Question

Erica is a new employee and you have been tasked with training her on QuickBooks. As she is still learning, she may make some errors. You gave her the following transaction to complete: April 15: Received payment in full from ABC systems. Invoice Number: 1002, Check No. 3652. Erica processed the transaction in the Enter Sales Receipt Window. Explain what she did incorrectly and how her transaction will affect the information displayed on the journal report. Think carefully! Given what you know about QuickBooks so far, also provide Erica with advice on using the program. **Your advice should be specific and tailored around your current knowledge.** Then, provide your best advice to a new user on how to use QuickBooks effectively. What should he or she always remember? What is most important?

Answer 1

Erica should have entered the payment in the 'Receive Payments' window and not through 'Enter Sales Receipt'

Enter Sales Receipt window is used when the payment is made by the customer in full at the same time when they receive product or services and invoice is issued. However, Receive Payment window is used when sales is done on credit earlier and the payment is received from customer at a later stage. The payment is adjusted to the existing invoices in part or full, leaving the remainder as due.

Due to the error done by Erica, the journal would show a new cash sale instead of receipt of payment for an old invoice.

This would have an impact on increasing the sales and not reducing the due from ABC system.

Incorrect Journal:

Debit Cash

Credit Sales

Correct Journal

Debit Cash

Credit    ABC System

The new user should always remember to differentiate between a new cash sales and receipt of payment against an earlies credit sales.

Enter Sales Receipt window should be used only in cash of cash sales where customer pays in full at the time of invoice

Receive Payments window should be used while receiving payments against existing outstanding invoices