How can I record a customer's partial payment of an invoice?

Good day, @mrowin.

Welcome to the Community. I can help you record a customer's partial payment on an invoice.

I'll show you how:

1. Click the Plus icon.
2. Choose Receive Payment.
3. Enter the customer name.
4. Select the invoice by putting a check mark.
5. On the Payment column, enter the partial payment amount (see screenshot).
6. Click Save and close.

The status of the invoice will automatically change to Partial after following the steps given above. To get an in-depth information about invoice payment, you can refer to this article: Record customer payment in QuickBooks Online.

That information should get you on the right path. Don't hesitate to add a comment if you need anything else. Have a wonderful day!

After you apply the partial payment is there an option to send the invoice again with the remaining amount due?

Hey there, @chuckiecreech25.

You can resend your customer's invoice as a reminder. I'd be happy to add some details and help you from there.

Sending the invoice as a reminder allows your customer to see their remaining balance. In addition, they can view the breakdown of the invoice, including the applied partial payment.

To send a reminder, you can follow the steps below:

1. Hover your mouse on Sales from the left panel.
2. Choose Customers.
3. Select the customer from the Customers page.
4. Click on the Transaction List tab.
5. Locate the invoice and select Send Reminder from the Action column.
6. Click on Send from the pop-up.

Once done, if your customer pays for the invoice, you can click on Receive payment again and enter the amount.

If you want to learn more "How do I" steps, you can always visit our Help Articles page.

Always know that you can post again here in the Community if you have any other concerns.

After applying the partial payment, how do I send the partial payment to my bank without the entire invoice being marked as PAID?

Good day, Gwenn.

The invoice will only show the partial status after adding the partial payment. Here's what it looks like:

If you're referring to the second payment that will pay the entire amount on the invoice, then you'll want to create a receive payment. Just make sure to un-check the invoice that shows up under Outstanding Transactions.

The process will set the payment as a credit to the customer, which you can apply to the invoice later on. Please see the sample screenshot below.

The invoice will remain partially paid until you apply the rest of the payment.

I'm also adding this article for more details: Record invoice payments in QuickBooks Online.

If you have any additional questions, please leave a comment on this thread. Thanks.

This doesn't work for me.  When I check the invoice, the amount and amount received defaults to the full amount.  When I enter my partial amount in the amount received and amount (on the invoice line) it doesn't seem like anything actually updates: the "Amount to Apply" at the bottom stays as the whole amount.  If I hit save and close, it applies a payment for the entire amount.

How can I actually record a partial payment?

I'm determined to help you record the partial payment, jakelawson44.

QuickBooks applies the amount to the invoice line items in order when recording partial payments. The additional will apply to the next until its complete.

Since the payment applied to the whole amount, I'd recommend accessing your QuickBooks account via a private window to determine if this is a browser-related issue.

Here are the keyboard shortcuts: 

• Safari: Command + Shift + N 
• Google Chrome: CTRL + Shift + N
• Mozilla Firefox or Microsoft Edge: CTRL + Shift + P  

Once signed in, record the partial payment. Here are the detailed steps:

1. Go to + New and then select Receive payment.
2. Select the name of the customer.
3. From the Payment method drop-down menu, select the correct method.
4. Choose the correct account.
5. In the Amount received field, enter the partial payment.
6. In the Outstanding Transactions section, select the invoice.
7. Once done, click on Save and close.

If it works, let's clear the browser's cache to ensure the program performs efficiently. You can also use other supported browsers as alternatives.

After recording the payment, you can track the remaining balance by following these steps:

1. Go to Business overview and then select Reports.
2. Find and open the Customer Balance Summary report.
3. Click Customize to filter the details needed.
4. Select Run report.
5. Review the balance in the Total column.

Also, I'd suggest adding a screenshot after recording the payment. This helps us determine the cause.

Please keep us posted if you have additional questions about the tracking process. It's our priority to ensure this gets resolved.

I have a followup question, because this helped me with my situation. But I have a question as to how to complete the invoice with an expense.

I do business with a company that sells our products for us. I need to invoice them for products they sell, so we can get paid.  This company also sells things to us. They sometimes use what we owe them, to offset what they owe us.

