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A
arshia200
November 11, 2020
Question

Received Underpayment

  • November 11, 2020
  • 1 reply
  • 1 view

We received an underpayment from one of our customers who was doing an international money transfer to us and put the transaction charges on us, hence the underpayment.

 

I already had made a invoice for this customer on quickbooks with the original (not underpaid) amount.

My question is, since the transaction charges is an expense for us, should I enter it as a bill ? Can I LINK the transaction charges entered as an expense with the underpaid invoice ? Is there any way to do this.

 

If not, what are the correct steps to be followed in this case ?

1 reply

RenjolynC
RenjolynC
Level 9
November 11, 2020

I'll share a way on how you can resolve the underpayment, arshia200.

 

Let's open the invoice and make a payment by following these steps:

 

  1. Go to Customers > Customer Center.
  2. Select the customer's name and open the invoice.
  3. From the Main menu, click the Receive Payments button.
  4. In the Receive Payments window, select the invoice you want to pay.
  5. Enter the underpaid amount in the Payment column. 
  6. Choose the option that applies under the UNDERPAYMENT section.
  7. Hit Save & close twice.

Please see this sample screenshot for a visual reference:

 

 

You can also read this article for more information: Get started with customer transaction workflows in QuickBooks Desktop.

 

For any follow-up questions, please feel free to leave a reply and I'll get back to you as soon as I can. Take care and stay safe.

    A
    arshia200Author
    November 19, 2020

    Hi, Thank you for replying

    so I should leave it as an underpayment ? then what should I do with the underpaid amount ? Is there any way to link it with the money transfer expense we bore on our clients behalf ?

    A
    AileneAModerator
    Moderator
    November 19, 2020

    Hi there, arshia200.  

     

    Thank you for getting back to us. You can receive the underpayment once the client settled it. You can follow my colleague's steps provided above on how to receive payments.  

     

    Also, to link the money transfer in clients behalf, you'll need to create a wash account, so you can move the money from one account to another. 

     

    Once done, you can create a journal entry to transfer the amount from the expense to the clearing account. Here's how to that: 

     

    1. Go to the Company tab.
    2. Choose Make General Journal Entries.
    3. On the first line, debit the Accounts Receivable with the amount to be transferred then add the customer name in the Name column.
    4. On the next line, credit the Clearing Account.
    5. Click Save & Close. 

    Once done, you can now link the payment to the journal entry. Let me guide you on how to do that:

     

    1. Go to the Customer tab.
    2. Select Customer Center.
    3. Choose the customer you're transferring the payment from, then go to the Transactions tab.
    4. Double click the payment and mark the journal entry.
    5. Click Save & Close. 

    Though, I still recommend reaching out to your accountant to seek an opinion to prevent any discrepancy in your books.  

     

    To learn more about how this workflow works, you can refer to this article: Create a journal entry in QuickBooks Desktop for Windows or Mac.

     

    Post again if you have any other questions. I'm always here to help. Have a good day!

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