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pam-brenner
June 25, 2020
Solved

I need to issue an invoice that will result in it showing a negative balance - I am being flagged "Something's not quite right - you must specify a transaction 0>

  • June 25, 2020
  • 4 replies
  • 0 views
Original commenter did not share additional details
Best answer by JamesDuanT

Hello pam-brenner,

 

QuickBooks Online allows you to enter negative amounts. However, you must not have a negative Total  or BALANCE DUE on the invoice. Otherwise, an error like you have mentioned will occur.

 

Instead, we can create a Credit Memo. This will set a negative balance on the customer's account. You can also apply this to future invoices of the customer. You can use this for reference: Create and apply credit memos or delayed credits in QuickBooks Online.

 

Here's also an article that is related to credit memos: Handle a customer credit or overpayment in QuickBooks Online.

 

Feel free to get back to us if you have additional queries. Have a great day!

4 replies

J
JamesDuanTAnswer
June 25, 2020

Hello pam-brenner,

 

QuickBooks Online allows you to enter negative amounts. However, you must not have a negative Total  or BALANCE DUE on the invoice. Otherwise, an error like you have mentioned will occur.

 

Instead, we can create a Credit Memo. This will set a negative balance on the customer's account. You can also apply this to future invoices of the customer. You can use this for reference: Create and apply credit memos or delayed credits in QuickBooks Online.

 

Here's also an article that is related to credit memos: Handle a customer credit or overpayment in QuickBooks Online.

 

Feel free to get back to us if you have additional queries. Have a great day!

    P
    pam-brennerAuthor
    June 25, 2020

    Thank you - this makes sense. Appreciate the prompt response.

    P
    pam-brennerAuthor
    June 25, 2020

    Ran out of characters...essentially QBO will not let me save the invoice with a negative balance. How can I accomplish what I am trying to do?

    KlentB
    KlentB
    July 12, 2023

    Thank you for reaching out to us, CF_admin.

     

    I would love to help you with your concern, but I just need further information about the specific objective or outcome you're aiming to achieve through this process. Understanding your end goal will help us explore the best options for your situation.
     

    Could you please elaborate on why you're considering a negative invoice or credit memo? Are you trying to adjust a customer's account balance, provide a refund, or address a particular billing issue? Once I have a clearer grasp of your specific circumstances, I will be able to provide you with more accurate advice and answers.

     

    Thank you for your cooperation, and I look forward to assisting you further. Have a great rest of the day!

    C
    CF_admin
    July 13, 2023

    One of our customers bills out on our behalf for some jobs (agency), due to that, they will pay us a lump sum that often includes multiple bills from various clients. We have each of those sub-clients set up, and invoices in our system for each. 

    If we are paid directly by a client, we then owe an agency fee. They will then deduct whatever that is from a future payout. Let's say $100. So I need to be a able to create an invoice for -$100 for that client, so when the payout comes through, I can match all the according invoices, and account for that -$100 instead of taking it from another client invoice.

     

    Hope that makes sense!

    M
    mv32
    July 13, 2023

    It would be nice if we could create an invoice with a negative amount, @CF_admin.

     

    I appreciate the details you've shared and admire your interests in recording this entries. Currently, we're unable to create a negative invoice. If I understand it correctly, I can see that your Customer Company Agency will charge you an agency fee if its clients pay directly to your business.

     

    In this instance, you're correct to allocate the sub-clients under the Customer Agency (Parent customer) in QuickBooks Online. You can also consider checking the Bill parent customer box to show all invoices to the parent customer.

     

    Please follow these steps:

    1. Go to Customer & Leads.
    2. Select Customers.
    3. From the customer list, pick the sub-client profile.
    4. Click Edit.
    5. From the Name and Contact section, check the Bill parent customer box.
    6. Hit Save.

     

    The setup will be like this:

    Parent Customer: Customer Company Agency

    Sub-clients: *SubClient A

    Sub-clients: *SubClient B

    Sub-clients: *SubClient C

    Sub-clients: *SubClient D

     

    This way, all the sub-client invoices appear on the Receive payment window when you select the parent customer.

