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Record invoice payments

by Intuit•868• Updated a day ago

Learn how to record invoice payments in QuickBooks Solopreneur and QuickBooks Online.

Record invoice payments from your customers. This helps you keep track of any remaining balances of your customers.

Note: If you use QuickBooks Payments to process payments, we automate these steps. When your customer pays the invoice, QuickBooks processes the payment and categorizes it.

For a better experience, open this article in QuickBooks Online. Launch side-by-side view .

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Once your customer pays your invoice you need to record it in QuickBooks. Let’s go over two ways you can receive payment and how to properly use the undeposited funds account to keep your books accurate. The first way you can receive your payment is to select Sales. Then select Customers. This shows your Customers List. Just find your customer and you will see the money they owe you here. To receive a payment, you could select Receive Payment right here. However, another way to receive payment is to select the Create menu and Receive Payment. Then, enter the customer’s name. QuickBooks displays any open invoices for that customer. Select the checkbox for the invoices the customer is paying. QuickBooks assumes that the customer is paying the entirety of the invoice, but if this is a partial payment, you can change the payment amount. Next, record how the customer paid you. If you don’t see their payment method listed, just select Add New and add it. This customer is paying with a check. You don’t always need to record a reference number, but since this customer is paying with a check let’s record their check number. Then choose the account where the money is right now. It's tempting to choose checking, but unless the money is in your checking account already you should choose Undeposited Funds Undeposited Funds is a temporary account that holds payments you plan to deposit later at the bank. They aren’t in the bank yet, but they will be later. Undeposited Funds is important because it allows you to easily combine several payments together into a single deposit at the bank. If you don’t combine deposits then you can skip this and just record the payment once it is in the bank if you prefer, but otherwise it is best to use Undeposited Funds. Let’s select Undeposited Funds so we can combine it with other deposits later. Then select Save and Close. Now this customer has a zero dollar balance since they paid their invoice. If you recorded the money going directly into a bank account, you’re done! But if you used Undeposited Funds, you’ll need to record the deposit after you put it in the bank. To see this process watch our video on How to Record a Bank Deposit. Now try recording an invoice payment of your own.

With QuickBooks Payments, you can see when customers view and pay invoices, and get an up-to-date picture of your cash flow to make smarter financial decisions. Learn more about QuickBooks Payments.

Record invoice payments in QuickBooks Solopreneur

For payments that customers link from a bank:

Go to Get paid, then select Invoices (Take me there).
Select the invoice you want to record a payment for.
Select Record payment in the ACTION column. The Record payment window appears.
Select a bank account from the Deposited to ▼ dropdown.
Select the checkbox for the transaction you want to link to the invoice.
Note: If you don’t find the transaction, the bank may still be processing it or it isn't within the selected date range. You can use the Date filter to expand the date range.
Select Next.
Enter the payment amount in the Amount to apply field.
Select Save.

For cash payments from customers:

Go to Get paid, then select Invoices (Take me there).
Select the invoice you want to record a payment for.
Select Record payment in the ACTION column. The Record payment window appears.
Select Cash from the Deposited to ▼ dropdown.
Enter the payment amount in the Amount field.
Select a date in the Payment date field.
Note: You can’t select a date before the Invoice date or in the future.
Select Save.

Record invoice payments in QuickBooks Online

Note: These steps apply to the new version of Receive payment.

Go to + Create, then select Receive payment.
Select a customer from the Customer ▼ dropdown. You can select + Add new to create a new customer.
Select the payment method from the Payment method ▼ dropdown. You can select + Add new to add a new payment method.
Select the account to put the payment into from the Deposit To ▼ dropdown.
Note: The Deposit To ▼ dropdown doesn't appear if you use a merchant account to process payments.
Enter the payment amount in the Amount received field. Payments can be full or partial.
In the Outstanding Transactions section, find the DESCRIPTION column.
Select the checkbox for the invoices you're recording the payment for.
- If you select only one invoice, the amount received appears in the PAYMENT column and in the Amount to Apply.
- If you select several invoices, their open balance also appears in the PAYMENT column. This may exceed the amount you have in the Amount received field. You can adjust the amounts in the PAYMENT column to show the amount received.
- The Amount to Pay field shows the total amount from the PAYMENT column. Any difference between the amount to apply and the amount received, shows as the amount to credit. Learn how to apply credits to customers.
Select Record and close.

Record several invoice payments in a single deposit

You can use the Undeposited Funds account to record several payments in QuickBooks. This allows you to combine those payments into one deposit transaction.

Note: Do this only if your bank combines several payments into one deposit.

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