In Quickbooks Online you can record that your customer has already paid for any product or service supplied.

Note: We only record a payment if the customer was issued an invoice. If you didn’t issue an invoice, enter a sales receipt or a deposit instead.

For Sales Receipts:

Select the Plus icon(+) on the Toolbar then Sales Receipt. 

For Deposits:

Select the Plus icon (+) on the Toolbar then Bank Deposit.

 

Record the invoice payment

In order for QuickBooks to know that an invoice has been paid, and therefore generate accurate Income and Receivable reporting, you must record the invoice payment.

  1. Select the Plus icon (+) on the Toolbar, then select Receive Payment.

  2. Select the name of the customer from the drop-down menu.
  3. From the Outstanding Transactions section, select the transactions that you’d like for QuickBooks Online to calculate. As you select these items, the payment total will change.
  4. Select your payment method.
  5. Enter the Reference no. and Memo if applicable.
  6. You can either deposit the money to your chequing account or to the Undeposited funds account.
  7. Select Save and Close.

Group payments to show up as one deposit in the Undeposited Funds account

The Undeposited Funds account is a "temporary holding" account for funds that are yet to be deposited. If you chose to deposit the payments to the Undeposited funds account and are ready to group the payments so that they show as one deposit on the register, follow these steps:

  1. Select the Plus icon (+) on the Toolbar then Bank Deposit.

  2. From the Select payments included in this deposit section, mark all payments you want to be grouped together with a cheque.
  3. Make sure the total amount looks accurate.
  4. Select Save and Close.

If you chose to deposit the payments to one of your bank accounts, the payments will automatically be deposited to the bank account you specified.

Note:  When you record an invoice payment and select Chequing on the Deposit to drop-down menu in the Receive payment screen (Gear icon, then Customers then Receive Payment), it is not possible to print a deposit summary or deposit slip.
  1. If you need to print a deposit summary or deposit slip for a single payment, select Deposit To: Undeposited funds then follow the instructions mentioned in this section regarding depositing the payments to the Bank Deposit screen.
  2. This time, instead of checking off multiple payments, just check the one payment then select the Print button.

 

How to record partial payments

You should record a payment even if you were paid only part of what is owed on the invoice. QuickBooks Online will keep track of the invoice's open balance. Here's how to do that:

  1. Reopen the invoice.
  2. Look at the Balance Due line.
  3. From the left menu, select Reports.

  4. In the Find report by name field, enter Customer Balance Details
  5. Select Run report.

Note: When you receive a partial payment from a customer, QuickBooks Online will start applying the money in the first line item of the invoice and continue applying the payment until the payment has been used. There is no way to change the order in which QuickBooks applies the money to the invoice.

Record joint payments

If you have a situation where a customer pays an invoice plus that of another customer, you can receive the payment by following these steps:

  1. Select the Plus icon (+) on the Toolbar, then select Receive Payment.

  2. Enter the name of the customer
  3. Enter the Amount, Payment method, and the Reference no. (Note: Make sure you note the check number in the Reference no.)
  4. Make an entry in the Memo field that this payment is included in the check with (other customer's name).
  5. Make sure that the correct invoice is checked. You can uncheck the wrong invoice then manually check the correct one, if necessary.
  6. You can either deposit the money to your checking account or to the Undeposited funds
  7. Select Save and Close.

Repeat the steps for the second customer. Make sure that the cheque number is the same and that you enter a descriptive memo. Next, group the payments so that they show as one deposit on the register:

  1. Select the Plus icon (+) on the Toolbar then Bank Deposit.

  2. From the Select payments included in this deposit section, mark all payments you want to be grouped together with a cheque. (Note: This section only appears if there are recorded payments ready to be deposited.)
  3. Make sure the total looks accurate. The total in this case should be the total amount of the joint cheque.
  4. Select Save and Close.

Now you know how to record a customer payment.