Receiving Payment in QuickBooks

Posted by on Jan 25, 2011 in Customers Module | 14 comments

Receiving Payment in QuickBooks

As we carry on with this series related to Customers in QuickBooks, let’s assume you have now received payment for the invoice that you created previously. This payment may have arrived in the form of a cheque, wire transfer, credit card, debit card (if you are using that feature) or even cash.

You should be getting accustomed to using the Home page by now and will know where the icons are for processing tasks. In the Customer section you will find the Receive Payment icon which when clicked will open up the Receive Payment screen. Within the Customer Centre you can also Receive Payment by clicking on the arrow beside New Transactions then Receive Payment.

You can receive payments for one or a number of invoices, depending on how many your Customer is paying at any given time. Here you can also apply the payment, discounts and credits. Since we are in this section, I think it would make sense to look at a few different ways of receiving payment from a few customers.

Let’s start out with the usual, which would be a cheque. In the example that was used to create the invoice we used ABC Customer to invoice. In the blank field that starts with Received From you can start typing the first letters of the Customer’s name and the field should fill in the rest of the name.  The alternative would be to click on the arrow and highlight the name.

Immediately you will see other information appear below in the Date, Number, Orig. Amt. and Amt. Due fields. That information pertains to the date that you created the invoice, invoice number and amount you charged. Tab takes you to the Amount field where you will key in the amount of the cheque which in this example is for the full amount of $588.00.

The moment that you did that the same amount appeared in the Payment field down below. Your next tab lands you in the Date field. This should be the date that you received the cheque and hopefully will deposit it also. Use February 21 for the date. Tab to the Pmt. Method field, click on the arrow and choose cheque. A lot of people in their haste to complete this task skip over the next field which is the Cheque #.

This is an important field for reconciliation of a Customer’s account. For this example we will type in 1234 as the cheque number and tab to Memo field. You could use this field for a variety of information, let’s use “dropped off cheque”.

You will now notice that the payment has been applied and because we are now going to receive another payment you will choose Save & New. This will take the cursor back to the top of the page to the Received From field. Here you will accept another payment, this time from Hart Printing. This customer will pay by a wire transfer.

Start typing Har and the full name will fill in. Tab to the Amount field and key in 537.60, the date used will be February 21, in the Pmt. Method field you will <Add New>, name it Wire Transfer in Payment Method field, and in the Payment Type field choose Other and then click on OK.

Wire Transfer is now inserted into the Pmt. Method field. Tab to the Reference field and type in the number that the bank used as its identifier for the wire transfer. We will use F-67037503. In the Memo field, type in RBC wire transfer.

Notice that because you chose Other in the Payment Type, the screen has added a Card No., Exp. Date and a field that begins with Process debit or credit card …. field. Remember that, as we will use those for the next payment.

For now tab over those fields and stop on the first line that has a check mark on it. Once again the payment has been applied and you can click on Save & New, as you will now process one final payment.

Last but not least, will be the credit card payment. I am assuming here that you do not have a credit card terminal machine but instead are receiving payment on the spot with the Customer making a payment using their credit card.

Once again start typing Last and the Customer Last Renovations will fill in. Key in 302.40 and tab to Date field, use February 21, and in the Pmt. Method field click on the arrow button and chose Visa as the credit card type. Tab past the Reference and Memo fields unless you have some type of information that you want to record, and in the Card No. field, key in the numbers as they appear on the Customers Visa Card on the front.

I am using a fictitious number here of 4520008866559876. As you tab to the Exp. date field QuickBooks blanked out all the card numbers in the Card No. field except the last four. That field should now look like this xxxxxxxxxxxx9876. In the Exp. date field key in 06 then 12 which will change to 06/2012.

Since you do not have a QuickBooks credit card terminal machine, here you would not check the box that says Process Visa payment when saving. The 302.40 has been applied so you can now Save & Close.  This will close out the Recieve Payment screen.

The next step will be to deposit these amounts received into the QuickBooks bank account. First you would take your deposit book  to the bank to make the physical deposit, get the book stamped by the bank teller and return with it to do the QuickBooks deposit. If you use an ATM machine instead for your deposit, just make sure that you write down all the information on the deposit sheet before using the machine.

Next segment – Record Deposits.

Remember that you can follow me on Twitter @twitter.com/QuikBooksTrainr for tips and updates also.

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14 Responses to “Receiving Payment in QuickBooks”

  1. I have recorded my Received Payments wrong and the amounts are showing up with a negative in front of them. I’m n

  2. … I’m pretty sure it has to do with what I have chosen as the account it was received from but I’m not sure what to use. All I can find on Quickbooks is to choose undeposited funds but it won’t let me use that.

