Can I write off part of a Customer invoice to Drawings?

Hi Boqer JDM, thanks for joining the Community

To do this, first record the cash part-payment by selecting Receive payment on the invoice. 

Complete the fields on the Receive payment screen as you see fit, then select the appropriate cash/drawings account on the Deposit to field. Make sure to edit the Amount received to reflect the partial amount.

Once saved, the open balance of the invoice will reflect the remaining balance received through the bank. You can then go ahead and match this to the downloaded transaction on the banking page.

Thanks again for reaching Intuit support. We'll be here if you have further questions or require additional assistance. 

Hi Georgia,

Thanks for your reply.

I have matched both part payments with the invoice, but because some money was removed before the cash deposit was made the account is still showing £34 owing. I need to set this amount off against drawings somehow.

Let me help you sort this out, Boqer.

The amount that is removed before the cash deposit are the bank fees. Since the transactions has already been matched, we can unmatch them. To do so, follow the steps below:
 

1. Go to Transactions, then select Bank transactions.
2. Select tile for the bank or credit card account you downloaded the transaction from.
3. Select the Categorised tab.
4. Find the transaction you want to unmatch.
5. Select the blue transaction link in the Added or Matched column to see the matched transaction. 
6. Select Undo from the Action column.

This disconnects the two transactions. The original downloaded transaction will go back to the For Review tab. After that, enter a negative amount of the deposit. Then, select the invoice you've created so the amounts matches correctly with the total amount.
 

1. Click the +New.
2. Select Bank deposit.
   

Once done, categorise the transactions again.  On top of that, you can review your accounts to make sure they your bank and credit card statement. To know more about this, check out this article for more details: Reconcile An Account In QuickBooks Online.

Feel free to let us know if you need further assistance about invoices or the payment in question or if you need help about categorising transactions. We're always right here to help you.

HI Maria,

Thanks for your reply, but the amount removed before the cash was deposited was not bank fees. It was cash drawings and I need to mark it as such somehow and clear the account.

Hi Boqer JDM, thanks for getting back to us here and sorry for any confusion 

In this case, I would recommend recording the transaction in three parts as below:

1. Receive payment on the invoice for the partial amount paid by the customer through the bank.

2. Receive payment on the invoice for the partial amount paid by the customer in cash (including the amount withheld by the business owner) and post this to the Undeposited funds account in the Deposit to field.

3. After this, create a Bank deposit (+ New, Bank Deposit) and tick the cash payment listed under Select the payments included in this deposit.

Then, scroll down to Add funds to this deposit and select the account that you're using to track the drawings in the Account field. Complete the other fields on this line as you see fit and enter the amount as a negative (e.g. - 34.00). 

The bank deposit will then be reduced by this amount (and will be reflected in the Total field). You can then save & close and match this to the downloaded transaction. Hope this helps. :)