If you are being paid immediately for the product or service that you are delivering to your customer, use a sales receipt!

The main difference between a sales receipt and an invoice is the "Deposited to" field that you use to record where the total amount of the sale will be deposited.

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The customer, date, product or service sold, sales tax etc are all the same as on an invoice.

If you have not received the funds yet or expect to receive them later, do not use a sales receipt. This is because the sales receipt immediately records the deposit.

When you're being paid at a later date orin installments, use an invoice.

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I hope this has been helpful. If yes, let me know!

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Cheers!

Sales Receipts

Kerry: [00:00:00] Hi, Kerry here from My Cloud Bookkeeping. I work with small businesses and entrepreneurs to help them manage their business finances in QuickBooks Online. If you're not sure if you're using the best plan for your business, check out my plan comparison below and be sure to watch right to the end for useful tips for your business.

The question I receive sometimes is, when should I use a sales receipt? When should I use an invoice? Or why can I not apply multiple payments to a sales receipt? So I thought it may be a good idea to explain when you use a sales receipt to record your sales in QuickBooks Online. You use a sales receipt when you're receiving full payment at the time of delivering the goods or services.

If you've sold an item or completed a service and the person is paying you right now, You prepare a sales receipt. Let's walk through the steps. So here we are in the sample company and chances are if you're using a sales receipt, you may even be on your phone. [00:01:00] Um, I'm obviously not. I'm on my computer here and I'm saying new and sales receipt, but if you're providing mobile services, chances are you're pulling this up on your phone.

So here's the sales receipt. We choose our customer first. I'm going to go with cool cars. And, you know, the date, email, et cetera but one of the very important things that differentiates the sales receipt from the invoice is here. You can see the deposited to. Now, this is being deposited to undeposited funds just as a default.

But if you know that this money is going to go straight into your checking account, you could select checking account. Then you will put your product, whatever it is. Um, we're going to do some design services for $75. That's totally fine. We'll save this. And this will now create an entry with a sale of $75 and money into your checking account for $75.

Now, if you haven't received these funds and you're going to get [00:02:00] them later, then clearly we don't want to use a sales receipt because we've just recorded the deposit. The other thing is where I get that question where people are saying, but I'm getting multiple payments. Well, once again, this is not the place for a sales receipt because we've just said, All of this money went into our checking account.

You could also use undeposited funds and then you match it and clear it later. It's entirely up to you how you do your bookkeeping. And I do have other videos on undeposited funds. Now, if you're getting paid later or you're getting paid multiple times, then you're going to use an invoice. Um, I'm just going to pop out of this quickly just to, to go into the invoice.

It's going to be exactly the same thing, except you're not saying that you've received the funds. So when we open up our invoice, we can see it's cool cars. We can go down here and put design services Oh, no. It's in here. Design, here we go. Uh, $75 [00:03:00] exactly the same, but we're going to send this to them for them to pay us later.

And they may pay $70 and then $5 and we'll be receiving those payments separately. So you're using the sales receipt when you are receiving the full amount of the service product you're selling at the time that you're issuing the sales receipt. I hope that helps. Does that clear up any confusion? If you're not receiving the full amount right now, choose an invoice.

I have multiple videos about invoices. Check those out to ensure you're making the most of the updated features. Also, down with the checklist for matching deposits on the bank feed. Bank, the bank transactions tab. It reconciliations and avoid double recording your sales. So don't hesitate to reach out if you have any questions or make a note in the comments below.

Cheers.

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