If you receive a payment on an outstanding invoice (see important notes below) from a customer, do these steps:
From the Homepage screen, go the blue navigation bar (located left)
- Select Customers
- Locate Customer to receive payment
- Click “Receive Payment” button Action column heading (located far right)
- Make sure, it’s correct Customer who made the payment
- Select Payment Method
- Select Reference Number (for example check number)
- Select Deposit To: Undeposited Funds account
- Check proper outstanding invoices (if you have multiple outstanding invoices)
- Verify payment amount (if it’s less than or over amount due, make the change)
IMPORTANT NOTES: Receive payment is the 2nd step after you have 1st created Invoice.
The final step (3rd) is bank deposit. Move from Undeposited Funds to Bank account.
Even if you have downloaded banking transactions from the bank, these steps must be followed. No shortcut here.
From bank feeds, just MATCH the deposit. No need to ADD again. If you add by error, it will make double postings. Bank account could be a mess.
How to locate and apply “Undeposited Funds” in new Quickbooks Online?
From the Home page screen
Select Create “+” sign (top middle)
Select “Receive Payment” under Customers heading
Select Deposit to “Undeposited Funds” account
This will create Undeposited Funds as debit balance on the current assets account of the Balance Sheet.
“Undeposited Funds” account balance is like a temporary clearing account.
In order to clear the balance sitting on Undeposited Funds Account, next step is to go to “Bank Deposit” (same + screen > bank deposit under “Other” header) and make the deposit to applicable bank account.
How to apply a credit memo against a specific open outstanding invoice?
See screenshot photo below for reference.
In this example, let us say you have a bunch of outstanding invoices and one credit memo. The customer paid $500.00, deducted $50.00 credit against one outstanding invoice.
Just go to Receive Payment screen (click create + sign > select Receive Payment under Customers), see what happens.
It will list all outstanding transactions and credits in one form.
Apply credit against the applicable outstanding invoice. It should match payment amount.