-AR Customer Prepayment Deposit P.O., Bill, Invoice, & Receive Payment 1140 QuickBooks Online 2024
Channel: Accounting Instruction, Help, & How To
Date: 2023-12-03

-AR Customer Prepayment Deposit P.O., Bill, Invoice, & Receive Payment
QuickBooks Online 2024
Welcome to our QuickBooks Desktop 2024 tutorial! In this video, we'll dive deep into various aspects of QuickBooks Desktop 2024, including accounts receivable, customer prepayments, deposits, purchase orders, bills, invoices, and receiving payments. We'll also explore a new feature related to unearned revenue. Get ready for some in-depth QuickBooks Desktop knowledge, and don't forget to grab a cup of coffee ☕ because we have a lot to cover!

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In this video, we're using the Enterprise version of QuickBooks Desktop 2024. We'll focus on a specific feature related to unearned revenue and how it impacts your financial reports. Our primary goal is to provide you with a comprehensive understanding of these processes and how they affect your accounting.

Here's a quick recap of what we covered in this video:

📅 Month 1 - January:

We began with the normal sales process, starting with estimates, sales orders, invoices, and receiving payments.
However, we encountered a scenario where we needed to receive a deposit from the customer before starting the work, such as a custom order for a psychedelic surfboard.
To handle this situation, we used a workaround, creating a sales order, and then a sales receipt. This resulted in a negative receivable, not ideal for financial reporting but straightforward to track on the subledger.
📅 Month 2 - February:

We received the inventory we needed for the custom order, in our case, the psychedelic surfboard, by creating a purchase order.
Next, we received a bill from our vendor for the inventory, which we entered into QuickBooks.
The bill impacted accounts payable and increased our inventory on the balance sheet.
We discussed the complexity of maintaining subledgers for accounts payable and inventory to ensure accurate tracking and reporting.
📅 Month 3 - March (Current Month):

We invoiced the customer for the completed work, which included the custom surfboard and any applicable sales tax.
The invoice increased accounts receivable and recorded sales income.
The sales tax collected created a liability account for sales tax payable.
Finally, we recorded the cost of goods sold and reduced the inventory account by the cost of the surfboard.
At this point, we have a clear financial picture of our transactions, and our accounts receivable no longer show a negative balance. Our subledgers are up to date, and our financial reports accurately reflect the state of our business.

We hope this tutorial has been valuable in helping you navigate QuickBooks Desktop 2024 and understand how to handle customer prepayments, deposits, purchase orders, bills, invoices, and receiving payments effectively. If you found this video helpful, please like, share, and subscribe to our channel for more accounting and QuickBooks tutorials.

If you have any questions or need further assistance, feel free to leave a comment below. Thanks for joining us, and we'll see you in the next video! 📊💼🖥️