Invoices from outside program

sophie25 · ‎January 14, 2019

I have 2 questions.

1) I work for a auto mechanic shop. We invoice and receive payment through an industry specific program. Every morning I transfer the information from our program to QBO. At times the amounts are different by a penny due to sales tax calculation. How do I get rid of the .01 remaining on customer accounts? It is not a true amount that is due to us.

2) We had an invoice that was partially paid and then the remainder was paid at a later time. In QBO the invoice is showing as the partial payment only. How do I get this taken care of.

I did not do any of the set up for the QBO, I am only trying to follow in someones footprints and fix the errors so that I can continue correctly.

RaymondJayO · ‎January 14, 2019

Welcome to the QuickBooks Community, @sophie25.

Thank you for providing detailed information about your 2 concerns.

For your first question, let’s write-off the balance since there’s .01 remaining on your customer accounts. This way, you can declare it as a bad debt to clear the invoice out of your accounts receivable (A/R) in QuickBooks Online (QBO).

Before you address a non-collectible debt, let’s first review your A/R Aging Detail report. Here’s how:

Go to the Reports from the left menu.
In the Search bar, enter Accounts Receivable Aging.
Select the Accounts Receivable Aging Detail report from the results to review your outstanding accounts receivable.

Then, let’s create an account for the bad debts. Here’s how:

Go to the Gear icon on the Toolbar.
Under Your Company, select Chart of Accounts.
Select New.
In the Account dialog, select Expenses from the Account Type drop-down list.
From the Detail Type drop-down list, select Bad Debts.
In the Name field, enter Bad Debt.
Choose Save and close.

For the third to last steps, please refer to this article: How to Write Off Bad Debt. After performing the steps above, you’ll get rid of the .01 or penny differences on your customer balances.

For your second question, you’ll have to receive the payment since the invoice is still showing as a partial payment in QBO. Here’s how:

Go to the Plus (+) sign at the right top.
Under Customers, choose Receive Payment.
Select the customer who paid you in the Choose a customer field.
Enter the payment date.
Enter the payment method.
For the Reference Number, enter the check number.
When you receive payments that you’re going to deposit in a group, go to the Deposit Menu and choose the Undeposited Funds account. If you’ve already deposited this payment, then choose the account you deposited it to.
Click Save and New if you need to receive another payment, or Save and Close if you’re finished.

For more details, please check out this article: Receive Payments in QBO. After performing the steps above, the invoice will be taken care of.

This will get you back to your business, @sophie25. If you need anything else about QBO, I’m just one comment away. I’m glad to help. Cheers!

View solution in original post

RaymondJayO · ‎January 14, 2019

Welcome to the QuickBooks Community, @sophie25.

Thank you for providing detailed information about your 2 concerns.

For your first question, let’s write-off the balance since there’s .01 remaining on your customer accounts. This way, you can declare it as a bad debt to clear the invoice out of your accounts receivable (A/R) in QuickBooks Online (QBO).

Before you address a non-collectible debt, let’s first review your A/R Aging Detail report. Here’s how:

Go to the Reports from the left menu.
In the Search bar, enter Accounts Receivable Aging.
Select the Accounts Receivable Aging Detail report from the results to review your outstanding accounts receivable.

Then, let’s create an account for the bad debts. Here’s how:

Go to the Gear icon on the Toolbar.
Under Your Company, select Chart of Accounts.
Select New.
In the Account dialog, select Expenses from the Account Type drop-down list.
From the Detail Type drop-down list, select Bad Debts.
In the Name field, enter Bad Debt.
Choose Save and close.

For the third to last steps, please refer to this article: How to Write Off Bad Debt. After performing the steps above, you’ll get rid of the .01 or penny differences on your customer balances.

For your second question, you’ll have to receive the payment since the invoice is still showing as a partial payment in QBO. Here’s how:

Go to the Plus (+) sign at the right top.
Under Customers, choose Receive Payment.
Select the customer who paid you in the Choose a customer field.
Enter the payment date.
Enter the payment method.
For the Reference Number, enter the check number.
When you receive payments that you’re going to deposit in a group, go to the Deposit Menu and choose the Undeposited Funds account. If you’ve already deposited this payment, then choose the account you deposited it to.
Click Save and New if you need to receive another payment, or Save and Close if you’re finished.

For more details, please check out this article: Receive Payments in QBO. After performing the steps above, the invoice will be taken care of.

This will get you back to your business, @sophie25. If you need anything else about QBO, I’m just one comment away. I’m glad to help. Cheers!

sophie25 · ‎January 15, 2019

Thank you very much for the help.

sophie25 · ‎January 18, 2019

What do I do if the amount is us owing the customer .01? Most occurances are a penny owed to us but there are some that the rounding went the other way and left .01 that is due to the customer.

Alessandra_B · ‎January 18, 2019

Hi there, @sophie25.

In continuation of what my colleague @RaymondJayO said, after creating a bad debt account, you need to create a product/service item for the bad debt.

First off, I recommend seeking advice from your accountant on how to resolve the extra penny amount. Nevertheless, let me show you how to create a product/service.

Click on the Gear icon, choose Products and Services.
Click on New, choose Non-Inventory.
In the name field, enter Bad Debt.
Select the bad debt expense you created under the Income Account field.
Clear the Is taxable checkbox.
Click on Save and Close.

Once done, you can now create a credit memo. This way, you can apply it to future customer transactions to write-off the customer's balance. Here's how:

Click on the Plus (+) icon, choose Credit Memo.
Choose the name of the customer.
In the Product/Service drop-down, choose the Bad Debt item you created.
In the Amount column, enter the difference as a positive number.
In the Memo field, enter Bad Debt.
Click Save and Close.

After this, you may now apply the credit memo. Allow me to show you how.

Select the Plus (+) icon, choose Receive Payment.
Select the customer from the Customer drop-down list.
In the Outstanding Transactions section, select the invoices to write off.
Under Credits, select the credit memo you created.
Make sure the Amount received is 0.00.
Select Save and close.

Feel free to read this article for your future reference: How to Write Off Bad Debt?

Please leave a comment below f you have other concerns.

sophie25 · ‎January 21, 2019

I have cleared up all of the differences that I could with credit memos. How do I now get the remaining amounts zeroed out? (The negative cents.) I have attached a copy of the report I am working off of. Thank you.

sophie25 · ‎January 21, 2019

I was able to clear out all that I was able to do a credit memo for. How do I now clear out balances that are a negative amount on the A/R? I have attached a copy of the report that I am working off of so that you can see what I mean.

RaymondJayO · ‎January 21, 2019

Hello there, @sophie25,

I appreciate you taking the time to attach a screenshot to help me get a better picture of the report that you're working off.

The possible reason why there are negative balances on your A/R Aging Summary report is you've received payments without invoices that are linked to.

To help fix this, you'll need to create a invoices and apply the payments for these transactions.

Since there are lots of transactions that have negative amounts and if these are old transactions, I'd suggest consulting an accounting professional. By doing so, he can help you clear out these balances and ensure your financial reports are accurate.

Stay in touch with me if you have other concerns while working in QBO. I'll be around to help. Have an awesome day!

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