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Frequent Contributor *

Setting up memorized sales receipts

For years my organization has been recording deposits inconsistently/inaccurately and we're looking to do correct going forward. We've used some sales receipts, some invoice payments and then after batching those two payment types together would add in some additional deposits into the deposit screen as "straight deposits". Then all three would be finally batched and that amount would match our bank statement. 

For transactions that we had previously done as a straight deposits in the enter deposits screen, we now intend to do by Sales receipts. The purpose of my post is to determine the best way to go about this. We currently use Sales Receipts for customers who are pay on delivery and we have three different sales receipts in memorized transactions because currently sales receipts are attributable to three different income accounts. 

I'm thinking about making additional memorized sales receipts to continue using this idea, rather than have to select everything every time. Especially because we have many different income accounts. 

For deposits where I'd normally leave the "Received from" blank, I had read I could continue to leave the customer job blank and just enter the rest of the information. Even if that is true, does that seem like the best way? Or should I create a customer job titled "Cash sales" or something of the like to keep it cleaner?

That is the direction I'm leaning but the number of different memorized sales receipts would probably be at least 10 if not more - does anyone else have a similar set up? This would also mean possibly adding additional customers, even a "misc" customer for miscellaneous income. Is that too much detail? 

 

9 Comments
Established Community Backer ***

Re: Setting up memorized sales receipts

Way too much detail. Sales Receipts do not point to income. Items on sales receipts point to income. Received payment is inherent in the receipt and should post to Undeposited Funds. Later you batch your real deposits.

 

You can use different prefilled sales templates for widely varying full lists of items/services but it is not necessary unless multiple customers buy the same batch of products. 

 

Invoices are reserved for customers that pay latet. Receive payment into UF, create deposits. This is correct workflow

Established Community Backer ***

Re: Setting up memorized sales receipts

"We currently use Sales Receipts for customers who are pay on delivery"

Sales Receipt = also already paid for this Dated Sale.

Invoice = unpaid for this dated sale. The Payment comes later and/or in partial amounts.

 

"...Especially because we have many different income accounts."

 

The best reference for the Chart of Accounts is the tax form this entity files: that's what you would use for financial reporting. There is One Income Line. What you are supposed to be using is More Items. They all link to that one income account. Items flow data to the accounting as what you make, do, sell, charge, buy, or buy and sell.

 

Not More Accounts. Use Items, for what you want to see on Sales Reporting, to manage Sales Taxes for what is and is not taxable, for Quantity, for purposes of what you bought is billable to the customer; for Inventory.

 

"For deposits where I'd normally leave the "Received from" blank, I had read I could continue to leave the customer job blank and just enter the rest of the information."

 

Never. DEP entries like this means you just bypassed Sales. You want the Sales activity to flow the data here; stop using it as your end result. It's a step along the way, but Banking is at the end of your process and not where you start and not Manually.

 

Memorized Sales Receipts is used, for instance, if there is a routine sales and you want to see this pre-filled. You don't even need a customer name on them, which is why you can use them for the Daily Summary, even.

 

"Or should I create a customer job titled "Cash sales" or something of the like to keep it cleaner?"

 

You don't even need a name for Sales Receipt; leave that field blank.

 

"This would also mean possibly adding additional customers, even a "misc" customer for miscellaneous income."

 

Misc Income is the Item you list on your sales transaction; not the Sold To Name.

Frequent Contributor *

Re: Setting up memorized sales receipts

Please allow me to start over and forgive me that I was not as clear before. We are a not for profit, so sales tax is irrelevant for us. Sales reporting is also something that we do not do. We have many different income accounts. As a not for profit, we don’t have items we sell, we have just have different kinds of income. All income needs to be attributed to the correct account. I need my board/leadership to be able to look at the financial reports and clearly see that X account generated this amount of income in period Y, and Z account generated this amount of income in period Y. I need them separated by different income account. Yes, I can set up items to go to those accounts. But creating memorized transactions accomplishes the same task and makes it easier on the person doing the entry. I can name each memorized sales receipt transaction in the same method that we currently have our memorized sales receipts – that each receipt goes to a different income account.

My goal is to be able to go to the customer page and see what they have paid in the past. Currently for customers that we do sales receipts or invoices for, that is possible. Would that still be possible if I left the customer name blank for sales receipts? I would like to be able to look at a donor to see their donation history. The process we do now, which I know is incorrect, is putting their name in the received from column in the make deposits screen. This obviously does not show when I go to their customer page, which is the main reason we’re looking to make this change.

