In this article, we will be providing you the multiple processes to create payments in QuickBooks Desktop such as different payment methods, reapplying payments, refunding payments and many more.

Resolve Common Issues When Applying a Payment Towards An Invoice

If you are looking for some support related to the standard process for creating invoices and receiving payments then you can refer to the QuickBooks Payroll Support Number.

Use Multiple Payment Methods Towards An Invoice

  • Create a cash payment item
    • Go to the List menu and from the drop-down list, take your pointer on Item List
    • From the Item drop-down list, click on New Item
    • Select Payment for the Item type
    • Type Cash Payment on the Item Name/Number field
    • Click on Group with other undeposited funds if you are looking for the payment to go to your Undeposited Funds account else, click on Deposit To option, select the bank account you want to the payment to be deposited to.
    • Click on OK
  • Create the Invoice
    • Go to the Customer menu and then click on Create Invoices
    • From the Customer: Job drop-down list, select a customer or customer job. In case if the customer or job is not available in the list, click on Add New.
    • Enter the required information in the respective fields
    • Select the item(s) in the detail area.

Note: You have to use two different lines for the items that will be paid by cash or credit or debit card.

  • Select the Cash Payment item that you created in first step. In the amount section, enter the item(s) amount that you will pay through cash. Make sure that the cash payment items are showing a negative amount and the Total and Balance due is equal to the amount which will paid through credit card
  • Click on Save & Close
  • Record the payment
    • Go to the Customers menu and then click on Receive Payments
    • From the drop-down list, click on Customer or Customer Job
    • Enter the amount
    • Arrange the date properly.
    • Select the appropriate credit card for the Payment method
    • Select the Invoice(s) that you will be paying through a credit card
    • Click on Save & Close

Correct and re-apply payments that were applied to the wrong invoice

If your QuickBooks is set to auto payments then your payments will be automatically posted to the oldest open invoice. Some of the businesses do not prefer the payments posted in this manner. By performing the following steps, you will be able to re-apply payments to the right invoices without affecting your reconciliation.

  • Open the Invoice that the payment should not have been applied to.
  • From the Reports tab, click on Transaction History.
  • Select the payment from the Transaction history window and click on Go To.
  • From the Customer Payment window, unmark the invoice(s) checkmarks on the invoices that the payment should not have been applied to.
  • Mark on the invoice(s) box on which the payment should get applied.
  • Click on Save and then
  • Now, the payments will be applied to the invoice(s) that you have marked.

 

You have to set your payment preferences in order to apply payments automatically in QuickBooks. To do so, follow the below mentioned steps:

  • Go to the Edit menu and take your pointer to Preferences
  • From the drop-down list, click on Payments
  • Go to the Company Preferences tab
  • Mark or unmark the Automatically apply payments under the Receiver Payments

Use a payment deposited directly into a bank account to pay for an open invoice

To create a customer credit from an existing deposit and apply the same credit to an open invoice, you need to follow the below mentioned steps:

  • Edit the deposit for creating a credit to the customer
    • Open the original deposit
    • Under the Received From column, provide the customer name that you have used on the original invoice.
    • If a warning message comes on your screen, click on OK
    • Under the From Account column, modify the income or other type of account with the Accounts Receivable account used on the original invoice.
    • Click on Save & Close
  • Apply the credit to the original invoice
    • Go to the Customers menu and click on Receive Payment
    • From the Customer Payment window, click on customer used on the original invoice.
    • Select the invoice to which you want to apply the credit
    • Click on Discount and Credits and then mark the credit amount box that you want to apply.
    • Click on Done
    • Click on Save & Close

Apply a payment from one customer that has invoices in more than one A/R account

If your customer transferred one payment to cover some the invoices that are in other Accounts Receivable then you need to follow the below mentioned steps:

