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paul-hoyt
Nov 12, 2019 12:57 AM UTC
Question

How do I enter installment payments for merchandise I sold?

I often sell products on terms, e.g. $1,000 per month for the next 6 months. What's the best way of tracking this?

7 replies

AddieC
AddieC
Nov 12, 2019 2:30 PM UTC

Hello, 

 

Tracking installment payments for your merchandise is a common structure for small businesses. It's important that your accounting program can accommodate this type of transaction. Luckily, QuickBooks Online makes this process easy with Progress Invoicing! I'd be happy to elaborate on what this is and how to use it. 

 

Progress invoicing allows you to divide an estimate into multiple invoices. Instead of asking for full payment at the beginning of a project or sale, you're able to invoice your customers in partial payments as you go. For you, this may be 6 installments of $1000 as you've explained above. 

 

To turn on progress invoicing, follow these steps:

 

1. Click the Gear icon.

2. Select Account and Settings. 

3. Click Sales. 

4. In the Progress Invoicing section, click the small pencil icon to edit. 

5. Select the Create multiple partial invoices from a single estimate checkbox. 

6. Click Save and Done. 

 

Take a look at this helpful article for more information on how to create a progress invoice: Set up and send progress invoices in QuickBooks Online.

 

This document should have all the information you need to get back to business. If you have any other questions, let me know.


Cheers!

 

paul-hoytAuthor
Nov 13, 2019 1:12 AM UTC

Thanks for the information on progress invoicing, but it's not relevant to my question. My client doesn't use estimates, and we don't do progress billing. For example, we sell an item for $250 OR for three equal payments of $100.  If someone chooses the payment plan, I want to record the $300 sale, record the $100 first payment, and leave the other $200 in AR with the payment schedule. Not sure that's possible. Any ideas? 

    plung
    Nov 13, 2019 10:42 AM UTC

    Do you have webstore to offer your product? And do you want to offer your customer with 2 payment plan (e.g full or installment) everytime they want to place order?

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