    • Larry Johnson says:

      Boy, this is a toughy without seeing your company file. First question would be if your have more than one Accounts receivable? Meaning a US and CDN or another country? Do a Search on my site for your answer.
      The only way your Customer account would be a negative is if you received a payment for more than the amount owing.
      When you receive payment you have two choices. To deposit to Undeposited Funds or directly to the bank. Best is Undeposited Funds.
      If you would like to call me to do a remote session, see my contact info on the Home page, call me so we can set up a time, and I can help you via remote.

  3. I have a quick question. Invoice shows paid but i cant seem to find the payment in the bank account in Quickbooks. How do i check when (the date) the customer paid and where the amount was deposited. Maybe it was deposited in the wrong back account .. but i cant correct if i cannot find it!

    Any help is much much appreciated.

    Thanks.
    sabeen

    • Larry Johnson says:

      Hi Sabeen. If you know the cheque amount the quickest way is to go to the Menu Bar – Edit/Find/Advanced/Amount – and type in the amount of the cheque. Make sure the button with the = to is tagged, and click on Find. If it is QB’s it will find the amount, then you can click on it and it will tell you which bank account it is in. Common mistake if using more than one back account.

      Make sure the main bank account is your default account. Go to Edit/Preferences/Chequing and turn on the bank accounts that you use the most.

  4. I am trying to receive payments for a few invoices and there’s a bunch of credits open for this customer. I want to use only those credits that the customer took. I click on those and make the deposit and finish it. Immediately after, if I open receive payments window and click on available credits, it should only show the previously checked credits which were fully or partially used, but I see the amount distributed between all the open credits and not just what I selected. Please help.

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  6. quickbooks shows deposit was made on the register… but does not show as paid on invoice. still shows outstanding balance on reports as well. Thats after entering in receive payments..? any idea whats wrong.

    • Hi Gail, you must remember that I can not see what you have done and can only base my comments on assumptions. So, are you speaking here of a Customer Payment using Receive Payments, which would go directly to your bank account? If not and you are using your Register, that is not the way to process a payment. Now, do you have more then one A/R and or bank account? If so, check the other A/R or bank account.
      Other idea, are you clicking on the OK button to post? Other thought, find the Customer to see if a Payment transaction has been recorded in its History. Do you have more than one company file? Failing that, Google for a QB ProAdvisor in your area, that’s what we’re there for.

  7. I received a cheque for $300 and the customer has overpaid their invoices by $100. I chose to create a credit with the over payment. I need to make the deposit in Quickbooks but when I view in the deposit screen, only the $200 that was put towards invoices shows up as available to deposit. Where would the other $100 be sitting? Or how to I get my deposit to match the $300 that physically went into the bank?
    Please help 🙂

    • Hi Samara, great question. It shouldn’t matter which selection you chose for the credit, either one will both deposit the $300 and leave the overpayment as a credit in the Customer account. If you look in the Customer Transaction, filter to ALL, you should see a Payment from your Receive Payment function. My other question would be if you have set this up to be a direct deposit to your bank account rather than through your Undeposited account. You will need to tell me what screen you are on that you only see the $200 to Deposit.

  8. I am using QB 2015 for Mac. There are other people also entering info into QB, but supposedly they are not entering payments. Sometimes a Receive Payment entry appears that I have not entered.(There is no check #/payment method assigned and no evidence of any physical check.) Can this be generated any other way than by actually entering the info into the Receive Payments window? (Perhaps generated by QB in response to another transaction or to document a credit?) I don’t want to blame someone else for entering information if I could be inadvertently generating this payment. If I delete this entry which appears to be an error and it is linked to some invoices, will I have to go back and correct how the subsequent payments should actually be going towards those invoices or would QB automatically adjust that?

    • Hi Susan, look at the Audit Report to see who is entering that transaction. My rule of thumb is to never delete anything, Void it if that is what’s needed. Look at the History of that transaction which will tell you what it was paying along with a cheque or Reference number.
      These days QB’s doesn’t usually create data integrity problems but I would run the Data Integrity and then a Rebuild just to make sure. If you are on a LAN everyone working in QB’s needs to be out. That process will force you to Backup.
      The Receive Payments would also depend on whether you have processed them as a Deposit. If not deposited, the Void Receive Payments would put the Invoice back to not been paid.
      The other thing you could do is look at your deposit book to see if a physical cheque was actually deposited or go on line to your bank account to check against the total amount deposited.
      After all that if you haven’t solved it, call your local ProAdvisor for help.

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