Quickbooks Desktop Accounts Receivable Tutorial 2021 - Understanding AR in Quickbooks Desktop

QBUniversity.org - In this Quickbooks Desktop accounts receivable tutorial 2021, understanding AR in Quickbooks Desktop, I demystify the accounts receivable process step-by-step.
I walk through not only what accounts receivable is, but how the process works in Quickbooks Desktop. From creating an invoice, to receiving payment, to making your bank deposit, I show you all the steps necessary to make sure you record accounts receivable right so that your financial statements are correct.
I also reveal how to understand Undeposited Funds and how to turn it off as your default deposit account.
If this video is helpful, please Like and SUBSCRIBE? When you are ready to learn all there is about Quickbooks, head over to The Quickbooks University at QBUniversity.org

[@QbuniversityOrg]

QBUniversity.org - feel free to SUBSCRIBE and leave a comment or question here!

[@cynthiahoover9746]

Good Morning I am in a pickle and need to understand why my Accounts Receivable are also showing as income on my P&L Report. I'd rather it be in that specific income category account once the payment is made Any suggestions or Guidance will be greatly appreciated.

[@QbuniversityOrg]

@@cynthiahoover9746 sounds like you were looking at the report on an accrual basis. Click the button to make it cash basis and that will change it.

[@cynthiahoover9746]

In Review When I added the invoice instead of assigning the account to undeposited Funds I assigned that invoice to a income account. Therefore I was under the impression that once the payment is made it would zero the invoice flow to income to that account and deposit the funds to the bank account. Should I have assigned that payment to bank account only?

[@cynthiahoover9746]

@@QbuniversityOrg Wow that was so Simple and corrected my issue !!!!!!! Thank you you made my day!!!!

[@QbuniversityOrg]

@@cynthiahoover9746 you’re welcome!

[@majorsnaps5277]

I like the automation from undiposited to direct bank account

[@QbuniversityOrg]

Yep

[@Ken-xe9hq]

So glad I found your channel, just starting to learn QB and this is a great help!

[@QbuniversityOrg]

Awesome! Be sure to subscribe!

[@EGG_MusicMadness]

I haven't used quickbooks since 2017 great refresher

[@QbuniversityOrg]

Awesome!

[@pennyfritz6367]

Yes in your videos thru Quickbooks University you did a video on how to input sales from another accounting program and I am just needing to know the best way to handle Accounts Receivable by using only the totals from another program.

[@QbuniversityOrg]

Yes! I emailed you about this Penny, did you get that? Probably easier to answer via email.

[@pennyfritz6367]

Yes I did get that email and I have watched the video several times but I am just needed to know the best way to input my numbers into accounts receivable from another program used for sales.@@QbuniversityOrg

[@pennyfritz6367]

In your video 6: 4 you talked about how to use the sales and sales receipt when you don't use the Quickbooks for sales. So I am just trying to figure out the best way to handle accounts receivable when I don't use Quickbooks for sales.

[@QbuniversityOrg]

@@pennyfritz6367 ok I thought I would answer you through email? Anyway best way would be to do a journal entry for the daily total. You debit AR to increase it and you credit your Sales. When it’s collected the deposit debits checking account and credits AR

[@pennyfritz6367]

So would you recommend just doing a journal entry for my daily totals all together? I do collect sales tax but most of our sales are non-taxable. We do have a break down in sales tax for any single item over 1600.00. I am just not sure which way would be best on handling my daily sales and their totals. @@QbuniversityOrg

[@yvonnegtz1100]

great job was wounding why i couldn't get funds in undeposited funs... thank you

[@QbuniversityOrg]

You’re welcome!

[@stacymachellmaria]

Thank you!

[@QbuniversityOrg]

You’re welcome!

[@harriettedawson7072]

Hi, I have a question. How do I get an A/R report for only one year ? e.g as at Dec 2022. I do not want the report to show all the 0.00 A/R balances for the previous years. I only need A/R for one specific year balances.

[@SpringsofZion2022]

Thank you 😊

[@QbuniversityOrg]

You’re welcome!

[@shafeeqsyed7394]

Yes its on receive payments

[@sarahw3311]

This was great information! I do need additional information. When I create an invoice, it immediately posts to "income" before I've received a payment. I am billing out companies for services and do not want to post the invoice as income until it is paid. In list > item list > I have set the "service" item to "income", and it does increase accounts receivable. I only want the invoice to post to AR (not income) until I receive the payment. Would you please tell me what I have done incorrectly with set up?

[@jamesbaxter2812]

You are talking about checks. If you have a check scanner. Is there a place for that. Will the bank take them that way

[@QbuniversityOrg]

Are you talking about remote deposit vs going to the bank?

