and now we will learn how to apply payments to vendors bills and deposits to customers invoices
using the bank feed center applying checks and payments to vendors bills well that's a breeze
applying the payment is the same as paying from the usual pay bills window the result can be seen
on the unpaid bills report for example let's apply the $75 check from May 25th 2017 to the
two oldest bills from FedEx well that should be very simple here we are in the review list now
here we are at the $75 check on May 25th this is the only $75 check we have for the date May 25th
so we're talking about this one now all we have to do is go to the right of the same row that
this check is on and click select bills to mark is paid now once we're in this window we simply
choose the vendor that has unpaid bills with us and when we click FedEx the three unpaid bills
for FedEx come up now QuickBooks remembers that this was a $75 payment that we're applying very
simple if it's to the two oldest ones all we have to do is click the check mark on the oldest one
and click and you see twenty-five dollars has been applied and fifty dollars is waiting to be
applied when we click the check mark here there's the other fifty dollars we applied the whole thing
now before I click Add to QuickBooks I want to mention something important you must apply all
of the payment you cannot generate a credit from the bank feeds window so if you can't apply the
entire $75 check then you would have to go to the Reg pay bills window to generate a credit
with that vendor let me show you what I mean if we uncheck this well we're applying a $75 payment
and we're only applying $25.00 now if I click Add to QuickBooks we're going to get an error message
the total amount does not match the downloaded transaction amount exclamation point if you want
to do it that way you have to use the regular pay bills window so let's place the check mark
here and apply the entire amount of the check to all or many of the unpaid bills for this vendor
when we click Add to QuickBooks now it lets us do that now of course I frown upon rule creation
QuickBooks is suggesting that we take anything that will happen to be in the description field
at this moment and make a rule that it goes to FedEx I don't want to do that let's just apply the
payment and move on so we click OK and now if we open the unpaid bills report we can see for FedEx
those two bills are gone and they're gone because they're not unpaid anymore we applied that check
now applying deposits to customers invoices is almost the exact same thing as what we just did
with vendors applying the payment is the same as paying from the usual receive payment window
and the result can be seen on the open invoice report and if you're advanced in QuickBooks you
can look at the invoice history and you can see it looks the same for example let's apply the
$60.00 received on May 8th to invoice number 2 from Joe and then we'll check the open invoice
report when we're done so here we are we go here to the bank feed Center and I think we said it was
May 8th all right so May 8th is down here now you'll see once we apply it it will disappear
from the review list so look closely that the one above is the 9th and the one below is the second
those will still be there and the May 8th will be will be gone after we apply it to the invoices
so on the same row as May 8th we click add more details and now you can see we have all the open
invoices from the customers and we want to apply it to the invoice for Jo for July 11th that was
invoice number 2 so we'll click the checkmark here now the problem is that when you click
the checkmark it assumes you're paying the whole amount you then have to come to this part of the
window and overtype it with only the amount you're applying in this case the most we can apply is the
amount of the deposit $60 so again click the check mark for which one it is and then come down here
to clarify the money amount by over typing in the amount field the amount you need push the tab key
to seal the deal and then when you click Add to QuickBooks you might get this message but don't
worry now I promise I'm going to circle back to this message which you don't even have to
worry about and I'm going to add three minutes to this video to explain this message but except for
this message we're done click the check mark here change the money amount down here and click OK ok
of course it always suggests a rule I don't want it to follow the rules so I'm going to shut that
now look when we come back here we still see May 9th we still seem a second but we don't see May
8th because that one was added to QuickBooks and I can check that by clicking here ok here where is
the May 8th if you come up to the section of May there's the May 8th deposit for $60 added from
the QuickBooks Center the bank feed Center and to check to be sure which invoice it was applied to I
can click open invoice and you can see instead of saying six hundred and sixty dollars here it for
the July 11th invoice number two it only says 600 that's because $60 that $60 deposit will applied I
could open up this invoice and I can click reports and I can click transaction history and you can
see that it was 660 and that we applied $60 or to the May the May 8th payment of $60 and that's
why it brought the balance down to 600 now folks the video is technically over and if you're able
to repeat my actions and apply the deposits to the invoices then you should just do it but some
students are going to want to know more about that message we got when we clicked you know to finally
save the transaction and apply the deposit well with customer deposits QuickBooks does two steps
in one first it records the deposit it records the payment from the customer into undeposited
funds then it immediately records a deposit from the undeposited funds into the bank account the
one you are reviewing at that moment the way to understand this is to look at the journal
I have set up my journal so that it shows every transaction in the order in which it was entered
into the computer and I also have it in reverse order so that the most recent transactions are
right on the top and you'll see two transactions that literally happened at the same time let me
show you here's my transaction journal and you can see the most recent ones are on the top because
I'm recording everything today on July 13th then it goes down to July 12 and so on and you can
see the last two entries were what we just did a moment ago we just recorded a $60 deposit and we
applied it to the invoices now this column shows the date and time that it was entered and you can
see the second to last transaction that was just entered was the payment QuickBooks does this and
puts it into undeposited funds so that it's able to apply the payment to the proper invoice we
double-click this is what it looks like and it put it against this invoice and it put it towards on
deposited funds now notice that happened at 4:53 p.m. and 15 seconds and then literally one second
later four fifty three and 16 seconds it made this deposit where physically deposited or recorded it
as a deposit from that particular payment so these two basically happened at the same time
when we clicked record it went into undeposited funds then it went from undeposited funds to the
bank account in the blink of an eye and that's the way it does it you can prevent this by changing
the default payment account in the Preferences window and again we're getting a little off-topic
but if you did this edit preferences and went to payments company preference you could remove the
checkmark from undeposited funds here then when you click OK now if you do the very same thing
you won't get two transactions and you won't get that message it will go directly into the bank
account and to be honest these last three minutes of this video probably won't make any difference