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March 22, 2024
Question

Cash payment from one customer as cost share matching funds on federal grant

  • March 22, 2024
  • 1 reply
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We have a federal agreement that requires 20% cost share/matching funds from non-federal entities. I need to know how to properly handle the situation where two separate customers are sharing the cost on one invoice. What accounts and items to setup, what transactions to use (credit memos?) or journal entries to make to be able to apply payments from two separate customers to one invoice. In other words, I want to show our full cost on the invoice to the federal agency, and reduce the amount the agency pays by applying a credit or partial payment against that invoice for the amount of cash cost share provided by the other customer (the non-federal entity). We are currently using QuickBooks Plus Online. Thank you.

1 reply

March 22, 2024

Allow me to provide some information and assistance for you to record an invoice payment for a different customer, TLPSBRA

 

In QuickBooks Online (QBO), you can only create one invoice and invoice payment per customer. As an alternative, you can create a Parent and Sub-customer. This way, you can assign the invoice to the parent if you want one customer to pay for another customer's invoice. After creating parent and sub-parent customers, you'll need to create a Credit Memo for it to be applied to your Received Payments

 

Here's how: 

 

Step 1: Create a Parent and Sub-customer

 

  1. Go to the Sales menu located at the left navigation panel, and then click Customers.
  2. Click New Customer.
  3. Enter the name of your customer and their necessary info. 
  4. (Skip this if you're creating a parent customer) Under the Name to print on the checks field, tick the Is a sub-customer box. 
  5. Once done, click Save
  6. Repeat this process to create a sub-customer. 

 

Step 2: Create an invoice. 

 

  1. Go to the +New button located at the top left corner and choose Invoice
  2. Under the Customer dropdown, choose the Parent customer you've created earlier. 
  3. Fill the necessary fields. 
  4. Once you're done, click Save and Close

 

Step 3: Create a credit memo for Parent and Sub-customer

 

  1. Go to the +New button located at the top left corner and choose Credit Memo
  2. Under the Customer dropdown, choose the Parent or Sub-customer you've created earlier. 
  3. Enter the details that you've put in your invoice.
  4. Once done, click Save and Close

 

Step 4: Create a receive payment

 

  1. Go to the +New button located at the top left corner and choose Receive payment. 
  2. Choose the name of the parent customer in the Customer dropdown. 
  3.  Under the Outstanding Transactions, tick the invoice you've made.
  4. In the Credits section, tick the credit memo you've created for it to apply in your invoice payment. 
  5. Once done, press Save and Close

 

Additionally, it's best to reach out to your accountant for accurate recording and setting up. 

 

You can also view these links to know more info about the steps I've indicated above: 

 

 

Furthermore, you can also print multiple invoices or run a specific report. This allows you to use your data outside QBO. 

 

I've got your back if you have any concerns or confusions about invoice payments. Just let me know and I'll be glad to help you out.