by Intuit•1• Updated 2 months ago
Learn how to receive payments for an invoice in QuickBooks Desktop.
When a customer pays you for an open invoice, you need to enter the payment in QuickBooks. Recording invoices is part of the Accounts Receivable workflow.
Note: Enter a sales receipt on Windows or Mac if your customer paid upfront in full or a payment item if it’s a partial payment only. If you use Intuit Merchant Services, here’s how to process your customer’s credit or debit card on Windows or Mac.
Enter a payment from a customer
QuickBooks for Windows
- From the QuickBooks Home page or the Customers menu, select Receive Payment.
- In the Received From dropdown, select the customer's name.
- Enter the Amount received.
- Make sure the date is correct, then choose the Payment method.
- Select the invoice or invoices you'd like to pay.
- To add a discount or credit, select Discounts and Credits.
- Select Save & Close.
By default, payments are deposited to an account named Undeposited Funds. Learn more about Undeposited Funds. Or, learn how to change your default deposit to account.
QuickBooks for Mac
- From the Customers menu, select Receive Payments.
- Select Create a Payment.
- Fill out the fields.
- Select the outstanding invoices and charges you're receiving the payment for. A check appears next to the invoice or charge.
- Choose how you want to deposit the payment: Select Group with other undeposited funds to hold the payment in your undeposited funds account, or select Deposit to, then enter a specific bank account.
- Select Save.
To edit a payment, select a payment in the list, then edit the info. To see a history of the payments for a customer, select the Show/hide customer information icon.
To apply a discount for early payment
- Go To Customers, then select Receive payments.
- Enter the customer's payment in the Receive Payments window.
- Select Discount Info.
- (Optional) Change the amount of the discount.
QuickBooks calculates a suggested discount amount based on your payment terms with the customer and the payment date. - Enter the name of the account you use to track the discounts you give to customers.
- Select Save.
To apply discounts to statement charges, go to the Accounts Receivable register for the customer and use a Discount item.
QuickBooks Desktop Accountant PlusQuickBooks Desktop PlusQuickBooks Desktop PremierQuickBooks Desktop ProQuickBooks Enterprise Accountant QuickBooks Enterprise DiamondQuickBooks Enterprise GoldQuickBooks Enterprise Platinum
FAQs
When the invoice is paid, the amount is recorded as a debit to the accounts payable account; thus, lowering the credit balance. The higher the accounts payable, the higher its credit balance is, and the lower the accounts payable, the lower its credit balance.
What is the journal entry for payment of an invoice? ›
If a customer has an unpaid invoice, then that represents an accounts receivable for a customer. When a customer pays on credit, the company would debit accounts receivable and credit revenue (revenue is recognized when earned).
How to record an invoice in a journal entry? ›
Record the total debit amount in the accounts receivable account according to the invoice. When the customer pays the invoice in full, post a debit in the sales account. This helps balance the double-entry system, which can help you avoid accounting errors and balance books more effectively.
How to mark an invoice as paid in QuickBooks? ›
Let me show you how:
- Access your QuickBooks Online company.
- On the left navigational bar, go to the Sales tab.
- Select Invoices.
- Choose the invoice, and then from the Action column, click the Receive payment button.
- Make sure the amount is correct, then hit Save and close.
This means full payment is due within the stated number of days after the month-end the invoice is issued in. This can be worded as, “Payment due 30 days month-end” or abbreviated to “Net EOM 30”. If your invoice were dated 5 April with the terms Net EOM 30, the full payment would be due on 30 May.
How do you handle an invoice payment? ›
Monitor your accounts receivable regularly to identify any overdue invoices. Send polite reminders to clients or customers who have not paid their invoices on time. Implement a systematic process for escalating overdue invoices, such as sending a final notice or involving a collections agency if necessary.
How do you post an invoice in accounting? ›
After you have made the final adjustments to an invoice, and it has been final printed, you can post it. When posting an invoice, the accounting period is set to the invoice date, unless that date is prior to the lock reconciliation date or after the end of the current accounting period.
How do you record payable bills? ›
To record accounts payable, the accountant debit the assets or expense account to which related goods or services were purchased. Meanwhile, the accountant credits the accounts payable when bills or invoices are received.
How to record sales invoices? ›
In accounting, when a sales invoice is recorded, it consists of a debit to the accounts receivable and a credit to the sales revenue. When a customer pays a sales invoice, it is recorded as a debit of cash and a credit of accounts receivable.
What is the invoice entry? ›
This allows you to configure invoice, delivery notes and sales & purchase orders. The Invoice entry and Order entry screens can be configured for additional information such as export details, shipping details, etc.
by Intuit• 6• Updated 1 month ago
- Select + New.
- Select Receive payment.
- Select a customer.
- Under Outstanding Transactions, select the invoice.
- Under Credits, select the journal entry to apply it as a credit. (Note: The Credits section only appears if there is an unapplied customer credit. ...
- Select Save and close.
The double entry system requires two entries for each transaction: a debit and a credit. Any purchases, such as raw materials or assets, as well as any payments from customers, must all be recorded in two places in the ledger under this system.
How do I manually mark an invoice as paid? ›
Desktop
- Click on the invoice you want to mark as paid.
- Click on the “Payments” tab.
- Click “Set as Paid”.
- Enter the “Paid Date” and “Paid Amount” and select the Payment Method from the drop down.”
- Click the “Save Payment” button.” That's it! Now the invoice is marked as paid.
You can use an ink stamp with the note “paid” on the invoice, or use invoicing software to add the note. Issuing a paid invoice is a common accounting practice for installment payments (a payment method allowing customers to pay for their purchases over the course of several payments under an agreed-upon term length).
How do you indicate paid on an invoice? ›
Since the paid invoice is just a standard invoice with additional information, you just need to add the following to the original invoice:
- The note “paid” on the updated invoice.
- The payment references.
- The payment date.
- The payment method (bank transfer, check, bank card, or cash)
- The seller's signature.
Your invoice payment terms will describe the types of payment you accept (i.e., Direct Debit, bank transfer, cheque, etc.) and the currency you wish to be paid in. Additionally, you'll want to include the expected due date for the payment to occur, as well as any potential late-payment penalties you may have in place.
How do you write an invoice in accounting? ›
Make sure you indicate that the document is an invoice, and include all necessary invoice details: your company name, your customer's company name, your business address, the invoice date, a breakdown of the services and pricing, and any applicable sales tax.
How do you format a paid invoice? ›
Your invoice format must include:
- Your business name and contact details.
- Your customer's name and contact details.
- The label 'Invoice'
- A unique invoice number.
- The invoice date and date of supply.
- A description of the goods or services and their prices.
- VAT (if applicable)
- Subtotals and totals.
