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WNets
Level 2

Taking recurring payments against an existing balance

For whatever reason, Client has an open balance of 6,000, She'd like to pay it out via autopay, at $1,000/mo for the next 6 months, and I'm okay with that. No interest. Just, let's get the payments going.

 

How do I do this with QBO?

 

I can't do a recurring transaction because there doesn't seem to be a transaction type that would accommodate it. An invoice or Sales Receipt won't work, because then those are what gets paid - not the original invoice (or invoices). There doesn't seem to be any mechanism that will allow me to just automatically take the payments, without creating a new invoice or receipt. I don't care if I have to manually assign the payment to the correct invoice (or invoices). I can live with that. But I'd like to not have to manually charge her each month.

 

I was thinking that this was kind of like taking layaway payments against an invoice or something, but I don't see any mechanism for that either. Any suggestions?

Solved
Best answer April 14, 2021

Best Answers
Candice C
QuickBooks Team

Taking recurring payments against an existing balance

Good afternoon, @WNets

 

Yes, you're right on track. I can give you some more insight into this recurring payment issue. 

 

You're only able to have recurring invoices and sales receipts in QuickBooks Online (QBO). However, I'll send feedback to our Product Developers so they can consider this in one of the upcoming updates. They take the time to review every request and tries to collaborate them into the next available release. 

 

Here's a guide that can provide other details that may help your business in the future: How can my customers auto-pay their invoices in QB Online?

 

I hope this information helps. Should you need any further assistance, feel free to ask. I'm always here to lend a helping hand. Take care!

View solution in original post

6 Comments 6
AbegailS_
QuickBooks Team

Taking recurring payments against an existing balance

Thanks for reaching out to us, WNets.

 

I'll be glad to share what I know about creating recurring transactions.

 

When creating a recurring payment in QuickBooks Online you need to add the necessary details that it will be recorded into.

 

The best transaction that you can provide for the said customer is a receipt.

 

In addition to this, I’m adding these links that you can use for reference in processing your receipt:

You can also check some help articles here.

 

Let us know in the comment section below if you have other questions or concerns. I'd be glad to assist you through it. Take care.

WNets
Level 2

Taking recurring payments against an existing balance

So, the problem that I have is that if I do a receipt, the receipt is its own invoice. So how does that charge get put against the existing open balance? How do I account for that?

ZackE
QuickBooks Team

Taking recurring payments against an existing balance

Thanks for following up with the Community, WNets.
 

A sales receipt is for when your customer immediately pays for their products and/or services at the time of sale. Invoices enable customers to pay at a later time. When a customer submits payments, they're automatically applied to their open balance in QuickBooks.
 

You can set up a recurring receipt to charge them at a specific time each month. 
 

Here's how:

  1. Use your Gear (⚙️) icon, then go to Recurring transactions.
  2. Click New.
  3. In the Transaction Type drop-down list, choose Sales Receipt.
  4. Hit OK.
  5. Enter a Template name.
  6. For its Type, pick Scheduled.
  7. Specify the customer.
  8. From your Payment method drop-down, choose how they're going to pay.
  9. Select Save template.


I've additionally included a detailed resource about working with recurring transactions that may come in handy moving forward: Create & manage recurring templates
 

Please feel welcome to send a reply if there's any questions. Have a lovely Wednesday!

WNets
Level 2

Taking recurring payments against an existing balance

Zack,

 

I feel like I'm not making myself clear here, or something. When I create a Sales Receipt, it creates both the debt and the payment at the same time. The payment goes toward the debt that's created, so it's a wash. There's no unapplied payment - it pays for itself.

 

In other words, when I create an invoice, the invoice creates a debt to the customer. When they pay that invoice, the payment is applied against that invoice.

 

When I create a sales receipt, it's the same thing, except that it's all one process. There's no separate, unapplied payment. The payment is for the receipt.

 

Now I have existing open invoices. I want to take a payment from the customer, and apply it to those invoices, not to a new charge against them. And I can do that, if I do a Payment, in QBO. I can charge the customer's card or bank account, and then put the money against the existing invoices.

 

What I CAN'T do is set that up automatically, as a recurring payment.

 

Let's say this another way:

Client owes $6,000.

I create a recurring transaction as a sales receipt, for $1,000, for 6 months.

First month: The charge goes through. What happens to their balance?

NOTHING. The sales receipt increased what they owed by $1,000, and then applied the payment against that, by $1,000. So their open balance is STILL $6,000. I want is their balance to be $5,000.

 

And, as I said, I can do that... manually. What I cannot do is make that a recurring transaction. I just have to remember to do that charge each month.

Candice C
QuickBooks Team

Taking recurring payments against an existing balance

Good afternoon, @WNets

 

Yes, you're right on track. I can give you some more insight into this recurring payment issue. 

 

You're only able to have recurring invoices and sales receipts in QuickBooks Online (QBO). However, I'll send feedback to our Product Developers so they can consider this in one of the upcoming updates. They take the time to review every request and tries to collaborate them into the next available release. 

 

Here's a guide that can provide other details that may help your business in the future: How can my customers auto-pay their invoices in QB Online?

 

I hope this information helps. Should you need any further assistance, feel free to ask. I'm always here to lend a helping hand. Take care!

View solution in original post

WNets
Level 2

Taking recurring payments against an existing balance

So the solution is there's no solution, except that maybe they'll put it into a future release... maybe. It's frustrating, but I don't really have much of a choice about it.

 

I'd thought about creating a loan to the customer, and then creating the recurring payment to go against the loan balance. The problem is that, in setting that up, one of the things you have to do is tell it what receivable account to put it against, and I don't know that. There are different accounts involved, depending on which invoice or service it's dealing with. But that's the only other way I could think of to do it.

 

Anyway, for now we've just decided to do it manually.

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