete them if The Unwanted accounts if we  can't delete them if we can't delete them we do   something called make inactive which is the same  thing as clicking on it and clicking delete and   the only difference is you can always see again  the inactive accounts if you include inactive   and again we want to conserve these two because we  will be using these or at least QuickBooks needs   these but we don't need this one so what we can  do is we can right click and instead of clicking   delete we can click make inactive notice it  disappears from the list right click on the other   payroll related account make inactive and now it  won't clutter up the list but look if we click   include inactive you can see that the ones with  the X next to each other are inactive and if we   wanted we could right click and make them active  again so that when we remove the check mark they   stay on the list that's simply a way of getting  rid of an account if QuickBooks does not let you   delete the account and you will not be allowed  to delete accounts that QuickBooks uses behind   the scenes and you will not be able to delete  accounts that already have transactions recorded   in them you would have to delete the transactions  that are in the account before QuickBooks let you   delete the account itself now it's just a question  of data entry cash and bank is a bank type of   account so watch what we do we click account  new and the first one that we put in the new   account window comes up right here this window  only shows up when we put in the first one and   we put in several consecutive there's a different  window but the first one is a bank type of account   and we click continue and we get the new account  window and the new account window is the place   that we stay until all the accounts are put in  consecutively if we close it and reopen it we   would get that first window again so let's put  in cap locks to make sure that we can clearly   see the difference between the accounts that  we put and the accounts that QuickBooks put   cash in Bank is the name of the account now look  what happens when I click save and close click   no for the stupid pop-up now we see that the name  and the type have been put on the list account new   now you don't have to do that every time because  you keep getting back to this window so we can   select account receivable type of account click  continue and that's both the name and the type in   this second account on the list right here it's  the second one down it's the name and the type foreign of course we will explain more about  what accounts receivable is when we get to   the customer section but this time only click  save and new and that keeps the window open   and it saves time other current asset and  supplies are the third one down on this list   so we click up here other current asset supplies and then we click save a new equipment is a fixed asset so we choose  fixed asset and type in equipment save and new what's next   accounts payable is both the name and the  type and of course we will be explaining this more when we get to the vendors and  accounts payable section save and   new if you simply slide this down you can  see that they are all being added to the   chart of accounts and the ones in capital  are the ones that we added what's next   video income and editing income  these are Income type of accounts save a new leave it as income editing income save a new and the rest are  expenses delivery expense and of course you could pause the  video and put the rest in yourself   and we have electric repair and telephone congratulations if you click save and close  it reveals the full chart of account and   your chart of accounts should look exactly  like this and these are the accounts that   we will use for the rest of the course chapter  6 how to input and manage customer information we all know that customers are the ones who pay  us for the services or products that we deliver   and vendors or people or organizations whom  we must pay for the products and services we   need in order to service the customers you need  to have data on both however QuickBooks gives   you something like a little magic Rolodex that  makes managing your customer and vendor data as   easy as it could possibly be both customer and  vendor data are managed in respective windows   the window that manages the customer  data is called the customer center and   the window that manages the vendor data is  called the vendor Center and they are both   the exact same thing they look the same way  and they have the same functionality for both   the vendor Center you can change and add the  name and address of the customer you can add   notes about that customer and you can see all  transactions organized in the way that you   like them and add other functionality as you get  more advanced when using QuickBooks desktop the   vendor Center presents and makes available those  same exact features when managing vendor data   so let's just focus for now on the customer  center and let's see what we can do with our   current customers as we input their name and  address so for example we have three customers   and here are their name and address let's  see how to record them in QuickBooks desktop   to get to the customer center you click the  main menu customers and the very first choice   in the pull down is the customer center this  is the section that you add the customer and   see the customers on the list and when  you choose a different customer from the   list you'll see all the information here so  let's go ahead and put in the first customer   says Alan rb11 First Street New York New York ZIP  code 1111 well it's very simple to add a customer   if you click new customer job and  then click new customer you see   the new customer window opens up for you to  be able to put in the customer information   now of course you see the field of  customer name and you see company name   customer name can sometimes be a number  that you identify the customer with and   whatever you put here is what will print  on whatever reports or whatever documents   or statements you send them but we're going to  make it the same thing so we type in Alan Arby and of course the field for  his address is down here and you would type it in or you could copy and  paste it in now before we save this you notice   that there are one two three four five different  tabs in the new customer window we will not be   dealing with any of these other tabs as you  become more advanced in QuickBooks you'll be   utilizing these features in our course you'll  stick with address info and type in the address   info accordingly so you would put in the company  name in our case as the same name but you don't   have to now look what happens after you click  OK you notice Alan has been added to the list   now let's put on Betty Boop new customer  new customer and type in her name   you can also type in the same name in the  company name field foreign put the address now again we're not using any of the other  fields of data for now but you will use them   as you learn more about QuickBooks now look  what happens when I click OK notice Betty is   highlighted so if she had prior transactions  they will be listed here but then if I clicked   on Alan instead his transactions would come up  here look if I click on Alan I see his address   if I click on Betty I see her address and I  would see anything else that went on with Betty one thing that you should take advantage  of from the beginning is being able to add   customer notes this is something important  that you write down that doesn't have a   specific field for example you want  to remember if one of your clients is   allergic to peanuts so you don't kill them by  showing up with a bag of peanuts during lunch   so very simple if it's Alan what you would do is  you would click on Alan and then you would click   notes and then down here you would click manage  notes add new and then you just put allergic to peanuts whatever you want to do but notice you  can date and time stamp the note and then you   can add it to the to-do list to remind you or  whatever features you'd like to use click OK and   here are the notes if I click for Betty I see  no notes but if I click for Alan and I choose   the notes tab I can see all the notes that I  might have made to make sure I'm following up   with any issue for that customer now let's add  candy Charles the last customer customer new click OK and now we have candy Charles on  the list now let's go to the vendor Center   the vendor Center is exactly like the customer  center except it says the word vendor Center   across the top now for the sake of saving time I  don't think we really need to put in each vendor's   address and phone number and email and so on I  think it might be enough to just be able to record   their names so that you can see the vendor Center  is basically the same as the customer center   so we close out the customer center and we click  vendor vendor Center and you will notice it looks   exactly the same as the customer center and  you could take notes on a vendor see all their   transactions and so on so let's go ahead and read  off the names Rex repair shop vendor new vendor click ok who's next Con Edison vendor new click ok Verizon and lastly Staples now don't worry you can always go back and  add or edit any information you skipped   or any information that's wrong look what  happens when I double click one of the names   the edit vendor excuse me the edit vendor  window opened and the edit vendor window   looks exactly like the new vendor window with  each of the different areas of functionality   that you could input data into when  you get more advanced in QuickBooks   chapter 7 how to set up and prepare the  important reports we will need and the   important shortcuts and icons in  the QuickBooks desktop icon bar   now this is a special setup just to Perfect  The Learning you might not have to do this in   your real company but it is strongly recommended  that you do you see we're going to learn a little   bit about customizing reports and we're going  to learn a little bit about the icon bar and   we're going to use them together to make using  QuickBooks the easiest software ever so you may   well ask what makes QuickBooks challenging at  the beginning when you first start learning well   the truth is there are too many menu choices to  remember take a look just under customers there   are so many options and choices you can make  just under company there are so many things you   can choose banking reports Etc but wouldn't it be  nice to have one place for everything you need and   that's what the icon bar is you can make the icon  bar shortcuts to each of the different transaction   windows that you open to input transactions  and on that same icon bar you could put up   reports that you need to see the results of those  transactions so instead of memorizing 200 menu   choices you only have to remember the few menu  choices that you need in your specific company   so for example if we put up a shortcut to the  invoice window that means when we click on the   icon bar the invoice window opens up if we put a  shortcut to the receipt window to record that type   of transaction if you click on it from the Icon  bar the receipt window would open up and so on   so let's add icons one by one but before we do  that let's change the way the icon bar looks   first you should know that everything that  relates to the icon bar is in the view main menu   and we will change it to top icon bar because  that's more of a traditional QuickBooks look   then we will click view customize icon bar  now you can see that the items listed in the   customize window are the same items across the  top all you have to do is start at the bottom and   click delete delete delete delete delete delete  and they will all disappear now you must click   OK because if you click cancel they all come back  View customize icon bar and keep clicking delete   until they all go away this way when you click  OK we now have a blank slate and we can add the   shortcuts that we need now which ones will we add  well let's add a shortcut to the invoice window   we could click customers create invoice and that  would bring us to the invoice window or instead of   that this is how we do it at the moment the active  window is in front of you you click View and it   will always be the name of the active window  that you have the option to add to the icon bar now if we zoom in a little we can see if you  click view since the invoice window is the   active window we can click add create when invoice  to the icon bar and then click OK and now we have   the shortcut up here so now all we have to do is  click the shortcut and the invoice window opens up   that's the same thing with the sale receipt  window click customers enter sales receipts   now we don't have to worry about remembering  that menu choice because at the moment the   sales receipt window is the active window  we can click View and click add enter sales   receipt to the icon bar I'll explain this  in the next section but for now click ok   and now we can open the sales receipt window  from the Icon bar customers receive payment   now this is the receive payment window same  thing view now it says add receive payments   to the icon bar and click ok now in the customize  icon bar window we can add three separators before   we click ok you see this will separate the  transaction windows from the report windows   that we're about to open up and now that we put  up shortcuts for putting in the transactions   let's put up shortcuts to get out the  results of the transactions in the reports   so we will customize the reports that we need  and then after we put them up in the icon bar   QuickBooks will remember the customization and  remember that we like the way that it looks   so first our main report is the trial balance  it's considered the main financial report and   we will be working with the trial balance  every single future lesson it shows the   totals and balances of each account in the chart  of accounts that we had set up in an earlier video   we will customize the date so it shows the  results of all transactions regardless of   date and then when we put it up in the icon bar  QuickBooks will remember how we wanted it to look   from the main menu we click reports we go down  to accountant and taxes and click trial balance   now notice the trial balance opens automatically  by saying last month meaning I'm recording this   video in December of 2021 which means last  month which is the way it opened by default   is from November 1 to November 30. let's zoom  in and take a look so what we want to do is   click the date pull down and have right here and  then scroll up to the very top choice because we   want our trial balance to show the results of all  transactions regardless of date we would also like   to make the font a little bigger and thicker so  that we can see things a little more clearly in   our beloved trial balance so this is what we do  we click the customize report button and every   report in QuickBooks has a customize button here  that will open up the the modify report window   you may notice there are one two three four tabs  in the modify report window because there are four   different ways that you can customize a report in  this example just click header footer and where   it's actually excuse me fonts and numbers change  font and let's just make the font a little bigger   let's make it 12. click okay click yes and then of  course at the bottom of the customize window click   okay now we can we actually have to make this  column a little bigger click here drag it over   see the three dots you have to click and you  have to drag to make the column wider click   drag let go see click drag click yes let go  now the trial balance is nice and clear and   it looks exactly the way we need it to look so  at the moment that this is the active window we   click view add trial balance to the icon bar and  click ok now when I close it you're going to get   this stupid pop-up just click the don't bother  me box and then click no but watch if I go all   the way back to the main menu and reopen it from  the original main menu it does not look the way we   want it has a smaller font and it says last month  but if I click on the shortcut in the icon bar it   remembers and it opens up where it says all and  it has the thicker font and that's why the icon   bar is perfect for memorizing the reports that you  need the other report that we will put up right at   the beginning is also one of the most important  reports that we will use in QuickBooks it's the   journal report it lists every transaction ever  recorded into the file it's the only report that   can show the transactions in the order in which  they were entered and not only just date order   and it can find any transactions important details  and after we open up the journal we're going to   add a column to see what date it was last entered  or modified and we're going to remove the debit   and credit column and add a column that says  just amount and that'll make the journal a lot   easier to work with when we get to it in a lesson  very soon so from the main menu we click reports   accountant and taxes Journal very special report  by the way just click the don't bother me box if   there's something irrelevant that pops up this way  this won't pop up again and we can just click ok   now notice it did not open with the date range all  so that's the first thing we will put but if you   make it a little wider you will see that it does  not have the columns we need to make sure it has   the columns we need we click customize report  now watch we want to click a check mark here to   add this column entered last modified so we know  the date and time that it was entered and click   ok now to make a column wider you go to the three  dots till the mouse becomes the cross and click   and drag to the right you could also get rid of  a column that you don't need like the edge for   adjustment memo we want very wide click drag it  very far and let it be what make your Journal very   wide okay same thing with the column of account  click the three dots to the right click and drag   and make it very wide this way we will clearly  be able to read the account name and the memo   now we don't want debit credit we just want one  column for amount perhaps we can make this a   