Customer paid outstanding invoice. Deposit made to credit card account instead of bank account. Can't transfer due to cash advance fees. How do I record this payment?

Hi there,

In QuickBooks Online we can only receive payments and make deposits through bank and asset accounts only. We can record the payment and mark the invoice as paid in QuickBooks Online using a Journal entry. Let me guide you how:

1. Click on the + New option.
2. Click on Journal Entry.
3. Select the journal date and currency.
4. Under line item 1 select the Credit card account and enter amount in debits column.
5. In line item 2 choose Accounts receivable and enter amount in credits column, and select the customer name.
6. Click on Save or Save and close after.

Then, let's link the journal entry to the invoice to mark the invoice as paid in QBO. Here's how:

1. Click on the + New.
2. Click on Receive payment.
3. Select the customer name.
4. Select the invoice under Outstanding Transactions, and under Credits select the journal entry created.
5. Click on Save and close.

That's it! You've now recorded the deposit from the credit card account and marked the invoice as paid in QBO. If there is a downloaded payment from the credit card account, you can match them to the payment created to avoid duplicates.

If you have other concerns with recording your transactions, please post here again. We are here to help you out. 

Perfect thank you so much for your help.

Hi Again,

Our credit card payment is now due and my manager would like to pay the statement total, less the amount deposited from the customer. 

i.e. statement total = $25,000

Customer payment = $5,000

We pay $20,000

How am I able to record this? After allocating the payment to accounts receivable prior.

Thank you

Hi there,

There are different ways to record credit card payments in QuickBooks Online. The best way to record one is using the pay-down credit card option. Here's how to record it in QBO:

1. Click on the + New option.
2. Click on Pay down credit card under Other column.
3. Select the credit card you made payment to.
4. Enter the payment amount and date.
5. Select the bank account you used to make the payment.
6. Fill out other fields, and click on Save and Close.

You've now recorded the credit card payment on file. I recommend checking this link for a comprehensive steps on how to: Record credit card payments in QBO.

Drop by again in the Community if you have questions about recording your transactions. 

Hello, my apologies I don't think I explained myself properly.

My initial inquiry was how to record a cash payment made to a credit card instead of the cash account.

I then created a journal entry to debit the amount from the credit card account and to credit the accounts receivable account so that i could receipt the payment against an invoice. I was then able to match the downloaded credit card transaction to the journal entry.

Secondary to the above inquiry, our credit card payment is now due and my manager now wants to pay the amount owing to the credit card, minus the amount that was deposited into the account by mistake.

Say, our payment due is $25,000.

We received the deposit for $5,000 (which has now been allocated to accounts receivable).

My manager is going to pay $20,000 from our cash account to the credit card account.

Is there a way that I can:

1. Record the customers payment against their invoice to show it as paid;

2. As well as apply the payment as a deduction/pay down to the credit card account?

Therefore, there would only be the $20k balance to be paid by us.

Thank you

Hi there,

Thanks for more information about your concern. The journal entry created earlier is used to close and pay the invoice in QuickBooks Online. So there is no need to record a customer payment again since from the initial steps, we did make a Receive payment transaction to link the invoice and journal entry. We will have to create a different transaction to record the credit card payment.

If you need more help looking/recording in to your transaction, I recommend contacting our Chat or Phone support so our Care Team can do a smartlook session with you to better help record the transaction.