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Level 3

How do I show a partial payments applied to invoices?

So the payments/credit on invoices is terrible. I don't like that it doesn't show if there's a split payment.  I have customers who pay partial invoices using a credit memos and the balance with credit cards.  I have some who return some items on invoices which leaves the invoice looking like there was a partial payment when in fact it's a return.  As of now we depend on memos in the body of the invoice to indicate the payments. Most customers don't see the memo even though we move it clearing several lines below the items and my total form font is pretty large. I would like to either change the font color to Red so the memo is clear and visible.  Is there a way to change the color in the body of an invoice?  Or does anyone else have an ideas.  

Solved
Best answer 12-10-2018

Accepted Solutions
Level 15

When you put a Payment Item on the invoice, the date of t...

When you put a Payment Item on the invoice, the date of the invoice is the date of the payment. It also reduces what the invoice shows in the Customer Center and in transaction reports. In other words, if the two payments are the same date as the invoice, adding them to the invoice is fine, but now, if that paid the invoice in full, your Transactions Listing will always show $0. You have to Open these invoices to figure out what the Actual sale was.

Next, if the partial payments are different dates, you never put that on the invoice because that is the wrong Date.

The tool for what you are asking is Statements. Run Customer Statements to see the AR activities as a Listing of transactions. That will show Payments and Credit Memos and a running balance.

"I would like to setup a "TYPE" Account to use for information use only.   For example I would call the  item "Credit Memo Applied" and then in the Description type the amount."

You are messing with your Real Financial Data.


View solution in original post

25 Comments
Level 15

When you put a Payment Item on the invoice, the date of t...

When you put a Payment Item on the invoice, the date of the invoice is the date of the payment. It also reduces what the invoice shows in the Customer Center and in transaction reports. In other words, if the two payments are the same date as the invoice, adding them to the invoice is fine, but now, if that paid the invoice in full, your Transactions Listing will always show $0. You have to Open these invoices to figure out what the Actual sale was.

Next, if the partial payments are different dates, you never put that on the invoice because that is the wrong Date.

The tool for what you are asking is Statements. Run Customer Statements to see the AR activities as a Listing of transactions. That will show Payments and Credit Memos and a running balance.

"I would like to setup a "TYPE" Account to use for information use only.   For example I would call the  item "Credit Memo Applied" and then in the Description type the amount."

You are messing with your Real Financial Data.


View solution in original post

Level 3

I don't believe you understand what I am asking. When a c...

I don't believe you understand what I am asking. When a customer asks for a copy of a paid invoice they don't want a statement every time.  I want to be able to add a memo to the invoice in the description section explaining how payments were made.  That's all.  I don't want to put a anything in payment fields.  I thought adding a TYPE account would save us time when typing these partial payments info to the customer and in red they would see it better.  We deal with so many credit memos and partial payments that the lack of this type of field and also the fact that the MEMO field in Quickbooks is useless leaves one to improvise at times.
Level 15

I understand. The one invoice won't show Details of other...

I understand. The one invoice won't show Details of other transactions. That is what a Statement provides.
"I thought adding a TYPE account would save us time when typing these partial payments info to the customer and in red they would see it better"
That would create Real Data.
Level 3

Hello nancyl,  We definitely want to help you create well...

Hello nancyl, 

We definitely want to help you create well-designed invoices as this helps promote your brand and present a professional image to your customer. 

At this time, the Payments/Credits field only shows the summary of all the payments and credits applied to the invoice. Another way to include the partial payments and their dates to show on the invoice is to set up a payment item. Please note that this applies to payments only; returns are an exception. 

Here's how we can set up the payment item: 

  1. Go to Lists, and then choose Item List.
  2. At the bottom click Item, and choose New. You can also use the keyboard shortcut CTRL+N
  3. Choose Payment as the Type
  4. Name this payment item. Then, choose whether you'd like to Group this payment to undeposited funds, or Deposit to an account.
  5. Click OK.

You can then use this payment item to record a partial payment on the invoice and reduce the amount owed, too. You can put the date in the description field. 