little taller and we click customize report and  we come in the display tab of the modify report   window we come down and click to remove the check  marks for debit credit and click to put amount now   click OK and you can see instead of debit credit  we have one column for the money that says amount   and now that the journal looks the way we need it  to look we click view add journal to the icon bar   and click OK close it out now if we open it from  the Icon bar it remembers if we go back and open   it from the main menu it will not remember and  it will look the way it did in the first place   so we will be using this one and it will help us  chapter 8 how to input and manage service items   on the QuickBooks desktop items list now you may  ask what is an item well in QuickBooks an item is   a product or service that we buy or sell and of  course if it's a product or service that we buy   or sell then an item is something that we list on  a receipt or an invoice and both of these things   are true and that would make sense for example if  we had a business where we sold apples then apples   would be the first item on our items list so that  we have the physical ability to place that item   on an invoice with all the other information  that comes from the item in the items list   in our company we give video service so we would  have to put video service on the items list   with all the other information you  see that appears on the invoice   but what items do regarding the magic behind the  scenes is items allow us to track our income so   that we know how much money we're making for each  of the different services and we can compare how   much we made from one compared to how much we made  from the other so what do I mean well here's our   chart of accounts and we know that if we perform  an editing service that the money for the editing   service should only be recorded in the editing  income account and not the video income account   and we know that if we do a video service that  the money we earn from that should be recorded   and tracked in the video income account and not  the editing income account and that's what items   on the items list allow us to do so that when  we make an invoice we can list the amount of   money we earn for editing and that 1500 in this  example would get recorded in editing income and   the editing income account would increase and  of course if that same invoice had a line for   video Services then the 2000 specifically for  the video service would be tracked and recorded   specifically in the video income account and  that's what the items list allows us to do   so here's the list of the two items that Vonda  gives as services and notice it lists the name   the description the fact that it's a service not  a product the hourly rate and most importantly   the column on the right is telling you  which account in the chart of accounts   that item is tracked to that means when we  list video and we put the quantity it will   multiply that times 300 and put that money  amount here into the video income account   but if we put the editing service on the invoice  this description would come up 140 comes up and   the money amount for the editing service would  instead be tracked to this account editing income   let's go ahead and record these two items on  the items list from the main menu click list   items list let's make it a little wider okay  and a little taller now as we learn from the   chart of accounts the bottom left button of each  list window controls the list we click item new   and of course both of them are services  and the first one will be video wedding and of course the description is video on site now the rate that we charge  for videotaping a wedding is 300.   and the account now this is the most  important actually let's make this capital foreign but the most important thing is which  account this item gets tracked to video weddings   gets tracked to video income so when you click  the pull down you go down and you choose video   income and make sure that's the account and when  you click OK you can see from the items list maybe   pull this out here's the name the description  the account that it's tracked to and the price   now let's do this item new and  the second service is editing and the description is edit prior recorded video and of course Vonda charges 140 an hour  for that and the account that that income gets   tracked to would not be video income you would  have to click and choose editing income and when   you click OK you see the items list is exactly  what we need editing for 140 an hour and video   weddings for 300 an hour congratulations we are  now ready to record vonda's first transaction   great job now you've made it to part two the  customers and receivables transaction section   the first chapter in this part will be  chapter nine the very first transaction   we're recording we will learn how  to create and enter invoices foreign we know that when we record any transaction like  an invoice QuickBooks will automatically record   that transaction into the proper accounts in the  chart of accounts and the chart of accounts we   know is the general ledger so we know after we  record this invoice the results of recording   one invoice will show up in the report that shows  the results of the general ledger our good friend   the trial balance let's go ahead and open up  the trial balance before we record the invoice   now we set up our trial balance to be able  to open it right here from the Icon bar by   clicking and you can see currently there's  nothing in it but it does remember that we   want to see the results of all transactions  and it remembers the larger font that we set up   if you did not do this in an earlier video  you would have to click reports accounting   and taxes choose the trial balance and then  customize it the way we learned in a prior   video and then save that customization right  up here in the icon bar but we don't have to   do that because we already learned how to use the  icon bar to memorize the customization of reports now this is what vonda's first transaction looks  like January 1 We performed 10 video hours on   account for customer Allen well the word on  account means Allen did not pay us on the day that   we did the job so therefore the proper document  to make for this transaction is an invoice   and the amount of the invoice as we all  know is equal to three thousand dollars   that's because each one video hour is three  hundred dollars and on this invoice that we're   about to make Vonda performed 10 video hours  and is therefore going to Bill Allen for those   10 video hours now we know the results and  the trial balance will happen automatically   if we earned three thousand dollars of video  income which is what's indicated at the moment we   record the invoice then video income will be the  first thing to show up on the trial balance for   three thousand at the moment we record the invoice  but we are also owed 3000 from Allen because Alan   did not pay us on January 1 the day we perform the  service so if we performed a service at the moment   the client owes us the account that increases in  the trial balance is called accounts receivable   and it will show up for three thousand dollars  to indicate that the total of all customers that   owe us all money together after January 1 would be  three thousand dollars and this is what the trial   balance would look similar to after just opening  the invoice window and recording the invoice   however the trial balance is not the only area of  data that gets affected when we record an invoice   you see there's another area of data that the  invoice gets recorded to that area is the customer   specific records you could call them the customer  subsidiary ledger because that's what was the name   when we learned about it in school but the name  of the report that reflects the customer records   and how much is owed from each customer is called  the customer balance detail let's go ahead and set   that up before we record this transaction from the  main menu click customers excuse me click reports   and once you're in reports go to the area of  customers and receivables and open the customer   balance detail notice it's blank because we have  not recorded any transactions yet but it will show   the result as soon as we save our first invoice  so let's go ahead and save it to the icon bar View   add customer balance detail to the icon bar  click OK and now we don't have to go hunting   through a million reports in the main menu we  can click right here to open the one that we need   what will be the results in the customer balance  detail after we record one invoice for 10 video   hours well once we save the invoice the  customer records will reflect that just   only Alan Arby owes us three thousand dollars  for the first invoice that we just recorded   now we already set up a shortcut to click  from the Icon bar to open the invoice window   if you did not set up the shortcut you would  have to click customers create invoice to open   that window for that transaction now notice  that the invoice window has a ribbon up top   just like Microsoft Word and you can click here  to collapse the ribbon and click here to reopen   it if you need any of these features that we  will explore later but for now let's close it   out you also May notice that there's another  arrow pointing to the left and if you click   a right hand panel opens up with details  about the customer's previous transactions   of course it's blank now because we don't have  any previous transactions so let's hide the right   panel and let's hide the ribbon because those  are typical things in a transaction window and   let's only put the specific information  about the transaction we're recording   to choose the customer we come to the top left  and we click the pull down arrow you see this here   once we click you may notice that these are the  customers that we put on the customer list in an   earlier video and when we click on the customer  that we're making the transaction for in this   case Alan RB you notice that the address field  gets populated with the same address that we   put in when we set up customers now the date to  change the date of a transaction we click the date   box now you could click the characters and type  them in one by one but it's much more convenient   to click the date box and be able to go back  when you click the month back arrow or forward   now we're imagining that this is January 1 of 2022  in this example so that's what we put for the date   notice QuickBooks automatically enumerates the  invoices and tells you that this is invoice   number one now the quantity of the items should  go after you put the item click directly under   the word item code click once and that will bring  the pull down arrow click on the pull down arrow   to choose the specific video the service  that we did in this case it's video wedding   notice when we click video wedding 300 comes up  automatically for the price each because that's   what we set up in the list window in a prior video  now all we have to do is click in the quantity   field type the number 10 because the quantity of  Video hours for this invoice is 10. now listen   carefully in order to get QuickBooks to save one  field without closing the whole window you go to   the left of your keyboard and push the Tab Key and  at the moment you push the Tab Key QuickBooks will   save the quantity field and then multiply the  quantity times the price each up which is what   happened and now notice the amount is three  thousand dollars so that's how you make sure   you save one field without closing the window if  you hit the enter key the whole window will close   so on the left of your keyboard you push tab and  now we have our first invoice where the total   is three thousand dollars and now we click save  and close and the transaction is recorded we can   immediately click to open our trial balance and  we can see that the results are exactly as what we   expected video income showed up for the first time  as three thousand dollars and accounts receivable   also showed up for the first time as three  thousand dollars well that's our general ledger   but what about our customer specific records well  if we click to open the customer balance detail   you can see that just only Alan Arby owes us 3  000 for the invoice that was made on January 22.   now to fully understand this let's do a second  example let's imagine on January 2 Vonda did 10   editing hours on account for another customer  Betty now we know that on account means we make   an invoice and we know that each editing hour that  we put on the items list was a hundred and forty   dollars each therefore the amount of this invoice  will be equal to one thousand four hundred dollars   so after we make this invoice what will  then be the result in the trial balance   since this is our first editing invoice editing  income will show up for the first time as one   thousand four hundred dollars and because after  this second invoice we will now receive more   in the future from customers who owe us money  accounts receivable will increase by the 1 400   that we are owed and after this second invoice  accounts receivable will become four thousand   four hundred dollars so we go back to QuickBooks  and we click invoice and move this out of the   way and we record it the exact same way notice  QuickBooks enumerates the invoices for you and   this is invoice number two we click the date box  and choose January 2nd we click the pull down box   to choose the customer and we choose Betty and  notice her address populates the address field   remember we click directly under the word  item code to bring the pull down arrow   then click on the pull down arrow to get the  choices of items of service to put on the invoice   in this case we're putting the editing item  which means QuickBooks now remembers that each   editing hour is a hundred and forty dollars all  we have to do is click in the quantity field put   10 and push tab and at the moment we push tab  QuickBooks multiplies the quantity of 10 times   the price of each editing hour and the total of  the invoice is one thousand four hundred dollars   now at the moment we save the invoice you will  notice the results in the trial balance are   exactly as what we expected accounts receivable  increased to four thousand and editing income   showed up for the first time as one thousand  four hundred what else was affected well the   customer specific records were also affected by  this invoice and that means that we should see   in our customer balance detail this invoice listed  for one thousand four hundred making the total of   the customer balance detail equal to four thousand  four hundred which is the same as total account   receivable in the trial balance four thousand  four hundred so when we come back to the customer   balance detail or you could open it from the Icon  bar you see the first invoice that Allen owes is   three thousand the other invoice that Betty owes  is one thousand four hundred and that's why the   bottom of the customer balance detail says four  thousand four hundred which is equal to the total   accounts receivable in the trial balance four  thousand four hundred chapter 10 we will do our   very first practice transaction set we will enter  a batch of invoices and check the results together now this is what the trial balance looks like  or at least these are the numbers on the trial   balance before we do the exercise here are  the results after our first two invoices   the trial balance shows the date of the latest  transaction and don't worry about this 15.   it's really 2017 that will show here and I  will show you how to display your trial balance   appropriately so you can see the results and this  is what the numbers look like in the customer   balance detail before this exercise set where only  Allen owes us 3 000 and only Betty owes us 1400.   