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jenuneekor
Level 4

Customer who is also a vendor - net payment

Hello! We have a customer who is also a vendor. They just wired us funds which includes $5k they owe us (we have an invoice for $5k for them as a customer in QBO), and deducted $500 we owe them (we have a bill for $500 for them as a vendor in QBO). I'm trying to figure out how to match the payment in my bank feed to both the invoice and the bill. Any suggestions?

 

Thank you!

Jen

 

Solved
Best answer May 12, 2021

Best Answers
Giovann_G
Moderator

Customer who is also a vendor - net payment

Hi, jenuneekor.

 

I'll make sure that you can get rid of the bill and reconcile your account.

 

You can mark the bill as paid since it's already deducted from the invoice's total amount. This way, there will be no open bills for that specific vendor. 

 

Here's how:

 

  1. Go to the Expenses menu.
  2. Select Vendor.
  3. Locate the specific vendor and bill.
  4. Click Make payment under the Action column.
  5. Review the details.
  6. Once done, hit Save and close.

 

You can check the guide here for more info: Enter bills and record bill payments.

 

Feel free to review this resource on how to reconcile an account. This contains helpful tips to complete your reconciliation tasks.

 

Add a comment if you have further questions about bills. The Community and I will always here to help you.

View solution in original post

4 Comments 4
Jen_D
Moderator

Customer who is also a vendor - net payment

You came to the right place for QuickBooks help, Jen,

 

I'll be right here to guide you categorize the payment along with the deduction. This way you can reconcile them properly. Follow the detailed steps below:

 

Step 1: Create the customer invoice.

 

  1. Click the Plus (+) icon.
  2. Select Invoice.
  3. Enter the exact amount to be invoiced. In your case, an invoice amounting to $5,000. (Refer to this sample screenshot below)

 

 

Step 2: Receive the payment.

 

  1. On the invoice, click the Receive Payment button.
  2. Select the correct invoice on the Receive Payment screen.
  3. In the Deposit to field, choose Undeposited Funds.
  4. Click Save and close. (See screenshot attached)

 

Step 3: Enter a Bank Deposit for the deduction.

 

  1. Click the QuickBooks Plus (+) icon.
  2. Select Bank Deposit.
  3. Mark the invoice payment you received previously from the Select the payments included in this deposit section.
  4. Expand the Add funds to this deposit section to add a new line item.
  5. In the Received From column, enter your name as the vendor.
  6. In the Account column, add an expense account for the deduction.
  7. In the Amount field, enter a negative fee amount.
  8. Make sure the deposit matches the net bank deposit amount you are reconciling.
  9. Click Save and close.

 

For your reference, see the following link for the steps: Record and make bank deposits in QuickBooks Online 

 

Once done, you can now match the transaction to the online banking entry. Here are the steps with sample screenshot:

 

  1. Go to the Banking menu and select the account where you receive the deposit.
  2. Click the transaction to expand the options, then tap the Match radio button.
  3. You will see the Find other records button from there.This image shows an expanded view of a matching transaction.
  4. Find the invoice and the other transactions related to the deposit in the Records found.
  5. Select the link next to each record to get more details.
  6. Check the Deposit to field, then select Match.

 

See this article to learn more about managing bank transactions in QBO: Categorize and match online bank transactions in QuickBooks Online.

 

Now, you're ready for reconciliation. For your reference, here is a reconciliation article you can refer for further instructions: Reconciliation Hub for QuickBooks Online

 

If you need anything else, please let me know in the comment below. I'll be right here to help categorize your bank transactions. Have a good one!

jenuneekor
Level 4

Customer who is also a vendor - net payment

Hi Jen_D! Thank you so much for responding so quickly. This all makes sense, but I'm stuck on how the bill I have for the vendor gets reconciled. I believe if I use this the bill will show that it hasn't been paid, correct? Thank you!

Giovann_G
Moderator

Customer who is also a vendor - net payment

Hi, jenuneekor.

 

I'll make sure that you can get rid of the bill and reconcile your account.

 

You can mark the bill as paid since it's already deducted from the invoice's total amount. This way, there will be no open bills for that specific vendor. 

 

Here's how:

 

  1. Go to the Expenses menu.
  2. Select Vendor.
  3. Locate the specific vendor and bill.
  4. Click Make payment under the Action column.
  5. Review the details.
  6. Once done, hit Save and close.

 

You can check the guide here for more info: Enter bills and record bill payments.

 

Feel free to review this resource on how to reconcile an account. This contains helpful tips to complete your reconciliation tasks.

 

Add a comment if you have further questions about bills. The Community and I will always here to help you.

View solution in original post

jenuneekor
Level 4

Customer who is also a vendor - net payment

Thank you!

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