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Experienced Member

How to create an invoice with scheduled payments?

Is it possible to create an invoice that displays the total being billed, less payments that have been made, less payments not due yet, so that what's due now appears in the lower right corner?

 

 

(Title has been edited by moderator for clarity)

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Best answer 01-11-2018

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Active Member

Re: Creating an invoice with scheduled payments

Hi Steve,

 

I might be able to help a bit, if you haven't already figured it out. I own a school transportation company. I have set contract amounts on our daily school bus routes, that are then split into 10 equal monthly payments. So every September I create the entire school year invoices. So for an example it would be $1000 per month, Sept thru June for a $10,000 contract, since school operates 10 out of 12 months. I put the date for the 1st of every month. You would just have to create the invoices in advance with the dates on the invoice that you want the payment due. (I use due on reciept) My issue is when an invoice isn't fully paid. On the statement it doesn't show that a payment was applied to a particular invoice. I have multiple open invoices for any customer, constantly. It just shows as a payment made and the date. School districts don't always pay in the month its due. Or payments are made from a different account, for example  Band trips, (which are NOT billed in advance) they might have fundraisers to afford the trip, so the "Activities Account" pays for the trip but then there are other trips on the invoice that the Board of Education pays. So next month I'd like to be able print a statement showing that the Activities Account paid $ on invoice #. So if someone from QB is reading this, can you advise how to do it? Thank you and Good Luck Steve.

13 Comments
Established Community Backer ***

Re: Creating an invoice with scheduled payments

Hi there, Steve. 

 

I'd be happy to lend a hand with this invoice. 

 

It sounds like you may be looking for a customer statement, which shows what your customer's balance is up to a specific date. Can you please confirm if this is what you're looking for, and then let me know if you're using QuickBooks Desktop or QuickBooks Online? 

 

I look forward to hearing back from you. 

Experienced Member

Re: Creating an invoice with scheduled payments

I'm visualizing an invoice, although maybe there's a way to accomplish what I want with a statement.  I'm certainly willing to try. :)

 

I'm using QB Accountant Desktop 2016

Established Community Backer ***

Re: Creating an invoice with scheduled payments

Thanks for following up with me. 

 

Is this invoice for a product/service that you'll be invoicing them for progressively, or are you just wanting to show them the amount they owe you based on invoices already created, paid, and not paid?

Experienced Member

Re: Creating an invoice with scheduled payments

A customer is being invoiced for $40,000.00 with payments of $10,000.00 due in 30 days, $15,000.00 due in 60 days, $5,000.00 due in 90 days, and $10,000.00 due in 120 days.

 

The initial invoice should show $40,000.00 and when each payment is due.  Putting payment terms of 30-60-90-120 wouldn't really work, because the payments aren't all for the same amount.  Subsequent invoices should show when each payment was made, how much is currently due, and how much is due in the future.  Or can that be done cleanly with statements instead of multiple invoices?

Experienced Member

Re: Creating an invoice with scheduled payments

I want to show them the amount they owed originally, the amount they owe now, and the amount they will owe in the future.  I'd like all of this information on a single invoice, if possible.  If not, (and I suspect it's not possible), I'd like to know how to show that information on a statement.

 

FWIW, I took the original invoice, I saved it as a PDF, I converted the PDF to a Word document, I edited the Word document so that it looks the way I want it to look, I converted it back to a PDF, I sent the new PDF to my customer, and I attached the PDF to the original invoice.  But that's a pretty complicated and convoluted process.

Established Community Backer ***

Re: Creating an invoice with scheduled payments

I appreciate these details, Steve. 

 

I'd like to see if the transaction history has what you're looking for. To run this report, please follow these steps: 

  • Open up the invoice. 
  • Click the Reports tab. 
  • Select Transaction History

Here you'll see the payments made and amount due. On the right side of the report, you have the option to print it out to send to your customer.

 

Please let me know if this is similar to what you're looking for. 

Experienced Member

Re: Creating an invoice with scheduled payments

The transaction journal for that invoice shows the full amount in the Accounts Receivable account, and the full amount in the Income account.  It doesn't show the one payment that has already been received.  But even if it did, that's not what I'm looking for.

Established Community Backer ***

Re: Creating an invoice with scheduled payments

Instead of using the transaction history, a simple statement will show the same information: the date they were invoiced for the $40,000, the date of their payment, and how much they currently owe. At this time, there isn't a way to show what they will owe at a future date. I recommend sending this as a feature request to the engineers to let them know you'd like to see this added: https://quickbooks.intuit.com/commerce/common/fragments/feedback.jsp.