now here is your invoice list if you want you can  pause the video and enter it into your QuickBooks   online account one by one they are all invoices  here's the date the quantity the item the customer   and QuickBooks should automatically enumerate the  invoice number one thousand three one thousand   four and so on if you enter these invoices  properly that means your final trial balance   after the exercise should have these numbers  total accounts receivable should be twenty   one thousand eight twenty and editing income and  video income should be these numbers accordingly   also after this exercise the balance of RB  should be nine thousand the balance of Betty   Boop should be 7280 and the balance of candy  should be 5540. if these are not your numbers   after the exercise you made a mistake that's  okay the video that follows this one will be   all about finding and fixing mistakes chapter 11  learning how to find and fix QuickBooks mistakes the trial balance is a summary report  that means it shows the results of the   transactions that have accumulated for  each of the summary numbers on the report   the customer balance detail however is a  detail report that means that it lists the   transactions one by one and every report in  QuickBooks is either a summary or a detail for any transaction you see you can edit the  transaction just by clicking right on the   transaction from the face of any detailed report  so for example if I open the customer balance   detail and I look up and down I can see all the  transactions for Alan for Betty for candy whomever   but if I pick one transaction on the  line on the report and I double click the window that opens is the same window that you  used to record that transaction in the first place   you can change any of the pieces of data that  you originally put into the transaction when you   first recorded it and at the moment you save your  changes all of the reports will change accordingly   watch if I come here and I change this to 11 11  hours and then I push the Tab Key you see I get   this crazy giant number here in this invoice so  I have changed the quantity and as a result I   change the amount at the moment I click save all  of the reports will be updated for the new numbers   when I click save and close I get a warning  message says hey you have changed this are   you sure you want to save the changes and if we  click yes all of the numbers and the reports are   different look here's the transaction that I just  opened up notice it has this big crazy wild number   and of course it shows up here but did you know  that every place that this transaction shows up it   will affect that means if I open the trial balance  you can see that video income has exploded into a   big giant number much bigger than it was before  because it was a video invoice that I changed   and you will also notice that accounts receivable  has blown up into a giant number because that   invoice affects the total of the video income and  affects the total of the accounts receivable now if you double click on any summary number you  can see all of the transactions that the number   includes well what does this mean it means if I  don't like the size of this account's receivable   number I can double click and I can open up a  detailed report that shows me how I got that   summary number so the summary number I double  clicked is here at the bottom and this detailed   list shows every single transaction that adds  up to that summary number and just like on the   customer balance detail this detailed report  that lists every transaction in the accounts   receivable account is showing me clearly  that this is the transaction with the problem   and just like with the other report I can double  click and I can fix the number that is the problem   push tab to save the field notice the number  corrects itself and at the moment I click   save and close and then of course yes all  of the numbers in all of the reports go   back to exactly what they are supposed to be and  that's the method of finding and fixing mistakes chapter 12 learning how to record  receiving payments for past invoices   we know that we record the customer  payments in the customer payment window   and we know that any transaction that we record  affects the numbers in our chart of accounts   because that's our general ledger and the report  that immediately shows the changes to any account   in the general ledger is our good friend the trial  balance so for example let's imagine we received 3   000 from Alan for the January 1 invoice that we  recorded in a prior video let's also imagine that   the money was deposited directly into the bank  account so what will happen when they pay well   if they pay us directly into the bank account then  cash and Bank goes up because we now have the cash   so that account in the chart of accounts will  increase and we know if the reason we got the   cash was for a past invoice we know that accounts  receivable represents what was owed so if they pay   the amount of accounts receivable will go  down because now the customer owes less   so in this example of a three thousand dollar  invoice what will be the results well we just   got paid for the first time in this course so  cash and bank will show up for the first time   in the amount we got paid three thousand dollars  and we know accounts receivable represents what   customers owe us and if they just paid us three  thousand that means they owe us three thousand   less and accounts receivable will decrease  by three thousand and become 18 820. and this   should be the results in the trial balance after  we record our first payment from past invoices   however we know from experience that there is  another area of data that will also change when   we receive payment from a customer we know that  that will also change our individual subsidiary   customer records and that payment should also  show up on the customer balance detail well if   you look at the customer balance detail now you  see only invoices but if we record a transaction   that affects the customer's balance it will be  additionally listed right here on the customer   balance detail and of course because it's a  payment it will decrease what that specific   customer owes so this is what the customer balance  details should mostly look like after we record   receiving three thousand dollars for the January  1 invoice however what you might notice is that   it's not exactly clear the way it's written  now which specific invoice was that particular   payment being paid for in other words the fact  that it's three thousand doesn't mean we can   assume that it was paying for invoice number one  so therefore we need an additional customer report   we need a customer report that shows us only  the invoices that are unpaid and the name of   the report that shows us only the invoices that  are unpaid is called the open invoice report   now this open invoice report zoomed into  the section of Allen shows that right now   these three invoices that we recorded for Alan  are currently unpaid however after we record   receiving payment for the January 1 invoice the  January 1 invoice will not be an open invoice and   it will simply disappear from the Allen section  of the open invoice report and that will be the   results when we record the transaction let's go  ahead and put the open invoice report up in the   icon bar and then we'll record the transaction  reports customers and receivables open invoice   now the rule in this class is that we always  change the report date range to all we want to   see the results of all transactions regardless  of date and this is the way the open invoice   report looks before we record our first payment  and if we click View add open invoice to the   icon bar and click OK we now see we can open it  directly from the Icon bar and we don't have to   go hunting for it in the huge list of main menu  choices our payment window is in the icon bar   and we can click here however you could also  open it by clicking customers receive payment and here's the window that we need now we know  that the customer was Alan Arby and notice as soon   as you choose Alan his open invoices populate the  fields down here and we're assuming that he paid   us on January 9. now this is very important  if this is what shows when you first open   up the window you must change it because the  instructions specifically say that the money   was deposited directly into this specific bank  account and the amount of money is three thousand   and we learned in a prior video that to  save just this field without saving the   whole window we go to the left of the  keyboard and push tab now notice what   happened down here what happened down here  is as soon as we push tab QuickBooks assumed   that we are applying this payment to the  top one here and therefore put the check   mark in the left margin and that's the way  the computer or that's the way QuickBooks saves a payment it assumes it wants you to apply  it to either the oldest one or the one with the   numeric match three thousand here three thousand  there so in the bottom right of the window you can   now click save and close or hit enter and when  you open the reports the results are exactly   as what we expected the try file balance shows  that cash in Bank showed up for the first time   as three thousand accounts receivable decreased to  exactly the number we expected eighteen thousand   eight hundred twenty when we open up the customer  balance detail and look in the section of Allen   we see that this payment happened after the  invoices and lowers Allen's balance from nine   thousand to six thousand but the most important  results are in the open invoice report if we   click the open invoice report you can see that  now Allen only has two open invoices because   the January 1 invoice is paid and therefore  has disappeared from the open invoice report   and now let's do a second example let's imagine on  January 10 we received 680 dollars from Betty for   the January 4th invoice and again let's assume  that the money was directly deposited into the   company bank account at the moment we got paid so  what will be the result of this 680 dollar payment   well we know that cash and bank will increase  by six hundred eighty dollars to become 3680.   and we know that if the reason we received the 680  is because the customer owes less than accounts   receivable will decrease by 680 and become 18 140.  we also know that in the customer records Betty   will now have a payment added to her balance at  the bottom and that payment of 680 will decrease   Betty's specific balance to 6600. and of course  if the invoice on January 4th is the one that's   being paid you see it's open in the amount of  1680. that means on the open invoice the January   4th invoice will decrease from 1680 and if we  apply 680 it will become a thousand dollars even   and that's what the report should look  like after we record this next payment   so again we go to the payment window that we  made the shortcut for we could even collapse   the ribbon and make it a little better here now  this customer was Betty notice what happens as   soon as we choose Betty all of Betty's specific  open invoices show up in the field in the middle   we know the date that she paid is January 10 and  we know that the money is deposited directly into   this specific bank account so we choose the  bank account now the money amount is 680 and   we learned many times that to save just the field  without closing the window we go to the left of   the keyboard and push tab however look what's  going to happen we push tab QuickBooks assumes   that the money will be applied to the oldest  invoice but that is not the case so if we make   an attempt to move the check mark to the proper  invoice look what happens if we leave the check   mark alone and just click on the one that we want  click up see we got a message try again I want I   don't want the first invoice I want the second so  I click up see not able to do it well why is that   that's because when you use the receive payment  window you must first remove the check mark from   the wrong one before choosing the correct invoice  so you have to click on this and remove it if you   don't you will get this message because the  computer thinks that you have already applied   the payment to the oldest invoice because the  check mark is still there so what you need to do   is remove the check mark and then when you place  it on the correct one QuickBooks will apply the   payment to the correct invoice watch I'm going to  click OK for the message watch carefully I click   to remove the check mark from the wrong one and  that one becomes zero and now when I click now   to place it on the right one no error message and  the 680 shows up in the correct row I can click   save at the bottom or hit enter And now when we  open the reports the results are exactly as what   we expected the trial balance shows cash and  bank for 3680 the trial balance shows accounts   receivable is now down to eighteen thousand one  hundred forty the customer balance detail in the   section of Betty shows a payment of 680 decreasing  the balance of Betty to six thousand six hundred   and when I look at the open invoice report  I see invoice number four is only open in   the amount of a thousand and that's because  it was 1680 and we applied the 680 payment chapter 13 using the best report in QuickBooks  desktop learning how to use the journal   you see the journal report is the most helpful  report in QuickBooks it lists all transactions   in the entire file and all transaction types  since the creation of the file and it's the   only report that can do that it's also the  only report that shows transactions in the   order in which they were entered into the computer  regardless of date now why is that helpful well   if you have a date mistake if the piece of data  that you made a mistake on when you entered a   transaction was the date that becomes the most  difficult type of mistake to find and the reason   it's difficult to find is because all of the other  QuickBooks reports display the transactions in   date order so if you made a mistake on the date  and you thought you recorded it in January you're   looking up here but if your mistake was that  you put April instead of January as the date   the transaction is down there but you won't know  that the transaction is down there because you   don't know what the date is because that's the  mistake however if you go to the journal and you   open up the journal here like we put from the uh  icon bar in an earlier video you will see that the   journal does not go in date order it goes in this  column order transaction number invoice number one   was the first transaction invoice number two was  transaction number two but when we scroll all the   way down you can see that the first payment was  actually transaction number nine and the second   payment was actually transaction number 10 and so  on so it doesn't matter the date that you recorded   with the transaction it matters the order that  it was entered in so that's the reason why now   if you're putting in a bunch of transactions a  bunch of different kinds in one session you're   putting in invoices payments and so on if you  want to remember where you left off just scroll   to the bottom of the journal where the most recent  transactions are so if I'm putting in invoices   payments and all other types of transactions and  the phone rings and I can't remember which one I   did enter and which one I did not enter I opened  the journal I scroll to the bottom and I can see   this was the last one entered that was the one  beforehand and so on and you will see that will   help you if you're putting in a bunch and you  forgot where you left off or you're looking for   a date mistake you will also notice that you can  compare the date of the transaction to the date   and time that that specific transaction was  recorded and these will be incredibly helpful   things as you approach more complex exercises  you will rely more and more on the journal   lastly you can see exactly what transaction  number was deleted and the approximate date   now I do promise that the video that follows this  one or the chapter or the lecture that follows   this one will be all about deleting transactions  it deserves a separate topic however the deleted   transactions will actually show on a separate  report that we will learn about soon but in the   journal the Journal shows what was entered before  and after the deleted transaction that means if   we delete transaction number eight this invoice  number eight and then we re-enter it you will   see the transaction numbers we'll say 6 7 9 10  and 8 will be gone and you will have to open the   deleted report to see that transaction once it's  deleted because it is removed from the journal   so think about how to use the journal and enjoy  the next lecture all about deleting transactions   chapter 14 learning how to delete transactions and  find which transactions were previously deleted   deleting a transaction is a very simple  thing to do but there are some things to   remember that go along with it sometimes we  cannot fix a mistake by editing a transaction   therefore we must sometimes fix Mistakes by  deleting the transaction and re-entering them   deleting a transaction permanently  removes the effect of the transaction   and once it's gone you can never get it back there  is a permanent record of all deleted transactions   in the report called voided deleted transaction  detail now if we come to QuickBooks and we go to   open it up you will see it has nothing because I  have not yet deleted anything maybe I did I don't   remember we click reports accountant and taxes  right here voided deleted transaction detail   click on it now of course it says today but if we  push a for all we can see that our so far in the   files that I've been using for the course so far  I have not had the need to delete any transaction   let's put it up in the icon bar view add  voided deleted transactions to the icon bar   click OK and now we can open it up and it will  remember that we like the date range a for all   now let's actually practice deleting a transaction  and see what happens well we want to delete for   example invoice number eight and the quickest  way to find it and open it up would be to click   right here on the customer balance detail so we  click the customer balance detail and we see for   candy that invoice number eight is down here and  when we double click we open it up now how do you   actually delete a transaction well there are two  ways if you have the delete button in the icon   bar you can click that and that would delete  I mean excuse me in the ribbon in the ribbon   here of the very window of the transaction that  you're trying to delete there should be a delete   button here if there's no delete button then you  can make the transaction the active window and   click edit delete and it'll say delete invoice  delete sales receipt delete check whatever the   active window is will be the name in the edit pull  down that will give you the option to delete it   let's go ahead and use the easy way click delete  and it says excuse me are you sure you want to   delete this we click OK and it's gone now how do  we know it's gone well it looks clearly like it   disappeared from the report or reports that  it's on and when we open the voided deleted   transaction detail report we can see that on  December 24th at 11 A.M I entered this particular   uh transaction and then on December 26th that  10 52 a.m I deleted it so it gives an entire   history of each of the transactions that were  deleted and it even tells you the invoice number   and now that we know how to delete transactions  let's fix what we just did by re-entering invoice   number eight but be careful when you go to  do that you must edit the invoice number and   change it back to number eight this is because  QuickBooks remembers number eight was used and   it will it will automatically open with number  nine don't worry number nine will automatically   be the next auto-generated invoice number after  we re-enter number eight in other words QuickBooks   remembers the pattern of what we do so watch  this if we close the reports and we just click   the invoice window aha QuickBooks suggests  that this is invoice number nine because it   remembers number eight however it doesn't know  that we're re-entering invoice number eight   so first we change number nine to number  eight because we're putting back number   eight we put the date that we were supposed  to put which was January 8th it was for candy and it was editing it was 16 editing hours for  candy totaling two thousand two two hundred and   forty dollars this is exactly a replica of  the transaction that was deleted and when I   click save and close you can see the numbers in  the