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Level 1

Mistake on invoice identified after payment... how to record reduced payment on next invoice?

Thank you for taking time to consider my scenario.  I have searched the forum for a similar problem since im sure its not uncommon but haven't found the needed solution.  

 

I am a consultant and bill my customer monthly for hours worked.  My January invoice was sent and paid as well as February invoice sent before a mistake in the January hours was noticed.  My customer plans to reduce payment on my February invoice to offset the overstated hours in the January invoice.  

 

How is the best way to record the correction to January invoice amount and have the reduced payment in February satisfy the invoiced amount?  Does this require two extra entries?  One against both invoices?  

 

Thank you!

Solved
Best answer April 02, 2020

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QuickBooks Team

Mistake on invoice identified after payment... how to record reduced payment on next invoice?

Thank you for posting here in the Community, @ng-pd.

 

Based on what you've shared, I have two options to fix your problem. First, you can edit the invoice paid in January so that it will show the customer has an existing credit.

 

I’ll guide you how:

  1. Go to Sales tab.
  2. Click Customers and select the name of the customer.
  3. Choose the invoice for January.
  4. On the Actions drop-down arrow, click View/Edit.
  5. Enter the correct amount of the invoice.

When done, invoice will show the balance due and the amount of payment at the upper right part of the page. Also, you can enter it manually by adjusting the February invoice amount.

 

Here’s how:

  1. Go to the Sales tab.
  2. Select Customers and click the name of the customer.
  3. Open the invoice for February.
  4. On the Amount column, enter the over payment amount.
  5. On the Message on invoice box, enter a note that the adjustment was made because of an overstated amount last January.

I’ve also added an article for your future reference: Enter and apply credit memos and delayed credits in QuickBooks Online.

 

Let me know how it goes. I'll be here to keep helping. Have a great day!

View solution in original post

2 Comments
Highlighted
QuickBooks Team

Mistake on invoice identified after payment... how to record reduced payment on next invoice?

Thank you for posting here in the Community, @ng-pd.

 

Based on what you've shared, I have two options to fix your problem. First, you can edit the invoice paid in January so that it will show the customer has an existing credit.

 

I’ll guide you how:

  1. Go to Sales tab.
  2. Click Customers and select the name of the customer.
  3. Choose the invoice for January.
  4. On the Actions drop-down arrow, click View/Edit.
  5. Enter the correct amount of the invoice.

When done, invoice will show the balance due and the amount of payment at the upper right part of the page. Also, you can enter it manually by adjusting the February invoice amount.

 

Here’s how:

  1. Go to the Sales tab.
  2. Select Customers and click the name of the customer.
  3. Open the invoice for February.
  4. On the Amount column, enter the over payment amount.
  5. On the Message on invoice box, enter a note that the adjustment was made because of an overstated amount last January.

I’ve also added an article for your future reference: Enter and apply credit memos and delayed credits in QuickBooks Online.

 

Let me know how it goes. I'll be here to keep helping. Have a great day!

View solution in original post

Highlighted
Level 1

Mistake on invoice identified after payment... how to record reduced payment on next invoice?

Thank you!  

 

I issued a credit memo for the hours which automatically reduced the outstanding amount on the open February invoice.  I think this was the best solution for me since it didn't require altering the prior invoice.  Now once I receive payment on the February invoice I will be back on track.  

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