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Level 2

Adjusting an invoice to zero balance when partially paid

I'm receiving payments from overseas customers for their invoices, and the $ amount I receive in my account does not match the invoiced amount. It's my bank charging for receiving the overseas funds, however annoyingly they are not charging me as a bank fee, but debiting it from the amount the customer is paying. 
How can I mark the invoice as paid, when the amount received does not exactly match the invoice, and correctly have the outstanding amount allocated to a bank fee expense?

5 Comments
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Level 15

Adjusting an invoice to zero balance when partially paid

regardless of how they title the hold back, it is a fee

do a credit memo for the fee using a bank fee expense account, apply to the invoice, and receive payment

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Level 2

Adjusting an invoice to zero balance when partially paid

Thanks - I think a credit note is the same as an adjustment note here in Aus?
Are the fields to match the customer attached to the original invoice? Do I create a service item to put on the note (with the bank fees expense account as the , and should it be a + amount or - amount? 
Sorry, first timer fumbling my way through! 

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Moderator

Adjusting an invoice to zero balance when partially paid

Thanks for the quick response, nicky1.

 

I agree with @Rustler. Also, a credit memo/note in QuickBooks Online for United States is just equivalent to the adjustment note in QuickBooks Online for Australia.

 

To be more familiar with applying an adjustment note in QBO, you can check out this article: Apply a adjustment note, credit or refund to a customer.

 

Reach back to me if you have further questions about adjusting invoice. I'm always ready to help you out. Have a great weekend.

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Level 2

Adjusting an invoice to zero balance when partially paid

Thanks - I did read that article first, but the questions i had were more specifically about step 2 on that instruction list - Fill out all required fields (including the customer name, date, products/service items, quantities and amounts)
1. I assume the customer is the same customer that I'm applying the credit to?
2. The product/service - not sure what to do here, do i create a service item called bank fees? (and have it's income account allocated to the bank fees expense account?

3. is the amount in the positive or negative?

 

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QuickBooks Team

Adjusting an invoice to zero balance when partially paid

Hi there, @nicky1.

 

Thank you for following the recommendation given by my colleague. I can share some more insights about adjusting an invoice.

  1. Yes, you will have to enter the customer's name to whom you'll be applying the credit.
  2. Yes, you will have to create a service item for the bank fee. Select Add new from the Product/Service item drop-down. Choose the expense account in the Income account field.
  3. For the Amount field, it should be a negative amount.

That's it. Add a comment below if you have other questions. I'd be happy to provide additional help. Have a good one!

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