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hazi qah
Level 1

How to do contra payments in QuickBooks Online

Hi all, I need some help as I'm not an accountant. Can someone please help solve this.. 

 

I have a customer who owes us RM 17,898 for two invoices and my company owes them RM 15,748. After the deduction, our customer was supposed to pay RM 2,150 but instead, they overpaid us RM 8,648. Then, the overpaid balanced of RM 6,498 we keep it for another deduction for six invoices. 

 

The question is how to do received money and need to do journal? I've tried some of the suggestions here. But it didn't work.

 

Thanks for helping me! xoxo

6 REPLIES 6
John C
QuickBooks Team

How to do contra payments in QuickBooks Online

Hi hazi qah We presume that when you state that you owe that customer money this is for something that you have purchased from them? If it is what you will have to do is create what's called a contra journal. You would create the journal with the amount/on both lines debtors and creditors for 15,748. 

There are two lines to the journal, on line one you'll select the debtors/accounts receivable (the debtors account relating to the relevant currency) in the account column, in the credits column you'd enter the 15,748 amount, in the name column you'd enter the customers name. On line two in the accounts column enter the creditors/accounts payable account (the creditors account that relates to the relevant currency), in the debits column enter 15,748 and in the name column you'd enter the suppliers name, save and close. 

You'd then receive payment on your customers invoice, select the journal and then in the amount received field enter the amount that they actually sent you, 8,498, this will then create a credit on the customers account for 6,,498. When you receive payment on the customers other invoices you can then use the credit/unapplied payment.

As you also owe that customer money, we presume for something you've purchased you will then have to make payment on the bill that you owe the customer/supplier the 15,748 and select the journal/use it as the payment. 

We've included an article that explains the above, please note that we're not accountants and we recommend that you qualify the above with an accountant

https://quickbooks.intuit.com/learn-support/en-uk/journal-entries/how-to-enter-contra-payments-in-qu...

hazi qah
Level 1

How to do contra payments in QuickBooks Online

Thank you for you response @John C. I've tried as you said and why the second invoice (INV 1006) the original amount is 11,400 but the payment automatically changed to 2,000?

John C
QuickBooks Team

How to do contra payments in QuickBooks Online

Hi hazi qah When you refer to the second invoice, is this another of the customers invoices that you'd like the credit to apply to?

hazi qah
Level 1

How to do contra payments in QuickBooks Online

Hi, let me edit back my question. Here is the correction :

 

I have a customer who owes us RM 17,898 for two invoices.

 

Invoice #01 amount is RM 6,498 AND invoice #02 is RM 11,400. and my company owes them RM 15,748. After the deduction, our customer was supposed to pay us RM 2,150 but instead, they overpaid us RM 8,648.

 

Then, we keep the overpaid balance of RM 6,498 for another deduction from their upcoming six monthly invoices. For this customer, we bill them every month which is 1 month, 1 invoice for the amount of RM 1,083. 

 

I hope you can understand what I'm trying to say.. Thank you

CharleneMaeF
QuickBooks Team

How to do contra payments in QuickBooks Online

Thanks for adding more details about this, hazi qah.

 

I'm here to help you successfully track the payments.

 

Let's receive the payment in QuickBooks Online. Then, we can apply the overpayment to the other invoices. I'll show you how:

 

Receive payment:

 

  1. Select + New.
  2. Select Receive payment.
  3. From the Customer dropdown, select the name of the customer.
  4. From the Payment method dropdown, select the payment method.
  5. From the Deposit to dropdown, select the account you put the payment into. Tip: You can put the money directly into an account, like your current account, or select Undeposited Funds if you need to group the payment with others.
  6. In the Outstanding Transactions section, select the checkbox for the invoice you're recording the payment on.
  7. When you're done, select Save and close.

 

Once done, you can apply the credit to a new invoice. Here's how:

 

  1. Go to + New, and select Invoice.
  2. Create the invoice.
  3. From + New, select Receive payment.
  4. Select the credit and then click Save and close.

 

For more details, please see this article: Handle a customer credit or overpayment in QuickBooks Online.

 

Additionally, I've added this article that'll help you return a payment. This ensures your books are up-to-date: Record a Customer Refund or Supplier Refund in QuickBooks Online

 

Please keep us posted if you need additional assistance tracking your sales transactions. We're always here to help you out.

hazi qah
Level 1

How to do contra payments in QuickBooks Online

 

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