reports go back to exactly what they were   however the effect can be seen in the journal  the journal report will also help you track your   deleted transactions if you look in the leftmost  column one two three four five six seven nine ten   eleven and so on so you can see between seven and  nine there was a transaction that must have been   deleted that was transaction number eight and by  looking at the date and time of the ones right   before and the ones right after and the dates of  the transactions of the ones right before and the   ones right after you will have a clear or a more  clear picture of exactly what was deleted and what   happened but even more important when you scroll  to the bottom of the journal you can see that I   just re-entered invoice number eight with the same  date but yet its transaction number 11. so that's   the effect of a deleted transaction in the journal  and it's the combination of the voided deleted   report combined with the journal that helps really  show what was happened what had happened when it   was deleted chapter 15 how to record and manage  sales receipts it is proper to enter a sales   receipt when we receive payment immediately  upon delivering our service to our clients   entering a sales receipt is exactly the same as  recording an invoice all transaction data is the   same and the way you physically enter it into the  computer is exactly the same so what happens in   QuickBooks when you record a sales receipt well  you have more money in the bank so logically your   cash and bank balance should increase at the  moment you record the sale receipt and because   you only record a receipt if you earned income  then the specific income account for the service   you provided would increase in QuickBooks  at the moment you record the sale receipt   for example let's imagine on January 11 we did  10 video hours for Alan and we received payment   immediately and we know that the money is directly  deposited into the bank account in this example   and we also know that the money amount will be  three thousand dollars because that's 300 for   each video hour times the quantity of 10 hours  let's go ahead and record our first sale receipt   from the Icon bar or the main menu you click  sale receipt notice since this is the first   sale receipt it has the number one up here the  first thing you should notice is that you have   to choose the correct bank account that the money  was directly deposited into at the moment you   provided the service we'll learn about undeposited  funds later if they put a check or cash in your   hand but in this example the money was directly  deposited into the bank account and the date that   it was deposited was January 11. the customer  that gave you the money was customer Allen   and the item of service you did was video  weddings and the quantity was 10. so you   enter the information into the different fields of  data exactly the way we learned previously when we   recorded a sale receipt now when I save this what  will be the result in the trial balance well right   now cash and bank is only 3680 here I'll show you  C 3680 how much will become after we save the sale   receipt it will increase by three thousand  and become six thousand six hundred eighty   and what about video income video income  now is only fourteen thousand four hundred   as you can see but what will happen after I save  this sale receipt it will increase by the three   thousand dollars that we earned in video income on  this receipt and it will become seventeen thousand   four hundred so I click save and close and notice  the numbers are exactly as what we expected   cash and Bank increased to 6680 and video income  increased to seventeen thousand four hundred   if I double click video income you can see  that the total seventeen thousand four hundred   comes from four previous invoices and one  sale receipt and that's the way it looks   in this account however will it affect the  customer's balance that's the big question   and the answer is no it will not so what reports  will it show up on well it cannot show up on the   customer balance detail because as you can see a  sale receipt does not change the balance of the   individual customer the customer paid as soon as  they got the service so for a sale receipt they   owe neither more nor less so then the question  is if you can't see it on the customer balance   detail where in the customer records can I  find the sales receipts and the answer is a   report called transaction list by customer  from the main menu you can click reports   customers and receivables and go down to  transaction list by customer push a for all and   now you can see that it lists every transaction  that you ever recorded for every customer   it will not show you the running balance and it  will not be able to tell you which invoices are   paid or unpaid it is simply a list of every event  that happened between you and the customer in date   order and now you can see we had a sale receipt  with Alan and even though it didn't change his   balance it's still part of your history between  you and Alan now before we do the second example   let's put it up in the icon bar click View add  transaction list by customer to the icon bar   and click ok and I'm going to close the windows  and we'll start fresh with the second example   example two on January 12 we did 10 editing  hours for Betty and received payment immediately   and that money was also directly deposited into  the bank account and we know the amount is one   thousand four hundred because each editing hour  is a hundred forty dollars and the quantity is 10.   so what will be the result in the trial balance  after recording this second sale receipt well   we have one thousand four hundred more  in cash so cash will increase to eight   thousand eighty and its editing income  that we earned so editing income will   increase by the one thousand four hundred and  become 8820. we open the sale receipt window   and we make sure the cash and bank is chosen  because that's the account the money went into   the date is the 12th of January notice QuickBooks  automatically suggests sale receipt number two   the customer was Betty and the item of  service was editing and the quantity was   10. so we enter these fields of data exactly  the way we did when we recorded an invoice and   now our trial balance accounts change by the one  thousand four hundred when we click save and close   the results in the trial balance are exactly  as what we expected cash and Bank increased to   eight thousand eight hundred and editing income  increased to eight thousand eight hundred twenty   you can also open the transaction list by  customer and look in the section of Betty   and see that the sale receipt is there and  you can see the account is editing income   chapter 16 your first full practice set with all  the customer transactions that you just learned this is what your trial balance should look like  right now before you begin this exercise if it   doesn't have these exact same numbers then you  have to go back and correct the numbers the way   we learned in the course make sure your starting  numbers are correct before you begin the exercise   this is what the customer balance detail should  look like at the moment you begin your exercise   again if it looks different you have to  use what you learned in the course so far   to make it look exactly like this so that your  numbers are correct when you start the exercise   this is what the open invoice would look like and  remember it's still possible that your customer   balance detail looks correct but your open invoice  could still have wrong open balances one by one   make sure you have applied all previous  customer payments to the correct invoice   and then each individual invoice balance will  be correct at the beginning of the exercise   and just for good measure I'd like you to check  the transaction list by customer to make sure that   everything is the same before you start inputting  the transactions for the customer exercise   now here are the transactions in this exercise  you can pause the video in this position so you   can slowly and carefully read each transaction  one by one this way you can think about each   transaction that you're inputting if you forgot  how to put in a particular transaction then you   have to go back and review the video Lesson where  we learned how to record that transaction type and   when you finish slowly and carefully recording  these transactions in order the trial balance   when you finish should look like this if it does  not look exactly like this after finishing these   transactions then you have to use the techniques  that we learned in the course to find and fix your   mistakes so that when you finish the trial  balance numbers are exactly these numbers   this is what the customer balance detail should  look like after the exercise you can pause the   video and compare each transaction one by one  to the customer balance detail that you have   in your computer to make sure you have the same  results and again this is the open invoice after   the exercise remember the open invoice report  could still have wrong invoice balances even   if the customer balance detail is correct and  of course this is one of the best reports that   will help you find and fix any mistakes you might  have made because it simply lists each transaction   for each customer in date order for use this to  make absolutely sure that all your transactions   are correct after the exercise but then the  question is what if you have some mistakes   how do you figure it out if you can only ask  me questions through text well first again use   what you learn to find and fix your mistakes in  bookkeeping the answer is always there it's not a   physics mystery it's not a biology mystery there's  always an answer and the answer is always findable   and you must use logic to find and fix the  common mistakes and that's what I'd like to   speak to you about right now before you even  begin the exercise I will now prepare you for   the three most common mistakes that you might  have after the exercise and help you fix them   what if number one question number one think about  this logical question if your trial balance is   correct but the total balance of each individual  customer is wrong what possible mistake could   cause that condition you can pause the video at  this moment to think about the question and think   about what type of mistake would allow all the  numbers in your trial balance to be correct but   yet some or all of your customers total balances  become wrong what do you think the answer is   the answer is you chose the wrong customer  on an invoice or a payment only by choosing   a wrong customer on an invoice or payment would  allow the trial balance to still be correct but   the individual customer balances to be wrong so  if that's the condition then that's the solution   what about this next common mistake what if your  accounts receivable balance is too high after the   exercise and the cash and bank balance is too low  after the exercise think about what would be the   only mistake that would cause that condition  and have all your income accounts be correct   and all your other accounts correct except  account receivable and cash in Bank think about it   the answer is you made an invoice instead  of a sale receipt because invoices increase   accounts receivable when you create them and sales  receipts increase cash and Bank when you create   them so if you created an invoice instead of a  sale receipt accounts receivable was increased   instead of cash and bank and that would cause  accounts receivable to be too high and cash in   bank to be too low you would have to delete the  wrong one and re-enter the right one because you   cannot make a sale receipt become an invoice and  you cannot make an invoice become a sale receipt   and the last common uh mistake if the  total balance of a customer is correct   but the individual invoice balances are wrong   what would be the only mistake you could make  that would allow for that condition think about   it even the trial balance is correct all the  total balances of each customer are correct   but the open invoice report shows wrong balances  on the individual open invoices think about it   the answer is you applied a customer's payment to  the wrong invoice so those are the three puzzles   that you might encounter when you finish the  exercise and those are the answers to those   puzzles all the other mistakes are easy to fix  if you think you have a date mistake you can use   your Journal report to see if the dates are not  the transactions are not put in in date order   and to see if you're missing any think about  everything you learned think about all three   answers to the common mistakes and I  wish you good luck with this exercise   you're almost halfway done with the course and  you're doing great keep going even though you   still should do all the topics in order you can  skip if you want to any topic you like just by   clicking the show more button below the video if  you click there that will expand the description   field and you can see a list of every topic all  you have to do is click on the time index of that   topic and the video will skip right over to that  time index and you can watch that topic right away   also if you see any topic that you feel  is missing or there's anything else in   QuickBooks online that you need to learn  I guarantee that any other topic that is   not in this tutorial is on the main Channel  page and you can get there by clicking any   place that you see the kitty once you click the  Channel logo you'll be at the main Channel page   and I guarantee you that all the QuickBooks  answers to all the QuickBooks questions and   all the QuickBooks specialty courses you need  you can find right on the main Channel page   now without further delay I present to  you the second half of this tutorial and now welcome to part three of our video  tutorial vendors and payable type of transactions   anything that relates to expenses  will be learned in this section and   the first chapter in this section is all  about defining accounts payable foreign payable is keeping records of vendors  and vendor transactions it's really   keeping track of what you owe to vendors for  products and services that they have given you   now just like total account receivable is equal to  all the money that every customer together owes us   accounts payable is the account and the chart of  accounts that represents the total money owed to   all vendors combined for example let's imagine  that we owe Con Edison we over rise in 200.   we owe UPS 400 and we owe Staples 600. that means  the balance of accounts payable in the trial   balance should be the total of all three vendors  one thousand two hundred dollars and any vendor's   balance end accounts payable will go up when you  enter a bill and receive a service or product and   any vendor's balance along with total accounts  payable will go down whenever you pay a specific   vendor for what you owe now just like with  customers there was the customer balance detail   guess what with vendors it's the exact same thing  there's a report called vendor balance detail   from the main menu we click reports vendors  and payables vendor balance detail and at the   moment that is the active window we click View add  vendor balance detail to the icon bar and click ok   now we have this shortcut that we can look at  right after we record all our vendor transactions   chapter 18 entering and managing vendors bills  in QuickBooks the word bill and the word invoice   mostly mean the same thing we call it well  QuickBooks calls in an invoice if we are the ones   sending it to a customer and QuickBooks calls it a  bill if we're the ones receiving it from a vendor   but basically it's a document asking someone to  pay for something that they took or used the bill   window is very easy to enter and there's not that  much information to put when you enter a bill but   the question is what areas of your accounting  will be affected well of course entering a bill   is a transaction so of course your general ledger  and chart of accounts will be affected and those   results will show up on the trial balance but from  that very same bill your vendor records will also   be changed and in our case we're looking at the  vendor records through the vendor balance detail   let's take a look at our first example  let's imagine on January 22 we received   the electric bill from Con Edison and the bill  is a thousand dollars and it's Bill number 6161   okay what will happen in the trial balance if  we receive an electric bill from Con Edison on   January 22 and we did not pay it so what will be  the result in the trial balance after recording   and entering this first bill well accounts  payable will show up in the trial balance   for the very first time as a thousand dollars  because you now owe a thousand dollars to a vendor   and electric expense will show up for the first  time also as a thousand dollars because you used   a thousand dollars worth of electricity service  and what else will be the result we all know in   the vendor details subsidiary records you will  see on the vendor balance detail Con Edison   show up for the first time indicating that we  owe this specific vendor a thousand dollars   from the main menu we click vendor enter bills  now here is the enter bills window notice that   you have a ribbon that you can collapse just  like the other transaction windows that we   used and you have a side panel that will show all  the transactions from that vendor as soon as you   select the specific vendor in this case Con Edison  had no prior transactions that we recorded so we   won't see anything at the moment you click  here and you choose the vendor Con Edison   so now we put the date January 23rd of  2022 the bill number 6161 the amount   a thousand dollars and it's if we collapse  the side panel you can see that the amount   was automatically copied down below where you  would name the specific expense account that   represents the service that you received from  the vendor in this example it's electric expense   so we have who we have when we have what and how  much and why regarding this transaction and at   the moment we click save and close we can open  the trial balance and you see the results are   exactly as what we expected