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C
CyberSpyder
July 24, 2023
Solved

convert sales receipt to invoice payments

  • July 24, 2023
  • 1 reply
  • 0 views

This seems like it should be easy to do, but, alas, it's not. I also cannot find any straight forward, step by step instructions on how to do this.

We had a customer who had multiple past due invoices (15+), by arrangement with us. Normally, we can give them the total of all and they can make a payment to one of the invoices, and by editing the amount of payment, get a credit on their account due to the overpayment. Then we can pay the other open invoices form the credit. For some reason, the client was prohibited from entering a payment larger than $200 per invoice payment. The client didn't want to pay 15+ invoices that way, so we sent a payment link equal to the balance due. This automatically becomes a sales receipt on their account for that amount. Client paid with a card at their business location.

Now the issue becomes how to apply the sales receipt money to the open invoices, as the sales receipt does not create a credit on the account, which one would think it should. The sales receipt payment has been deposited but can be reversed, if needed, as it hasn't bene reconciled.
Anything that seems like would be the correct option, doesn't exist or can't be found. HELP!

 

Best answer by DivinaMercy_N

Why can't anyone answer a question directly? That's why we really don't like QB support. As much as we need and request a simple answer, we have to ask multiple times for simple information. 

Please try your best to answer these two questions with yes or no:

1) Do I need to cancel/void the deposit in order to cancel/void the created Sales Receipt? Yes or no.

2) If we cancel/void the automatically created Sales Receipt created from thefrom the Payment Link, will the paid funds be applied to the client's account as a credit? Yes or no.


Hi there, @CyberSpyder. I got here some clarifications so you can manage your client's payments in QuickBooks Online (QBO). 

 

For your first question, yes, you can cancel/void the deposit in order to cancel/void the created sales receipt if this is deposited under the Undeposited Funds account. No, if the sales receipt is directly deposited to the bank account. 

 

Regarding your second concern, no, the canceled/voided sales receipt will not become a credit to the client's account (since the whole transaction with the amount is already deleted). You can manually create a credit memo to add the amount as a credit to your client's account instead. Here's how:

 

  1. Click the + New menu and select Credit Memo.
  2. Next, in the Customer dropdown, pick the customer's name.
  3. Then, enter the credit memo details, such as the date and the amount. 
  4. When done, select Save and Close.

 

For additional reference in managing your customer payments, check out this article: Take and process payments in QuickBooks Online with QuickBooks Payments.

 

It's also easy to locate those customers who have outstanding balances in QBO. To do so, you can run an Accounts Receivable Aging Summary report.

 

I'm just around the corner to provide additional help if you have other concerns processing your customer's payments. Have a good one, and stay safe. 

1 reply

M
Mich_S
July 24, 2023

I recognize your desire to convert Sales Receipts into invoice payments, Cyber. Let me provide more details on sending a payment link in QuickBooks Online and offer guidance on the most appropriate steps.

 

The feature for customers to make payments using the link and get credit on their account is only available in QuickBooks Desktop. In QBO, when you send a payment link to your customer, QuickBooks automatically generates a sales receipt if it's not the one from the invoice. The proper way to keep track of invoice payments in QBO is by using the Receive Payment functionality.

 

I recommend deleting the sales receipt and manually making payments to the invoice. Let me show you how:

 

To erase the sales receipt:

 

  1. Go to the Sales menu then All sales.
  2. Locate and open the Sales receipt.
  3. Click on the drop-down icon.
  4. Select Delete.                    
  5. Then click on Delete to confirm.

 

To receive payment:

 

  1. Click on + New.
  2. Select Receive payment.
  3. In the Customer dropdown, pick the name of the customer.
  4. Go to the Payment method dropdown, and select the payment method (credit card, debit, PayPal, Venmo, or ACH bank transfer).
  5. From the Deposit to dropdown, choose the account you put the payment into.
  6. Navigate to the Outstanding Transactions section, and tick the checkbox for the invoices you're recording the payment for.
  7. Enter the Reference no. and Memo if needed.
  8. Click on Save and close. See the image below for reference:

 

 

Here's an article you can browse to learn more about how to record partial and/or multiple payments in QBO: Record invoice payments in QuickBooks Online. Kindly review the third and the last section for the detailed steps.


Furthermore, check this out in case you want to personalize your sales forms: Customize invoices, estimates, and sales receipts in QuickBooks Online.


Get back to this thread if you have additional questions about the process of how sales receipts and invoices work. I'll be around to back you up also about any QuickBooks-related concerns. Have a good one!

    C
    CyberSpyderAuthor
    July 25, 2023

    We appreciate your rrply. We've been QBO users for many years and understand the processes. We hope you understand why the Payment Link was used in this scenario, as it was explained. If the Payment Link is not a useable option in QBO, it shouldn't be available.

    Anyways, will deleting the Payment Receipt automatically add the payment, made by the client with their card, to the client's account which can then be used for paying the invoices?

    Since the Payment Receipt payment has been deposited, will that deposit need to be edited to remove the payment first since it will show up again for deposit as the invoices are paid from the Payment Receipt funds

    ?

     

    J
    JamaicaA
    July 25, 2023

    I value your time posting here again to clarify some things, @CyberSpyder.

     

    Though invoices and sales receipts are similar, their difference lies in issuance and utilization in your accounting. Not to worry, I'm willing to help you record the payment and link them to the invoices in QuickBooks Online.

     

    An invoice payment link is a simple way to request a settlement from customers paying for goods and services. It automatically creates a Sales receipt as a record of a completed sale. That's why linking this to an invoice is unavailable.

     

    Please know that deleting or voiding the sales receipt to avoid double posting will not automatically add the payment. Therefore, we need to receive payments manually on the invoices to mark them as paid.

     

    Here's how:

     

    1. Open the sales receipt.
    2. Select More and choose Delete.

     

    Once done, open the invoice and click the Receive payment button. From there, tick the invoice and deposits. You can follow these screenshots as your reference:

     

     

    For more ways of receiving customer payments, refer to this article: Record invoice payments in QuickBooks Online. It will walk you through documenting partial payments and grouping them into a single deposit.

     

    I'm adding this guide to learn how to personalize invoices and other sales forms: Customize invoices, estimates, and sales receipts in QuickBooks Online.

     

    If I can be of help while working with invoice payments, feel free to let me know by adding a comment below. I'd love to hear how it goes on your end. Have a great rest of your day.

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