How do I apply a customer's loan proceeds (which our business received directly from the bank) as a payment on the customer's account?
Hello Quickbooks Community,
We have a customer who needs a large amount of repairs performed on his commercial vehicle. Due to the extremely high cost of aftermarket parts for commercial vehicles, we recently implemented a rule that states... if the cost of a customer's parts for a specific job are over a certain amount, then we require an up front deposit from the customer. The customer decided to reach out to his local banker and request a loan so that he could meet these requests. The bank agreed to loan our customer the entire estimated cost of parts, and the bank delivered the check for the loan amount directly to our company.
So now we have a check from our local bank that has our company shown as the "Pay to the order of:" with our customer's name in the "Memo" section. The bank has requested that we send them an official/formal 'receipt' for the check they gave us. Usually I would just "receive" my customer's payment and that would produce a receipt.... But I don't know of a way to receive a customer payment, if the payment is from someone other than the customer.
In QBO, our customer has an accepted estimate and an open invoice (that was created from the accepted estimate) showing under his customer profile.
My question is.... How do I apply our customer's loan proceeds to his open invoice, when the loan proceeds are in the form of a check from the bank and the check is addressed to our company?
How do I record this transaction correctly AND produce a proper "receipt" for the transaction?
Any help with this situation would be much appreciated!