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Level 1

Applying a payment to future invoices

Hello--

We received a payment from a client to be applied to future invoices--a pre-payment, if you will.  My manager had created invoices for this payment, and I received the payment for these invoices--no problem.  I have deposited the check into the bank already.  But now my manager has told me that this payment is a pre-payment for forthcoming invoices, instead of going to those invoices already sent.  Note: the invoices my manager sent to our client were not QuickBook invoices--they were Word docs--so they aren't attached to QuickBooks. Usually, once he creates the Word docs and send them off, I create invoices in QuickBooks to be able to receive the payments, which is what I did here. 

 

Can I delete those QB invoices that I created and the payment associated with them and create new (future) invoices and receive those payments, associating that same check number with them?  Or do I need to do something completely different? 

 

Thank you in advance! 

Solved
Best answer December 02, 2020

Best Answers
Moderator

Applying a payment to future invoices

It's nice to see you here, @Gina T,

 

I can help you further with recording your invoices and pre-payments. If you want to mark the invoices as unpaid, you can simply remove the payment from it. This way, you don't have to delete the invoice and recreate it.

 

To delete a payment, follow the steps below:

 

  1. On the invoice, click the payment link below the Payment Status.
  2. Select the payment date to open the Receive Payment window.
  3. Unlink the payment by removing the check mark beside the Invoice Number.
  4. To delete the payment , just click More then Delete.
  5. Press Yes to confirm the action.

Also, to record a pre-payment, you may set up a retainer deposit so you can apply it at a later time. Here are the steps to do that:

 

Step 1: Create a trust liability bank account: (optional)

 

  1. Go to the Gear Icon then pick Chart of Accounts.
  2. At the top of the screen, click New.
  3. Use Bank Account for the Category Type.
  4. Select Trust account under Detail Type.
  5. Enter the name you want. Example: Trust Liability Bank Account, or leave the account name as is.

 

Step 2: Create a trust liability account:

  1. Choose the Gear Icon then Chart of Accounts.
  2. At the top, press New.
  3. Select Other Current Liabilities under Catergory Type.
  4. Use Trust Accounts – Liabilities under Detail Type.
  5. Enter the name you want the hit Save.

 

Step 3: Create a product or service item that uses the trust liability account

 

  1. Tap the Gear Icon then Products and Services.
  2. Click the New button.
  3. In the Name field, enter a description for the product or service item. Example: Retainer.
  4. Click the Income Account drop-down and select a Trust Liability account.
  5. Press Save.

To get more information about this, see this article: Record a retainer or deposit

 

If you have other questions about this, please let me know in the comment below. I'll be right here to share some more information about sales and payments. Have a nice day!

View solution in original post

3 Comments
Moderator

Applying a payment to future invoices

It's nice to see you here, @Gina T,

 

I can help you further with recording your invoices and pre-payments. If you want to mark the invoices as unpaid, you can simply remove the payment from it. This way, you don't have to delete the invoice and recreate it.

 

To delete a payment, follow the steps below:

 

  1. On the invoice, click the payment link below the Payment Status.
  2. Select the payment date to open the Receive Payment window.
  3. Unlink the payment by removing the check mark beside the Invoice Number.
  4. To delete the payment , just click More then Delete.
  5. Press Yes to confirm the action.

Also, to record a pre-payment, you may set up a retainer deposit so you can apply it at a later time. Here are the steps to do that:

 

Step 1: Create a trust liability bank account: (optional)

 

  1. Go to the Gear Icon then pick Chart of Accounts.
  2. At the top of the screen, click New.
  3. Use Bank Account for the Category Type.
  4. Select Trust account under Detail Type.
  5. Enter the name you want. Example: Trust Liability Bank Account, or leave the account name as is.

 

Step 2: Create a trust liability account:

  1. Choose the Gear Icon then Chart of Accounts.
  2. At the top, press New.
  3. Select Other Current Liabilities under Catergory Type.
  4. Use Trust Accounts – Liabilities under Detail Type.
  5. Enter the name you want the hit Save.

 

Step 3: Create a product or service item that uses the trust liability account

 

  1. Tap the Gear Icon then Products and Services.
  2. Click the New button.
  3. In the Name field, enter a description for the product or service item. Example: Retainer.
  4. Click the Income Account drop-down and select a Trust Liability account.
  5. Press Save.

To get more information about this, see this article: Record a retainer or deposit

 

If you have other questions about this, please let me know in the comment below. I'll be right here to share some more information about sales and payments. Have a nice day!

View solution in original post

Level 1

Applying a payment to future invoices

I think this is going to work for me.  If I run into any problems, I'll come back and ask for help.

 

Thank you, Jen!!  (: 

Level 1

Applying a payment to future invoices

I think this is going to work for me.  If I have any problems, I'll come back and ask for help. 

 

Thank you, Jen!!  (:

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