Invoices and Payments

Wjjohns · ‎October 17, 2023

Two part question:

Background. We are a Registered Investment Advisor. As such our fees are calculated in a separate portfolio management system and submitted to our Custodian. The Custodian takes our fees from the individual client account and deposits them in a lump sum into our bank account.

Problem 1: The lump sum payment covers two different products that we supply... Private Client management; and, Sub-Advisory Client management. Separate invoices are prepared within QBO for each product in order to record the receivable and to correctly classify in our Sales report. These two invoices total to the lump sum deposit.

Question 1: How can I allocate the lump sum deposit between the two different invoices?

Question 2: How can I mark an invoice as being paid (e.g. in the original lump sum payment) without creating an additional entry into Accounts Receivable?

GenmarieM · ‎October 17, 2023

Welcome to the Community, @Wjjohns.

I can guide you in recording a lump sum deposit in QuickBooks Online.

When we receive payments from invoices, we can record it as received payment directly to the bank, and it will affect the Accounts Receivable (A/R).

Here's how:

Select + New,
then click Receive payment.
From the Customer dropdown, select the name of the customer.
From the Payment method dropdown, select the payment method.
Click Deposit to dropdown and select the account you put the payment into.
In the Outstanding Transactions section, select the checkbox for the invoice.
Enter the Reference no. and Memo if needed.
Select Save and Close.

Please note that the amount you receive on your invoice is the remaining amount after being deducted from the fees. You can do the same with the invoice for your other product.

To match the amount in your bank, you need to create a deposit in the same bank account where you received the payment for the invoice.

Here’s how:

Scroll down to the Add funds to this deposit section.
Enter the fee as a line item.
Select a customer.
Select Bank Charges from the Account ▼ dropdown.
Enter the amount fee as a negative number. For example, if the fee was US $.50, enter –.50.
Review the deposit total with the bank fee.
Select Save and close or Save and new.

I'm adding this helpful article to guide you on how to match transactions in QBO: Match online bank transactions in QuickBooks Online

Let me know if you have other invoices and payment questions by dropping a comment below. I'll be here to help.

View solution in original post

GenmarieM · ‎October 17, 2023

Welcome to the Community, @Wjjohns.

I can guide you in recording a lump sum deposit in QuickBooks Online.

When we receive payments from invoices, we can record it as received payment directly to the bank, and it will affect the Accounts Receivable (A/R).

Here's how:

Select + New,
then click Receive payment.
From the Customer dropdown, select the name of the customer.
From the Payment method dropdown, select the payment method.
Click Deposit to dropdown and select the account you put the payment into.
In the Outstanding Transactions section, select the checkbox for the invoice.
Enter the Reference no. and Memo if needed.
Select Save and Close.

Please note that the amount you receive on your invoice is the remaining amount after being deducted from the fees. You can do the same with the invoice for your other product.

To match the amount in your bank, you need to create a deposit in the same bank account where you received the payment for the invoice.

Here’s how:

Scroll down to the Add funds to this deposit section.
Enter the fee as a line item.
Select a customer.
Select Bank Charges from the Account ▼ dropdown.
Enter the amount fee as a negative number. For example, if the fee was US $.50, enter –.50.
Review the deposit total with the bank fee.
Select Save and close or Save and new.

I'm adding this helpful article to guide you on how to match transactions in QBO: Match online bank transactions in QuickBooks Online

Let me know if you have other invoices and payment questions by dropping a comment below. I'll be here to help.

Wjjohns · ‎November 17, 2023

Thank you! This is a somewhat convoluted method to solve a simple problem... but it works!

AldritchM · ‎November 17, 2023

You're most welcome, @Wjjohns.

It's good to hear that you were able to record a lump sum deposit in QuickBooks Online.

We'll also add this article for future use:

To review downloaded bank and credit card transactions - Categorize online bank transactions in QuickBooks Online

Please keep in mind that our forum page and this thread are both open for any additional questions or concerns. Take care always!

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