accounts payable  showed up for the first time as a thousand   dollars and electric expense also showed  up for the first time as a thousand dollars   you may also notice that the vendor balance detail  right now shows that you owe only to Con Edison a   thousand dollars for Bill number six one six one  now let's try a second example let's imagine on   January 23rd we received the repair bill from Rex  repair shop two thousand dollars bill number 6262 so what will be the result in the trial balance  after recording this second vendor's bill Well   Repair expense will show up for the first time  as two thousand dollars and because we owe two   thousand dollars more to a vendor we now increase  accounts payable to three thousand dollars   and and if you ask why is Accounts Payable three  thousand dollars the vendor balance detail will   show you we previously owed Con Edison a thousand  now after this bill we also owe Rex repair shop   two thousand and that's the reason why accounts  payable in the trial balance is three thousand   so let's enter it the way we  did we click vendor enter bill   and we put we leave the date January 23rd same as  the previous one Rex repair shop is the vendor the   reference number is Bill number 6262 in the amount  of two thousand dollars and the reason why we owe   Rex repair shop is for repair expense so we have  all the information we need on the bill click save   and close and you can see the results in the  trial balance are exactly as what we expected   accounts payable is 3 000 and repair expense is  two thousand and again if you want to know why   his accounts payable three thousand you can open  the vendor balance detail and you can see we owed   Con Edison a thousand for this bill now we also  owe Rex repair shop two thousand for this bill   that we just entered and that's why the total  of accounts payable is three thousand dollars   chapter 19 is your first practice  exercise set with entering bills so we will check our QuickBook skills in this  video by doing an enter Bill exercise entering   only the type of transaction that we just recently  learned once we finish we will practice our   QuickBooks problem solving skills by answering  two logical questions so you'll have some data   entry practice some QuickBooks practice and  some problem solving regarding QuickBooks   now this is the way your trial balance should  look before the exercise make sure each of the   numbers in front of you are the same as the  numbers in your trial balance before you start   if not then you have to go back to Prior video  lessons and figure out which one was wrong and   use the techniques that we learned to fix it this  is what the vendor balance detail should look like   at the beginning of this exercise we only entered  two bills and we're not doing bill payments yet   now these are the bills that you should enter  during this exercise it's very simply eight   consecutive bills very clearly marked and please  record them in the enter bills window exactly the   same way that we did the two prior ones when  we first learned when you finish your trial   balance after the exercise should look like this  make sure each of the numbers here match each of   the numbers in your trial balance or you will  have to apply the techniques that we learned   to find and fix mistakes this is what your vendor  balance detail should look like after the exercise   you can pause the video at this point and check to  make sure that all of the bills here match all of   the bills in your computer with the same numbers  and all the same details now if they don't you   may have one of two common mistakes so I will  therefore ask you a logical question to see if   you had one of those mistakes and if you know what  went wrong and how to fix it first the question is   what if your equipment balance is higher than  what you see on the screen and the balance of   your supplies is lower than what you see in the  trial balance I presented a moment ago you can   pause the video and think about what would cause  that condition when entering a series of bills   the answer is you chose the supplies account  instead of the equipment account on a bill   from Staples when you were entering bills  and putting in the account in the bottom   left part of the window that would be the  only type of mistake that would cause that   condition think about it and you can go  back and fix it if that was your problem   now here's the second logical question what if  your trial balance is correct which means total   account payable is correct but the balance of  each individual vendor or some of your individual   vendors balances are wrong what would be the only  type of mistake that would cause that condition   think about it the answer is you chose  the wrong vendor on a bill or bill payment   so by entering these bills and matching  numbers and answering these questions you   are improving your QuickBooks skill good luck on  the exercise and I will see you in the next video   chapter 20 paying vendors bills when you make  a bill payment obviously that's a transaction   and any transaction that is a transaction will be  recorded in the chart of accounts in the general   ledger and the results will always immediately  change the trial balance and of course at the   moment you pay a specific vendor's Bill the vendor  records will change at that moment and as you   remember the report that we're using to reflect  the vendor records is the vendor balance detail   so from that same bill payment both the trial  balance and the vendor balance detail will change   for example let's imagine on February 1 we paid  Con Edison a thousand dollars specifically for   Bill number six one six one and we paid with  check number one which is a handwritten check   and of course in the video that follows  this one we'll explain more about checks   but for now let's just concentrate  on how to record this bill payment   so what will be the results after we record  this first bill payment well cash and Bank   should go down because we just paid money and  because we owe less to a vendor as a result   of this transaction accounts payable will also  decrease by the same thousand dollar bill payment   therefore what will be the result in the  trial balance after we record the February   1 bill payment well cash and Bank decreases  by a thousand to become 22 320 and accounts   payable also decreases by a thousand to become  12 285. and we know that the changes are also   in the vendor records in the vendor balance detail  this is what con Edison's detail looks like before   this bill payment but this bill payment will lower  the balance of this particular vendor and it will   be listed separately so you see on the vendor  balance detail each individual Will Bill listed   with each individual payment in date order to  give you this balance the running balance 1150. however you will notice that in this case  the vendor balance detail is not enough   and that's because it's difficult when you look at  the vendor balance detail to know what bills were   paid and what bills were not paid in other words  you don't know how the bill payments were applied   so we need another report we need to see what  bills were paid and what Bills remain unpaid   and the name of the report that shows  the bills that are unpaid is called   the unpaid bills detail report from  the main menu we click vent a reports   vendors and payables unpaid bills detail and this  is what the unpaid bills detail report looks like   you see it says today but if we click the pull  down and we push the letter A for all you can   see that at this moment the unpaid bills report  looks very similar to the vendor balance detail   in fact we can put them side by side in this wide  shot here and you can see that if you only have   bills and you don't have any bill payments these  two reports are exactly alike however what's   going to happen after the bill is paid is that  in the vendor balance detail you will see what   we saw a moment ago a minus here for the bill  payment and the balance going down but in the   unpaid bills report for the same bill payment  you will see this bill simply disappear from   the unpaid Bill report and then it would start to  look different from the vendor balance detail even   though it will have the same balance so let's go  ahead and put the unpaid bills into the icon bar   from the top left click View and then add unpaid  bills to the icon bar and click ok now when we   open it it will already say all transactions from  the main menu click vendors pay bills and this is   our good friend the pay bills window notice  it has every unpaid Bill listed on the left   and the best thing you can do is click the filter  pull down and choose the vendor whose bills you're   paying this way it will isolate those bills and  it will be easy to see then of course you have   to be very careful down here don't let this trip  you up you see the method of payment by default   they put schedule online payment so that they  can sell you their online bill payment services   but if you're just writing a handwritten check  choose check and that gives you the ability to   put in the date that you're paying the bill  which in this case is February 1. be careful   here it frustrates a lot of people and now that  you're able to put the date and you chose which   vendor all you have to do is go go to the middle  section here and if this is the bill you're paying   all you have to do is click the check box in the  left column and by clicking to put the check mark   there QuickBooks will indicate that the amount  you're paying is the amount of the whole bill   now when you make sure that you choose the correct  bank account you're paying from and you want to   put this assigned check number now we're going  to talk more later about checks in general and   specifically printing checks but these should  be the options to give you a smooth bill payment   without a problem now when you click pay selected  bill this other one pops up and you have to put   number one we're imagining that we paid with  check number one and of course a full discussion   of checks and so forth is coming in the next video  but this is the way that you would put it in Click   ok now click done and don't worry about this and  now let's check our results when we open the trial   balance we can see that the numbers are exactly  as what we expected cash and bank went down by   a thousand to twenty two thousand three hundred  twenty accounts payable went down by a thousand   to twelve thousand two hundred eighty five we  can look at the vendor balance detail and in   Con Edison you can see that the balance decreased  by a thousand to eleven fifty and most importantly   when we look at the unpaid bills detail we  see for Con Edison there's only one unpaid   Bill left the one we didn't pay and the balance  here is the same as in the vendor balance detail   and now let's bring this home with a second  example let's imagine on February 2nd we paid only   five hundred fifty dollars to Rex repair shop for  Bill number 7575 and we paid with check number two   now what will be the results in the trial  balance well if we paid cash 550 then cash   should decrease by 550 and become twenty one  thousand seven hundred seventy and if we're   paying a past bill 550 that means accounts payable  should also decrease by 550 and become 11 735. in the unpaid Bill report however this bill  number 7575 you can see is more than 550. so   what's going to happen the bill is still going to  be on the unpaid Bill report because you did not   completely pay it but it's going to decrease  to the amount that remains unpaid and that's   what the unpaid Bill detail will continue to  show for the rest of the bill until it is paid   from the main menu we click vendor pay bills  now again we want to choose the correct vendor   Rex repair shop and now notice we only have  these two bills of course we put the date   and don't forget to put check as the  method and assign check number or   you will have error messages that are not  yet explained now be very careful up here   if you click the check box in the left margin  QuickBooks will assume that you're paying the   whole amount but if you're only paying a partial  amount of the bill you are required to highlight   the money amount over type with the amount that  you're actually paying and then push the Tab Key   so you can see the amount was 2050 but you're  only paying 550 with this particular check   click pay selected Bill and in the second field  check number two is the number of the handwritten   check which we will discuss more about in the  next video click OK and then don't worry about   this just click done it's just a confirmation  and now when you open the trial balance you   can see the numbers are exactly as what we  expected cash and bank is twenty one thousand   seven hundred seventy and accounts payable  is eleven thousand seven hundred thirty five   the vendor balance detail for Rex repair  shows a minus to the balance in general   bringing it down to three thousand five  hundred but most importantly when you   open the unpaid bills report you can see  for Rex repair that this bill number 7575   Still Remains on the unpaid Bill's detail  for the amount of fifteen hundred dollars   chapter 21 recording checks you may well ask  when do we use the right checks window and the   answer is we use the right checks window when  we pay immediately upon receiving a service or   product from a vendor we will not use the right  checks window to pay a previously entered bill   so in the prior video when we got the bill we  recorded only the bill and then we waited a while   until we actually paid it by using the pay bills  window that is not what we're talking about here   so you have to make sure to keep the ideas from  the prior video separate from what we're learning   now we use the right checks window for any  transaction that reduces the bank account except   for paying a previously entered bill because then  we would use the pay bills window like we learned   in the previous video so when do we use right  checks well if we physically have a handwritten   check that we're sending out for something we just  received and we did not enter the bill like we did   before then we would use the right checks window  but of course we can also record a transaction   and the right checks window if we paid an online  direct deposit from our bank account directly to   the vendor for a product or service we received  just like a debit card transaction any transaction   that reduces the bank account can be recorded and  should be recorded in the right checks window even   an ATM withdrawal and you will learn later the  difference between withdrawing cash for business   and withdrawing cash for personal but regardless  of which one if you withdrew cash from the company   bank account at an ATM you would record that in  one way or another from the right checks window   and you can even record a transfer if you're  transferring money out of the account during that   transaction that transaction could be recorded  in the right checks window even though there's   a separate very simple window for transfers  between bank accounts for example let's imagine on   February 3rd we paid 500 to Staples for supplies  and we gave them handwritten check number three   so what will happen if we pay money from the bank  account to buy more supplies well at the moment   we pay cash and bank will go down because we just  paid money and of course if we have more supplies   as a result of the transaction supplies goes up  so what will happen in the trial balance at the   moment we record this check well we will have five  hundred dollars Less in the bank so cash and bank   will decrease to twenty one thousand two hundred  seventy and because we purchased five hundred   dollars more of supplies supplies will increase  by 500 and become 1180. you may well ask for this   check what will happen to the vendor's balance and  the answer is nothing nothing will happen there   is no change to the vendor's balance if you pay  immediately upon receiving a product or service   because you paid immediately you owe neither more  nor less to the vendor so what report can you use   if you can't see this transaction on the unpaid  Bill report and you cannot see this transaction   in the vendor balance detail and the answer is  there are several reports that list these types   of checks but the best one in my opinion for  this course is the transaction list by vendor   from the main menu we click reports vendors  and payable transaction list by vendor and   of course let's make it nice and tall and a for  all now that it looks the way we need it to look   we're going to click View add transaction list  by vendor to the icon bar you click OK you can   see if you run out of room you have this  extra pull down arrow that will open it up   and now let's record our example first check   from the main menu click banking write a check  and I would first like to bring your attention   to this section of the top ribbon you see it's  very important that as soon as you open the checks   window you click here in this little check mark  box to remove the option for print later you must   do that so that QuickBooks will allow you to enter  the check number or transaction number yourself   and we will learn why this is in a later video  when we learn about printing checks but for   right now just remember make sure this option  is unchecked so that you have the ability to   enter the check number watch if I click here and  remove the check mark you see how the check number   appears and QuickBooks remembers where we left off  and that the next consecutive number is the number   three and now let's carefully put in the rest of  the data the date was February 3rd the vendor was   watch carefully Staples look what happens when you  choose a vendor that already has an unpaid bill   from the accounts payable section this message is  there to help you so that you don't make a mistake   this pops up every time you choose a vendor in the  checks window that has an unpaid bill QuickBooks   is trying to help you make sure that you are not  paying a previous bill by using the wrong window   if you want to pay a previous bill that was  entered from the enter bills window you use   the window that we used in the prior video the  pay bills window this window is for payments   immediately upon receiving the