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Alex_Goldline
December 16, 2022
Question

A customer send a Back Charge after the Invoice be paid in full

  • December 16, 2022
  • 1 reply
  • 0 views

I do the books for a construction company who does work for a big contractor company, doing many diferents projects at the same time. 

For each job they issue a PO (specific for a Job Site and a Lot Number). I usually issue an Invoice for each PO for better tracking them.

I have some situations where that customer pays an invoice in full (for a Job site and a lot number), but after a few weeks (sometimes a few months) I receive a back charge for that specific job site/lot number. I know how to create that back charge as a Credit Memo, to track it, as well. 

 

My problem is, they usually pay once a week for a lot of POs, in a direct deposit, and they just send those Back Charges as a deducting of the total amount to be deposited. 

How could I apply those Back Charges without applying them to an open invoice? Is is possible to have a "negative" deposit?

 

Thank you!

1 reply

C
ChristieAnn 11
December 21, 2022

Hi there, Alex_Goldline.

 

Thank you for visiting the QuickBooks Community. I'll ensure you can record the back charges accurately in QuickBooks Desktop after the Invoice has been paid.

 

A sample of a Back Charge is when a transaction you processed or an entry already paid gets disputed due to some reason. Then, the money goes back to the payer. With this, you'll have to make a transaction in QuickBooks that falls into an expense account.

 

When you record a customer's payment in QBDT, the transaction is deposited to an account named Undeposited Funds by default. This holds customer payments in QuickBooks until you deposit them at your real-life bank. That said, yes, it's possible to have a negative deposit or I suggest entering the charge as a negative amount on the Bank Deposits screen when depositing the payment.

 

Here's how:

 

  1. Click Banking at the top menu and select Make Deposits.
  2. In the Payments to Deposits window, select the payment/s that were deposited separately and click OK.
  3. In the Make Deposits window, select the payment and the account from the From Account column drop-down on a blank line.
  4. Enter the negative amount in the Amount column and choose expense account on the next line item.
  5. Click Save and close.

 

Lastly, you may refer to this article to see different ways how you can track customer entries in QuickBooks Desktop: Get started with customer transaction workflows in QuickBooks Desktop.

 

Don't hesitate to comment below if you still have a concern about managing back charges. I'm always here to help, Alex_Goldline. Have a good day!

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