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Intuit

Record invoice payments in QuickBooks Online

Learn how to receive and categorize invoice payments in QuickBooks Online.

You have a few ways to record transactions in Quickbooks Online:

  • If your customer paid you for the product or service at the time of the sale, give them a sales receipt. Then you're all done.
  • If your customer plans to pay you in the future, send them an invoice.

After a customer pays their invoice, there's one more step to record and categorize the payment. Follow the steps based on how you got their payment and if you use an outside payment processing service, like Square or PayPal.

Note: If you use QuickBooks Payments, we handle everything for you. Once your customer pays for their invoice, QuickBooks processes the payment and categorizes it into the right account.

Record invoice payments

When you receive a payment, you need to let QuickBooks know the invoice was paid. Otherwise, it stays open and unpaid on your reports.

Follow the steps based on how you want to record the payment:

Record a single invoice payment

  1. Select + New.
  2. Select Receive Payment.
  3. Select the name of the customer from the drop-down menu.
  4. From the Outstanding Transactions section, select the transactions that you’d like for QuickBooks Online to calculate. As you select these items, the payment total will change.
  5. Select the payment method.
  6. Enter the Reference no. and Memo if applicable.
  7. You can either deposit the money to your checking account or to the Undeposited funds account.
  8. Select Save and close.

Group multiple payments together into a single record

If you need to group multiple payments together, maybe because you deposited several customer payment checks at the bank all at once, use the Undeposited Funds account. You only need to use this if your bank recorded multiple payments as a single record.

Record partial payments

You should record a payment even if you were paid only part of what is owed. QuickBooks Online will keep track of the invoice's open balance:

  1. Select + New.
  2. Select Receive Payment.
  3. Select the name of the customer from the drop-down menu.
  4. Select your payment method.
  5. Enter the Reference no. and Memo if applicable.
  6. Under Amount Received, enter the amount of the payment.
  7. From the Outstanding Transactions section, select the transactions you want to apply the payment to.
  8. You can either deposit the money to your checking account or to the Undeposited funds account.
  9. Select Save and close.

To find the remaining balance:

  1. Reopen the invoice.
  2. Look at the Balance Due line.
  3. Go to Reports.
  4. In the Find report by name field, enter Customer Balance Details.
  5. Select Run report.


Note: When you receive a partial payment, QuickBooks Online applies the payment in the first line item of the invoice. It will continue to apply the payment to each line until it's been used up. This is by design and you can't change the order QuickBooks applies the money.

 

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