service of  product even if you had a past unpaid bill   so since we know what we're doing we click  write your check and we put in the specific   asset or expense that we're purchasing with this  check and we put in the correct money amount   push tab and from the bottom right you  can click save and close and now let's   check that the results are exactly as what  we expected if we open the trial balance   you can see the numbers are what they are  supposed to be cash and bank has decreased   by five hundred dollars and became twenty one  thousand two seventy and supplies increased   by five hundred dollars and became 1180. and  if you look at the transaction list by vendor you can see this check shows up at the bottom of  the Staples section as the last transaction for   Staples and you can double click open it fix it  do whatever you like and now let's do a second   example let's imagine on February 4th we paid Rex  repair for a repair job done today February 4th   and the amount is a thousand dollars now let's  imagine this one was an online payment and they   gave you a confirmation number eight seven six  five four so this is what happened on February 4th   now when we record this in the checks window  what will happen in the trial balance well   you have a thousand dollars Less in the bank  because you just paid a check for a thousand   so cash and Bank should decrease to  twenty thousand two hundred seventy   and what you paid for was repair expense so you  have a thousand dollars more in repair expense and   repair expense will increase to five thousand  fifty dollars we click banking write a check   and of course we make sure the print later button  is not selected we fast forward to February 4th   we make sure the money is coming from the bank  account pay to the order of Rex repair shop   notice QuickBooks remembers we have  unpaid bills with Rex repair but this   transaction has nothing to do with the prior  unpaid bills so we click write your check   QuickBooks remembers Rex repair goes with repair  expense so you just put in the money amount and it will copy now remember this  was an online payment it was not a   check so even though it was not a check  we still record it in the checks window and we put in the confirmation number that the  bank gives for the online payment because any   reduction in the bank account at all uh is  something that we would record in the right   checks window we click save and close and the  results in the trial balance are exactly as what   we expected cash and bank went down to twenty  thousand two hundred seventy and repair expense   increased to 5050. you can double-click repair  expense and see that the other two transactions   with repair expense were for entered bills but  this transaction was with this check and you can   see this very same check in the transaction list  by vendor if you look in the section of Rex repair   you can see these were bills this is the bill  payment and this is the check you just recorded   chapter 22 learning how to find anything  you're looking for using the find window   using the find window makes QuickBooks one of  the easiest softwares that you could possibly use   you can find any transaction just  by describing it to the find window   you can find several transactions that fit  a specific description and then you can open   them and check them as soon as you find them you  can even make a report from the fine results of   the fine window and the transactions listed  there will be subject to all the different   customization of reports that you can use  when you use reports in QuickBooks desktop   for example let's find all the invoices  from Alan between January 1 and January 15th   well it's very simple from the top left we  click edit find now the find window has a   simple Tab and an advanced tab we will click the  simple Tab and see you can start off by simply   choosing to find every single one of a specific  transaction type for example if you say invoice   and you click find you just got a list of every  single invoice that has ever been entered into   the file and you can double click and open up  an examine or even fix any of these invoices   if you click reset you can find every sale  receipt ever entered into the file and so on   but we want to find invoices specifically for this  customer Alan and we want to find all invoices   between January 1 and January 15. now that we've  described it appropriately we click find and we   see that there are only three invoices in  the entire file that fit that description   if we want to show this to someone we can click  report and now these search results have been   listed in a typical QuickBooks report that we can  use the customization for and make it look nicer   and Export it or do anything we want the same way  we could with any of the other QuickBooks reports   close it out we don't need to save it and  we'll click reset what else can we find   well how about all of the sales receipts  in the entire file equal to three thousand   okay so we want to find a sale receipt and  the amount of the sale receipt or receipts   is three thousand after we type in the criteria we  click find and you see in the entire file there's   only one sale receipt for exactly the amount of  three thousand dollars click reset what else can   we find how about just check number three you  know if you have thousands of checks and you   have to call up a specific check it would be so  easy to click edit find check and when the check   number field type 3 click find here it is double  click to open it up you can do whatever you want   reset now what about this what about all checks  to Rex repair shop okay well let's completely   reset the window here invoice all checks and the  payee is Rex repair shop now look what happens   when we click find we see that there are really  two check payments to Rex repair shop and if   we look a little bit closer we can see that one  of them is the check that we wrote in the prior   video and the other is a bill payment check and  a bill payment is the only transaction that looks   different when you reopen it if I double click I  see that this was more than just a check it was   specifically paying bill number 7575 a partial  payment that we did two video lessons before   but this is the way it looks when you reopen it  when we first click vendor pay bills this is the   way the window looked when we recorded it but a  bill payment looks like this when you reopen it   so that's just something that will help you later  but now what if we wanted to use the advanced find   well that's something that takes practice patience  and quite frankly imagination because you have to   think of how you would search for something to  benefit you depending on what you're looking for   for example let's find all transactions with  Alan Arby greater than three thousand dollars   so watch carefully we click edit find now  when we click the advanced tab you'll notice   there are three sections at the top of the  advanced find window on the left this is the   box that you choose the criteria that you're  filtering on and you can choose more than one   but you notice when you click a different criteria  the middle section here changes that's because   it's the middle section that really clarifies what  you're looking for for example if we click amount   we want to make sure that we find any  transaction uh let's say greater than   three thousand now when I push the Tab Key you  notice the Box on the side is showing the rules   or the filter that's already on and you can click  here and delete any of the other filters that were   put so right now amount greater than 3 000 is the  only criteria and if I click find I get a list of   every transaction in the file that's greater than  three thousand and I click reset okay let's remove   this you can push delete but if I want to put  two criteria I have to put both and make sure   they're both here before I click the find window  so if I click the filter box and push the letter   N I get the option to choose by name and now the  pull down arrow allows me to choose just Alan now   I don't want to click fine because I don't need  every transaction for Allen but I come back to the   filter box and push the letter A to get the filter  for amount and I want the amount to be greater   than three thousand so I want to  see all of Alan's transactions   that are greater than three thousand when I click  find this is a list of all the transactions I had   10 of them 10 of the transactions I had with Alan  were greater than three thousand but if I reverse   this if I click here less than and click find now  I have 12 transactions less than three thousand   dollars from Allen so notice the three sections  of the advanced find and I invite you to explore   an experiment using this window it's one of  the most powerful tools that gets you to be   an expert in QuickBooks desktop 23 learning all  about petty cash and managing your cash on hand petty cash physically can be kept in a physical  lock box that someone has the key to and the   cash is inside but petty cash could also be  a separate section of the owner's wallet it   doesn't matter as long as you physically  have a place to deposit the cash into and   physically can take from that place to spend for  business expenses then you have a petty cash fund   now think about that description a  place where you can deposit to and   spend from that description is exactly the  same description as a typical bank account   therefore keeping records of a petty cash  fund is the same as keeping records of a bank   account and petty cash in your QuickBooks  records should be a bank type of account   so we go from the top left list chart of accounts  in the bottom left corner account new now this is   a bank type of account if I click Bank you can see  that one of the things that QuickBooks designates   for a bank type of account is petty cash we click  continue and type in petty cash cash on hand petty cash cash on hand save and close click  no for the pop-up and now we have an account   to record our cash transactions with so what  exactly happens with petty cash or cash on hand   when you have these type of cash transactions  well first you establish the fund by writing a   check or withdrawing the money from an ATM  machine then you spend from the petty cash   fund for business reasons and after you finish  spending from petty cash you will record each   cash payment with a physical receipt and the  physical receipt you get for the cash payment   should be placed back in the lock box or back  in the same place where the cash is physically   stored so you can compare what was spent with  what was put in and then when the petty cash   fund gets too low you have to replenish the  fund with a check or an ATM withdrawal again   so let's do our first petty cash transaction  February 5th we wrote check number four to cash   for five hundred dollars to establish the petty  cash fund well what will change in the trial   balance at the moment we record check number four  well if we paid five hundred dollars from this   bank account the bank account will decrease by 500  and become nineteen thousand seven hundred seventy   and because we just established the fund petty  cash will show up in the trial balance for the   first time as five hundred dollars and  none of the other numbers will change   from the main menu we click banking write a check   we know the date is February 5th and we know that  this is check number four that we're writing and   the money is coming from the bank account to  the petty cash fund and we know that the amount is five hundred dollars now you could  leave the payee blank or you could   add a new payee called other and just call it cash so that you have a record of checks made out  to cash but now that the establishment check   to establish the fund looks the way we  need it to look we click save and close   and the trial balance has the numbers  that we expected cash in Bank nineteen   thousand seven hundred seventy and petty  cash or cash on hand five hundred dollars now let's try spending from the petty cash  fund let's imagine on February 6th we paid   eighty dollars to Verizon for a prepaid phone  card and got receipt number one two three four   okay well what would change well if we're  spending from petty cash eighty dollars   then the petty cash will decrease by  eighty dollars and 500 becomes 420.   but we spent it to telephone for a prepaid card  so telephone expense increases by eighty dollars   and becomes two thousand six hundred eighty  from the main menu we click banking write a   check now be careful this money is coming from  the petty cash fund click OK for the pop-up   and the date is February 6. is that correct yes  now we're paying Verizon oh remember when we use   the right of checks window for a vendor that has  a previously open Bill we have to make sure we're   not paying one of the previous bills which we are  not so we click continue writing the check now   the money amount that we're spending from cash  is eighty dollars make sure it goes on the top   and the bottom of the window and the receipt  number I believe was one two three four five   so instead of a check number if it's cash you  put the physical receipt number take a picture   of the receipt and save it as your proof  and put the hard copy of the receipt with   the physical cache in the lock box or the wallet  or wherever it belongs then when you click save   and close you can see from the trial balance  the numbers are exactly as what we expected   cash petty cash is down to 420 and telephone  expense is two thousand six hundred eighty   now let's try another transaction let's imagine  on February 7 we paid Staples a hundred twenty   dollars cash for equipment and they gave  us receipt number eight four seven two   well if we spend another hundred twenty dollars  in petty cash that means petty cash decreases   by a hundred and twenty dollars and becomes  three hundred dollars and because we purchased   equipment with it equipment goes up by a hundred  and twenty dollars and becomes one thousand two   hundred fifteen dollars and these are the numbers  after spending our second petty cash transaction   and now finally let's replenish the petty  cash fund and bring it back to what it was   so let's imagine on February 8th we withdrew  from the ATM to replenish the petty cash fund   so how much do we need to replenish it  if it's 300 now that's right we need to   withdraw two hundred dollars from the ATM  and if we do that and we put it in petty   cash petty cash will increase to 500 but  remember the 200 came out of the cash and   bank so cash and bank will decrease by 200 and  become nineteen thousand five hundred seventy   so we click banking write a check and you  would put the number you know whatever ATM   slip number whatever that number was that's  what you would put but remember in this case   the money is coming from the click okay coming  from the bank account and it's going to the   petty cash fund on February 8 for 200 and some  people like to keep their records straight by   making the check out to cash and recording  the payee so when we click save and close   our trial balance should look exactly as what we  expected cash and bank is nineteen thousand five   hundred seventy and petty cash went up to five  hundred dollars now let's finish part three with   an accounts payable exercise to practice  everything we've learned in this section this is what your trial balance should  look like before you begin the exercise   make sure each number you see on the screen  is the same as each number in your trial   balance in your QuickBooks file if  not you have to use the techniques   and the methods that we learned to  correct your numbers before you start   this is what your vendor balance detail  should look like before you begin the exercise this is what your unpaid bills detail should look  like before you begin the exercise make sure that   you not only have the right balances but the right  individual Bill remaining amounts to uh to be paid   and of course this is a list of every transaction  that we have ever had with any vendor since the   beginning of this section if it all checks out  then you can start recording the transactions   here are the transactions for this exercise you  can pause the video at this point to read each   line of the transaction set and slowly  and carefully record each transaction   if you forgot how to enter a particular  transaction you need to go back to the   video Lesson where we learned that transaction and  review it then you should remember how to put in   each of these transactions as part of the exercise  go slowly and carefully think about each one   and when you finish this is what your  trial balance should look like after   you record each of the transactions in the  exercise set and again if it doesn't match   you have to go through everything one by  one pay careful attention to the vendor   balance detail after the exercise as well  as the unpaid bills because there are some   important things about the remaining unpaid  bills that I will ask you as part of a logical   set of questions to make sure you understood  everything in the context of this exercise now I'm going to ask you some common sense  questions to see if you can figure out what   mistake you might have made first question what  if your cash and bank account is too high and   you're at cash on hand petty cash is too low  you can pause this video and listen to the   theme of Jeopardy while you think about the  answer now I'm going to give you the answer   you chose the wrong bank account when you  wrote a check or paid an expense or Bill   that happens all the time QuickBooks tries  to remember the previous bank account for   each transaction window but it's not always  the same and you have to check it carefully   of course the opposite is also true if your cash  and Bank was too low and your cash on hand petty   cash was too high that means you recorded a petty  cash expenditure from the cash and bank account   and that's a mistake that you would have to go  and fix using the techniques that we learned what about this what if each vendor's total  balance is correct but the individual Bill   balances are wrong think about that for  a second what would cause that condition   you can pause the video to think about it  but here's the answer it means you applied   a bill payment to the wrong bill