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Invoicing, Partial Payment, and Bank Deposits

I'm having what seems to be a multi-layered issue, and have not had any luck searching for the solutions.  In my business, I do a lot of government contract work and the payor (the government) will sometimes decide that it will not pay for something that I invoiced.  As a result, I receive a partial payment on my invoice, and will never receive the full amount.  This is where two separate issues arise - 1) the invoice is never getting paid in full, so I need to find a way to close it out as "paid" without editing the original invoice.

 

2) When I receive payment, it's sometimes in the form of a check.  I usually enter that into the invoice ledger when I receive the check as "undeposited funds."  I eventually deposit it in my bank sometime later.  When pulling the deposit from my linked bank, QB views the deposit as unrelated to the payment (the bank imported data does not say who the deposit is from, it just lists it as check deposit).  It seems as though it should be easy enough to link the two, but whenever I try to do this, it seems to just double the amount of revenue, which is the.  As a result of this, I'm having issues with inflated revenue numbers and am not sure what to do. It looks as though trying to delete the undeposited funds entry causes QB to view the invoice as unpaid, since the invoice is remaining linked and open due to the aforementioned partial payment issue.

 

Finally, a third issue with direct deposits.  I do contract work for a private payor routinely, and require that I use their time sheets to bill them.  They pay reliably through direct deposit.  What I'm finding is that QB does not add that direct deposit money to my sales on the main page's monthly graphical display, and would like for it to do so.  QB only adds it to the income ledger rather than counting it under sales.

 

Thanks in advance!

Solved
Best answer 12-03-2018

Accepted Solutions
QuickBooks Team

Re: Invoicing, Partial Payment, and Bank Deposits

Thank you for sharing a complete detail of your concern, IanLam.

 

I’d be delighted to make sure your concerns regarding managing your income and expense transactions are addressed one by one.

 

To start with, since you’ll no longer be receiving any payment for the balance of the invoice, you need to write it off and declare it as a bad debt so you can clear it out of your accounts receivable. This way, your customer’s balance will be cleared out and your net profit is reduced.

 

Here’s how:

  1. Open the invoice.
  2. Enter a new line using the main product service item in the invoice.
  3. Change the description to Bad Debt.
  4. Under the Amount field, enter the balance still due as a negative number.
  5. In the Memo field enter Bad Debt.
  6. Click Save.

 On the other hand, you can match your bank transactions to the ones you’ve manually recorded in the program using the date and amount reflected on it.

 

Here’s how:

  1. Go to Banking.
  2. Under For Review tab, click the transaction that has no payee information.
  3. Click the Find Match radio button.
  4. Filter the Match transactions field to easily find the checks you’ve created.
  5. Click Save.

Lastly, direct deposit is a bank transaction in which your client’s payments are deposited directly to your bank account. Thus, it is recorded as income. So that these deposits will reflect as sales, you’ll need to create an invoice and apply the deposit to the invoice as payment.

 

Step 1: Create an invoice
Step 2: Record a payment
Step 3: Deposit customer payments

 

That should do it!

 

If you’re unable to write off your invoice balance and match your bank transactions, I’d suggest reaching out to our Customer Care team. An agent will be able to check your account securely and further assist you via secured remote access session.

 

Don’t hesitate to leave a comment below if you have follow-up questions about recording your income and and expense transactions. I’m always here to help.

2 Comments
QuickBooks Team

Re: Invoicing, Partial Payment, and Bank Deposits

Thank you for sharing a complete detail of your concern, IanLam.

 

I’d be delighted to make sure your concerns regarding managing your income and expense transactions are addressed one by one.

 

To start with, since you’ll no longer be receiving any payment for the balance of the invoice, you need to write it off and declare it as a bad debt so you can clear it out of your accounts receivable. This way, your customer’s balance will be cleared out and your net profit is reduced.

 

Here’s how:

  1. Open the invoice.
  2. Enter a new line using the main product service item in the invoice.
  3. Change the description to Bad Debt.
  4. Under the Amount field, enter the balance still due as a negative number.
  5. In the Memo field enter Bad Debt.
  6. Click Save.

 On the other hand, you can match your bank transactions to the ones you’ve manually recorded in the program using the date and amount reflected on it.

 

Here’s how:

  1. Go to Banking.
  2. Under For Review tab, click the transaction that has no payee information.
  3. Click the Find Match radio button.
  4. Filter the Match transactions field to easily find the checks you’ve created.
  5. Click Save.

Lastly, direct deposit is a bank transaction in which your client’s payments are deposited directly to your bank account. Thus, it is recorded as income. So that these deposits will reflect as sales, you’ll need to create an invoice and apply the deposit to the invoice as payment.

 

Step 1: Create an invoice
Step 2: Record a payment
Step 3: Deposit customer payments

 

That should do it!

 

If you’re unable to write off your invoice balance and match your bank transactions, I’d suggest reaching out to our Customer Care team. An agent will be able to check your account securely and further assist you via secured remote access session.

 

Don’t hesitate to leave a comment below if you have follow-up questions about recording your income and and expense transactions. I’m always here to help.

Not applicable

Re: Invoicing, Partial Payment, and Bank Deposits

Thank you very much - that solved all of the issues!

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