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ksfarnham
Level 1

Customer deducts 10% per invoice to hold against future possible back charges. Will be pd back in 6 mos. How do I record this temporary deduction and future payment?

Example: invoice is $2400. Customer pays $2160 and holds back $240. The $240 will be paid in a future payment in approx 6 months.  Sometimes the customer pays multiple invoices at one time. Should I do this thru a product/service item applied to each invoice or should I create one single credit memo that isn't applied against a specific invoice and record payments against it as the deducted amounts are paid back?
1 Comment 1
RhoiceW
QuickBooks Team

Customer deducts 10% per invoice to hold against future possible back charges. Will be pd back in 6 mos. How do I record this temporary deduction and future payment?

Hello there, ksfarnham. Yes, you can use the product/service item for you to track the deduction.

 

To begin, you can create an invoice with the total amount and due date in 6 months.

Here's how:

 

  1. Click the +New icon. Then, select Invoice.
  2. Select Add customer and choose a customer from the dropdown.
  3. Fill in the invoice date and the Due date.
  4. Add a product or service and select a product or service from the dropdown.
  5. Enter the amount.
  6. Once done, Click Save and close or Save and send.


After creating an invoice, record their first payment as a partial payment. Then, once you receive the next payment after six months, you can record another payment for that invoice.

 

Here's how: 

 

  1. Go to Sales, then select Invoices.
  2. Look for the transaction.
  3. Select Receive payment under the Action column.
  4. Enter the payment amount under Amount Received.
  5. Click Save and close.

 

I'd still recommend consulting your accountant for other options in recording your invoice payments.

 

Additionally, you can personalize your sales forms to make them stand out and look more professional.

 

Don't hesitate to comment if you still have concerns about recording your payments. I'm always here to help you out. Take care.

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