How to Record Invoice Payments in QuickBooks Online?

by James Antonio

When you apply customer payments to open invoices in QuickBooks, you close them and keep correct records. Accepting payments without paying for them in financial management software can lead to errors and misunderstandings when it comes time to run reports or reconcile bank statements. So, after a customer pays for their invoice and you process the payment outside of QuickBooks.

There is one more step you need to perform which is record and categorize the payment. This connects the payment transaction to the original invoice so that your accounts stay balanced. The below write-up is all about how to record invoice payments in QuickBooks Online.

Record Invoice Payments in QuickBooks Online
Record Invoice Payments in QuickBooks Online

Different Ways to Record Transactions in QuickBooks Online

Below are a few of the ways to record transactions:

  • At the time of sale when the customer paid for a product or service, it is your responsibility to give them receipts to authorize their purchase. Then you are all done.
  • If the customer is not paid instantly or if he/she plans to pay you in the near future then you need to send them an invoice.

Instructions to Record Invoice Payments in QuickBooks Online

When you receive a payment, you must report it in QuickBooks so that the invoice is marked as paid. Otherwise, invoices would appear on your files as open and unpaid. Follow the steps below to record the payment the way you want:

Steps to Record Payment for a Single Invoice

  • Initially, select the + New button >> Receive Payment
  • Next, choose the customer name from the Customer Dropdown
  • After that, choose the payment method from the Payment Method dropdown
  • Choose the account you put the payment into using the Deposit to dropdown
  • Tip: You can even put the money directly into an account like your current account or simply select the Undeposited Funds if you would like to group the payment with others
  • Select the checkbox for the invoice your recording payment for within the Outstanding Transactions section
  • Once done with that then enter the Reference Number and Memo if required (Otherwise it is optional)
  • At last, click on the Save and Close button.

Steps to Record Partial Payment for an Invoice

You can also record the payments even if it is a partial payment of the owed amount. QuickBooks Online keeps track of the remaining invoice balance:

  • The very first, select the + New button and then Receive Payment
  • Select the customer name from the Customer dropdown menu
  • Choose the desired payment method from the Payment method dropdown
  • Select the amount that you put the payment using the dropdown menu of the Deposit to
  • Tip: You can put the money directly into an account like your current account or select the Undeposited Funds if you require to group the payments with others
  • Select the checkbox for the invoice your recording payment for within the Outstanding Transactions section
  • Enter the amount how much money your customer paid in the Amount Received field
  • Optional: Enter the Reference no. nd Memo if required
  • Once you are done with that then hit the Save and Close option.

To View the Remaining Balance for the Customer:

  • Move to the Reports menu
  • Look for the Customer Balance Details report and open it
  • Then choose the option “Run Report
  • Finally, review the Open Balance of the customer.

Group Multiple Payments Together into a Single Record

When you deposited several payment cheques at the bank and they were recorded as a single record then, in that case, deposit payments to the undeposited funds account. This allows you to group those multiple records in QuickBooks. You simply have to do this if the bank recorded multiple payments as a single record.

So the process is completed here with the hope that you are easily able to record invoice payments in QuickBooks Online. You can record the payment even if it is partially paid off the owed amount or for the successful invoice payment. Moreover, if the customers have multiple payments together into a single record to maintain accurate records or stay organized.


What Issues mostly arise When the Payments are not Recorded Correctly in QuickBooks Online?

There are common issues that are usually found when payments are not recorded properly in QuickBooks like:

● The amount owed by customers will be inaccurate if payments are not correctly applied
● If the payments are not applied to the right invoice, the invoice shows as outstanding even though the customer has paid it.
● Payments received and incorrectly recorded as deposits or on sales receipts will be recorded as income.

How can I be sure that the Payments are Recorded Properly?

When you are done with the recording process then to ensure that the payments are recorded correctly, look for the open invoices. When a payment is received from a customer then verify to see whether the customer has any open invoices or not. If so then you need to record the payment received. If the customer does not have any open invoices then record the payment of sales receipt. However, sales receipts can only be used when receiving a payment for which an invoice has not been issued.

How do I Review Undeposited Funds Accounts in QuickBooks online?

To clear out the payments waiting to be deposited, it is better to check the Undeposited Fund account. Here’s how: go to the Accounting menu and then select Chart of Accounts. Search the Undeposited Funds account on the appeared list and then finally select the Account History to review Undeposited Funds accounts in QuickBooks Online.