     

    While on the other hand, when you are paid directly by a sub-client, we're unable to create an Agency Fee that will deduct from a future payout. In this case, when you receive that payment, I suggest adding a memo that indicates that it is subject to an Agency Fee from the Receive payment window.

     

    Here's how:

    1. Click + New and then select Receive payment.
    2. Choose the sub-client's name from the Customer field.
    3. Select payment method, and if you want to deposit it to a bank later, select a holding account like Undeposited Funds/Payments to deposit from the Deposit to field.
    4. Check the Invoice box.
    5. From the Memo field, enter subject to Agency Fee.
    6. Hit Save and close.

     

    You can then create a credit memo to offset invoices when receiving payouts in the future by following my colleague, JamesDuanT's advice.

     

    Or, if you match the payment to an online banking transaction, I suggest using the Resolve Difference feature. Doing so can let you allocate the difference into an Agency Fee account rather than creating a credit memo. You can do the same method if you match the sub-client invoice directly to the online banking future payout transaction.

     

    Let me guide you on how to perform this task:

     

    1. Go to the Banking menu, and then choose the For Review tab.
    2. Find the said transactions, and then select the Find match button to open the Match transactions window.
    3. Look for and select the invoice payments to match. You can also use the filters to narrow down your search.
    4. Scroll to the bottom of the table, and then click the Resolve Difference button.
    5. Enter the Agency Fee details. Make sure the total is zero.
    6. Click Save when you're ready.

     

    You can also create a bank deposit to link the payment and fill the Agency Fee in the Add funds to this deposit section when you choose to deposit received payments earlier to an Undeposited Funds account to record them manually to offset the sub-client/customer agency payout.

     

    Please let me know if you have more questions about this. We're always here to help you more. Take care, and have a prosperous business year.

    M
    Melissacu
    August 15, 2023

    I have a similar issue... i made a sale on a piece of farm equipment but the customer had a trade in creating a negative balance that i owe them... invoice wont let me do that. How do i input this correctly? The customer does not have an expense because of the trade in value against their purchase in greater than the initial expense. 

    J
    JamesAndrewM
    August 15, 2023

    Hello there,

     

    The negative balance essentially means the customer is owed something, which is often referred to as credit. Here's how you can handle this scenario correctly:

     

    First, create an invoice for the sale of the farm equipment, just like you normally would. Enter the sale amount and the necessary details.

     

    Then, create a credit memo to account for the trade-in. A credit memo provides credit to a customer without involving a refund. Here's how you can do it:

       

    1. Go to the + New button in QuickBooks Online.
    2. Select Credit memo under the "Customers" section.
    3. Choose the customer's name from the drop-down.
    4. Enter the details of the trade-in. The trade-in value should be entered as a positive amount since it's a credit to the customer. If the trade-in value is $1000, you would enter $1000 as the amount.
    5. Save the credit memo.

     

    Now that you have a credit memo, you need to apply this credit to the invoice you created earlier. It essentially reduces the invoice amount by the value of the trade-in credit. Here's how:

       

    1. Open the invoice for the farm equipment sale.
    2. Look for the Receive payment button at the top.
    3. You'll see Outstanding Transactions or Credits in the Receive Payment window.
    4. There should be the credit memo you created.
    5. Apply the credit memo to the invoice by clicking on it. It will reduce the amount owed by the value of the credit.
    6. Save the payment.

     

    By following these steps, you'll accurately represent the trade-in and the resulting negative balance in your records. The customer's balance should now reflect the trade-in credit, and they won't have an outstanding payment due unless the trade-in value is less than the sale amount. I also recommend consulting your accountant to ensure accuracy.

     

    You may visit this article as your reference when you reconcile an account to ensure your accounts in QBO are balanced: Reconcile an account in QuickBooks Online.

     

    If you have any further concerns about your transactions, don't hesitate to post them here. Have a great day!

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