you got  the right vendor and you got the right   money amount that's why the vendor's balance  is correct but you applied it to the wrong bill   use what you learned in the previous  videos to find and fix your mistakes   keep fixing until your numbers are the same  as mine now that you've finished the accounts   payable and expense section of the course  I'd just like to remind you that you can   get free QuickBooks help from me by leaving your  questions in the comments section below and I'll   do my best to help you and if you wish to  support the channel that will continue to   give free QuickBooks help to everyone then I hope  you will click like and don't forget to subscribe   welcome to the last section of this big QuickBooks  tutorial dealing with banking deposits and   undeposited funds and the first chapter in part  four is chapter 25 recording basic deposits   now you may well ask what is a basic  deposit well it's when the payment we   receive from the customer for a service  goes directly into the bank account   and we do not need to track the quantity of  the service item that we gave the customer   and we do not need the deposit to affect the  customer's records or the customer detail reports   for example let's imagine on February 20 we  received 2 000 in cash from Candy for an editing   service and imagine it was directly deposited  into the bank account with confirmation number   09876 well if we record this then what should be  the result in the trial balance well we have 2 000   more in the bank account so cash and Bank should  increase to sixteen thousand seven hundred seventy   and the reason we have more money is because  we did an editing service and earned 2 000 more   in editing income so after we record this basic  deposit editing income increases by two thousand   and becomes seventeen thousand nine hundred  sixty from the main menu we click banking   make deposit now this is the make deposit window  and it's very simple but the purpose of learning   basic deposits is to get accustomed to how this  window works first you choose the specific bank   account that you deposited the money into then of  course you put the date of the physical deposit   now even though you are going to  put the name of the customer here   this transaction will still not show up in Candy's  records see look it's warning you it's saying look   this customer has outstanding invoices if you  want to apply this payment to those invoices   you do what we learned in Prior videos and we  use the receive payment window but right now   we're just learning an example of a basic deposit  that would not affect the customer's records if we   had a simple company that did not need to keep  customer records so we just click OK and we put   in the income account that represents what we  earned for this particular two thousand dollars   so if we had a company that didn't have to  track items and didn't have to keep customers   balances this would be the most simple way to  record getting paid from the customer this way   when we click save and close we can open the trial  balance and you can see the results are exactly as   what you expected cash and Bank decreased  to sixteen thousand seven hundred seventy   and editing income increased to seventeen  thousand nine hundred sixty now here's a   question where will this deposit transaction not  show up it won't show up on any customer report   it won't show up in the customer center and it  won't show up on any sales reports because there   was no item Associated so let me show you if you  double click cash in bank and go to the bottom   you can see that this deposit was the last  transaction that increased cash in Bank same   thing with the editing income you can double  click the account in the chart of accounts   and see the transaction deposit that we just  recorded increasing the balance of the account   but watch if you click customer balance detail  it's nowhere to be found in Candy's records   if you click transaction list by customer it's  nowhere to be found in Candy's records and if you   open the customer center and choose candy and you  look at the transactions all of them for all time   you will see every receipt payment or invoice but  you will not see the deposit because it's a basic   deposit meant for simple companies example two  on February 21 we received 3 000 cash from Alan   for a video service it was directly deposited into  the bank account with confirmation number 543210 now what will be the result in the trial  balance if we have three thousand more in   cash because we earn three thousand more in video  income well cash increases by three thousand to   become nineteen thousand seven hundred seventy  and video income increases by 3 000 to become   thirty four thousand eight hundred well it's  very simple banking make deposit the date   February 21 this is the bank account the money  went into and of course you should probably put   the confirmation number in the memo  field but anyway make sure you choose   the customer even though it won't show up  in the customer's records so let's choose   Allen and again we get a message that if we  have open invoices for this customer the only   way to apply this payment to an open invoice  is to do it the right way that we learned   before and use the receive payment window  but right now we're just learning the basic   way so we know what we're doing we click  OK we did earn video income and the amount three thousand dollars now when we click save  and close the results and the trial balance are   exactly as what we expected cash and bank  went up to nineteen Thousand Seven seventy   and video and income went up to thirty four  thousand eight hundred and none of the customer   reports for Alan will show this transaction  because we recorded it in the most basic way   however what would be a better way or actually  what type of company think about it what type   of company would record deposits this way  well there are many small businesses that   don't need to keep customer records and  they have very simple bookkeeping needs   so if the company did not need to  track customers balances or apply   payments to invoices they could just record  deposits this way and they would be fine   and also if you don't need to know how many hours  of video or editing you did you could also get   away with recording deposits this very simple  way in the deposits window but what would be a   better way of recording these deposits of course  you would use a sale receipt like we learned   we learned that you can record a sale receipt  that is directly deposited into the bank and   it will also show up in the customer records if  you use a sale receipt instead it also obviously   gives you the ability to track the quantity of  items but what we just did in this video Even   though our company has a more complex situation  and needs customer balances and needs to track   items I still wanted to show you this way because  it's perfect for learning how the deposit window   works because the three following videos will be  more complex deposit situations and it's better   to learn how the deposit window Works before we  go chapter 26 recording deposits with cash back   what circumstance would cause you to take cash  back from depositing a customer's money well   we're talking about a situation where we first  collect the cash from the customer for a service   then before we record collecting the cash we spend  some of the cash on business related expenses the   way to handle this is record receiving the cash  and the expenses at the moment we make the deposit   and usually this method would apply to a situation  where all the transactions happen on the same day   for example let's imagine on February 22nd we  collected nine hundred dollars for three Video   hours for Betty now on the way to the bank we paid  a hundred dollars out of the 900 that we got from   Betty we paid a hundred to Staples specifically  for supplies then we walked up the street and   stopped off at the UPS store and paid 200 out of  the 900 for a delivery and when we finally got   to the bank we deposited the remaining 600 and  got a deposit slip with the slip number 616161   so before we look at how to record this let's  just think about what the results should be   in your trial balance if these were the four  transactions that you wish to record all at once   we originally earned 900 more in video income  that's what started the set of transactions from   the beginning so even though the net deposit that  went into the bank account was only 600 we still   have to indicate that we earned 900 that was  originally put in our hand so video income will   increase by 900 and become thirty five thousand  seven hundred now we also bought a hundred dollars   more of supplies so after we got the 900 from  video income we spent a hundred dollars more in   supplies so supplies should increase by a hundred  and become one thousand three hundred thirty   then what happened was we paid two  hundred dollars more for delivery   so that means our delivery expense then increased  by 200 and became four thousand six hundred ten   and then the remaining 600 that we did  not spend on expenses got deposited   into the bank account which means the bank  account increased by 600 and became 20 370.   and these are the four numbers that will change  and these are the results that should be in your   uh trial balance when we finish recording  the deposit with cash back so from the main   menu we click banking make deposit now the  date was February 20 excuse me February 23rd actually February 22nd and originally  we received from Candy up you see again   just like in the prior video we have a warning  telling us that we have open invoices for candy   and if we want to apply this payment to those  invoices we use a different window but this is   a different uh situation example situation so  we click OK and we say we earned video income   so we put video income the amount that we actually  earned we click over here in the amount field   type 900 push tab because that's what we earned  now deducted from what we earned was supplies   so from Staples we bought supplies and we bought a  hundred dollars worth of supplies but you have to   put a minus in front of the hundred dollars  and then push the Tab Key now notice what   happens if you put minus on one of the lines  of the deposit QuickBooks will subtract it'll   put the positive and negative numbers together  and the subtotal down here is the amount that   you're physically depositing you also gave money  to UPS for delivery and that was 200 put a minus   because you deducted that 200 from the deposit  so now you're finished you earned 900 but you   deducted from that a hundred that you spent on  supplies and 200 that you spent on delivery and   it's this 600 final amount that will increase  the cash in bank and this is the way to do it   when you earned money that you're ready to  deposit but deducted and paid expenses from   that cash you can record them all in one shot  so we click save and close and we take a look   at the trial balance and the numbers are exactly  as what we expected video income increased to   thirty five thousand seven hundred the supplies  increased to one thousand three hundred thirty the   delivery expense increased to four thousand six  hundred ten and cash in Bank increased to 20 370. and to really dig further in this you can open up  each of the four accounts and see how it looks if   I double click cash in Bank and I go to the  very bottom I see the last transaction was   a deposit of 600 but if I double click I can see  the whole deposit when it comes up same thing with   any of the other accounts I go to supplies and  I double click I see the deposit that increase   supplies for a hundred and when I double click I  get the whole picture about that deposit and so on   chapter 27 one of the most important features  in QuickBooks desktop is learning how to use and   manage the undeposited funds account we all know  that sometimes we get paid by check and of course   there's usually a big time difference between the  day we get paid by the check and the day that we   physically deposit the money into the bank now up  until now we have been recording transactions that   get directly deposited into the bank but if we get  it paid by check on one day and we don't deposit   the money for two weeks what do we reflect in our  accounting records during those two weeks remember   our records have to show the fact that the  customer does not owe the money during those two   weeks during those two weeks our records should  reflect the fact that we physically have the money   but we can't record it in the way that we  recorded it in earlier videos because the   money was not put directly into the bank so what  do we do well what happens when we get money   if we get money for from a customer who  previously owed us money both accounts   receivable in the chart of accounts and  that particular customer's balance goes down   and in previous videos we recorded the money  into cash and bank because that's what happened   in that example but if the money did not go into  cash and bank at the moment we physically were   handed a check which account do we record the  money going into well that's the reason why we   have this special account called undeposited  funds undeposited funds is an account in the   chart of accounts that allows us to keep track  of each check bit of collected cash and credit   card swipes that we received from customers but  have not yet been deposited into the bank account   anything currently undeposited can be seen  in the payments section of the deposit window   so let's quickly review receiving money and  will distinguish between money that goes into   the bank account and money that gets held in  undeposited funds let's imagine on February   23rd we did 10 editing hours for candy she  gave us check number 1717 and we did not yet   deposit the check we will later in the week  so if that's the transaction what will happen   when we receive money that we intend to deposit  later well the editing income must increase   because we did earn editing income and since  we're holding the money to deposit later and did   not deposit it into the bank account that means  that the account that will show up for the first   time in the trial balance that represents the  money we are holding is called undeposited funds   so what will be the result in the trial balance  after recording this sale receipt into undeposited   funds well we did earn 1400 more in editing  income so editing income will increase by 1400   and become nineteen thousand three hundred sixty  and because the money is not in the bank account   because the money is in our hand undeposited  funds will show up for the first time in the   trial balance for fourteen hundred dollars so  let's take a look at how to record it we open the   sale receipt window and we go forward to February  23rd we make sure we choose the correct customer and we make sure we put the right item editing 10. now we have to make sure that  we put in the correct check number but the most important part of this transaction  is choosing the right place to record where the   money went to in this case it did not go into  cash and Bank it went into undeposited funds   now that everything is correct when we click  save and close we can open the trial balance   and you can see the results are exactly as what  we expected editing income increased to nineteen   thousand three hundred sixty an undeposited funds  increased actually showed up for the first time   as one thousand four hundred dollars and now let's  try a second example let's remember how to record   receiving payments for past invoices let's imagine  on February 24th we received a thousand dollars   cash from Betty for a payment of the oldest  invoice so what will happen when we receive   this money well we know that undeposited funds  will go up because we're holding the money to   deposit later and that will increase by a thousand  and accounts receivable this time is the account   that goes down because if a customer is paying if  your bank account or you're undeposited went up   because someone was paying off a past invoice that  means their customers balance decrease because   they paid you what they owe you and that means the  account that will decrease is accounts receivable   so what will be the result in the trial  balance after recording this transaction   well the customer owes us a thousand dollars  less as a result of paying us now so accounts   receivable will decrease by a thousand and  become twenty three thousand four hundred forty   but because we have a thousand dollars more that  we're holding and waiting to deposit in the future   undeposited funds increases by a thousand  and becomes two thousand four hundred   so we click payment and we  advance the date to the 24th the customer is Betty the amount we got was  a thousand dollars and notice QuickBooks   automatically apply the thousand dollars  to the oldest one so we're almost finished   we have to make sure that this money that we  intend on holding for several days before we   make a separate deposit transaction we have  to make sure this money gets recorded into   undeposited funds and now when we hit enter and  close the window you can open the trial balance   and you can see the numbers are exactly as what we  expected accounts receivable decreased to twenty   three thousand four hundred forty and undeposited  funds increased to two thousand four hundred   now let's practice entering  these two without my help   see if you can remember how to record  payments and receipts and the only difference   is now you have to make sure that each of these  transactions get recorded into undeposited funds   you can pause the video at this point and  go ahead and record these two transactions   but if you recorded them correctly then the  results in your trial balance should be right here   you should have ten thousand four hundred dollars  in undeposited funds twenty one thousand four   hundred forty in accounts receivable and these  should be the numbers for video income and   editing income respectively and now that we've  mastered recording money into undeposited funds   now let's talk about what happens when we finally  deposit the money when we go to deposit the money   we must use the special payments window which is  a subsection of the deposit window when we first   opened the deposit window we won't see anything  but if you click this little button here that says   payments you will see a special sub window will  open up and that window is called the payments   to deposit window and it will list every single  item in undeposited funds this is a special window   that places items after you make a transaction  only if you chose the undeposited funds account   and at any given moment the balance of undeposited  funds that is to say at any given moment will   equal the total of the items that are sitting and  waiting to be deposited from undeposited funds   so now let's deposit two items from  undeposited funds and see what happens   let's imagine on February 27 we deposited check  number 1717 from candy that we got on the 23rd   and February 24th cash of a thousand dollars  that we got from Betty so that'll be a total of   twenty four hundred dollars leaving undeposited  funds and being deposited into the bank account   so what happens when we deposit from undeposited  funds well obviously undeposited funds will   decrease by the money amount of the items we  deposit because the money is now in the bank   and the bank account of course will increase  for the same reason the money is now in the bank   let's take a look at what the results  should be when we finish making the   deposit what will be the result in the trial  balance after recording this first deposit   well we first deposited the 2400 into the bank  so cash and Bank should increase by twenty four   hundred and become 22 700. and undeposited  funds just gave up twenty four hundred so   undeposited funds should decrease to 8 000.  