How do I apply a customer's loan proceeds (which our business received directly from the bank) as a payment on the customer's account?

rachel22diesel · ‎July 05, 2022

Hello Quickbooks Community,

We have a customer who needs a large amount of repairs performed on his commercial vehicle. Due to the extremely high cost of aftermarket parts for commercial vehicles, we recently implemented a rule that states... if the cost of a customer's parts for a specific job are over a certain amount, then we require an up front deposit from the customer. The customer decided to reach out to his local banker and request a loan so that he could meet these requests. The bank agreed to loan our customer the entire estimated cost of parts, and the bank delivered the check for the loan amount directly to our company.

So now we have a check from our local bank that has our company shown as the "Pay to the order of:" with our customer's name in the "Memo" section. The bank has requested that we send them an official/formal 'receipt' for the check they gave us. Usually I would just "receive" my customer's payment and that would produce a receipt.... But I don't know of a way to receive a customer payment, if the payment is from someone other than the customer.
In QBO, our customer has an accepted estimate and an open invoice (that was created from the accepted estimate) showing under his customer profile.
My question is.... How do I apply our customer's loan proceeds to his open invoice, when the loan proceeds are in the form of a check from the bank and the check is addressed to our company?
How do I record this transaction correctly AND produce a proper "receipt" for the transaction?

Any help with this situation would be much appreciated!

Kurt_M · ‎July 06, 2022

It's nice to see you here in the Community space, @rachel-thinkinno. I'll be happy to help you with your concern so you can get through this and apply the loan proceeds to your customer's invoice in QuickBooks Online (QBO).

You can use the check that you've received from your customer's bank and enter it as deposit in your QuickBooks Online account. You'll then apply the deposit you entered to your customer's open invoice. To begin, here's how:

Sign in to your QuickBooks Online company.
On the left navigational bar, click the +New button.
In the Other column, select Bank deposit.
Choose an account and then in the Add funds to this deposit section, fill in the details.
Once done, click Save and close.

Feel free to visit this article for more information about entering a deposit in QuickBooks Online: Record and make bank deposits in QuickBooks Online.

Once done, you'll want to locate your customer's invoice and then click Receive payment. Scroll down to Credits section below the Outstanding Transaction section, and then select the deposit that you've recently entered into your account. You can refer to this article for more information about how to link a deposit to an invoice in QBO: How to link a bank deposit to an invoice.

You can consider exporting a copy of that paid invoice to PDF file, and then manually send it to the bank as a receipt. Refer to this article for the steps: Export invoice to PDF.

Additionally, in case you'd like to run a report that shows all your unpaid invoices. You can refer to this article for more information: Report of invoices that are due on a specific day.

You may also check this article in case you'd like to upload your receipts and bills to QuickBooks Online: Upload receipts and bills.

Our door is open 24/7 if you have any additional QuickBooks-related concerns, @rachel-thinkinno. You can also click the REPLY button below to notify me. I'll be more than happy to you out again. Take care!

Rainflurry · ‎July 06, 2022

@rachel22diesel

IMO, the payment isn't from someone else, it's from your customer. The fact that it is a bank check is irrelevant. It should be recorded as though it was received from your customer. It's just like if you sold your car and the buyer brought you a bank check - you would accept it as though it was from the buyer.

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How do I apply a customer's loan proceeds (which our business received directly from the bank) as a payment on the customer's account?

How do I apply a customer's loan proceeds (which our business received directly from the bank) as a payment on the customer's account?

How do I apply a customer's loan proceeds (which our business received directly from the bank) as a payment on the customer's account?

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