how to send an invoice late payment reminder to your customers

QuickBooks Online – how to send an invoice late payment reminder to your customers





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Can I change the default A/R or A/P account in QuickBooks Online

Can I change the default A/R or A/P account in QuickBooks Online
QuickBooks Help
QuickBooks Online (QBO) is not designed to work with multiple Accounts Receivable (AR) and Accounts Payable (AP) accounts. The initial AR and AP accounts, or those selected during conversion, will be the default accounts. We encourage our customers to merge their accounts payable and receivable accounts. For more information on merging accounts, please see Merging accounts, vendors, or customers. If division of open payables and receivables are needed use one of the following options…

 

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Enter a weekly timesheet

Create Employees > Create “+” sign at the top middle of the QBO homepage screen, in between magnifying glass and clock icon > Employees > Weekly Timesheet
You will need a Plus plan for this activity.

Enter a weekly timesheet

  1. Choose a name from the list. An employee or a Vendor name for Independent Contractor.
  2. Select the week for which you want to record activities.
  3. Select a customer if you want to bill the activity to a customer or track expenses for a customer.  If you don’t see this custom field, see below for to enable bills and expenses to a customer.
  4. Select a service. If you use services to enter time, choose a service that represents this activity from the products and services list. If you need new service item, see below for setup.
  5. Select a class. If you don’t see this custom field, see below for to enable class tracking.
  6. Select a location/department. If you don’t see this custom field, see below for to enable location/department tracking.
  7. Description field. (Optional) Edit a description of the activity if necessary. If the activity is billed to a customer, the Description appears on their invoice, depending on your company settings. Text for the description appears automatically from the Sales Information field once you select a service item.
  8. Billable. If you are billing the activity to a customer, select the Billable checkbox. If you are allowed to change the rate at which an activity is billed, make sure that Bill at rate/hr is correct.
  9. Select Taxable if the activity is taxable.
  10. For each day of the week this activity occurred, enter the number of hours spent on this activity for that day. You can add more activity lines if needed or clear all lines and begin again. To change First day of work week on a weekly timesheet form, see custom field table below.
  11. Note: If activities for this week are similar to last week’s, you can copy last week’s timesheet. To do so, click Copy Last Timesheet at the bottom of the form.
  12. Click Save and close (or Save and new to enter another time activity).
  13. See Custom Field Table below.

 
weekly-timesheet
 

Custom Field Table (need PLUS plan)

Location/Department
From the home page screen > Company gear wheel icon at the upper right corner > Your Company > Account and Settings > Advanced > Categories > Track Locations > ON
 

track-locations
 

Class
From the home page screen > Company gear wheel icon at the upper right corner > Your Company > Account and Settings > Advanced > Categories > Track Classes > ON
 
track-classes
 

Customer
From the home page screen > Company gear wheel icon at the upper right corner > Your Company > Account and Settings > Advanced > Time Tracking > Make Single-Time Activity Billable to Customer > ON
 
make-single-time-activity
 

Service
From the home page screen > Company gear wheel icon at the upper right corner > Lists > Products and Services > New > Time Tracking > Service > Fill out Name, Sales Information, Sales price/rate (hourly rate) > Income Account
 
service-rate
 

Show Billing Rate Box
From the home page screen > Company gear wheel icon at the upper right corner > Your Company > Account and Settings > Advanced > Time Tracking > Show billing rate to users entering time> Checkbox

 
show-billing-rate
 

First day of work week
From the home page screen > Company gear wheel icon at the upper right corner > Your Company > Account and Settings > Advanced > Time Tracking > First day of work week > Select Day from the list > Save.
 
first-day-of-work-week
 






How do you apply customer payment that has a merchant fee to an invoice in QBO?

You will need to group both your deposit and fee together so your deposit in QBO matches the bank deposit that was made in real life.

Here’s how to handle it in QBO at this time:

RECEIVE PAYMENT

  1. Create an Invoice for your customer as you normally would.
  2. From the home page screen, click the Create icon (+) when you’re ready to receive the payment from your customer.
  3. Choose “Receive Payment” from the dropdown that appears.
  4. Fill out the Receive Payment as you normally would, but ensure the Deposit to field reads “Undeposited Funds” account.
  5. Click Save and close.
receive payment deposit to uf
receive payment deposit to uf

 

BANK DEPOSIT

  1. From the home page screen, click the Create icon (+) when you’re ready to get the deposit, minus the fee, in your bank account.
  2. Choose Bank Deposit (under Other) from the drop-down that appears.
  3. Check off the payment from this customer (and any other payments in the batch).
  4. In the Add New Deposits area, enter in the fee as a negative number, so it reduces the overall deposit total.
  5. Click Save and close.
payment minus fee
payment minus fee

This will then match the deposit made to your bank account and record the proper account.