Leaving the name on sales receipt blank is certainly an option, but what is the harm in naming it if it goes to a certain income account? I’m thinking for ease of entry as it is someone else who is doing the data entry. This would also be an easy way to view income for that “Customer” if I create different customers for different income accounts. If I leave it blank I won’t see that info when I look at customers.

Frequent Contributor *

Re: Setting up memorized sales receipts

Please allow me to start over and forgive me that I was not as clear before. We are a not for profit, so sales tax is irrelevant for us. Sales reporting is also something that we do not do. We have many different income accounts. As a not for profit, we don’t have items we sell, we have just have different kinds of income. All income needs to be attributed to the correct account. I need my board/leadership to be able to look at the financial reports and clearly see that X account generated this amount of income in period Y, and Z account generated this amount of income in period Y. I need them separated by different income account. Yes, I can set up items to go to those accounts. But creating memorized transactions accomplishes the same task and makes in easier on the person doing the entry. I can name each memorized sales receipt transaction in the same method that we currently have our memorized sales receipts – that each receipt goes to a different income account.

My goal is to be able to go to the customer page and see what they have paid in the past. Currently for customers that we do sales receipts or invoices for, that is possible. Would that still be possible if I left the customer name blank for sales receipts? I would like to be able to look at a donor to see their donation history. The process we do now, which I know is incorrect, is putting their name in the received from column in the make deposits screen. This obviously does not show when I go to their customer page, which is the main reason we’re looking to make this change.

Leaving the name on sales receipt blank is certainly an option, but what is the harm in naming it if it goes to a certain income account? I’m thinking for ease of entry as it is someone else who is doing the data entry. This would also be an easy way to view income for that “Customer” if I create different customers for different income accounts. If I leave it blank I won’t see that info when I look at customers.

Established Community Backer ***

Re: Setting up memorized sales receipts

I recommend the book Running QB for NonProfits, by Kathy Ivens. In it, you will learn which QB tools and forms and functions translate into which Task for your operation. For instance, this is a Misunderstanding: "We are a not for profit, so sales tax is irrelevant for us." Unless you never sell Products, as UBIT.

 

Do you have QB Premier installed as Not For Profit? If so, the sample files from the No Company Open screen, bottom right, include NFP. Use them to learn from.

 

This also is not correct; you seem hung up on Terminology, but we are helping you understand Functionality: "Sales reporting is also something that we do not do."

 

Yes, you should be using Sales reporting. The functions of Donation and Pledge are synonyms for Sales receipt and for Invoice. Plus, in QB, estimate = Grant submission, and Estimates vs Actuals for costs, sales and job profit = Grant Tracking. We are helping you know which Tools you would use for your type of operation. Let's not get hung up on Terminology. Just like you might take offense that the Profit and Loss report ends with Net income. Yet, you know your organization needs to operate not at a loss, year after year. We all have these same considerations.

 

"We have many different income accounts."

 

The best reference for the Chart of Accounts is the tax form this entity files. For the 990, the best reference for QB is to use the "UCOA".

 

"As a not for profit, we don’t have items we sell, we have just have different kinds of income."

 

That's the Same Thing, for purposes of learning QB. Different Dues, for instance, is More items; they all link to one Dues income account. If you wanted to track Individual Membership Dues $25 vs Youth Dues $15 and Senior Dues $20, and be able to list these on Sales Receipts or Invoices, that is three Service items. If you want me to pay for a table at a Food Bank fundraiser dinner, which you value at $20 a plate, and I give you $500, your Sales receipt or invoice for my name lists:

Food Bank Event table sponsorship = qty 8 and rate = $20 each = $160 on this first Item you listed

Donation item $340 for my second item you listed

= the total for my "charges" that I need to pay you for.

 

It's just a way you use QB to track your financial activities. Don't get hung up with "sales, not sales." I get that same comment when I teach QB, in Class, from landlords: "I don't sell anything." Yes, you charged them something, and they pay you for something. That is the same as sales, from the perspective of Funds Inflow to you.

 

"All income needs to be attributed to the correct account."

 

You use Items in QB. They link to accounts and flow the data for you, because you use them on Forms (transactions) such as Sales Receipt (= you also got the funds for that date = already paid) and invoice (= someone will pay it on a later date, and you wanted to document this expectation, such as an accrual Basis entity, for Pledges).

 

"I need my board/leadership to be able to look at the financial reports and clearly see that X account generated this amount of income in period Y, and Z account generated this amount of income in period Y."