[@sylviasanchez6030]

If I have $23k in my undeposited funds account and bank reconciliation is balanced to the bank and not to my Cash in BS, how do I clear the undeposited funds account?

[@sandivoneschen1947]

I was looking for: how to enter in receivables a payment that has taken out their commission.

[@pattygq]

Is there a way to block user access from seeing account receivables?

[@QbuniversityOrg]

You can set up users with limited access but it depends on what level of access you want them to have. Go to set up a user for them and see if you can restrict that only

[@livenrite2]

so whe i take a credit card payment I can have it go directly to checking acct rather then undeposited funds, correct?

[@QbuniversityOrg]

Yep

[@eleanoradams5737]

Making a deposit where i have to account for sales taxes. Where can i set quick books to calculate the amount automatically in bills it calculates, but not in receivables

[@QbuniversityOrg]

Not sure what you mean. Is this sales tax you charge customers?

[@eleanoradams5737]

No incoice. Sales tax applies to this income and is included in the amount. QuickBooks does not calculate the tax amount for me.@@QbuniversityOrg

[@vickiehegar2381]

How do I Set up repayments of advance from contract labor?

[@mauricecaya5611]

I'm using 2013 QuickBooks pro desktop, I'm a new user and need to create an accounts receivables "payment" report for all customers for the entire year. Could you guide me on this?

[@QbuniversityOrg]

I would think you could run a Statement showing all activity for the year for them

[@user-he3xp6gn1g]

Do Statements work the same as Invoices?

[@QbuniversityOrg]

Not really. Do you mean you create them the same way?

[@jonahmaylegista4658]

There is a negative balance on AR aging, when I quickzoom the amount it leads me to a JE of Dr. Cash Cr. A/R. with a note of forwarding funds. I am confused if JE made was correct or should do a Credit Memo instead of a JE.

[@QbuniversityOrg]

Who made the journal entry and any idea what “forwarding funds” means? If it is a legit payment or credit then you can go to Receive Payment and apply the credit to an outstanding invoice

[@jonahmaylegista4658]

@@QbuniversityOrg the journal entry was made by the previous accountant. The payment was being forwarded to a new item. Yes, the payment is legit. Do I still need to keep the journal entry?

[@pakeagles5591]

So far so good, nice and easy but what would be after this in bank reconciliation. Do we just need to match the transaction? Please complete the process. Suppose we do deposit in bank on the same date we receive money and we do daily bank reconciliation. Once again thanks.

[@QbuniversityOrg]

Yes from here after making the deposit you can just match it in the recon. If you make a deposit same day and reconcile that’s fine just make sure to also show the deposit in QuickBooks

[@pakeagles5591]

@@QbuniversityOrg Thanks alot, it was very helpful. keep guiding.

[@QbuniversityOrg]

@@pakeagles5591 you’re welcome!

[@muhammedshajikp.m.3139]

From customer we receiving a single cheque payment and I need to apply 2 separate accounts receivable account in customer payment screen. I apply one account and if I select another another account receivable of same customer, then old selection automatically cancelled 😞

[@QbuniversityOrg]

This is one check payment for 2 invoices for the same customer? Or different customers?

[@shafeeqsyed7394]

Can you please help me in making my invoice# in ascending or decending order when receving payments from customer with 100 or invoices its very hard locate them

[@QbuniversityOrg]

Is this on the receive payment screen?

[@pearleneclunis849]

How can I see my account receivables. Would that be in reports

[@QbuniversityOrg]

Yes in Reports under Customers and Sales

[@balaelectric7151]

I started with a company mid year and when I started none of the a/r was done so I had to add invoices and match the deposits way after the fact. I did it by putting the deposits into A/r and then using credits to pay off the invoices. Needless to say everything is out of whack. Should I delete all journal entries and go back and receive the payments then match them?

[@QbuniversityOrg]

The only issue with doing this is you will have to go back and rereconcile the bank account for all those months. It’s doable but it may be more work

[@balaelectric7151]

@@QbuniversityOrg Yes I did all the reconciling but the problem now is I have a negative amount in my A/R and I don't know how to fix it. The accountant said A/R and A/P should be 0 for cash based accounting and he needs it to do the taxes.

[@sabryomar3943]

Why are my account received appearing as exepense on my insight

[@QbuniversityOrg]

Is this money you received?

[@Sarah_marie8286]

Should I reconcile the AR account?

[@QbuniversityOrg]

Yes it makes sense to. You can’t formally reconcile it in QB like you can a checking account but it makes sense to review the AR Aging to make sure everything is in order

[@musacassataal3105]

? prepared invoice/ invoicing formular

[@QbuniversityOrg]

Not sure what this question is?