 

WATCH VIDEO

I have already received payments in QBO from multiple customers. How to make them match with a single deposit I see in my bank feed.

You’ve two ways to match with bank feed deposit.

1) Match it directly from the bank feed downloaded transactions.

Select a row for deposit in question. The row expands to show you “Find other matching transactions” button. Once you click this button, you will see a long list of possible match transactions. To easily locate your deposits, change payment date as you’ve recorded. Select payments (type = payment) to match with bank feed deposit amount. Make sure difference is zero. Save. Done.

find other matching transactions1
find other matching transactions1

2) Manual. This will take few steps, but you will see green MATCH sign once done.
a) Go back to “Receive Payment” (create+ sign > customer > receive payment > upper left corner clock, locate payment) screen for customer payment you’ve already recorded and change Deposit to: “Undeposited Funds” instead of a bank account. Do the same for other customer payments that you want to match to a batch deposit.
b) Bank Deposit (create + sign > other > bank deposit) – check existing payments from the list to match batch bank deposit. Make sure to check correct bank account if you’ve multiple bank accounts. Save. Done. Save and Close.
c) Go back to banking center (bank feed) and now you should see green Match sign for that deposit. Click Match. It should disappear from the list.

Note: #2 is recommended process in QBO if you’ve merchant card payments or use bank deposit slip from depositing checks from various customers.

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How do I fix unapplied cash payment income and unapplied cash bill payment expense

You may see two accounts for UNAPPLIED cash payments if you report Profit and Loss on a cash basis. It will automatically trigger to these two accounts simply because you have entered certain deposit and payment transactions differently than normal flow in QBO.

These two accounts are automatically added to the Chart of Accounts when the new company file is created. You can’t delete or change these two accounts.

Here is the main reason that will trigger these two account types in QBO:

  • Triggers “Unapplied Cash Payment Income” when the date of the customer deposit date is before the invoice date it’s applied to.
  • Triggers “Unapplied Cash Bill Payment Expense” when the date of the vendor payment date is before the bill date it’s applied to.

Example of “Unapplied” Customer Deposit and Vendor Payment transactions

unapplied deposit
unapplied deposit
unapplied check
unapplied check
bank register
bank register
cash basis unapplied pnl
cash basis unapplied pnl

Changing “Invoice” and “Bill” dates to be prior to payment dates should work for most transactions in this account. However, there may be other unknown circumstances where the issue may not be easily fixed. In that case, you will need to analyze each transaction and resolve the matter. Or get help from the expert.

invoice
invoice
receive payment
receive payment
bill
bill
bill payment
bill payment
cash basis applied pnl
cash basis applied pnl

 


This video will show how to fix “Unapplied Cash Payment Income” and “Unapplied Cash Bill Payment Expense” on a cash basis Profit and Loss report.

 


OTHER HELPFUL LINKS:
(Also, refer to IRS Publication 538 Constructive Receipt of Income for more details.)
https://www.irs.gov/publications/p334/ch02.html
What’s Unapplied Cash Payment?
https://community.intuit.com/articles/1146009-what-s-unapplied-cash-payment

 


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How do I add additional billable time and expense to an already created current invoice

In order to add additional unbilled time and expense, first open existing invoice. You can open it directly from the create + sign, select invoice under customers, and from upper left corner select invoice in question to open from the recent transactions. You can also open directly from the customer’s page under customers center.

Once the invoice is open, you will take the following steps:

1) Go far to the right corner of the invoice column and choose delete trash icon. See attachment below.
2) New Unlink the billable message screen will open. Select “Yes, unlink it” blue button. See attachment below.

unlink billable
unlink billable

3) Now “Add to Invoice” will open on the right-hand window panel. Select “Add all” or “Add” single billable item as needed. See attachment below.

add to invoice billable
add to invoice billable

4) Review and make other field changes if needed. Save. See attachment below.

new invoice
new invoice

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Is there a way to create a sales receipt from an estimate

QBO is not set up to go from Estimate to Sales Receipt at this time. Currently, you create Estimate and then “copy estimate to invoice” to create an Invoice. There is no partial copy so it’s done just one-time. You receive payment against that invoice.

Workaround steps from Estimate to Invoice may also work as faster as creating from Estimate to Sales Receipt approach. Follow these steps, it may work as an alternative to Estimate to Sales Receipt.

1. Create Estimate (create + sign > customers > estimate)
estimate1
 
2. Copy to Invoice (either directly from estimate or from invoice form by selecting a customer)
invoice1
 
3. Select “Save” (bottom right, blue bottom) Invoice
invoice2
 
4. Once saved the invoice, you will promptly notice “Receive Payment” button added at the upper right corner. Click “Receive Payment” link.
invoice3
 
5. Receive Payment against the invoice. Done.
invoice4
 

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