 

Yes, that is all provided for, along with Sales reports. Example: For Christmas, we want to do fundraiser of Wreaths and Trees. So,  that would be two Nonivnentory items, two sided, so that they link to COGS and to Income. We decide to order 25 trees but we will take orders (pledge) for Wreaths, then place the order specifically.

 

I write a check or enter the credit card charge for "Trees" on the items tab, quantity 25. I send volunteers out and take phone call orders for Wreaths. Then, I place the order for Wreaths and Job track them, for each line on the Items tab of the purchase. Your line, your Name ("job tracking") as billable to you, because you ordered 3 wreaths.

 

Then, I use Create Invoice for all these names, create invoices for every name that has a billable Wreath order. I mail and email these. When the wreaths arrive, we deliver them. Meanwhile, the payments will have started to come in, too. And if people pay more, that is the use of a donation item on a New invoice, because the donation was not the same date as the Wreath Charges.

 

For the Tree yard, I would simply use one Sales Receipt to summarize each date's sales, using the same Tree noninventory item and quantity sold that date; plus, the second line would be where I list my Donation item, if people overpaid for the tree, intending that overpayment to go to donations. That = the total Today = daily sales summary, using Sales Receipt. And if I run three tree yards, I might list three "customer" names, such as West Side, Fairground and Truck Stop, for the three places I put tree yards for our fundraisers this year.

 

"I need them separated by different income account. Yes, I can set up items to go to those accounts. But creating memorized transactions accomplishes the same task"

 

What you are overlooking is that you list Items on the Memorized Sales Receipt, so having names or not is only Notational and not Functional for the accounting. in fact, putting Name at the top is for running Sales reports, which you seem to indicate you won't even do. This is a relational database = everything is linked to something. Using names provides for Sales reporting, and the Items on the Sales Transaction (your Memorized Sales Receipt) is how you listed Charges. You can use Sales Receipts for individual charges items, but that is a Lot of Work. You just don't need to do it like that. No one would stop you from making this about 25 times harder than it needs to be, of course. This would be like going to the grocery store and they ring up Lettuce, then make you pay. They ring up the Bread, then make you pay. They ring up the Cheese, then make you pay. Normally, they ring up your entire purchase, all listed on the one receipt, of course. You are doing the Same Thing, in QB.

 

"and makes in easier on the person doing the entry. I can name each memorized sales receipt transaction in the same method that we currently have our memorized sales receipts – that each receipt goes to a different income account."

 

Let's try this again: A Sales Receipt has Items that control the flow to your income account(s). The Salese Receipt ends with Funds, and the Funds can post directly to a bank account or be held in UF to allocate which Bank account you want that to flow to as part of the Make Deposit. SO, it helps NOT to keep thinking of it as "each receipt goes to a different income account" because that is Not what is happening, and you can prove it to your self. Open any Sales Receipt you saved and use Journal View, or Ctl y. Here are the debits and credits and you clearly see the Items should Credit income. If not, you set this up incorrectly. The Sales Receipt will Debit Undeposited Funds or Debit Banking per your selection at the top or in Preferences. The Positive values on the charge items are supposed to Credit Income. The sales receipt is in lieu of an invoice. The items listed on an invoice will do the exact same thing: credit income. So, the statement: "each receipt goes to a different income account" is not what happens.

 

"My goal is to be able to go to the customer page and see what they have paid in the past."

 

That isn't the best tool; you are looking at Transaction Listings, not a financial perspective. What you want to do is Run Reports. Sheesh; run your Sales Reports. That's why they exist. You can compare a Sales Report to the P&L by Job, even. Looking at a transaction listing is a clerical aspect, not a financial analysis or perspective.

 

"Would that still be possible if I left the customer name blank for sales receipts?"

 

Again, Names do not control accounting data flow to accounts. Transactions control data flow; that's where you list Values. And Items control data flow, when you list them on purchase and sales activities, and the provision is to use them for Both Needs.

 

"I would like to be able to look at a donor to see their donation history."

 

You don't look at the Name. You run reports On the Name, to see their activities in perspective. Example: You single-click a name and run a Quick report and it doesn't even Total. That transaction listing and the QR is a Listing or activities, not a Sales Report. Try Sales by Customer Summary, set Columns by Item Type or Item Detail.

 

Please see my attachment.

 

"The process we do now, which I know is incorrect, is putting their name in the received from column in the make deposits screen."

 

What you are doing now is Banking. Not using Customer Transactions, which is why it doesn't show in Customer Center.

 

"This obviously does not show when I go to their customer page, which is the main reason we’re looking to make this change."

 

If you had an online giving portal, you might use the banking input screen for a generic distribution to income, and you never put names here because you are only doing Banking, as you noted. Don't bother to put names where Names are meaningless.

