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Payment deduction from customer

Forum|Forum|3 years ago
March 23, 2023
11 replies
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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?

Rainflurry

Level 11

Yep, that very much details all the steps I have already taken and where I have been stuck since yesterday when I started trying to figure this out.

What I still can't accomplish is how to mark my $10,000 bill as paid. I can only choose a bank account to mark the bill as paid, and the funds aren't in a bank account because they were with held from the check.

How do I link the bill of $10,000 to the -$10,000 on the deposit?

@AngelaCrane

The steps provided by QB employees are way too complicated, convoluted and a couple other adjectives that come to mind. .

IMO, the best way to handle this is to create a bank account in QB called 'Clearing Account'. Pay the bill for $10,000 out of the Clearing Account. Then, receive payment on the invoice for $10,000 and deposit it to the Clearing Account. Now, the Clearing Account is $0, the bill is paid and you have a balance due on the invoice of $40,000. Receive payment on the invoice for $40,000 and match it to your deposit.

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