To answer your second question, yes, we can change the font color in the body of an invoice. I've got the steps for you: 

  1. Open an invoice. Then, choose the Formatting tab at the top. 
  2. Click the Customize Data Layout icon. 
  3. In the Additional Customization window, click the Layout Designer button.
  4. Double click on the data field (Memo) you'd like to customize. 
  5. In the Properties window, choose the Text tab. Then, click the color area. Pick a color, and then click OK.
  6. Click OK to save your changes. 

Just in case you need a little help finding your way around, you can check out the screenshots I've added below. 

We'd love to hear more about how we can improve the customization options for invoices. Send us your feedback or ideas by going to the Help menu (right next to Window) at the top, clicking Send Feedback Online, and then choosing Product Suggestion.

Feel free to let us know if you ever need help with invoices or QuickBooks Desktop in the future─we'll be here.

Level 3

Wow...this is exactly what I was hoping for. Can't wait t...

Wow...this is exactly what I was hoping for. Can't wait to test it.  Thank you!
Level 3

I'm a little confused on "Name this payment item. Then, c...

I'm a little confused on "Name this payment item. Then, choose whether you'd like to Group this payment to undeposited funds, or Deposit to an account." Will this affect the Deposits or any of my reports?
Level 3

You're welcome, @nancy, and thanks for getting back to me...

You're welcome, @Nancy, and thanks for getting back to me, too.

Let me get those questions cleared up.

In step 4 of setting up the payment item, enter the name for this payment in the Item Name/Number field. (See the first photo above) For example, "Partial Payment". The name that you type in here would also show on your invoices.

Since this is a payment type, we'll need to track these amounts to an account. You would want to choose "Group this payment to undeposited funds" if you want them to post to the Undeposited funds account by default. Just as the amounts you track in the Undeposited funds account, you'll need to deposit the payments to clear them (Banking > Make Deposits). On the other hand, if you want to deposit it to a bank account, income account, or a specific account, you would choose "Deposit to". Yes, this part of the steps will affect your reports.

Let me know if you have any additional questions, and I'll be glad to answer them for you.
Level 3

Ok...since we already have all of our accounting methods...

Ok...since we already have all of our accounting methods set up and in place I don't want to shake it up. So what do you think about this?  I would like to setup a "TYPE" Account to use for information use only.   For example I would call the  item "Credit Memo Applied" and then in the Description type the amount.  This way the customer can see what we applied while it doesn't interact with with reports.  Can I create my own "TYPE"?
Level 3

Hi there, @nancyl. Right now, there isn't a way to creat...

Hi there, @nancyl.

Right now, there isn't a way to create your own item type. You can only choose from the ones available in QuickBooks.

If you only want to show payments/credits on the invoices without affecting the transaction and any reports, you can put them in the Message field. You can rename the section header to Memo (Customize Data Layout > Footer). (See the 5th photo in my original answer above) However, you would need to manually type in the information every time.

I'd be glad to hear back from you if you have any follow-up questions.
Level 3

Thank you for answer my question about the "TYPE".  That'...

Thank you for answer my question about the "TYPE".  That's exactly what I needed to know.
Level 15

I recommend Not Using "Customer Message" because that is...

I recommend Not Using "Customer Message" because that is a List. Every Entry you make will be Saved forever, until you filled that List. That is not a Freeform Text function. Memo is a freeform Text function.
Level 1

Trouble with this is that in Quickbooks we can see the pa...

Trouble with this is that in Quickbooks we can see the payments applied at the bottom of the invoice so if we make a line item then the balance due will be off.  I tried it.  I guess you could 1st make the line item send the invoice go back delete the line item and then take the payment out but that is very cumbersome.  I just had this happen.  I had a client who had an outstanding credit and I took it off her next invoice but it does not show on her invoice only on mine.  It seems like if we can see the true balance due then the clients should be able to as well.
Level 15

You don't use a Line item, because putting this on the in...

You don't use a Line item, because putting this on the invoice is the same as "this is paid for the date of the invoice" and not Paid on a different date. Factually, the Payment is its own transaction and has its own date.

You should show it on the Footer; not adding it as a line item. You also can run a Statement for them.

"but it does not show on her invoice only on mine"

You need to Customize your template(s).
Level 15

Here is another Option: Open that invoice and use History...

Here is another Option:

Open that invoice and use History icon, or Ctl H. Here is the Report you can Print.

Level 1

That is nice.  I can not find the history icon but the Ct...

