I receive payment of $900. How do I reconcile my invoice of $1000, with a $900 payment?

Hello, @10jlove . Handling partial payments and reconciling items can be a challenging aspect of financial management. Here's a detailed guide on managing a payment against an invoice.

Before you start the reconciliation process, it's important to first record the $900.00 payment under "Receive payments" in your QuickBooks Online (QBO). By applying the $900 payment to the correct invoice which is $1,000.00, you'll automatically account for the $100 outstanding balance by your customer. I will provide you with the steps and photos below to guide you.

1. Go to Sales, and select the specific invoice to Receive payment.
    

   

2. Enter the amount your customer paid, and click Save and Close.

Since you plan to collect the $100.00 remaining amount, creating a journal entry is not recommended at this time. Instead, prepare and send a detailed statement to the client, clearly indicating this outstanding balance to aid in its collection. Once you collect that amount, you can include it in the reconciliation for the following month. If the balance is still unpaid and considered uncollectible in the future, you may then write it off as a bad debt.

We have great service available through QuickBooks Live Expert Assist. Our trained experts can help provide guidance on the best way to manage your books.

If you have any specific questions or need more detailed information about managing payment transactions, please don't hesitate to reach out. Just click the reply button below, and I'll get back to you promptly with the information you need.

Thank you for your quick response. I received the payment and entered the $900.  Now I have a partially paid invoice, which caused a reconciling item of $100 when reconciling the bank statement ($100 difference).  How do I clear the difference?

The invoice should have nothing to do with reconciling your bank statement. It shouldn't appear in your bank account. Only the deposited payment should appear.