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payments by different parties on one invoice

I have a Glass business and replace windshields as part of our services offered. We deal with Insurance companies and often times I will have a customer with a $200 deductible and a balance payment that the insurance company has to make. I am pretty much lost when it comes to dealing with the $200 "partial payment" or deductible and how to appropriately record this, as well as who to create as my customer for the invoice. The insurance company or the insured who's windshield I am replacing. i.e. Joe smith had his windshield replaced for $400. He has a $200 deductible and his insurance company Progressive owes the remaining $200. Can someone please explain how to handle this from start to finish, right down to which I should put down when I "create customer". Thank you very very much 

3 Comments
Moderator

Re: payments by different parties on one invoice

Hello marvelglassllc,

 

You can enter the insurance company as the Payment method. Let me show you how:

  1. Open the affected invoice and click the Receive payment button.
  2. In the Receive Payment window, go to the Payment method field and click Add new.
  3. Enter the insurance company's name and click Save.
  4. Enter the amount that the insurance company paid on behalf of your customer.
  5. Click Save and close.

You can also ask your accountant if they have a different way of entering this transaction.

 

Let me know if you need anything else.

 

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Re: payments by different parties on one invoice


@marvelglassllc wrote:

 i.e. Joe smith had his windshield replaced for $400. He has a $200 deductible and his insurance company Progressive owes the remaining $200. Can someone please explain how to handle this from start to finish, right down to which I should put down when I "create customer". Thank you very very much 


Well you have two customers, client and insurance, and I would assume you need to invoice them both.  In QB there is no elegant way to do this


Invoice the customer for just the amount of the deductible

create  discount item named customer deductible, select the sales income discount account

invoice the insurance company
line 1 - service item and the full amount
line 2 - discount item and the amount of the deductible

Established Community Backer ***

Re: payments by different parties on one invoice

I use Payment Method, as well. Or, you can put something in Memo, for Receive Payment as Customer name and Memo the insurance company.

 

In Desktop, you will need Payment Method linked to a Payment Type, such as Payment Method = Progressive or All State and these are Payment Type = Check. They actually show in the Other button in Receive Payment and in Sales Receipts.

 

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