Applying payments to a pending invoice

One other thing:

What happens if you accidentally save an invoice as final, then realize it needs to be pending?

or,

You mark an invoice as pending, then later mark as final, then have to change it back to pending? I'm not sure why that would happen but it's a possibility.

Does it reverse all the accounting and inventory reduction?

Thanks for reaching out to us, Maverick.

I can share some insights about the effect of marking an invoice as pending or final.

If you decide that you're not ready to finalize the invoice, use the Mark As Pending option. The system will turn the invoice as non-posting and will not account it as earned. As soon as you finalize the invoice, it then credit sales and debits accounts receivables, thus, recognizing revenue for you.

To simplify, making an invoice pending will only save the entry, but there is no accounting behind it. If you're ready to recognize a revenue, use the Mark As Final option. 

Also, this feature does affect inventory quantity on the invoice. Just the posting of your transaction.

Please post here again if there's anything else you need help with QuickBooks. I'll be right here to help you out. All the best!

Thank you, I do understand that marking an invoice as pending is non posting, and finalizing it posts.

My question is specifically if you take an invoice that is finalized but reverse it to mark as pending, does that reverse all the inventory and accounting transactions associated with it?

Hello there, @Maverick2. Thank you for providing more details about your concern.

Yes, it will reverse back the inventory of the items on your invoice if you reverse it back to pending status. However, if the invoice has been finalized and paid, the option to put back the status to pending is unavailable.

I've added an article you might need in the future regarding customer refunds: Give your customer a credit or refund in QuickBooks Desktop for Windows.

I'll be around if you have other questions. Take care and stay safe!

Here's a related question about payments on pending invoices.

We have a pending invoice that we collected a deposit on by emailing the invoice to the customer with the online payment link. They paid the deposit.

Question:

The payment will come through QB merchant services, and will download. Will that deposit get automatically applied to the pending invoice? We have it set up to automatically download and match it.

If it doesn't match it to the invoice, where will it go? Because in the invoice window when you click "Receive Payments" icon at the top it says "This is a pending invoice and cannot be paid." But obviously something was paid in relation to that invoice.

Thanks for getting back to us, Maverick2.

Allow me to share additional information about applying payments to a pending invoice in QuickBooks Desktop.

If the payments don't match to the invoice, it will show as Unapplied payment in the customer profile given that the Automatic apply payments in the settings is turned off.

However, if the automatic apply credit/payments feature is turned on, QuickBooks will check for and link an open invoice from that specific customer.

Additionally, I've also included this helpful reference for a compilation of articles to help organize your customer transactions: Learn the different ways you can track customer transactions in QuickBooks Desktop.

You can always get back to me if you have questions about your invoices or other concerns by leaving a comment below. I'm always here to assist. Have a great rest of the day.