  • Apply the whole check amount to Invoice(s) in one of the A/R accounts. To do so, follow the below steps:
    • Go to the Customers menu and click on Receive Payment
    • Click on A/R Account and select the first account from the drop-down list.
    • Type the full amount of the check
    • Select the Invoice(s) that you wish to apply part of the payment, leaving the reminder as a credit.
  • Take the credit from the first A/R account to a ‘wash’ account.
    • From the Company menu, click on Make General Journal Entries
    • Select the first A/R account then on the first line. Provide the Customer name and amount in the Debit
    • Select a ‘wash’ account on the second line and in the Credit column, provide the amount that you want to transfer from the A/R1
    • Click on Save & Close
  • Apply the credits in other remaining A/R accounts to the invoice(s)
    • Go to the Customers menu, click on Receive Payments
    • Select the customer:job and the A/R Account.
    • Select the invoice on which you want to apply the credit.
    • Click on Discount and Credits
    • Utilize the present credit to pay the invoices

Edit Customer payment that was recorded incorrectly

  • Find the invoice that has a incorrect payment amount mentioned. This invoice can easily be identified because it will have a Paid stamp on the screen.
  • Go to the Reports tab and then click on Transaction History
  • Highlight the payment line in the Transaction History – Invoice and then click on Go To
  • Modify the amount of the payment to the amount you received.
  • Click on Save & Close
  • Click on Yes if you get a confirmation message on screen.

Refund a payment to allow customer to pay with a different payment method

The below mentioned steps will help you to refund single payment method to permit your system to pay using another payment method. It can be useful in a situation when a wrong credit card was charged and the customer wants to pay through cash or by a different method.

  • Initiate a refund for the original payment
    • Go to the Customers menu
    • Select Create Credit Memos/Refunds
    • In the Customer:job field, provide the name of the customer, item and the amount
    • Click on Save & Close
    • From the Available Credit window, click on Give a refund
    • Click on OK
    • From the Issue a Refund window, provide the amount and select the payment method for the refund.
    • Verify that the Process credit card refund when saving is:
      • Checked: If you still have to process the payment online
      • Unchecked: If the payment does not require to processed online
    • Click on OK
  • Remove the Credit Memo related with the refund. Doing this will remove the link between the two transactions.
    • Find out the Credit Memo and right click on it.
    • Press CTRL + D keys
    • Click on OK once you get the Delete Transaction
  • Head to the original payment and unmark the invoice and mark the refund. Now the refund and payment will be linked together. Leave the invoice open.
  • Pay the original invoice through the replacement or new payment method.

Your customer paid your vendor directly for the materials you used to provide service to them

  • Receive payment from the customer and leave balance as underpayment.
    • Go to the Customers menu
    • Select Receive Payments
    • Click on Customer/Job
    • Select the invoice and provide the amount that the customer is paying.
    • Click on Leave as Underpayment
    • Click on Save & Close
  • Create a clearing account
    • Go to the Lists menu and from the drop-down list, click on Chart of Accounts
    • Click Account and from the drop-down menu, click on
    • In the account type, click on Income and then click on
    • In the account name, enter Clearing
    • Click on Save & Close
  • Make two journal entries to transfer customer balance to your vendor
    • From the Company menu, click on Make General Journal Entries
    • Provide the Date and Entry No if required.
    • Set the first journal as Credit to A/R and Debit to clearing account. Ensure that you have selected appropriate customer in Accounts Receivable line.
    • Set the second journal as Debit to A/P and Credit to Clearing account. Make sure that you have selected appropriate vendors in A/P line.
  • Apply credit to vendor’s bill.
    • Go to the Vendors menu and click on Pay Bills
    • Click on the right vendor and bill
    • Click on Set Credits
    • Choose the appropriate credit and then click on Done
    • Click on Pay Selected Bills

Follow The Steps Carefully or Contact Or ProAdvisors

Call Us For Support

By following the above mentioned steps, you will be able to resolve most of the common issues when applying a payment towards an invoice. However, if you still face any issue or difficulties while applying for a payment then you can contact us by dialing our toll-free QuickBooks Support Phone Number +1888-396-0208.

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Resolve Common Issues When Applying a Payment Towards An Invoice

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