Record invoice payments

Recording your customers' invoice payments to keep your records accurate and up to date. This lets you track outstanding customer balances and manage your incoming cash flow effectively. Whether your clients pay via bank link, cash, or check, you can document every transaction.

Note: This feature is limited for QuickBooks Online Free and QuickBooks Online Lite. Upgrade your plan to get more features. Go to Settings , then Subscriptions and billing. Then select Upgrade your plan.

Note: If you use QuickBooks Payments to process payments, we automate these steps. When your customer pays the invoice, QuickBooks processes the payment and categorizes it.

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With QuickBooks Payments, you can see when customers view and pay invoices, and get an up-to-date picture of your cash flow to make smarter financial decisions. Learn more about QuickBooks Payments.

What you’ll need

• An existing QuickBooks subscription.
• An open invoice with an outstanding balance.

Record invoice payments in QuickBooks Solopreneur

For payments that customers link from a bank:

1. Go to Get paid, then select Invoices (Take me there).
2. Find and select the invoice you want to record a payment for.
3. In the ACTION column, select Record payment.
4. Open the Deposited to ▼ dropdown and select the appropriate bank account.
5. Select the checkbox for the specific transaction you want to link.
   Note: If the transaction is missing, the bank may still be processing it or it falls outside the current date range.
   • Use the Date filter to expand your search.
6. Select Next.
7. Enter the payment amount in the Amount to apply field.
8. Select Save.

Record cash payments in Solopreneur

Follow these steps for cash payments from your customers:

1. Go to Get paid, then select Invoices (Take me there).
2. Select the relevant invoice.
3. In the ACTION column, select Record payment.
4. Select Cash from the Deposited to ▼ dropdown.
5. Enter the payment amount in the Amount field.
6. Select the Payment date. You cannot select a future date or a date before the original invoice was created.
7. Select Save.

Record invoice payments in QuickBooks Online

1. Select + Create.
2. Select Receive payment.
3. Choose a client from the Customer ▼ dropdown.
   • Select + Add new if you need to create a new customer profile.
4. Choose a method from the Payment method ▼ dropdown.
   • Select + Add new to add a new method to your list.
5. Select the destination account from the Deposit To ▼ dropdown.
   • Note: This dropdown does not appear if you process payments through a merchant account.
6. Enter the total amount in the Amount received field.
7. In the Outstanding Transactions section, locate the DESCRIPTION column.
8. Select the checkbox for each invoice you are recording a payment for.
   • If you select one invoice, the amount received updates the PAYMENT column and Amount to Apply.
   • If you select multiple invoices, the open balance for each appears in the PAYMENT column.
9. Adjust the amounts in the PAYMENT column if they exceed your Amount received.
   • The Amount to Pay field displays the total from the PAYMENT column.
   • Any surplus between the amount to apply and amount received shows as an amount to credit.
10. Select Record and close.

Record several invoice payments in a single deposit

You can use the Undeposited Funds account to record several payments in QuickBooks. This allows you to combine those payments into one deposit transaction.

Note: Do this only if your bank combines several payments into one deposit.

Results

Once you save the transaction, the invoice status updates, and the customer's outstanding balance decreases accordingly.

Next steps

After recording your payments, you can apply credits to customers to manage any remaining overpayments.

Related links

• Create and apply credit memos or delayed credits in QuickBooks Online
• Deposit payments into the Undeposited Funds account in QuickBooks Online