Provision of Receivable (Temporary Credit)

Good day, SueHam

I'll walk you through how you can mark an invoice as paid. You'll want to create a Receive Payment with the full amount deposited to Undeposited Funds.

Here's how:

1. From the QuickBooks Home page or the Customers menu, select Receive Payment.
2. In the Received From drop-down, select the customer's name.
3. Enter the Amount received.
4. Make sure the date is correct, then choose the Payment method.
5. Select the invoice or invoices you'd like to pay.
6. To add a discount or credit, select Discounts and Credits.
7. Select Save & Close.

More about recording invoice payment can be found in this link: Record an invoice payment.

After that, you create a bank deposit including the invoice payment. From there you add another line for Vendor's profile affecting Account's Payable (AP). The total amount would be your invoice payment and the provisions (AP).

1. Go to the Banking menu.
2. Choose Make Deposits.
   
3. From the Payment to Deposit window, select the payments you want to deposit and click OK.
4. Review the information.
5. Click Save & Close.

For more information about recording deposits, you can visit this article: Record and make bank deposits in QuickBooks Desktop.

Once there is a reversal, you can apply bills to the vendor with the provision amount.

Here's how:

1. Go to the Vendors menu, then select Pay Bills.
2. Select the correct accounts payable account from the dropdown.
3. Click the checkboxes of the bills you want to pay from the table.
4. Enter the date you paid the bill. and select the payment method.
5. Select Pay Selected Bills.
6. Click Done.
   
   

Learn more about paying bills by visiting this article: Pay bills in QuickBooks Desktop.

If you need other helpful articles in the future, you can always visit our site: Help articles for QuickBooks Desktop.

The Community is always open if you have other questions. I'll be around to help. Wishing you a great day ahead.

Hi Charies_M,

Thank you so much for your reply. 

I am just a bit stuck on one thing, when you say create Receive Payment with the full amount deposited to Undeposited Funds and select the invoices I'd like to pay, I cannot do this because the actual amount that is paid into my bank does not add up to the amount due on the outstanding invoices, e.g. on the remittance advice from my customer the list of invoices amount will be €8546 but the amount paid into my bank is €5675 because the Provision of Receivable is €2871, so when I try to pay these invoices on Quickbooks I can't because the amount paid €5675 does not match to the amount owed €8546.

Maybe I misunderstood your instructions and you've actually explained to me how to do this.....but further help would be greatly, greatly appreciated.

Thank you.

I appreciate you for getting back, SueHam. Let me share with you some additional information on how to handle your open invoices with payments and temporary credit.

First, you can record the provision of receivables as Credit Memo so the amount matches, and you can apply it when receiving payment. 

Here's how:

1. Open your QuickBooks Desktop (QBDT) file.
2. From the Customers menu, select Create Credit Memos/Refunds.
3. From the Customer:Job drop-down, select your customer.
4. Fill in the necessary information with the credit amount.
5. Hit on Save and Close.

6. In the Available Credit window, choose to Retain as an available credit. This way, the system enters a negative amount in your Accounts Receivable (A/R) register for the credit memo. You can use this credit as payment for another transaction. If you chose to retain as available credit, you'll see the available credits in the customer payment window.

After that, you're now ready to pay the invoice and apply for the available credit.
 

1. Go to the Customers tab, then click on Receive Payments.
2. Pick the customer name under the Received from drop-down.
3. Tap the Discounts and Credits icon.
4. On the Credits tab, check the credit you want to apply and then Done.
5. You may see a prompt to Confirm transfer. If you do, select Yes. The amount will be applied automatically to the invoice.
6. Add the payment amount under the Payment column.
7. Hit Save & Close to record the transaction.

When the temporary credit gets cleared, you can issue a check to your customer through the Banking menu. I'm adding this link as your reference: Create, modify, and print checks.

To learn more about the various ways in tracking customer transactions in QBDT, you may also check out the details from this article: Get started with customer transaction workflows in QuickBooks Desktop.

Please let me know if you have any other follow-up questions while handling your open invoices in QBDT. I'll be right here to provide additional assistance. Have a good one!