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Quickbooks invoice example for Finance

QuickBooks how to Mark invoice as paid hey everyone this is Matt Holquist with the QuickBooks University and we are in QuickBooks desktop and I am going to show you how to mark an invoice as paid now that's a lot simpler than it sounds you cannot just go into QuickBooks let's go to let's just go to the customer center let me show you here so if we go to a customer we say this Heather Campbell owes 13 900 let me go to a quick report and pull up this invoice I can't or you cannot just go in here and Mark it as paid now the reason you can't do that is because you know for basic accounting you have to have some form of payment for that so whether it's cash check credit card you know whatever the case may be uh it's you you have to specify how it was paid so you can't just go in unfortunately and just say hey okay this was already paid so when this situation comes up there's generally going to be there's really going to be one situation when an invoice has already been paid but it's still showing as outstanding and QuickBooks so I'm going to show you how to Market as paid and then give you another option as well depending on your situation okay so let's take this first uh let's go back to this customer center over here and we're going to look at Babcock's music shop remodel right now they owe 225 so the typical scenario when this comes up you have let's say you pull up your accounts receivable aging you have an invoice out there to Babcock's music for 225 bucks and you're like you know I know they paid this already so why is it still showing as an outstanding receivable why do they why does it show that they still owe us this money the most likely reason is that somebody whether it was you or someone else in QuickBooks got the check or got the payment and went straight to the check register and made a deposit for 225 dollars all right so we see these two invoices outstanding 175 and 50 total of 225 dollars all right so let's go to our check register and what we're doing here is you want to look for a deposit for 225 dollars all right so we have a couple of them up here one from undeposited funds and then a couple that say design income and materials income so your first item that you have to figure out is which deposit is associated with that invoice it's probably going to take some digging but see when you record it in the check register and you still show it as accounts receivable you're essentially double counting the 225 as income and you don't want to do that because obviously you don't want it to make it look like you're doing better than you are on your financial statements so let's say that you have done some digging and you have determined that this is the deposit here all right so we're going to double click this deposit and you're going to see okay well it already says Babcock's music shop Remodel and it says construction design income so so somebody did put in that it was for Babcock's music shop and it was a check and it was 225 dollars now the issue comes in when it's recorded to design income in this account so what what you want to do is you want to take this account out of here and instead type in accounts receivable so let me go up to accounts receivable right here so now we have Babcock's music shop remodel accounts receivable 225 so I'm going to save and close this and then what we're going to do is go to customers receive payments and let's choose Babcock's music shop remodel you're going to see there's two invoices here 225 dollars so what I'm going to do I'm going to check both of these off but you'll see here by putting that account to accounts receivable we have created a credit for this customer so we want to apply these credits so let me bring this box over here all right available credits we check that off and we say done so it applied it to the first one now we want to apply the credit to the next one I'm going to pull this screen over here and you'll see we have a remaining credit of 50 we're going to say done and now we have applied credits against the amount due so effectively what you've done in the you know the first scenario by putting it to design income in the check register and duplicates your Revenue so what you want to do is change that entry to be to accounts receivable instead which creates a credit for the customer in the job so that you can go back and apply the credit to the account now when we save and close it is going to clear that accounts receivable out of the system so it no longer shows that Babcock shows you money and it still stays in the checking account register okay so now you have gotten your books correct that is how to mark an invoice as paid when the payment has already been recorded somewhere in QuickBooks as a deposit any questions any comments feel free to leave those below and I look forward to seeing you in the next video