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A
ashar-ahmed-acco
June 21, 2023
Question

In QuickBooks Online, we face issues reconciling partial USD payments from customers with the corresponding invoices. How can we resolve this?

  • June 21, 2023
  • 1 reply
  • 0 views
We utilize QuickBooks Online and have both USD and CAD bank accounts. Our primary currency is CAD, but we create invoices in USD for our USD customers. Subsequently, we receive payments in USD as well. However, we encounter difficulties when a customer makes a partial payment for an invoice, as we are unable to match it with the invoice. What steps can we take to resolve this issue?

1 reply

A
Alex M
June 21, 2023

Hi there ashar-ahmed-acco,

 

It's vital that all your transactions are correctly entered for your books to be well balanced. QuickBooks Online is a great tool able to help you create and send invoices to your customers so they know the amount owed to your company. I can provide some information about matching payments to foreign currency invoices.

 

In order to properly match a partial payment on a foreign currency invoice to the bank account transaction that is in a CAD account, I recommend following these steps to create the payment manually, then match the transaction to the payment created:

 

Create the Payment manually so that the exchange rate is correct

  1. Go to the Sales tab, then select Customers.
  2. Find the customer in question, then click on their name to open their profile and see their transaction list.
  3. From within that list, find the invoice you'd like to partially pay, then click on the Receive payment option.
  4. Enter the amount in USD that you received so the remaining balance is accurate, then adjust the exchange rate so that the value in CAD of the Payment is the same amount seen in the bank account. You'll also want to make sure that the correct date, as well as the correct bank account, is chosen.
  5. Save the transaction.

Match the transaction

  1. Go to the Banking tab, then select the bank account affected.
  2. Locate the bank transaction that is the payment, then if a match is already populated, click Match.
  3. If the match is not automatically populated, click on the description of the transaction, then Find Match.
  4. Filter it to the correct date range, and you should see the transaction. Select it by clicking the checkbox, then Save.

If you have any other questions, feel free to reach out here.

A
ashar-ahmed-accoAuthor
June 21, 2023

Hey Alex,

Thanks for your response. What I am referring to is the partial payment of a USD invoice that is received in our USD account. Manually entering receive payments has worked for me before but this is a bit concerning. What if am to receive payment in 10 parts for a single invoice. I'll have to create receive payments 10 times every time a payment comes up. Why does it not work like CAD where, let' say I have a $10,000 CAD invoice and I see partial payment of $500 CAD in my banking tab and I just match that payment to the $10,000 CAD invoice to have the balance of the invoice reduced to $9,500 CAD. Same should be the case in USD but it only shows match when the payment in banking tab accurately matches with the invoice amount. I really need it to work like CAD rather than following a lengthy process of creating payments manually and then matching it with the banking tab transaction.

J
JamesM4
June 21, 2023

Hello ashar-ahmed-acco. Glad to hear back from you. Based on the details you've shared, I see you benefiting more by looking into our feature called Progress Invoicing. This feature enables you to you split an estimate into as many invoices as you need. Instead of asking for full payment at the beginning of the project, you can invoice customers for partial payments. As you complete work, add items from the initial estimate to progress invoices. I encourage you to check out this helpful article for more info on how: Set up and send progress invoices in QuickBooks Online. Give this a try and let me know how you make out. Otherwise, I recommend consulting your accountant so you can get expert advice on how to record transactions such as the one you've described above.

 

In case you have other question, don't hesitate to reach back to me. I'm here to help you achieve your goals and excel with your business. 

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