Skip to main content

Get 50% OFF QuickBooks for 3 months*

Buy now
Switch to QuickBooks and 70% off for 3 Months
Talk to Sales: 877-683-3280
Hours
Mon - Fri, 5am - 6pm PST
Sat - Sun, 7am - 4pm PST
Product support & help
Need help signing in?
A
Ak2020
November 2, 2022
Question

Future Balance for Clients

  • November 2, 2022
  • 2 replies
  • 6 views

Hello Everyone, Thank you in advance for your help. 

We have a small consulting company where customers' payments are structured in installments, BUT the installment is based on certain trigger milestones rather than date trigger. When customers become clients, their initial payment is, of course, entered, but How can I input the future balance that they must pay without connecting it to a specific set date? 

 

Thank YOU

2 replies

R
RCVQuickBooks Team
QuickBooks Team
November 2, 2022

I've got you covered in creating a future balance for clients, Ak2020.

 

We can create progress invoices that include an estimate summary with the total invoiced. There are also links to the original estimate and all relevant progress invoices. You can also add estimate summaries to invoices so your customers can see their remaining balance. This is off by default.

 

If you haven’t already, turn on progress invoicing by following the steps below:

 

  1. Go to the Gear icon on the top menu.
  2. Select Account and settings.
  3. Click the Sales tab.
  4. In the Progress Invoicing section, select Edit.
  5. Turn on the Create multiple partial invoices from a single estimate switch.
  6. In the Update your invoice template? window, select Update.
  7. Press Save, then Done.

 

Now you can create multiple invoices from your estimates. Then, follow the next steps in this article to finish the process: Set up and send progress invoices in QuickBooks Online. Then, we can run the Estimates & Progress Invoicing Summary by Customer report to give you a complete list of all estimates and connected progress invoices. Here's how:

 

  1. Go to Business overview then select Reports, or go to Reports.
  2. Search for and open your Estimates & Progress Invoicing Summary by Customer report.

 

If you receive deposits in advance, we can set up a retainer. This would allow you to record the deposits and use them for your customer's future transactions. The details on how to categorize and deal with it is laid out in this article: Record a retainer or deposit.

 

Feel free to visit our Invoices and payments page for more insights about managing your company's income and sales transactions.

 

I'd like to know how you get on after trying the steps or if you are referring to something else. I want to ensure this is resolved for you. Just reply to this post and I'll get back to you, Take care always.

A
Ak2020Author
November 4, 2022

I followed all these steps and not working. 

C
ChristieAnn 11
Level 9
November 4, 2022

I appreciate you for following the steps above and for coming back to the thread, Ak2020. Let me discuss how balance works in QuickBooks Online. Then, to ensure that you can still record the remaining balance so the customer can pay it.

 

When you create a sales entry or invoice and the initial payment is being recorded, QuickBooks applies the payment to the invoice line items in the order. Then, the remaining balance will show as open on the customer's details or you can also run the Customer Balance Summary report to see it. 

 

Additionally, the open balance will only be tagged as close once payment is complete by making another received payment or deposit.

 

On the other hand, you also have the option to create a journal entry in QuickBooks so you can update the balances and the record is in shipshape. Beforehand, I suggest consulting an accountant to help you further. They'll be able to provide you with suggestions on how to properly handle the transactions, especially with the category or account to use for the debit and credit.

 

Here's how:

 

  1. Select + New. Then, choose Journal entry.
  2. On the first line, select an account from the Account field. Depending on if you need to debit or credit the account, enter the amount in the correct column.
  3. On the next line, select the other account you're moving money to or from. Depending on if you entered a debit or credit on the first line, enter the same amount in the opposite column.
  4. Enter information in the memo section so you know why you made the journal entry.
  5. Fill in the other necessary field.
  6. Click Save and close.

 

Lastly, you may refer to this article to see various details on how you can enter a balance for a customer that owes you money: Manage outstanding balances for customers and vendors in QuickBooks Online.

 

Feel free to get back to me if you have additional questions about the customer's balance in QBO. I'm always here to help you out, Ak2020. Have a great day!

Rainflurry
Rainflurry
Level 11
November 5, 2022

@Ak2020 

 

IMO, the best you're going to be able to do is to use an Estimate (New > Estimate) for each milestone.  They need to be dated, but, since an estimate is a non-posting transaction, they will not impact your financial statements until you convert them to an invoice.  You can create an estimate for each milestone and, once the milestone is achieved, click 'Create invoice' on the estimate and your client will be billed.  Also, you can see their yet-to-be-achieved milestones by running an Estimates by Customer report. 

Need QuickBooks guidance?
Log in to access expert advice and community support instantly.
Terms & ConditionsAccessibility statement