Part 4: The Transaction Cycle (Module 6)

1. Money Out (Accounts Payable):

  • Enter a Vendor Invoice (AP-Bill) from City Real Estate for $2,000 for rent.
  • Navigate to Pay Bills, select the rent invoice, and schedule it for payment.
  • Generate and post the payment as a Cash Disbursement (CD-AP) to clear the payable.

2. Money In (Accounts Receivable):

  • Create a Client Bill (AR-Bill) for the Department of Youth using the “Counseling Session” item you created earlier. Bill them for 10 sessions.
  • Record a Client Cash Receipt (CR-AR) for the full amount of the bill to show it has been paid.
  • Navigate to Make Deposits. Select the receipt sitting in Undeposited Funds and deposit it into your main Checking Account.

3. Journal Entries & Projects:

  • Record a standard Journal Entry for $500 of supplies expense. Tag this transaction using the Summer Camp Project code you created earlier.