Partial Payments Proportionally Credited -- Way to Turn Off?

KPFA90 · ‎January 02, 2025

Is there a way to credit a partial payment to one line item on an invoice instead of having QuickBooks proportionally apply the payment over two (or more) line items?

For example, a client has a total invoice of $1,000 with two line items, labor of $750 and supplies of $250. If the client makes a first payment of $750, QuickBooks credits it proportionally, with $562.50 going to labor and $187.50 going toward supplies. I would prefer the full amount of the $750 first payment go to the labor and the second payment, when made, be credited to the supplies.

Is this possible?

JanbonN · ‎January 02, 2025

Thank you for reaching out with your inquiry about managing partial payments in QuickBooks Online (QBO), KPFA90. I'm here to provide details and a workaround for your situation.

The specific scenario you've described is not possible in QBO. Since labor and supplies are combined on one invoice, the payment is treated as a whole, and there isn’t an option to apply it to individual line items.

To achieve your goal of applying payments to specific services or supplies, I recommend creating separate invoices for each item. This way, you can ensure the full payment is allocated to the intended service or supply used.

Additionally, you can send customer statements for detailed reminders about upcoming deadlines.

Feel free to post or comment in this forum should you have other questions regarding this matter, KPFA90. We'll be here to assist you every step of the way.

View solution in original post

JanbonN · ‎January 02, 2025

Thank you for reaching out with your inquiry about managing partial payments in QuickBooks Online (QBO), KPFA90. I'm here to provide details and a workaround for your situation.

The specific scenario you've described is not possible in QBO. Since labor and supplies are combined on one invoice, the payment is treated as a whole, and there isn’t an option to apply it to individual line items.

To achieve your goal of applying payments to specific services or supplies, I recommend creating separate invoices for each item. This way, you can ensure the full payment is allocated to the intended service or supply used.

Additionally, you can send customer statements for detailed reminders about upcoming deadlines.

Feel free to post or comment in this forum should you have other questions regarding this matter, KPFA90. We'll be here to assist you every step of the way.

KPFA90 · ‎January 03, 2025

Thank you for the suggestion, it is helpful. Luckily this situation doesn't happen too often so it will be fairly easy to do separate invoices.

KPFA90 · ‎January 03, 2025

Thank you for the suggestion, this is helpful. Since this situation doesn't come up very often, doing separate invoices should be easy to do.

FaithA · ‎January 03, 2025

Hi KPF90,

Thanks for revisiting the thread and letting us know how things turned out. It’s wonderful to hear that my colleague's recommendation guided you to a helpful solution. Knowing that the issue doesn’t happen frequently and that creating separate invoices is a viable solution for you is reassuring.

We appreciate your proactive approach and your willingness to share your experience. It's users like you who make the QuickBooks Community a valuable resource for others facing similar challenges.

As you continue to streamline your processes, you'll find this article on Generating Financial Reports particularly helpful. It offers detailed instructions, which can be the next step in optimizing bookkeeping management.

Please remember that the QuickBooks Community is here for you whenever you need us. The thread will always be open to cater to any follow-up questions or concerns you might have in the future. We're just a message away if there's anything else you need.

FishingForAnswers · ‎January 03, 2025

@KPFA90 Out of curiosity, is there a reason you want to do it this way aside from personal preference?

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Partial Payments Proportionally Credited -- Way to Turn Off?