and now we will learn about this type of transaction receiving payments for past
invoices there are several different types of payments that we can receive for invoices that
customers owe us however in this video we will receive exact payments that means we are receiving
payments that are the exact amount of an invoice for example we received payment in example 1 of
an exact amount of an invoice January nineteenth we received two thousand two hundred and forty
dollars from candy for invoice number eight she gave us check number one two three four
and in this example the amount of candies check is exactly the amount of the invoice that she is
paying for when we look at our customer report the customer balance detail we see each of the
previous invoices made the balance go up after each one was recorded however if we record a
payment we know that the balance will decrease the payment we are recording is January nineteenth so
we know that the payment we record will be listed at the bottom of this report because this report
shows the transactions in date order after the minus 2 the balance is recorded from the
payment window quickbooks will recalculate the new balance of candy which will be lower as a
result of the payment this report is very helpful because it shows all the transactions that affect
the customers balance and as you can see it puts it in date order however there is another
important question after the payment how do we know which specific invoices are still unpaid
we cannot know that by looking at the customer balance detail we cannot assume that this payment
was applied to this invoice just because it's the same amount so how do we know the answer to
this question well the answer is we need another report we need another report that shows us only
the invoices that are unpaid and we refer to the unpaid invoices as open invoices so the name of
the report that shows only what remains unpaid is called the open invoice report let's take a
look from the main menu click reports customers and receivables and open invoice now we have to
modify the report in the way that we learned before always make sure that you change the
date range to all you can do this by the way by simply pushing the letter A on your keyboard we
also learned in previous videos how to remove the columns that were not using the purchase
order number column is not relevant to us let's move the mouse to the top right of the purchase
order column click and drag to the left to remove that column we're also not using the terms column
yet so let's move the mouse to the top right click and drag to the left and remove the terms column
we can even make the whole report a little bit thinner when we look at the section of
candy we see that the invoices are still here because we have not received payment all of
candies and voices are still open and before we record the payment let's add it to the icon bar
when the open invoice window is the active window click view and then click Add open invoice to
the icon bar and then we will click OK now we can use it more easily and open it and see it
more quickly let's just remind ourselves what the transaction is January nineteenth receive
two thousand two hundred forty dollars from candy for invoice number eight and she gave
us check number one two three four so what will happen in the candy section of open invoice when
we record the payment well if the payment is an exact amount of invoice number eight that means
that invoice number eight is going to completely disappear from the open invoice report and when
we finish recording the payment candy will be left with foreign voices rather than five
from the main menu click customers receive payment and the receive payment window opens up I like to
collapse the ribbon so I don't get distracted we received well first let's put in the date january
nineteen okay now let's put in the payment method check number one two three four now look what
happens when we choose the customer received from candy as soon as we choose candy all of
candies open invoices appear in the center panel in the body of this window and the last piece of
information we will put is the money amount the money amount is two thousand two hundred and
forty dollars so just type in the digits without a comma or a decimal point or a dollar sign after
typing in only the digits look very carefully what will happen on the screen when i push the tab key
aha when i push the tab key quickbooks put a check mark next to invoice number eight quickbooks knew
we were paying invoice number eight because it's the only one with an exact match as the amount
of the payment so whenever you put in a payment amount the very first thing quickbooks will do
is check if there's an exact match and if there is then quickbooks will put the check mark in the
margin assume that's the one you're paying for when we click Save and close we notice the open
invoice changes immediately and we only have four open invoices for candy I also promised you that
Candy's balance would become 9460 dollars when we take a look at the customer balance detail
for candy we can see that the payment is listed here in the bottom and QuickBooks lowered the
balance to nine thousand four hundred and sixty dollars and one final note can you
predict what accounts in the trial balance will change when we receive payments for a previous
invoice that's right the invoices are listed as a plus to account receivable and therefore account
receivable will go down when we receive a payment from a customer what else will change well if we
physically received money that is not yet in the bank it goes into undeposited funds and of
course we have more undeposited funds as a result I will close out my other reports and I will open
the trial balance and of course in the trial balance accounts receivable is slightly lower
when I double click my account receivable and look at the very bottom the very last transaction on
the 19th is a payment making the balance go down and it's recorded in the credit column
which means it is a minus to the account when I look at undeposited funds I can double-click the
balance and when I look at the bottom the last transaction is that same payment we just made
and of course that's listed as a positive amount making the balance of undeposited funds go up