Established Community Backer ***

Re: Creating an invoice with scheduled payments

What you are asking about is Progress Invoicing.

 

The full scope goes on the Estimate.

 

Each invoice is a Date of charges with its own Due Date. There is no 30-60-90 for just One invoice. That cycle = three invoices, each with its own Charged Date and Due Date. Due Date is typically based on terms, such as "Net 15." The invoices would be 30-60-90 days apart, but you expect to be paid each time within 15 days = terms.

 

You create the first invoice and select that it is From that Estimate. Use a Progress Invoice template, to show as many of the Columns as you want to see on screen and on the customer's printout: Estimate, Prior, $, % and/or Qty.

 

You won't see Payments here that are applied to other invoices. That is Statement = this customer's account activities, showing running balance.

Active Member

Re: Creating an invoice with scheduled payments

Hi Steve,

 

I might be able to help a bit, if you haven't already figured it out. I own a school transportation company. I have set contract amounts on our daily school bus routes, that are then split into 10 equal monthly payments. So every September I create the entire school year invoices. So for an example it would be $1000 per month, Sept thru June for a $10,000 contract, since school operates 10 out of 12 months. I put the date for the 1st of every month. You would just have to create the invoices in advance with the dates on the invoice that you want the payment due. (I use due on reciept) My issue is when an invoice isn't fully paid. On the statement it doesn't show that a payment was applied to a particular invoice. I have multiple open invoices for any customer, constantly. It just shows as a payment made and the date. School districts don't always pay in the month its due. Or payments are made from a different account, for example  Band trips, (which are NOT billed in advance) they might have fundraisers to afford the trip, so the "Activities Account" pays for the trip but then there are other trips on the invoice that the Board of Education pays. So next month I'd like to be able print a statement showing that the Activities Account paid $ on invoice #. So if someone from QB is reading this, can you advise how to do it? Thank you and Good Luck Steve.

Established Member

Re: Creating an invoice with scheduled payments

Here is what I think is a simple problem.  A service is provided, in this case, a loan totaling $100,000 (interest included).  How would you put that in to quickbooks and have QB send invoices on a monthy basis for 5 years or 60 months.  Also, to make this even more simple, the lendee could not pay off the loan sooner to receive a discount on the interest.

 

Thus, 1/1/2019 Loan $100,000

Payment due 2/1/2019 $1,666.67

Paid: 2/1/2019 $2,000

Payment due 3/1.2019 $1,666.67

Paid: 3/1/2019 $3,0000

 

In other words, overpayments don't matter - it does not reduce the liability of $100,000 or the payment schedule, and the overpayment is at the discretion of the payer.

Established Member

Re: Creating an invoice with scheduled payments

Here is what I think is a simple problem.  A service is provided, in this case, a loan totaling $100,000 (interest included).  How would you put that into quickbooks and have QB send invoices on a monthly basis for 5 years or 60 months?  Also, to make this even more simple, the payer could not pay off the loan sooner to receive a discount on the interest.  However, they can pay off the loan as fast as they want to

 

Thus, 1/1/2019 Loan $100,000

Payment due 2/1/2019 $1,666.67

Paid: 2/1/2019 $2,000

Payment due 3/1.2019 $1,666.67

Paid: 3/1/2019 $3,0000

 

In other words, overpayments don't matter - it does not reduce the liability of $100,000 or the payment schedule, and the overpayment is at the discretion of the payer.

payment schedule and the overpayment is at the discretion of the payer.

Established Community Backer ***

Re: Creating an invoice with scheduled payments

A Service is provided, or a Loan was made. Those are two different things. I provide a service to you and Charge you for it. Or, I gave you Money and this loan must be paid back. Or, I sold you a car and offer to carry the Loan and you will pay me over time. I perform a Service, Charge you, and that is my sales income.

 

For Loans, I use an estimate. I put the Other Charge Item here linked to the Other Asset debt account, for the full amount owed to me. I can progress invoice from the estimate, and then add the interest income to the invoice. The Estimate will track the remaining balance as will the Other Asset account. This is called Progress Invoicing. This exists in QB Desktop.

 

Overpayments matter because you just created Negative AR, obscuring your real AR and violating the cash basis reporting, if that matters to you. Put a Prepayment item on the invoice, which makes this your Liability, to be applied to later invoices by using a Credit Memo; this is the same as the Escrow Accounting process. Or, your client just prepaid Principal, and you have to Progress Invoice accordingly.

 

Payment schedule is based on the Amortization terms.

 

Overpayment is not Negative AR for you. The client needs to understand if the loan provision treats it as prepaid Interest against the full amortization or if that is Additional Principal.