Features of Dancing Numbers for QuickBooks Desktop

Imports

Imports

Exports

Exports

Deletes

Deletes

Customization

Customization

Supported Entities/Lists

Dancing Numbers supports all QuickBooks entities that are mentioned below:-

Customer Transactions

Invoice
Receive Payment
Estimate
Credit Memo/Return Receipt
Sales Receipt
Sales Order
Statement Charge

Vendor Transactions

Bill
Bill Payment
Purchase Order
Item Receipt
Vendor Credit

Banking Transactions

Check
Journal Entry
Deposit
Transfer Funds
Bank Statement
Credit Card Statement
Credit Card Charge
Credit Card Credit

Employee Transaction / List

Time Tracking
Employee Payroll
Wage Items

Others

Inventory Adjustment
Inventory Transfer
Vehicle Mileage

Technical Details

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Frequently Asked Questions

 
How and What all can I Export in Dancing Numbers?

You need to click "Start" to Export data From QuickBooks Desktop using Dancing Numbers, and In the export process, you need to select the type you want to export, like lists, transactions, etc. After that, apply the filters, select the fields, and then do the export.

You can export a Chart of Accounts, Customers, Items, and all the available transactions from QuickBooks Desktop.


How can I Import in Dancing Numbers?

To use the service, you have to open both the software QuickBooks and Dancing Numbers on your system. To import the data, you have to update the Dancing Numbers file and then map the fields and import it.


How can I Delete in Dancing Numbers?

In the Delete process, select the file, lists, or transactions you want to delete, then apply the filters on the file and then click on the Delete option.


How can I import Credit Card charges into QuickBooks Desktop?

First of all, Click the Import (Start) available on the Home Screen. For selecting the file, click on "select your file," Alternatively, you can also click "Browse file" to browse and choose the desired file. You can also click on the "View sample file" to go to the Dancing Numbers sample file. Then, set up the mapping of the file column related to QuickBooks fields. To review your file data on the preview screen, just click on "next," which shows your file data.


Which file types are supported by Dancing Numbers?

XLS, XLXS, etc., are supported file formats by Dancing Numbers.


What is the pricing range of the Dancing Numbers subscription Plan?

Dancing Numbers offers four varieties of plans. The most popular one is the basic plan and the Accountant basic, the Accountant pro, and Accountant Premium.


How can I contact the customer service of Dancing Numbers if any issue arises after purchasing?

We provide you support through different channels (Email/Chat/Phone) for your issues, doubts, and queries. We are always available to resolve your issues related to Sales, Technical Queries/Issues, and ON boarding questions in real-time. You can even get the benefits of anytime availability of Premium support for all your issues.


How can I Import Price Level List into QuickBooks Desktop through Dancing Numbers?

First, click the import button on the Home Screen. Then click "Select your file" from your system. Next, set up the mapping of the file column related to the QuickBooks field. Dancing Numbers template file does this automatically; you just need to download the Dancing Number Template file.

To review your file data on the preview screen, just click on "next," which shows your file data.


What are some of the features of Dancing Numbers to be used for QuickBooks Desktop?

Dancing Numbers is SaaS-based software that is easy to integrate with any QuickBooks account. With the help of this software, you can import, export, as well as erase lists and transactions from the Company files. Also, you can simplify and automate the process using Dancing Numbers which will help in saving time and increasing efficiency and productivity. Just fill in the data in the relevant fields and apply the appropriate features and it’s done.

Furthermore, using Dancing Numbers saves a lot of your time and money which you can otherwise invest in the growth and expansion of your business. It is free from any human errors, works automatically, and has a brilliant user-friendly interface and a lot more.


Why should do you change the Employee status instead of deleting them on QuickBooks?

If you are unable to see the option to terminate an employee on your list of active employees on the company payroll, this mostly implies that they have some history. Thus, if you change the employee status instead of deleting it on QuickBooks, the profile and pay records remain in your accounting database without any data loss in your tax payments.


Is it possible to use the Direct Connect option to sync bank transactions and other such details between Bank of America and QuickBooks?

Yes, absolutely. You can use the Direct Connect Option by enrolling for the Direct Connect service which will allow you access to the small business online banking option at bankofamerica.com. This feature allows you to share bills, payments, information, and much more.


Why should do you change the Employee status instead of deleting them on QuickBooks?

If you are unable to see the option to terminate an employee on your list of active employees on the company payroll, this mostly implies that they have some history. Thus, if you change the employee status instead of deleting it on QuickBooks, the profile and pay records remain in your accounting database without any data loss in your tax payments.


What are the various kinds of accounts you could access in QuickBooks?

QuickBooks allows you to access almost all types of accounts, including but not limited to savings account, checking account, credit card accounts, and money market accounts.

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Bulk import, export, and deletion can be performed with simply one-click. A simplified process ensures that you will be able to focus on the core work.

Worried about losing time with an error prone software? Our error free add-on enables you to focus on your work and boost productivity.

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