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LuckyDogAR
February 27, 2023
Question

Customer's check payment includes reversal of previous invoice payment

  • February 27, 2023
  • 1 reply
  • 0 views

We have received a check from a large company paying many invoices.  And then they basically reversed their payment on a previous invoice (credit on the check).  I'm baffled what to do.  I clearly need to create another invoice because it is now NOT paid (1234-ADJ).  I get that.  But the check amount doesn't equal the total for the other invoices they say they are paying (it's short).

1 reply

JessT
JessT
February 27, 2023

Thank you for taking the time to post in the Community today, LuckyDogAR. 

 

We'll guide you through reflecting your customer's payment in QuickBooks. However, would you mind adding more information about the scenario so we can provide the appropriate steps? Why did the customer reverse their payment? Did they return the item/s on their previous invoices, causing to reverse the payment?

 

Thanks in advance.

L
LuckyDogARAuthor
February 27, 2023

No clue.  They will probably come back and pay that invoice on a subsequent payment.  They are not disputing the invoice.  We are all in construction and it is probably a timing for projects thing.  But I need to do something with that credit.  It doesn't seem that it's a credit memo type of thing.

A
Archie_B
February 27, 2023

You're nearly there, LuckyDogAR.

 

Allow me to share some information on how to handle customer invoices and payments in QuickBooks Online.

 

We simply need to ensure that the check payment is only linked to the invoices that need to be paid and not to the previous invoice. To do this, we need to void the customer payment to unlink the previous one and recreate it again. 

 

But before you do, make sure the auto-apply credits setting is turned off. This way, your previous invoice will stay open after you recreate the payment. Use this as a reference to turn off the auto-apply credit feature: Create and apply credit memos or delayed credits in QuickBooks Online.

 

To void a payment:

 

  1. Go to Sales, then Customers.
  2. Select the customer profile.
  3. Locate and open the payment. Take note of the date and amount.
  4. At the bottom part, click More, and then hit Void.
  5. Tap Yes to confirm.

 

Once done, recreate the check payment using Receive Payment.

 

Here's how:

 

  1. Click on + New.
  2. Select Receive payment.
  3. From the Customer dropdown, pick the name of the customer.
  4. From the Payment method dropdown, select check as the payment method.
  5. Enter the same date and amount of the payment we voided earlier.
  6. In Outstanding Transactions, choose the invoices you need to pay and exclude the previous invoice.
  7. Fill in all necessary information, then click Save and close.

 

After that, you can check out this article to learn how to handle customer credit: Handle a customer credit or overpayment in QuickBooks Online.

 

If you need additional resources to manage your customer transactions, you can visit our page: Invoices and payments.

 

Let me know if you need further assistance or have other concerns about invoices and payments. I'll be here to help. Take care!

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