That is nice.  I can not find the history icon but the Ctl H worked it would be nice if you could email that report.
Level 1

Re: Hello nancyl, We definitely want to help you create well...

I need help with my desktop Quickbooks. I have a saved invoice which I was going to email to the customer with the payment link. However, he wants to pay partially in person with cash or debit. How do I get that invoice to give me the option to collect partial payment in person instead of emailing it??

QuickBooks Team

Re: Hello nancyl, We definitely want to help you create well...

Hello Desktop2019,

 

It's good to know that your customer will pay you in person. This means you won't wait for the payment to process in your bank account.

 

When they pay you, you can open the invoice and enter the amount you receive in the PAYMENT AMOUNT field. If they want, you can print them a copy of the partially paid invoice. Then, they can just ignore the emailed invoice.

 

If you need anything else, feel free to comment below.

Level 1

Re: How do I show a partial payments applied to invoices?

If you edit the invoice template, there are data fields available for 'Payments/Credits' and 'Balance Due'.  These fields reflect any payments or credits that are applied to the invoice.

 

If you don't want these fields to show up on all invoices then copy your existing template and modify the new one. Then select the new template only for invoices with partial payments or credits applied.

Level 1

Re: Hello nancyl, We definitely want to help you create well... Is this option available in Quickbooks online? I don't see the "item list" where do i find it?


@IntuitJill wrote:

Hello nancyl, 

We definitely want to help you create well-designed invoices as this helps promote your brand and present a professional image to your customer. 

At this time, the Payments/Credits field only shows the summary of all the payments and credits applied to the invoice. Another way to include the partial payments and their dates to show on the invoice is to set up a payment item. Please note that this applies to payments only; returns are an exception. 

Here's how we can set up the payment item: 

  1. Go to Lists, and then choose Item List.
  2. At the bottom click Item, and choose New. You can also use the keyboard shortcut CTRL+N
  3. Choose Payment as the Type
  4. Name this payment item. Then, choose whether you'd like to Group this payment to undeposited funds, or Deposit to an account.
  5. Click OK.

You can then use this payment item to record a partial payment on the invoice and reduce the amount owed, too. You can put the date in the description field. 

To answer your second question, yes, we can change the font color in the body of an invoice. I've got the steps for you: 

  1. Open an invoice. Then, choose the Formatting tab at the top. 
  2. Click the Customize Data Layout icon. 
  3. In the Additional Customization window, click the Layout Designer button.
  4. Double click on the data field (Memo) you'd like to customize. 
  5. In the Properties window, choose the Text tab. Then, click the color area. Pick a color, and then click OK.
  6. Click OK to save your changes. 

Just in case you need a little help finding your way around, you can check out the screenshots I've added below. 

We'd love to hear more about how we can improve the customization options for invoices. Send us your feedback or ideas by going to the Help menu (right next to Window) at the top, clicking Send Feedback Online, and then choosing Product Suggestion.

Feel free to let us know if you ever need help with invoices or QuickBooks Desktop in the future─we'll be here.



@IntuitJill wrote:

Hello nancyl, 

We definitely want to help you create well-designed invoices as this helps promote your brand and present a professional image to your customer. 

At this time, the Payments/Credits field only shows the summary of all the payments and credits applied to the invoice. Another way to include the partial payments and their dates to show on the invoice is to set up a payment item. Please note that this applies to payments only; returns are an exception. 

Here's how we can set up the payment item: 

  1. Go to Lists, and then choose Item List.
  2. At the bottom click Item, and choose New. You can also use the keyboard shortcut CTRL+N
  3. Choose Payment as the Type
  4. Name this payment item. Then, choose whether you'd like to Group this payment to undeposited funds, or Deposit to an account.
  5. Click OK.

You can then use this payment item to record a partial payment on the invoice and reduce the amount owed, too. You can put the date in the description field. 

To answer your second question, yes, we can change the font color in the body of an invoice. I've got the steps for you: 

  1. Open an invoice. Then, choose the Formatting tab at the top. 
  2. Click the Customize Data Layout icon. 
  3. In the Additional Customization window, click the Layout Designer button.
  4. Double click on the data field (Memo) you'd like to customize. 
  5. In the Properties window, choose the Text tab. Then, click the color area. Pick a color, and then click OK.
  6. Click OK to save your changes. 

