I receive payment of $900. How do I reconcile my invoice of $1000, with a $900 payment?

Hello there, @jevansstaffcom.

I'll be more than happy to guide you through reconciling that $1,000 invoice with a $900 payment. Only the physical Payment transaction will appear on the reconciliation screen, so you'll simply need to enter the $900 partial payment and use that transaction to reconcile with. To create the Partial payment, follow the instructions below:

Creating a Partial Invoice Payment

1. From QuickBooks Online, navigate to the Sales tab and the Customers section. Click the customer's name whose Payment you received.
2. Find their Invoice below and click Receive Payment. You can use the Filter menu ▼ to narrow the list if needed.
3. Under Outstanding Transactions, in the Payment field, change the value to $900 to represent the partial payment. Click Save and close.

I'm also attaching a short video demonstration of this process, in which I partially pay a $274.50 Invoice for $100:

With these steps, you can pay any portion of the invoice partially until the balance is no longer outstanding. By creating this single $900 transaction, you can reconcile only this amount to reflect the payment you actually received from the customer when reconciling. I also recommend checking out our detailed guide to reconciling in QBO or the video tutorial below for additional information:

Please feel free to reach out to me here should there be anything else you need, the Community will have you covered. Thanks for bringing us your question, I look forward to hearing from you again.

Michael,

Thank you for the response.  This is a major help.  I have one follow up question.  Doesn't the $100 remain unreconciled?  $1,000 invoice with a $900 partial payment.  How does the system recognize the remaining $100?

Thank you,

Joe Evans

Stafford Communications

Hi Joe!

The $100 balance is recognized by the system as a receivable amount, so we can't say that it's unreconciled. 

To add more details on Michael's answer, you will not use the invoice balance on your reconciliation, it's the payment that you will reconcile. Any payments you received and deposited to your bank account, those are the ones that you will reconcile.

In your case, you received $900. Basically, you'll pay the invoice with $900 and deposit it to your bank account. In reality, you only deposit what you received. Thus, your actual bank shows $900 and your bank register in QuickBooks shows the same amount. Then, your good with your reconciliation.

When you receive the payment for the $100 balance, you'll want to record it QuickBooks. Then, deposit the money in your actual bank and record the deposit in your bank register as well. Then, you're good with your reconciliation.

The zest here is that your bank transactions should match with your bank register transactions, then you're good with your reconciliation.

Hope that clears up everything.  If you have additional questions, please come back here.

We are getting close, but have one additional question. 

Part of your response said,

When you receive the payment for the $100 balance, you'll want to record it QuickBooks. Then, deposit the money in your actual bank and record the deposit in your bank register as well. Then, you're good with your reconciliation.

I will never be receiving the $100.  I invoice $1000, they take a 10% fee and pay $900.  My question is, how do I reconcile the $100 difference?

Thank You,

Joe Evans 

We are getting close, but one more question.  Part of your response said,

When you receive the payment for the $100 balance, you'll want to record it QuickBooks. Then, deposit the money in your actual bank and record the deposit in your bank register as well. Then, you're good with your reconciliation.

I invoice $1000.  The client takes a 10% fee and pays $900.  How do I reconcile the $100?   

In this instance, I am off by $100.

Thank you,

Joe Evans

Stafford Communications

How would you handle this if it were a wire transfer?  In this case we have funds that were wired into our bank account and a bank fee was taken.  We have already matched the funds received with the invoice and now have a small open balance showing. 

Thanks for joining this conversation, IPLauraFish.

I'm happy to help resolve the small opening balance of your invoice.

Since the transactions have been successfully matched, you'll want to create a journal entry and use it to pay the remaining balance.

Let me show you how:

To create a journal entry:

1. Click the Plus sign icon and choose Journal Entry.
2. Credit the Accounts Receivable account.
3. Debit the expense account for bank charges.
4. Add the customer's name.
5. Enter the needed details and click Save.

To pay the remaining balance:

1. Click the Plus sign icon and choose Receive Payment.
2. Choose the customer's name at the top.
3. Select the invoice and the journal entry.
4. Click Save and close.

I’ve included screenshots below for your visual point of reference,

You can now reconcile the invoice since it's already fully paid.

That information should get you back in order. If you have follow-up questions about QuickBooks Online, please let me know. I'll be here and ready to help anytime. Have a good one.

I now understand how to reconcile a $1000 invoice when I receive $900 due to a fee being taken out.  I now have the same issue with multiple invoices in one transaction.  

When I view banking I see the total amount that was deposited that accounts for 4 invoices.  If a fee is NOT taken out I select Find Match and select the invoices that account for the total deposit amount.  

I now have a total deposit in the bank, but each of the 4 invoices has a small fee taken out.  So using the above values, I sent out 4 invoices that are $1,000 each.  They take $100 per invoice for a fee and pay $3,600.  Using the Find Match option does not allow me to select Undeposited Funds, so I can enter a negative amount for the fee.  I am able to do this when I have just one to reconcile.  Look forward to you  help.

Joe

It's nice to see you again, @jevansstaffcom!

You can toggle the Resolve Difference feature when matching your transactions so no balance would be left. I'll be happy to help you accomplish this.

1. Go to Banking.
2. Under Bank and Credit Cards, select your bank account.
3. On the For Review tab, find the payment you want to match.
4. Select Find match.
5. Click Resolve Difference.
6. Select an expense account for your invoice fees.
7. Enter your total invoice fees with a negative amount.
8. Click Save.

In addition to these steps, I've added a screenshot below for your visual reference.

Also, here's an article you can read that'll help you review your transactions after matching them: Find, Review, and Edit Transactions in your Account Register.

Know that you can always leave a comment below or start a new thread if you have any other concerns. I'll be always around ready to help.