Episode 4 – Polymath Video Tutorial Series: Changes to QuickBooks Online – Sales Receipt

sales receiptThis episode of our QuickBooks Online Harmony tutorial series covers sales receipts.  How do you create a sales receipt in QuickBooks Online?  When do you create a sales receipt?  Why use a sales receipt instead of an invoice?

 

 

For more information about the difference between invoices and sales receipts, check out the Polymath blog on the topic.

Make sure to check out all the other great videos in the Polymath QuickBooks Tutorial Series:

Transcript:

Welcome, viewers, to this Polymath bookkeeping instructional video. I am Ingrid Edstrom of Polymath LLC and Ashland Bookkeeping Services. If you’re following along with the series, you just finished setting up QuickBooks Online with multiple users, and now you’re ready to make a sale. This is episode four of our series, and this video is going to walk you through how to create sales receipts within your QuickBooks Online. If you’re just joining us for the first time and you’re confused at all about the navigation through QuickBooks Online, please check out episode two of this series for a more general introduction and overview of Quickbooks Online.

[expand title=”Continue reading…”]When you collect money from your customers you want to enter that transaction using either an invoice or a sales receipt. Sales receipts, which we’re focusing on today, are used when money is received at the time of service to a customer. For example, if you’re the customer and you go into a flower shop to purchase flowers, you hand them money and they hand you a sales receipt. Services are not billed or paid later. Let’s take a look at how to get to the sales receipt page when to use it.

There are two ways to get to the sales receipt screen. The first is from the customer screen. Click on or select the customer that you would like to create a sales receipt for. On the right hand side of the screen use the create new drop-down menu to select sales receipt. The second way to create a sales receipt is by clicking the plus sign at the top of the screen and click on sales receipt under the customer’s heading. If you access the sales receipt page from an existing customer’s page within the customer tab, all of that customer’s billing information will be filled in automatically for you. However, if you access the sales receipt page from the create plus sign drop-down menu, then you need to choose that customer that you want to use from the choose a customer drop-down menu at the top of the screen.

Next you will enter the products or services that your customer is receiving for you. If you already have all of your products set up within your QuickBooks Online system, you can simply select the product or services that they purchased. if you do not have your products and services set up, you can type in a new product or services within the product service field and it will start to create that product or service within your list for you.

When developing your product list, something to keep in mind is that you do not want the list to get so long that it’s unmanageable. You want your products to be detailed enough that you know what was sold, but also general enough that you’re using the same product many times. If you find yourself adding new products every time you create a sales receipt, you may need to take a closer look at your product list. When you have your customer and all of their products enter, make sure that you select a payment method, and select where to deposit the money. If you deposit all of the money from a single sale by itself, you can record that deposit directly into the bank account within QuickBooks online, but this is not a common practice. It is much more likely that this payment will need to be grouped with other payments for a deposit, and in that situation you will deposit the payments into undeposited funds.

In episode seven of this series we will look at how the group and deposit transactions from the undeposited funds window into your bank account. If you scroll down on the sales receipt page you can add sales tax for any state that you have setup within your QuickBooks, apply discounts, and even enter a custom message to your customer. When everything looks right you can preview, print, save, or send an email of this receipt to your customer directly from within QuickBooks.

Now that you’re comfortable with creating sales receipts, tune into episode five for how to create an invoice. Businesses use invoices instead of sales receipts in situations where they are not paid at the time of services, but are instead billing their client for payment later. I am Ingrid Edstrom of Polymath LLC and Ashland Bookkeeping Services. Thanks for watching and stay tuned for more videos coming soon.[/expand]

 

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Comments 2

  1. I found you on the internet when I searched for “sales receipt” in quickbooks. And I saw your answer to the question. When I create a sales receipt the money sits in undeposited funds. What do I do if the money does not get deposited into a bank account? What type of account should I use to zero out undeposited funds?

    The other question I have is: what happens when a xx LLC Company in the USA receives income for services rendered to an international company which is incorporated and doing business in Latin America? and then the xxLLC Company in USA receives customers payments on behalf of this Latin American Company and then wires out the money back to them. What are your suggestions?

    I would appreciate your help.

    Thank you,

    1. Post
      Author

      Hey Zoey,
      Thanks for posting your great questions!
      When you receive the money from your client, what kind of account does it go to? Most of the time, our funds go into some sort of bank account, whether that be checking, savings, or paypal. If you are receiving cash that you are not depositing, it may be a good idea to set up a “Cash” account in your QuickBooks that is a “Bank Account” in your books, even if it is not hosted at a financial institution.
      You can also learn more about making deposits in our video on that topic: https://polymath.com/create-a-deposit/

      As for the international transactions, generally these just get recorded as normal income and expenses for buying and selling goods or services. (There may be some capital gains or losses that need to be tracked due to changes in exchange rate.) If your company is working as a pass-through for a foreign business, it would be a good idea to talk with your CPA to ensure that you have everything set up in a fully legal way that will also provide the best tax position.

      Thanks again for your great questions!
      -Ingrid

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