 

"Leaving the name on sales receipt blank is certainly an option, but what is the harm in naming it if it goes to a certain income account?"

 

Here is the way to take full advantage of Memorized Sales Receipt: You set it up with all the possible items on One screen, and you Memorize it. Then, each time you want to use it, you double-click it from the Memorized Transactions List, you fill it in as a single worksheet, you date it and Save it. Done. Not "15 separate transactions, because each has only one line on it."

 

"I’m thinking for ease of entry as it is someone else who is doing the data entry."

 

Yes, that is why we are trying to help you.

 

"This would also be an easy way to view income for that “Customer” if I create different customers for different income accounts."

 

Not Meaningful. You already have real functions that are doing this = the items, not the Names. The Names are only notation and so are the item Names, so now you intend to double the use of Names, to match a notation Customer name to an actual Functional Item with a Name? This is like putting one outfit in each closet in the house, instead of all your clothes in your one clothes closet.

 

"If I leave it blank I won’t see that info when I look at customers."

 

Again, not One Name per Income account, because names don't control the Accounting. Think Functionally. Examples, if you want Names:

Online Giving

Pizza Party Fundraiser

Sunday Collections

Farmer's Market Tue and Farmer's Market Sat

And you use Customer Name and Job Name for Grant Tracking, such as:

County (grantor):Food Bank (grant)

 

"Sales reporting is also something that we do not do."

 

But now you will, because we are helping you realize the power in the reporting, and it seems you are hesitant because you misunderstood the Function, and were put off by the Title of that reporting group. Because, guess what? If you are running the NFP Edition of QB, and run the NFP reports, then the:

Donors/Grants report is a Retitle of P&L by Job; Biggest Donors reporting is a Retitle of Sales Reports.

 

This is why you want to get that reference book. It helps you use QB Pro, and see which reports are included that really are the same perspective as NFP, but they start as more traditional Business Titles. In QB Pro, you can retitle a Sales report and then memorize it as your own Donation report. Examples would be Sales by item, for instance.

 

"As a not for profit, we don’t have items we sell, we have just have different kinds of income."

 

If you intend to use QB, then you need to change that thought process. You have More Items to list, because you need them to flow to Different Income accounts. Does that Help? Because if you cannot get your head around the Functions, no one on the internet can help you help yourself.

 

Let me restate this with the language we call QB-ese: Each Item will Flow data to its specific income account, although sometimes, I might be able to set up multiple items to flow to the same account, but that gives me reporting detail from the Sales (giving) and item reporting, to avoid even more micro-management of the Income accounts. Example: Fundraising doesn't need multiple accounts; I can list the Pizzas sold as an item and use quantity; the Christmas trees sold and use quantity; the number of Child Car Seats donated by K-Mart and use Quantity. etc. When getting Donations in Kind, that is as many different items as you want to see in Sales and Item-based reporting, but DIK is one income account.

 

 

I hope at this point you started to understand how Items you list on the Sales Receipt flow data to the accounting = The Credit side of the financial values. The name, top left, is only Notational, which is why it can be left blank. The accounting still happens from the Items you list on the sales receipt.

 

I'd rather work down the list of 15 items for that one date, than have to trigger 15 individual Sales Receipts just because you put one charge item on each with a Name, thinking the Name has anything to do with the Accounting data flow.

 

Frequent Contributor *

Re: Setting up memorized sales receipts

Hi QBteachmt,

 

Thank you for your thoughtful and thorough response. I do have plans to look into that book, thank you for the recommendation. The difficulty I have with instituting all of your solutions are several fold. A) I am not at the top of my organization and I do not make decisions on things like how many different income accounts are created or exist. B) I’m working with the system that was established well before my time. I’ve made improvements, such as reorganizing the expense accounts to follow a numerical organization rather than just based on name, but I am somewhat limited in what I am able to change. C) Some of your recommendations may work wonders for us and are probably the right way to do things, but they would have to be instituted over time after consideration. I cannot change the way the organization functions financially tomorrow, even if it is best practice.

 

The dues example that you used. We would classify each kind of dues as that many different income accounts. I understand that items flow to an income account, but we have a lot of income accounts. That isn’t going to change any time soon. So we will probably have as many items as we do accounts.