 I sent an invoice for $10,000 to the company. They paid us $9500. The amount that got deposited to our account, was 9485.  They sent us a wire for 9500. our bank charged us $15 for the wire receipt.

We have an invoice from this company where we owe THEM 500.  So they sent us 9500, and they consider our invoice paid.

 So I can receive the 9485 against the invoice. That leaves 515 outstanding.

How do I show that 515 is paid? I have a $15 charge in my checking account... taken out of my balance. This was taken by my bank, for that fee.

 I have an invoice from the company for $500 that I'm supposed to pay. They marked it paid but no $ left my account.

 So, it would be easy to do this if they paid us the full amount.

But now that I received the 9485... That company still owes me 515 (in the system). How do I mark that as paid, and mark it paid by paying off that 515 with the 500 invoice from them, and that $15 checking account entry?

Hello there, @brianhahne.

Allow me to provide the step-by-step process so we can clear out the invoice's outstanding balance. 

Since you've already created the invoice, let's go ahead and receive the payment:

1. On the same invoice that was recently created, click on Receive payment.
2. In the payment section, type in 9500 since that's the only amount the company paid you for.
3. When done, hit Save and Close.

Since you're charged $15 for the bank fee, let's create a bank deposit and include the fee. Here's how:

1. Click on the + New icon, then select Bank Deposit under Other.
2. Select the Payment we've created.
3. In the Add funds to this deposit, select the Vendor from the Received From dropdown. 
4. Complete the necessary fields and enter negative (-) 15 in the Amount section.
5. When done, select click on Save and close.

Since you mentioned you have a payable worth $500, let's create a bill if you haven't created one:

1. Go to the + New icon and select Bill.
2. Select the Vendor in the Vendor section.
3. Fill in the details and enter 500 in the Amount section.

Next, let's go ahead and create a Journal Entry to clear this out. Make sure to Debit the amount (500) to Accounts Receivable and Credit it to Accounts Payable. Choose the customer and vendor in the respective fields.

After which, let's link the Journal Entry that we created earlier to the invoice:

1. Go to the + New icon and select Receive Payment.
2. Choose the customer in the Customer dropdown.
3. Put a checkmark on the Journal Entry and the Invoice that we created.
4. Make sure that the amount will be zeroed.

Lastly, proceed and link the Journal Entry to the bill by creating a pay bill transaction, selecting the bill, and applying the credit. That will clear out the outstanding invoice.

Additionally, you can utilize this article in running reports so you can have a glimpse of the financial standing of your business: Run reports in QuickBooks Online.

Please don't hesitate to hit on the Reply button if you need further assistance in managing your invoices and receiving payments in QBO. I'll be right here to help you thoroughly. Take care and have a good one.

Do I need to hit the $15 on the charge for a new bank deposit?

I have my checking account linked. So the $15 charge is in QBO already. It's categorized as a bank charge. So I guess my question is that, should I really be creating a new deposit for -15, when the $15 is already in there as a deduction? To be honest I've left these invoices un-settled for a while. So everything in my accounts are balanced and reconciled. Just having to go back and clear these invoices out...

So if I need to delete that $15 imported from the bank.... I can delete and recreate it on the same day, and re-reconcile it.. and I'll be fine.

Just wondering if that changes anything?

Hi there, @bchahne.

To help you sort things out. Yes, you'll need to create a new deposit for the $15.

Performing this will allow your account to show that there is a bank fee deduction from your $9500 payment. Also, you're right, you can delete it, recreate it, and reconcile it without changing anything on the same day.

Moreover, I also recommend reaching out to your accountant for guidance.

Check out the guides here if you need help with your past reconciliations: Fix issues for accounts you've reconciled in the past in QuickBooks Online.

If you need additional assistance with managing your invoices or account, don't hesitate to reply to this post. I'll be willing to extend a hand, Keep safe and enjoy the rest of the week!

Dear Bryan M, 

Perhaps you can help me with a similar scenario.  

I invoiced a customer $6000.  We received a payment of $5940 via ACH.  The customer held back $60 for an agreed-upon expedited payment.

