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CaitPHG
Level 3

Project Invoice - Settlement w Customer

A customer has 2 outstanding invoices. (EX: $5K & $12K) They are not tied to an estimate; they are just independent invoices. It is agreed that he will make 1 Final Payment of Only $7500. What is the best way to apply the payment and show that he doesn't have an outstanding balance? I don't want to wipe out the original invoices/amounts. I want to reflect the transactions properly. 

 

Solved
Best answer November 10, 2022

Best Answers
Jovychris_A
Moderator

Project Invoice - Settlement w Customer

Hi @CaitPHG.

 

This case seems unusual since this will leave an outstanding customer balance. In your case, I suggest receiving the payment normally.

 

Here's how:

  1. Click New.
  2. Select Receive payment.
  3. Check the two invoice boxes in question that totals $17k.
  4. Enter the $7500 amount.
  5. Hit Save and close.

 

Then you can write off the outstanding balance for invoices by following this article: Write off bad debt in QuickBooks Online.

 

By performing this method, your customer won't have an outstanding balance, and at the same time, the transactions will reflect properly. If you seem confused about what books to choose to account for the amounts, I recommend consulting your accountant for professional advice.

 

Additionally, here are a few things you can check if you'd like to give a credit to your customers: Create and apply credit memos or delayed credits in QuickBooks Online.

 

Please don't hesitate to comment if you have other questions. I'm always here to help you more. Keep safe.

View solution in original post

3 Comments 3
Jovychris_A
Moderator

Project Invoice - Settlement w Customer

Hi @CaitPHG.

 

This case seems unusual since this will leave an outstanding customer balance. In your case, I suggest receiving the payment normally.

 

Here's how:

  1. Click New.
  2. Select Receive payment.
  3. Check the two invoice boxes in question that totals $17k.
  4. Enter the $7500 amount.
  5. Hit Save and close.

 

Then you can write off the outstanding balance for invoices by following this article: Write off bad debt in QuickBooks Online.

 

By performing this method, your customer won't have an outstanding balance, and at the same time, the transactions will reflect properly. If you seem confused about what books to choose to account for the amounts, I recommend consulting your accountant for professional advice.

 

Additionally, here are a few things you can check if you'd like to give a credit to your customers: Create and apply credit memos or delayed credits in QuickBooks Online.

 

Please don't hesitate to comment if you have other questions. I'm always here to help you more. Keep safe.

CaitPHG
Level 3

Project Invoice - Settlement w Customer

Yes; the "Bad Debt/No Credit" answered my question. Thank you. 


Re: "Then you can write off the outstanding balance for invoices by following this article: Write off bad debt in QuickBooks Online.

By performing this method, your customer won't have an outstanding balance, and at the same time, the transactions will reflect properly."

JamesAndrewM
Moderator

Project Invoice - Settlement w Customer

You're welcome, @CaitPHG.

 

We're pleased to help you with your QuickBooks concern.

 

Know that the Community is always here to back you up. Have a good one!

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