In QuickBooks a Sales Receipt is a form to simultaneously record credits increases) to the accounts associated with the Items entered on the Sales Receipt and a single, offsetting debit to either the Undeposited Funds account (if that preference is selected) or another user-selected account, which must be either a Bank, Accounts Receivable, or Other Current Asset account. It’s typically used when a customer pays in full at they time they receive a firm’s goods or services. Because Items can be associated with liability accounts (such as a current liability account for customer deposits), sales receipts can also be used to record funds received from customers that increase a firm’s liabilities.
Recording a Sales Receipt is accessed on the Customers->Enter Sales Receipts menu selection. It’s similar to the Create Invoices function in that it can record a sale transaction, but unlike an unpaid invoice, which is sent to an Accounts Receivable account and increases a customer’s outstanding balance, the Sales Receipt is paid in full and doesn’t change the customer’s balance.
When a Sales Receipt is saved, a credit to the account associated with each item is recorded for the amount of that line item. In the example below, the account associated with the Item “Upfront Deposit” will be credited $1000. A single, offsetting debit is recorded in an asset account, depending on your setting for the Use Undeposited Funds as a default deposit to account preference. For more information, see our article on setting the Undeposited Funds preference.
If that preference is checked, the Enter Sales Receipt form will appear similar to the one below. You won’t be asked in which account the single debit should be recorded, because it will automatically be recorded in the Undeposited Funds account.
On the other hand, if that preference is turned off, you can select the asset account to which the debit is recorded, provided that the asset account is either a Bank, Accounts Receivable, or Other Current Asset account.
Here’s a saved Sales Receipt in the transaction list for a customer in the Customer Center:
The Transaction Journal can report the debits and credits made by QuickBooks for the Sales Receipt recorded. The Transaction Journal can be displayed by clicking the Journal button on the Enter Sales Receipts form or clicking Ctrl + Y while that form is open.
Arlene Tomin says
how do I create a deposit transaction to move the funds from undeposited funds account ?
when you look at customer/donner file it shows undeposited funds not the general fund
If I have a retail customer that wants to pay part of a retail sales total on a credit or debit card an pay the balance in cash, how do I record the transaction? Say the total of the transaction is $500.00 and the customer wants to put $300.00 on a credit or debit card and pay the balance in cash, how do I record this so that it will register the funds correctly?
Elise Perez says
I just recently entered my first two sales receipts; my preferences setup to deposit into the undeposited funds account. I then went to click on the ‘Record Deposit’ option, and clicked ‘ok’. Then, I wanted to ‘Make Deposit’ for both of the undeposited funds that were supposed to be sitting in the “Payments from Customers” window that should have opened up, but I find nothing there! I can see the two transactions in the ‘use register’ area, but why doesn’t the “payments from customers” pop up when I want to make the deposit?! this is very frustrating.
Chief Mechanic says
I don’t follow your comment of clicking “Record Deposit” and then visiting the Make Deposits function. When you enter a Sales Receipt, that records a customer payment for the full amount of the sales receipt and puts that payment in the Undeposited Funds account. That’s a tried-and-tested feature of QB. If that’s not working for you, then you have to check a) that your setting to use the Undeposited Funds account is correct, b) what your Undeposited Funds account is and what account the payment was posted (GL account #’s are helpful to differentiate the 2 accounts), and c) whether your QB company file passes verification.
If the funds are in your Undeposited Funds account, you can click the Payments button at the top of the Make Deposits window to select them.