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Payment deduction from customer

Forum|Forum|3 years ago
March 23, 2023
1 reply
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I sent a customer invoice of $25,000. He only paid us $21,500 because he rented a equipment for us to do the job. The rental fee cost $3,500 (taxes included). Instead of sending us a bill for $3,500, he directly deducted the amount from the payment of $25,000. How do I record the payment and the rental fee so it shows the invoice has been paid?

QuickBooks Online

Best answer by Mark_R

Thank you for getting back to us, Michelle.

Let me make some clarification and help you record the payment deduction from a customer invoice.

Using a barter bank account can only be used when you and your vendor exchange goods and services. In your scenario, this isn't the way to record the payment deduction from your customer invoice. You'll need to receive the exact amount ($25,000) and deduct the rental fee ($3,500) when depositing the payment.

Since you've already created a barter transaction, you'll need to delete the payment associated with the barter account. This way, the balance on your barter account will be zero. To do so, you can follow the steps below:

Click Sales from the left menu, then select All sales.
Find and open the invoice payment.
Select More and click Delete.
Click Yes to confirm.

Once done, you can now receive the payment of the exact amount ($25,000). Make sure to select the Undeposited funds from the Deposit to drop down.

After receiving the exact amount, make a deposit and deduct the rental fee ($3,500). Here's how:

Click the + New button, then select Bank deposit.
From the Select the payments included in the deposit section, choose the $25,000 payment.
Go to the Add funds to this deposit section, then select an expense account for the rental fee from the Account drop-down. You can leave the Received From drop-down blank.
Enter the rental fee amount as negative (-$3,500).
Click Save and close.

That's it! You may want to view all your sales transactions in QuickBooks Online. You can check out this article for more guidance: View sales transactions.

Come back to this post if you have other concerns or follow-up questions about this. I'll be right here to help.

JoesemM

QuickBooks Team

It's nice to see you again in the Community, @Michelle11_2. I'll be glad to help you record the payment transactions so the invoice will show as paid in QuickBooks.

You can create a barter account to record the payment transactions, including the rental fee. A barter transaction happens when you and your vendor exchange goods and services. Let me guide you on how:

Go to the Gear icon, then click on Chart of accounts.
Select New to create a new account.
Under the Account Type dropdown, select Bank.
Under the Detail Type dropdown, select Cash on hand.
Enter the account name. (ex. Barter Bank Account)
Click Save and Close.

Then, you can create Expense transactions to track the rental fee and deposit them to the barter account. Once done, you can receive payment for the invoices. See screenshots for visual reference.

Click the + New and select Receive payment.
From the Customer ▼ dropdown, choose your customer (barter partner) name.
Fill in the date and amount.
Select the Payment method ▼ dropdown, then Add new.
Enter Barter in the Name field, then select Save.
Select the Deposit ▼ dropdown, then click your barter bank account.
Click Save and close.

For more details, see this article: Record a barter transaction.

Once everything is settled, you might want to read these articles that will guide you in reconciling your accounts effectively:

Let me know if there’s anything else you need help with managing your accounts in QuickBooks. I’d be more than happy to assist you. Take care, and keep safe.

M

Michelle-ArdaAuthor

Thanks for your help. I follow the instructions and now I have a balance in the Barter Bank Account, which is the exact amount that the customer paid to us after the deduction. But I need to move the money from the Barter Bank Account into our actual checking account. I went to Bank Deposit, but under the Receive From, it doesn't have the option of Barter Bank Account. What should I do?

Z

ZackE_

Moderator

How do you then get the -3500 to match against the bill?

I have the same issue and I can't figure out how to match that up.

I received my payment of the full amount, added to the deposit the negative number that was deducted, but how do I match that negative deposit against the bill that I have in quickbooks?

Thanks for getting involved with this thread, AngelaCrane.

In QuickBooks, a match is a transaction you downloaded which is matched with one you already entered in your books. You can use the Suggested matches from Intuit, or click Find other matches to manually locate your matching transaction.

Here's how:

In the left navigation bar, go to Transactions, then Banks transactions.
Find a downloaded record. If you're in Business view, look for "matches found" in your Assign to column. In the event you're using Accountant view, look for "matches found" in your Category or match column.
Choose the downloaded record to expand its view. Be sure to take note of its Description (or Bank detail), and amount spent or received.
Review your Suggested matches for any possible matching transactions already entered.
Click the link next to each match to get more details. Suggested matches will be an identical amount and from a similar date range.
Confirm your match is correct. If the suggested matches aren't correct, use your Find other matches option to look for other transactions.
After you've found the correct match, select Match.

I've also included a detailed resource about matching transactions which may come in handy moving forward: Match online bank transactions

If there's any additional questions, I'm just a post away. Have a great Wednesday!

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