Can you help me understand the proper way to receive payment?  And do I need to create a separate transaction for the $60? 

Thank you in advance. 

Hi there, @jeff15.

You can edit the invoice and add the agreed $60 discount to properly record the $5940 payment in your QuickBooks Online (QBO) account. Let me guide you through the process.

You have two options to add a discount to the invoice. Firstly, let's turn on the discount settings in QBO. Here's how:

1. Click the Gear icon, then select Account and Settings.
2. Select Sales from the left menu.
3. Go to the Sales form content section and click the pencil icon to edit.
4. Turn on the Discount setting.
5. Select Save, then Done.

Once done, you can add the $60 discount to the subtotal on your sales forms as your first option. To do so, you can follow the steps below: 

1. Find and open the invoice transaction.
2. In the Discount value field, enter the $60 discount.
3. Click Save and close.

For your second option, you can add a discount as a line item on your invoice. If you haven't yet, let's first create a service item for the discount. Here's how:

1. Click the Gear icon, then select Products and Services.
2. Select New and choose Service.
3. Enter Discount in the Name field.
4. In the Sales price/rate field, enter the discount as a negative amount (-$60). Keep in mind, this is a dollar amount and not a percentage.
5. From the Income account drop-down, choose Discounts given.
6. Choose Nontaxable from the Sales tax category drop-down
7. Click Save and close.

After creating the item, you can now add the discount item to your invoice. Let me guide you how.

1. Find and open the invoice.
2. Add the discount item you just created in the Product/Service column. You can adjust the discount if you need to, just make sure it's a negative amount.
3. Click Save.

I'm adding this article for more guidance: Add a discount to an invoice or sales receipt in QuickBooks Online.

Just in case you want to set payment terms in QBO so you can give a discount to your customer depending on your agreement, feel free to check out this article: How to Adjust Invoice Payment Terms in QuickBooks Online.

Come back to this post if you have other concerns or follow-up questions about this. I'll be around to provide further assistance.

HOW ABOUT PARTIAL PAYMENT AND THE LEFT AMOUNT I WANT TO ENTER AS EXPENSES. HOW CAN I DO THAT?

I appreciate you for joining here, @R12345.

I'd love to know what kind of partial payment you're referring to. The information you'll give will help record your transaction correctly.

If you have additional info or question, never hesitate to come back here. Thank you, and keep safe!

Sample scenario is when I enter our credita card sales:

1 - Enter the transaction to Invoice : Customer - Credit card sales, Amount $100.00

2- Receive payment : Customer - Credit card sales , the Amount received $97.50 (net of bank charge that reflected to Bank statement) So how can I clear the left amount $2.50.?

It left hanging. Please help  me what other step or is there any ways I can do to clear this amount. Looking for your respond. Thank you so much

I appreciate you sharing details of your concern here in this thread, @R12345.

When receiving payments from your customers, you may incur bank charges or fees. Let me guide you through the steps on how to record bank fees in QuickBooks Online (QBO):
 

1. In your QBO account, click on +New, then select Journal Entry.
2. Enter the Journal Date.
3. Under the empty table enter the following double entries:
   • First line, Account: Trade and other receivable / Accounts Payable, Credit: Amount, Name: Customer name
   • Second line, Account: Bank charges expense account, Debit: Amount
4. Once ready, select Save and close.

You can then settle the open invoice with the Journal Entry you just created:
 

1. In your QBO account, go to the Sales tab, then select All sales.
2. Locate the invoice which has incurred the bank charges.
3. Select Receive payment on the top right of the invoice.
4. Under the Receive payment page, tick to select the invoice and the Journal Entry (located in the second table below).
5. Ensure that the Amount received is correct (total invoice amount - bank charges = Net amount received).
6. Once ready, select Save and close.

Moreover, I'd advise you to consult with your accountant to make sure the transaction is accurately recorded and prevent bookkeeping issues.

Additionally, I'll also share this article that can serve as your reference to learn how to review downloaded bank and credit card transactions and put them in the correct accounts in QuickBooks: Categorize and match online bank transactions in QuickBooks Online.

Feel free to leave a reply if you require further assistance with recording bank charges in QBO. The Community team always has your back. Have a good one.