I'm glad to see you again in the Community, @Bluemanta.
It's my pleasure to help you with recording customer payment in QuickBooks.
If you’re using QuickBooks Online, you can use the Receive Payment feature if the customer was issued an invoice. If not, enter a sales receipt or a deposit.
To receive payment:
1. Go to the Plus icon and select Receive Payment.
2. Select customer’s name.
3. From the Outstanding Transactions section, choose the transaction.
4. Fill in other necessary information such as Payment method, Reference no. and Memo.
5. You can either deposit the money to your checking account or to the Undeposited funds' account.
6. Hit Save and Close.
Enter sales receipts:
1. Go to the Plus icon and select Sales receipt.
2. Select customer’s name.
3. Fill in the necessary information.
4. Hit Save and Close.
To record a deposit:
1. Go to the Plus icon and select Bank Deposit.
2. In the Choose an account field, select the bank account to which you want to deposit the funds.
3. Select the checkboxes of the transactions you want to deposit in the Select the payments included in this deposit or QuickBooks Payments sections.
4. In the Add funds to this deposit table, enter information including who the item was Received From, the Account, Payment Method, and Amount of the item.
5. Hit Save and Close.
For more information, check out this article: How to record a customer payment.
However, if you’re using QuickBooks Desktop, perform the corresponding steps given on the following articles to record the payment:
• Record payment for an invoice.
• Create a sales receipt.
• Deposit customer payments.
That should get you pointed in the right direction. Let me know how it goes by leaving a comment below. If you need additional assistance working with QuickBooks, post again in the Community. I’ll be here to help. Have a good one!
Thank you for the reply but this is too generic.
Let me clarify a couple of things:
- We use QuickBooks Desktop version
- This is a payment for an invoice we issued
- When creating "Receive Payment" entry, you need to choose the payment type (Check, CC, EFT etc..) - Should I select EFT or Check?
- Since the transaction will be deposited directly into the bank account, should we select the deposit account instead of "Undeposited Accounts" in the "Deposit To" field?
Thank you for your reply however it is too generic.
Please let me clarify a couple of points:
- We use Quickbooks desktop
- The payment is for an invoice
- When creating/receiving a payment, should I select EFT as the payment method?
- Since the payment is deposited directly into the bank account, shouldn't I select the deposit checking account instead of the "Undeposited Funds" account in the Deposit To field? In your reply it says I can do either but I'm not sure which way is the preferred or recommended way from accounting perspective
Hi there, @Bluemanta.
Thanks for the prompt response and the additional information. I'm here to provide clarification about receiving payments in QuickBooks Desktop.
Since the payment is for an invoice entered in QuickBooks, record it by using the Receive Payments screen. Here’s how:
1. Go to the Customer menu at the top and select Receive Payments.
2. On the Received From drop-down field, choose the customer's name.
3. Enter amount in the Payment Amount field.
4. Make sure the date is correct, then choose EFT as the Payment method. (Click the More drop-down to add EFT as payment method).
5. Choose the deposit checking account in the Deposit To field.
6. Select the invoice to be paid by putting a check mark next to it.
7. Hit Save & Close.
Here’s an article for your reference: Record payment for an invoice.
That should answer your question for today. Please reach out to me if you have questions or concerns, I’ll be more than happy to answer them for you. Take care and have a great day!
When creating an EFT Payment Method, it prompts for the "Payment Type". What is the correct choice? I tried "Other", but then when receiving a payment, it prompts for Credit Card numbers & expiration dates which is not applicable
I hope your day is going well so far. I'd be glad to provide information about adding the correct Payment Type when creating an EFT Payment Method.
I'd first reach out to your accountant just to be sure what would be best.
I'm unable to advise you with which route to take for your business, but here is some additional information about the different types of payment.
- Any bills or coins paid by the recipient to the provider.
- An instrument drawn against the deposited funds.
American Express, Discover, MasterCard, Visa
- These are used when receiving a payment with a credit card.
- It is used when you have a different kind of credit card that's not listed in the payment methods.
- It is an electronic version of a paper check to make online payments including Wire, EFT, ACH as well.
For additional information with the accepted credit card types, here's a detailed article: Add or modify the accepted credit card types in QuickBooks
If you have any more questions or concerns, please don't hesitate to reach back out. Have a good rest of your day!