Using Sales Receipts in QuickBooks

Posted by on Jan 31, 2011 in Customers Module | 12 comments


Earlier I showed you how to process a sale using an invoice. In that instance the payment was going to be received at a later date. We are now going to deal with a transaction where payment is received in full at the same time as the sale. This payment can be via cash, cheque or credit card.

Since you have already processed an invoice you should be comfortable with doing this as the screen and the functions are the same.

From the Home page you can choose either of these two ways to access Sales Receipts. Click on the Create Sales Receipts  icon, or choose Customers, New Transactions and then Sales Receipts. This will take you to the Enter Sales Receipts window.

If you do not see the Create Sales Receipts on your Home page that means you did not check the box in Preferences, Desktop View, Company Preferences. Go back and complete those steps if you need to. This is also the preference area where you can turn off or on Estimates, Sales Tax, Inventory, Payroll and Time Tracking from appearing on your Home page.

Since you already have some Customers set up lets use Hart Printing.

You will notice that QuickBooks is using the Custom Sales Receipt default template and has assigned a number 1 in the Sale No. field. Don’t forget the Date, and here we’ll use 31/01/2011. Tab past the Sold To field to the Cheque No. field. This Customer is paying via a cheque so key in our example of 56789 and tab to the Payment Method field.

The arrow indicates a menu list from which to choose, and you will select Cheque. Notice that if you were to choose any others, with the exception of Cash and Cheque, the box beside the credit card icon with a lighting bolt through it becomes visible. You cannot use this function unless you have a QuickBooks Merchant Service account.

Tab to the Item field and choose Consulting – OS, tab to Qty and type in 2, choose Printers in Class field  and tab through to the Tax field making sure you have the correct code. The Amount field should read 90.00 and the Total 100.80 using a 12% HST tax. Print this now so that you can give a copy to your Customer and then Save & Close.

The amount that you just posted has gone to the Undeposited Funds account and awaits your deposit. Depending onwhat time of day it is, you can wait until the end of the day to deposit the funds or until you have several more of these types of transactions accumulated.

Here’s a tip for you regarding deposits. If you go to yourMenu bar, choose Edit, Preferences, Sales & Customers, Company Preferences, at the bottom of the screen you will see Receive Payments and some choices with boxes beside them.

If you unmark the box: Use Undeposited Funds as a default deposit to account and say OK, the next time that you process a Sales Receipt or Invoice you will notice a Deposit To field with a drop-down arrow that allows you to choose your bank. Once you choose your bank and Save & Close this will post that Sales Receipt directly to your bank.

The downside to this shortcut is that if you have a number of Sales Receipts in a day and you post them all, when you go to reconcile your bank statement, your QuickBooks will not recognize these Sales Receipts as a group total. If you had 10 of these Sales Receipts, you would then have to manually add them up in order to arrive at a total for the day. Remember, I didn’t say all the tips would save you time.

In this case I would leave the Use Undeposited Funds as a default deposit to account marked.

Tip: If you are a business that is using the QuickBooks Premier edition, you can use sales orders to track items that customers have ordered, but are out of stock. Now in case you are a service-based business, you can use sales orders to schedule work crews, plan labour costs,  and esitmate revenue flow based on services scheduled.

Remember that you can follow me on Twitter for tips and updates also.


12 Responses to “Using Sales Receipts in QuickBooks”

  1. Hello,
    I have followed this tutorial but I’m running into some problems. When I deposit it to my account it doest not record it as a sale. It also makes two entries into my bank account, one as a payment and the other as a deposit effectively cancelling each other out. any idea why this is happening?

    • Larry Johnson says:

      My responses are based on the assumption that you are Using Sales Receipts.

      When I deposit it to my account it doest not record it as a sale.
      Response – It sounds like the Item that you set up for the sale product or service, is not pointing to an income account. Edit that item and in the Account field make sure it is an income (sale) account.

      It also makes two entries into my bank account, one as a payment and the other as a deposit effectively cancelling each other out
      Response – It should only make one entry as a deposit – into your bank account. Without viewing the entry it is really impossible for me to say why the other entry is a payment.

      My educated guess takes me back to how that Item was set up. Is it a Service, Inventory Part, Non-inventory part, Other Charge, etc.? Which Account is in that field?

  2. Is there a way to use sales receipts without entering an Item? This is for a donation to a nonprofit so it can be in any amount and it’s not for a specific thing so I’d have to make dozens of items all with a different amount because donors give in a large variety of amounts. I keep getting a message that says that I only need to use the Item feature if I am listing multiple lines items or partial payments but if I enter an amount it says I must enter an Item. If I don’t it won’t save but when I enter a single line it says I don’t need an Item. Any help is much appreciated.


    • Larry Johnson says:

      Hi Kelly, to answer your first question, not that I’m aware of. QuickBooks needs an Item in order to refer the amount to an Income account, in your case. You might considering setting up a generic Item called Donations, that way you can change the amounts every time you enter a Sales Receipt. Also you should be able to use this Item on as many lines as needed if you want to keep them separated. Hope this helps and let me know if that works for you.
      PS: If the Donations come from areas of cash, visa, etc. you could have an item called Donations – Cash, Donations – Visa, etc.

      • Thanks for the quick response. As it turns out, I set it up wrong. If anyone is reading this with the same problem, it’s because I selected an Item with the type as Payment. If you want to set any amount, then when you create the Item it needs to read Service and link to the correct account. In my case that is designated gifts and non-designated gifts.

  3. Bill Horton says:

    I am trying to set up a new account in QB and was trying to get the Deposit To to deposit directly to my bank.
    I followed your instructions but the Receive Payments is not in the company preferences. Am I missing something?

    • Hi Bill, you must remember that article is several years old and QB has redesigned its software.
      The current way to accomplish this would be to go to Preferences/Payments/Company Preferences and uncheck the Use Undeposited Funds as a default deposit to account. Make sure to click on OK.

      Then when you go to do a Receive Payment on the right hand side of that screen in the field that says Deposit To, you will have a drop down box that will give you a choice to deposit directly into your bank account.

      The problem with that is if you have more then one deposit on any given day and you do them separately, it will create a nightmare trying to reconcile your statement at month-end.

      Hope this helps.

  4. Riki Takeshita says:

    I recorded a sales receipt for the sale of a small farm item, but I forgot to complete the Customer Job Name field when generating the receipt. How do I go and edit or delete that transaction?

  5. I’m trying to skip the receive donation-sales receipt option and go straight to the make deposit window and enter the income into my COAs. I have the customers set up but when I make the entry then do a quick report on that customer, it does not show the payment I just entered. Please help!

    • Hi Jenna, I will try to assist you but without viewing your screen, it may be that you need to call in a QuickBooks ProAdvisor. First go to the top of your screen. That grey bar is called the Menu Bar. Click on Edit/Preferences then go to Payments/Company Preferences. You will see three different choices with boxes beside them. Depending on the type of business you are working with, I would first try clicking on the box that says automatically apply payments. What that will do is apply the payments to the amount of the invoice that best matches the amount. It works from oldest to newest via date. Next when you go into the Receive Payments you will see Customer Payment screen. Apply the payment and click on Save and Close or Save and New. Once you’ve done that you need to go into a icon that says Record Deposits. Choose which deposits were made and make sure to match the date with the actual date of the depost. After you Save and Close, go back to your Customer and see if that transaction (payment) has been applied to the Invoice. Hope that helps.

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