How do I receive payment by a customer against an invoice AND additional revenue included in the payment?

accounting-gamed · ‎February 01, 2023

I have a customer who paid late fees against a very late invoice. We had not charged late fees, so there was no a/r to apply them to; just the invoice, which left a credit balance on the customer's account. I need to apply the payment of late fees to additional revenue as I'm receiving the check on which it was paid, but can't figure out how to do that. For example: Customer invoice is for $100, customer paid $110, specifying $10 as a late fee. How can I receive the payment AND the late fee all at once, if I had not charged a late fee, but am accepting it as such?

JamesAndrewM · ‎February 01, 2023

Thanks for posting. Let me be the first to welcome you here in the Community.

I'll hop aboard and shed some light on how you can record the payment.

You'll want to receive the $100 payment first and post it to the undeposited funds. Next, create a deposit and select the payment. Then under add funds to this deposit, add the $10.

Let's make sure that the $100 payment is deposited to the undeposited funds before we add the payment to the $10 deposit. You can follow these steps to deposit Payment to the undeposited funds:

Go to Sales and select Invoices.
Locate and click on the specific invoice.
Select Edit invoice.
Click Receive Payment.
On the Outstanding Transaction, put a checkmark on the box of the specific invoice.
Click on the dropdown arrow in the Deposit to option, then locate and select the Undeposited Funds.
Click Save and close.

Once done, proceed to add the payment to the deposits:

Go to the Accounting tab on the left menu.
Select view register.
Navigate and click the specific deposit ($10).
Select who the payment was from ($100).
Review the deposit total with the bank fee.
Select Save and close.

For detailed information about the steps provided above you can refer to this link: Record and make bank deposits in QuickBooks Online.

You may visit these links to guide you on how to categorize your transactions and reconcile your account flawlessly:

The Community always welcomes you for further inquiries. Have a great day ahead!

View solution in original post

JamesAndrewM · ‎February 01, 2023

Thanks for posting. Let me be the first to welcome you here in the Community.

I'll hop aboard and shed some light on how you can record the payment.

You'll want to receive the $100 payment first and post it to the undeposited funds. Next, create a deposit and select the payment. Then under add funds to this deposit, add the $10.

Let's make sure that the $100 payment is deposited to the undeposited funds before we add the payment to the $10 deposit. You can follow these steps to deposit Payment to the undeposited funds:

Go to Sales and select Invoices.
Locate and click on the specific invoice.
Select Edit invoice.
Click Receive Payment.
On the Outstanding Transaction, put a checkmark on the box of the specific invoice.
Click on the dropdown arrow in the Deposit to option, then locate and select the Undeposited Funds.
Click Save and close.

Once done, proceed to add the payment to the deposits:

Go to the Accounting tab on the left menu.
Select view register.
Navigate and click the specific deposit ($10).
Select who the payment was from ($100).
Review the deposit total with the bank fee.
Select Save and close.

For detailed information about the steps provided above you can refer to this link: Record and make bank deposits in QuickBooks Online.

You may visit these links to guide you on how to categorize your transactions and reconcile your account flawlessly:

The Community always welcomes you for further inquiries. Have a great day ahead!

accounting-gamed · ‎February 02, 2023

Thank you so much. This definitely works. I wish there was a one-and-done way like in desktop or Sage.

Giovann_G · ‎February 02, 2023

You're much welcome, accounting-gamed.

I'm happy to hear that the guidance my colleague provided on recording payments was effective. The process presented is the only way to do it.

If you need anything else in the future, don't hesitate to post again. We're always available to help you.

Topics

Training

Community

Resources

How do I receive payment by a customer against an invoice AND additional revenue included in the payment?