Explore Our Partial Payment Invoice Example for Accounting and Tax

Partial payment invoice example for Accounting and Tax

this is Karen from the QuickBooks team once your customer pays your invoice you need to record it in QuickBooks let's go over two ways you can receive payment and how to properly use the undeposited funds account to keep your books accurate the first way you can receive your payment is to select customers this shows your customers list just find your customer and you will see the money they owe you here to receive a payment you could select receive payment right here however another way to receive payment is to select the create menu and receive payment then enter the customer's name QuickBooks displays any open invoices for that customer select the checkbox for the invoices the customer is paying QuickBooks assumes that the customer is paying the entirety of the invoice but if this is a partial payment you can change the payment amount next record how the customer paid you if you don't see their payment method listed just select add new and add it this customer is paying with a check you don't always need to record a reference number but since this customer is paying with a check let's record their check number let's select undeposited funds so we can combine it with other payments later undeposited funds is a temporary account that holds payments you plan to deposit later at the bank undeposited funds is important because it allows you to easily combine several payments together into a single deposit if you don't combine deposits then you can skip this and just choose checking then select save and close now this customer has a$0 balance since they paid their invoice if you recorded the money going directly into a bank account you're done but if you used undeposited funds you'll need need to record the deposit after you put it in the bank to see this process watch our video on how to record a bank deposit now try recording an invoice payment of your own