Maybe I can change this in the future, but I cannot change it now. I’m looking for the best solution that can work with the “limitations” I have now. Looking at the customer tab might not be the best tool, but it is what leadership uses and wants to use. I can inform them of the better tools that exist, but I cannot make them get used. Being able to go to a customer and see what they have donated or spent is currently something limited to certain customer types, ones we invoice or do SR for. The ones we do do SR’s for are memorized and yes, you are correct that they each have items that are linked to that income account. The item “Pizza” flows to the income account “Pizza”. And it’s a memorized SR because the customer name can vary, but it’s always “Pizza” that is the income account. We change the customer name, but don’t have to enter the income account/item name.

 

For example, Sally has a pledge with us. That is recorded as an invoice, and payments are made against it. I can see this history when I look at her customer tab. Johnny just sends us a check randomly and we’ve never heard of him, so he’s considered a new donor. Currently we just enter it in the make deposits screen with Johnny as the received from. I know that is wrong and bypasses systems. So I’d like to change it to be a SR. I would create one memorized SR for that income account “new donor”. Then when money was received from any other new donors for that income account, we’d pull the memorized SR, change the name to match the donor. I’d create the SR so that every time we get a payment credited to that income account, the majority of the work would already be done.

 

This method is currently how we manage three different income accounts. And each memorized SR has a different item name, linked to a different income account.

I did look at the JE view like you recommended and perhaps it is set up wrong, because it the positive value goes to UF. Is that incorrect?

 

If in the future leadership decides to use different reporting, that would be great. For now they look at the P&L and the balance sheet (mainly P&L) which clearly shows all the different income accounts. I do not think that will ever change even if it is not the best method for reporting.

 

I think what you’re saying about using SR’s is that in the case where they don’t need to be attributed to a name, use one SR, with different items. But in the case where a name is necessary (Johnny) then use a separate SR for that instance. Is that correct?  

Established Community Backer ***

Re: Setting up memorized sales receipts

I cannot keep debating with you. The use of different Items is how you get things to flow to each of your income accounts. You are arguing for what you want, which is the same thing I am telling you to do = more Items, one to link to each income account, if you truly have different types of income; But Not based on Customer Name. Names don't control anything in the financial values.

 

And stop arguing about the Customer "tab" if you don't intend to use the Customer Functions and the report for the named activities. It makes no sense to run yourself and us, your peer user volunteers, in circles like this. Either use the functions, or stop thinking there is something to see when you are not running the right reports to see it.

 

You are only limited by what you Refuse to do. We cannot help with this. Johnny needs a Sales Receipt, to match the same method for having Sally's giving. You are confusing AR with Giving. And when Johnny gives for three reasons, that is all the three items on the one SR. Done. Honestly, how much time do you have to waste while attempting to micro-manage this data like you are proposing? You are going to spend more time and get less out of it. You use Johnny's name on the SR or no name, when it doesn't matter. You Control Everything.

 

The P&L and the Bal Sheet are only 2 reports of probably 3 dozen available to you. No one can force you to use the better tools you are paying for.

 

A Sales Receipt will result in Funds. Therefor, the Journal View will show Credit(s) to Income and Debit to Banking or to Undeposited Funds, driven by your preference for Payments (edit menu > preferences) and/or what you select in the dropdown in the top center of that SR, because you control Everything.

Frequent Contributor *

Re: Setting up memorized sales receipts

[removed by moderator]  People come to these forums for help, asking sincere questions like I did, not to waste other peoples' time. Your responses are not encouraging and you can clearly see people are put off by your attitude.

People come to these forums because they've inherited a system and they're doing their best to deal with what they have. Your perspective seems to be that business build themselves around QB, but here in the real world things are messy. People come and go from businesses and organizations, leaving complicated messes in their absence. A forum like this should be the place for help. Instead people receive a mean-spirited, personalized bully telling them how they are doing it wrong (They probably know that, that's why they came here! There's no need to put it so plainly and rudely!). Instead of advising them with how to make due with what they have, you insist that they change their entire process, something most people with bosses (unlike you) cannot do so easily. 

Please don't waste your time in the future attempting to answer my questions, I'd clearly have more luck with a Google search and banging my head into a wall. Good day. 

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Re: Setting up memorized sales receipts

Stepping in as a moderator to let everyone on this thread know that I have edited the last comment by Bookkeeper11 to keep it in line with our community guidelines and values.

 

Online communities always run the risk of different personalities and styles of communication clashing as they have in this thread.  I am not going to lock this post, but I would ask that everyone remember that while we encourage you to express your point of view and voice your concerns, we also do not tolerate abusing or insulting other members.   

 

Additionally, @qbteachmt I would ask that you follow @Bookkeeper11's wishes and not engage further with them or comment on their posts.  

 

You can read our rules of the road here, and if you have any questions you can always reach out to a moderator or host. 

 

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