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Intuit

Record a payment for an invoice

Learn how to record invoice payments in QuickBooks Desktop, including how to apply available invoice credits or discount.

Note: Recording invoice payments is part of your usual A/R workflow in QuickBooks Desktop. To see the complete list of workflows and other customer-related transactions, refer to Accounts Receivable workflows in QuickBooks Desktop.

Important: By default, the payments go to Undeposited Funds. If you want the payments to go to a specific bank account instead, you can turn off Undeposited Funds in Payments Preferences. Once the Undeposited Funds is turned off, the Deposit To drop-down will appear on the Receive Payments window. You can select the drop-down so you can choose the account to which you want to deposit the money. See Understand how the undeposited funds account works for more details, including steps to disable Undeposited Funds.

To record a payment

    1. From the QuickBooks Home screen or the Customers menu, select Receive Payments.
    2. On Received From drop-down, choose the customer’s name, then enter the Amount.
    3. Make sure the date is correct, then choose the Payment method.
    4. (Optional) Enter the Reference or Check #.
  1. Select the Invoice(s) to be paid by putting a check mark next to the invoice.
  2. Set any discount or credit you want to apply to the invoices.

    To apply a discount:

    You can apply a discount based on customer payment terms or any other concessions/deductions you make in the course of running the business. Note that you can enter any discount amount but it cannot be higher than the invoice amount.

    1. Select Discounts and Credits.
    2. (Optional) Change the amount of the discount.
    3. Enter the name of the expense account you use to track discounts. (Example: Discount Expense).
    4. Select Done to record the discount.

    To apply a credit:

    If the customer has available credits, you can use and apply this credit when processing the payment.

      1. Select Discounts and Credits.
      2. Select the credit you want to apply.
    1. If you do not want to use the entire credit or if the credit amount is more than the customer balance, change the amount under the Amt to Use column.
    2. Select Done to record the credit.
  3. (Optional) Enter a Memo.
  4. Select Save & Close.

Where do invoice payments go to?

By default, the payments go to Undeposited Funds. If you want the payments to go to a specific bank account instead, you can turn off Undeposited Funds in Payments Preferences. Once the Undeposited Funds is turned off, the Deposit To drop-down will appear on the Receive Payments window. You can select the drop-down so you can choose the account to which you want to deposit the money. See Understand how the undeposited funds account works for more details, including steps to disable Undeposited Funds.