let's take a look at how to record this deposit   watch what happens when we click banking make  deposit aha notice both windows opened up now   that there are payments to deposit and undeposited  funds as soon as the deposit window opens up the   payment window opens up too now don't worry if you  accidentally close the payments window because you   can always reopen it by clicking the payments  button in the main deposit window but you don't   have to because if there are payments available it  means as soon as you open the deposit window the   payments window will open as well now the specific  items that we are depositing is this fourteen   hundred dollars here and this two thousand dollars  here oh excuse me this uh one thousand dollars   here actually these are the two specific items  that were listed in the transaction and notice   when you click on one of them the payment subtotal  changes Click on each item that was deposited all   on that same day from that one deposit then click  OK and you will see the two items are listed right   here in the deposit window for the total of two  thousand four hundred then we click save and close   and you can see in the trial balance the results  are exactly as what we expected cash and bank is   twenty two thousand seven hundred and undeposited  funds decreased to eight thousand dollars if we look a little closer we can double click  on deposited funds to determine why does it say 8   000 and we double click and we can see that the  remaining balance of eight thousand is a result of   having this item deposited but uh these items has  not yet been deposited when you double click that   account and it's more clear if you do this banking  make deposit you can see that these two items that   are left in the payments to deposit window total  eight thousand dollars and that explains why the   balance of undeposited funds is eight thousand and  again if you open it up you'll be able to see that   these were put into undeposited funds individually  but this one big deposit of 2400 lowered the   balance to eight thousand and you could always  double click come right back to the deposit   window to see exactly what happened and now let's  finish up by depositing the rest of the money   let's imagine on February 28th we deposited the  remaining items from undeposited funds well if   there's nothing left in undeposited funds  that should become zero but if all eight   thousand dollars that remained went into the bank  account then the bank account should increase by   eight thousand and become thirty thousand seven  hundred seventy we click banking make deposit   and of course we put a check mark on each  item that we're depositing in the pay from   the payments window where the subtotal is eight  thousand click OK at the bottom and confirm the   actual date that we brought the money to the  bank when we click save and close the trial   balance shows nothing in undeposited funds  and thirty thousand seven seventy in the bank   and when you open up undeposited funds again  the individual items were received as payments   or sales receipts but the summary amounts are the  ones that get recorded as coming out as one big   fat deposit and that's how the undeposited  funds feature Works in QuickBooks desktop   chapter 28 our last learning chapter in  this big video tutorial all about using   the audit Trail to have total control over  everything in your QuickBooks desktop file   now you may well ask what is the audit Trail well  it's the most powerful report in all of QuickBooks   it shows everything that happened to any  transaction from the moment the file was created   it shows when who and how every transaction was  ever recorded or changed in the file since the   file was created now let's go ahead and put it up  in the icon bar and then we'll talk more about it   from the main menu we click reports accountant  and taxes and go down to audit Trail   now you may well notice that these this pull down  date uh caption here does not say date regarding   date of transaction it says date entered or last  modified and as a general rule in the class we   click the pull down and we click all we want  this to show the results of all transactions   regardless of date and the fact that this says  date entered last modified rather than the date   of the transaction it makes the audit Trail  different from any other report in QuickBooks   now that it's in front of us we click View and  then we click add audit trail to the icon bar   click OK and you might not see it but you can  click the pull down here and boom there it is   and it remembers we wanted all now you may  also ask how does the audit Trail work well   it lists every transaction by transaction type  now that means that for example all checks get   listed together all deposits get listed with other  deposits and invoices are listed with invoices   Etc so the transaction types are in the categories  and the categories themselves are displayed in   alphabetical order for example B is the first  letter of the alphabet that represents the name   of one of the transaction type bills so bills  are displayed first C comes after B so all of the   checks in the file are listed in the audit Trail  after all the bills D comes after C so all of   the deposits are listed in the audit Trail after  all the checks and I comes after d so all of the   invoices ever recorded in the file will be listed  together after all of the deposits and so on but   within each transaction type transactions can be  listed by the date of the transaction or the date   the transaction was entered and that's what makes  the audit Trail such a powerful forensic tool   so let's find something in the audit trail  that we changed and see what it looks like   remember the invoice from January 3rd it was  invoice number three it was to candy and early in   the course we opened it up changed it to millions  of dollars and then changed it back let's see what   that would look like in the audit Trail you can  find it in the icon bar if you ran out of room   click the double arrow and here it is it remembers  we like all now we're in the bill section B for   Bill scroll down slowly until ah now we're in  this section for letter C for checks scroll down   a little more now we're in the deposit section of  the audit Trail where all the deposits are listed   and now we're in the invoice section now notice  invoice number one is one line because it was   never changed invoice number two is one line  in the audit Trail because it was never changed   but invoice number three oh boy has several lines  come down to the bottom of the section of invoice   number three you see first I did it was December  24th it was Christmas Eve I was sitting here at   11 o'clock entering transactions and I screwed  up and put the date February 3rd but I put the   right money amount so literally 20 seconds later  I reopened this and change the date to January   3rd from February 3rd so it lists the first time  I recorded it and it lists the first change then   what happened was a little while after that maybe  a couple of hours two or three hours after that   I reopened the same transaction and changed the  money amount from 3300 to 3 million 333 300 and   that was the change from here to there then of  course you can see literally two minutes later I   reopened this very same transaction and change the  money amount back to three thousand three hundred   so all the details of any one transaction  and all of its changes are listed right here one of the most helpful things about the  audit Trail is that it's best for fixing   the most difficult type of mistake to find a  date mistake and that's because date mistakes   are always misleading when you search  for them because you don't know that   the mistake is a mistake on the  date let me show you what I mean   if this is a typical QuickBooks report you  see that the report lists the detail of the   transactions in date order specifically the date  that you recorded as the date of the transaction   so if you accidentally put the wrong month what's  going to happen is you're going to be looking up   in the section of the month that you thought you  recorded it in when in fact the transaction you're   looking for is in a completely different place  because you don't realize you put the wrong month   so a report that lists the transactions in date  order would make it almost impossible for you   to find that specific type of mistake but you see  the audit Trail can be sorted by date entered not   just the date of the transaction itself of course  date entered within a category of transactions   so that means if you can remember approximately  When you entered the transaction you can find it   in the audit Trail and fix it for example  let's find all the transactions that are   dated between January 1 and January 15th and  also those same transactions were physically   entered between January 1 and January 15th  it would have to fit both criteria in order   to show up on the audit Trail after we asked for  this so we open our good friend the audit Trail   now notice you only have in the display bar  entered last modified what you have to do is Click   customize report and you get the modify report  window now within the four tabs click display   notice the audit Trail allows you a date range  of the date of the transaction and it's the only   report in QuickBooks that allows you to enter a  date range based on the date it was either entered   or last modified so all we have to do is set both  and it will filter out everything except for what   fits the criteria of both so we want regarding  the date of the transaction between January 1   and January 15th and regarding date entered and  modified the same date range and of course we   almost never enter transactions on the day that  they happen so if it fits both of these criteria   we'll see what happens click OK turns out when  your teacher Was preparing this course the only   two transactions that were both physically endured  actually it's only one it's Bill number 8181 it's   showing that it was physically entered on the  9th and then what happened was about a minute   and a half later I corrected the date you see that  but this is the only one transaction that's both   dated as a transaction between those two dates as  well as entered or modified within those two dates   so by knowing both of them but within the date  range so by knowing both of them you can really   find mistakes where you put the wrong date on  a transaction if you're really Advanced you   can use it in conjunction with the fine window to  find everything that ever happened to anything as   long as you know something about the transaction  you're looking for you can find it in the find   window first and that'll help you identify it in  the audit Trail and then you can see everything   about it let's use that for our second example  let's imagine that you already heard through the   grapevine that's somewhere in the file there was  an invoice in the amount of 3300 that somebody   opened up made several changes to and then changed  back to the original amounts and you want to know   who did it when it was changed and what it  was changed to before it was changed back   well what do you have to do first you have to  use the find window to find the transaction   that fits that description then use the audit  Trail to find it by transaction type and date   and then once you identify it in the audit Trail  you can see everything else about that transaction   so let's use the original transaction we were  working with as our example if we click edit find   we want to find an invoice because that's  the transaction type exactly in the amount   of three thousand three hundred dollars and if  we click find so there's only one that fits that   description if there were several we would have to  know a little more about it to narrow our search   but we can see that that's invoice number three  dated January 3rd now January 3rd is the date of   the transaction we need to find the date entered  and everything else so we open the audit Trail   and we know that we want to customize the report  since we don't know what date it was entered we   leave this as all but we do know the date that  the transaction was recorded with it was recorded   with January 3rd so we want to see everything in  January 3rd in the section of invoices that we   will scroll to and then we'll find out what date  it was entered click ok and actually this was the   only transaction entered on January 3rd in a real  situation you might have more but at least if you   scroll to the invoice section for the invoices  that were created for that date you can see here's   the one in the amount of 3300 so this is the one  you're looking at and you can see every change   to that transaction since it was entered and now  finally chapter 29 the final practice exercise set   this is what the trial balance should look  like before you start the final transaction set   you have to go through your numbers and make  sure that you're starting with the same numbers   because the only way to finish with the same  numbers is to begin with the same numbers   now here's the customer balance detail before the  exercise make sure that the total balance of each   customer is equal to the total balance of each  of your customers in your file before you start   the exercise take great care in going through  the open invoice report for each open balance   one by one remember it's not enough to start  off with the same total balance of the customer   you have to start off with each individual  open invoice balance being the same in order   to successfully complete the exercise this is  what the vendor balance detail should look like   before you start the exercise and of course  you could pause the video and go through it   one by one to make sure that it matches before  you start putting in any of the transactions   and if you go through the unpaid bills report  you have to make sure that the open balance   one by one of each bill that's listed here is  the same as the open balance on your report in   your file before you start the final exercise  here's the first half of the transaction set   I'll only give nine at a time and there are a  total of 18. you can pause the video in this   position to slowly and carefully record each  of the different transactions one by one if you   forget how to record a particular transaction  go back to the video Chapter where you learned   about that transaction and review how to record  it then come forward and try entering it here 's the second half of the transaction list  and again you could pause the video at this   point record them slowly and then after  you finish recording all 18 transactions   this is what your trial balance should look  like when you finish the entire practice set   remember if you have any different numbers you  have to go back and do the techniques that we   learned to find and fix mistakes so that when you  finish your trial balance looks exactly like mine   this is what the customer balance detail should  look like after the exercise and you can compare   the total balance of each customer to each of  the customers in your file to make sure they   have the same ending balance and of course if you  go through the open invoice report again make sure   you applied invoice payments properly by comparing  each invoices open balance to the open balance in   the invoices in your file this is what the vendor  balance detail should look like after the exercise   quite a lot of transactions you can pause and  go through it one by one but if you compare the   unpaid bills report after the exercise you have to  make sure that each open balance and unpaid bills   that you see here on the screen matches each  open balance in your unpaid bills in your file   thank you so much for watching the entire  QuickBooks online tutorial and don't forget   if you need any other topic in QuickBooks or  want to learn anything else that relates to   QuickBooks you can go to the channel page where  I have a QuickBooks course or a QuickBooks video   for every possible QuickBooks topic there  is thank you again and please stay in touch

Channel: thequickbooksdude

Views: 225,999

Keywords: QuickBooks desktop Complete course, QuickBooks desktop complete training, QuickBooks desktop full tutorial, learn QuickBooks free, free QuickBooks help, QuickBooks desktop complete course, QuickBooks beginner training, QuickBooks desktop start-up course, QuickBooks desktop help, introduction to QuickBooks desktop, 2023, QuickBooks desktop tutorial, QuickBooks desktop basics, QuickBooks basics, QuickBooks desktop 2023, complete tutorial, QuickBooks classes, what’s new 2023

Id: Q1RIVNuDKpU

Length: 237min 13sec (14233 seconds)

Published: Wed Sep 14 2022