QBO - Certified QuickBooks ProAdvisor Sales and Receivables Workflow Questions and Answers 1 — Questions and Answers
Question 1: A client has several customers who paid with checks and cash throughout the day. To efficiently record these payments and ensure the bank deposit matches, what is the recommended final step in the QuickBooks Online sales workflow?
- Individually record each payment using the 'Receive Payment' screen and deposit them directly to the bank account.
- Create a single Sales Receipt for the total amount and deposit it to Undeposited Funds.
- Use the 'Bank Deposit' feature to group the payments received from Undeposited Funds into a single deposit transaction. (Correct answer)
- Hold the checks and cash until the end of the week and then create separate deposit slips for each payment.
Correct answer: Use the 'Bank Deposit' feature to group the payments received from Undeposited Funds into a single deposit transaction.
The correct workflow is to first receive payments against invoices (or create sales receipts) and direct these funds to the 'Undeposited Funds' account. Then, when the physical deposit is made at the bank, use the 'Bank Deposit' screen to select all the individual payments that constitute that single deposit. This ensures that the deposit amount in QuickBooks matches the actual bank deposit, simplifying bank reconciliation.
Question 2: A customer overpaid an invoice. Which of the following is the best practice in QuickBooks Online to handle this overpayment and give the customer credit for future purchases?
- Delete the original payment and re-enter it for the correct invoice amount.
- Create a Credit Memo for the overpayment amount, which can then be applied to a future invoice. (Correct answer)
- Record the overpayment as a tip in the Receive Payment screen.
- Leave the unapplied amount as a customer credit directly from the Receive Payment screen without creating a separate transaction.
Correct answer: Create a Credit Memo for the overpayment amount, which can then be applied to a future invoice.
When a customer overpays, the best practice is to create a Credit Memo. This formalizes the credit on the customer's account. Later, when a new invoice is created for that customer, QuickBooks will prompt you to apply the available credit from the Credit Memo, maintaining a clear and accurate accounts receivable history.
Question 3: When creating an invoice for a service that will be performed in the future, what is the correct transaction to use in QuickBooks Online to record a customer's initial deposit?
- Create an invoice for the full amount and record a partial payment against it. (Correct answer)
- Use a Sales Receipt for the deposit amount.
- Create an Estimate and convert it to an invoice once the service is complete.
- Create a liability account called 'Customer Deposits' and record the deposit using a Journal Entry.
Correct answer: Create an invoice for the full amount and record a partial payment against it.
The standard workflow is to create an invoice for the full amount of the agreed-upon service. Then, use the 'Receive Payment' function to record the partial payment (deposit) against that specific invoice. This correctly tracks the outstanding balance in Accounts Receivable.
Question 4: A business provides services and collects payment immediately at the time of service. Which QuickBooks Online transaction form is most appropriate for this scenario?
- Invoice
- Delayed Charge
- Sales Receipt (Correct answer)
- Estimate
Correct answer: Sales Receipt
A Sales Receipt is the correct form to use when payment is collected at the same time the service is provided or the product is sold. It records the sale and the payment in a single transaction and does not affect Accounts Receivable, unlike an invoice which is used when payment will be received later.
Question 5: Which of the following sequences represents the correct and most common accounts receivable workflow in QuickBooks Online for an accrual-basis business?
- Receive Payment > Invoice > Bank Deposit
- Sales Receipt > Bank Deposit
- Estimate > Sales Receipt > Bank Deposit
- Invoice > Receive Payment > Bank Deposit (Correct answer)
Correct answer: Invoice > Receive Payment > Bank Deposit
For an accrual-basis business that extends credit to customers, the standard workflow begins with creating an Invoice to record the sale and the account receivable. When the customer pays, a Receive Payment transaction is recorded to close the invoice. Finally, the payment (often held in Undeposited Funds) is included in a Bank Deposit.
Question 6: To encourage timely payments, a company wants to automatically send reminders for overdue invoices. Where in QuickBooks Online can this feature be configured?
- In the Customer's profile under the 'Payment and billing' tab.
- From the 'Reports' center by customizing the A/R Aging report.
- In 'Account and Settings' under the 'Sales' tab. (Correct answer)
- Through the 'Recurring Transactions' menu.
Correct answer: In 'Account and Settings' under the 'Sales' tab.
Automatic invoice reminders are a company-wide setting. They can be enabled and customized by navigating to the Gear icon > Account and Settings > Sales tab. Here, you can set up multiple reminder emails to be sent based on how many days an invoice is overdue.
QBO - Certified QuickBooks ProAdvisor Sales and Receivables Workflow Questions and Answers 1
A client has several customers who paid with checks and cash throughout the day.
To efficiently record these payments and ensure the bank deposit matches, what is the recommended final step in the QuickBooks Online sales workflow?