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CaitPHG
CaitPHG
November 10, 2022
Solved

Project Invoice - Settlement w Customer

  • November 10, 2022
  • 1 reply
  • 0 views

A customer has 2 outstanding invoices. (EX: $5K & $12K) They are not tied to an estimate; they are just independent invoices. It is agreed that he will make 1 Final Payment of Only $7500. What is the best way to apply the payment and show that he doesn't have an outstanding balance? I don't want to wipe out the original invoices/amounts. I want to reflect the transactions properly. 

 

Best answer by mv32

Hi @CaitPHG.

 

This case seems unusual since this will leave an outstanding customer balance. In your case, I suggest receiving the payment normally.

 

Here's how:

  1. Click New.
  2. Select Receive payment.
  3. Check the two invoice boxes in question that totals $17k.
  4. Enter the $7500 amount.
  5. Hit Save and close.

 

Then you can write off the outstanding balance for invoices by following this article: Write off bad debt in QuickBooks Online.

 

By performing this method, your customer won't have an outstanding balance, and at the same time, the transactions will reflect properly. If you seem confused about what books to choose to account for the amounts, I recommend consulting your accountant for professional advice.

 

Additionally, here are a few things you can check if you'd like to give a credit to your customers: Create and apply credit memos or delayed credits in QuickBooks Online.

 

Please don't hesitate to comment if you have other questions. I'm always here to help you more. Keep safe.

1 reply

M
mv32Answer
November 10, 2022

Hi @CaitPHG.

 

This case seems unusual since this will leave an outstanding customer balance. In your case, I suggest receiving the payment normally.

 

Here's how:

  1. Click New.
  2. Select Receive payment.
  3. Check the two invoice boxes in question that totals $17k.
  4. Enter the $7500 amount.
  5. Hit Save and close.

 

Then you can write off the outstanding balance for invoices by following this article: Write off bad debt in QuickBooks Online.

 

By performing this method, your customer won't have an outstanding balance, and at the same time, the transactions will reflect properly. If you seem confused about what books to choose to account for the amounts, I recommend consulting your accountant for professional advice.

 

Additionally, here are a few things you can check if you'd like to give a credit to your customers: Create and apply credit memos or delayed credits in QuickBooks Online.

 

Please don't hesitate to comment if you have other questions. I'm always here to help you more. Keep safe.

    CaitPHG
    CaitPHGAuthor
    November 10, 2022

    Yes; the "Bad Debt/No Credit" answered my question. Thank you. 

    Re: "Then you can write off the outstanding balance for invoices by following this article: Write off bad debt in QuickBooks Online.

    By performing this method, your customer won't have an outstanding balance, and at the same time, the transactions will reflect properly."

      J
      JamesAndrewM
      November 10, 2022

      You're welcome, @CaitPHG.

       

      We're pleased to help you with your QuickBooks concern.

       

      Know that the Community is always here to back you up. Have a good one!

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