Just in case you need a little help finding your way around, you can check out the screenshots I've added below. 

We'd love to hear more about how we can improve the customization options for invoices. Send us your feedback or ideas by going to the Help menu (right next to Window) at the top, clicking Send Feedback Online, and then choosing Product Suggestion.

Feel free to let us know if you ever need help with invoices or QuickBooks Desktop in the future─we'll be here.


 

Moderator

Re: Hello nancyl, We definitely want to help you create well... Is this option available in Quick...

Hello Jairo,

 

The steps on how to create a payment item are only applicable for QuickBooks Desktop users. For those who are using QBO, you can directly make partial payments by only receiving the only part of what the customer owes on the invoice.

 

Here's how:

 

  1. On the left panel, click Sales.
  2. Go to the Customers tab.
  3. Click the customer name.
  4. Search for the open invoice.
  5. Click Receive payment.
  6. Below Amount received, enter the partial amount.
  7. Click Save and close.

Check out these screenshots:

 

1.PNG

 

2.PNG

 

For more insights into recording customer payments, check out the article I recommend on this:

 

Record a customer payment.

 

Feel free to let me know if you need further assistance with the payment process in the Online version. The Community is always up to lend a hand.

Level 1

Reflecting a Credit Memo on Invoice and/or statement

I have read all of the posts about reflecting multiple types of payments and currently all payments are combined together into the total form of payment... is that still the case? We frequently have customers with credit memos due to an incentive program. If they have a credit memo and place an order that amount in the memo is automatically applied to their new invoice so making a payment type line item wouldn't really work. I need a way to show customers a history of their credit memos and to which invoices they were applied, or at least a breakdown on the actual invoice of types of payment, PLEASE.  I can't seem to get that from a statement either, they only show the date of a memo. Any ideas, (I am on QBO).

Anonymous
Not applicable

Re: Reflecting a Credit Memo on Invoice and/or statement

Let me help, @ltesterman.

 

Yes, there's a way to show the credit memos in a statement. You can view this by selecting the Balance Forward type of statement.

 

Here's how: 

 

  1. Go to Create/Plus icon and select Statement under Other.
  2. Click the drop-down arrow for Statement Type and select Balance Forward.
  3. Select the Start Date and End Date.
  4. Click Print or Preview to show the breakdown of your invoices.

There are three types of statements you can choose from in QBO. To know more about the types, you can refer to this article: Create customer statements.

 

You can also open a report showing all your invoices and received payments. Just go to Reports and type in Invoices and Received Payments on the search bar. If you want to customize your report, you may check this helpful link: Customize Reports.

 

That should do it. If you have other questions about your customer's statements, do let me know. I'll be around to help.

Level 1

Re: When you put a Payment Item on the invoice, the date of t...

My question is how I handle the deposit after I enter the Credit Memo for the prepayment/deposit from my customer. I see the credit memo reduced accounts receivable, but shouldn't the money be landing in undeposited funds account? I'm missing a step (or 2). The day I get the check, the money will go into my one bank account, so I am not sure how to take it from the credit memo to the deposit and link them all together, without counting the deposit as a sale, until the final payment is made.

I looked at a statement and the one that applies to us is listed below. We are on accrual method. IF, if the deposit is refundable, it is a liability until the job/sale is invoiced. Problem is, once the customer first paid based on the estimate, I moved it to an invoice. I don’t want to pay for taxes until the final payment is made, since I do not work on it until then. Sometimes, customers will take 6-8 months to pay on an item.

 

Highlighted
Level 1

Re: Hello nancyl, We definitely want to help you create well... Is this option available in Quickbooks online? I don't see the "item list" where do i find it?

In QB Desktop - If the type is "Payment" in item list, how is that handled in QBs for accrual method of accounting? The partial payment is "unearned revenue". Though I have already entered an invoice, I am trying to find the best method of keeping track of partial payments customers make, without calling them a "sale", but calling them a "liability" until the final payment is made for the invoice in full. I will deposit the check I receive from a customer into my one general bank account the day I receive the check, so how (if create a credit memo), get it to undeposited funds account, so I can make my deposit and record the partial payment?

 

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