How to handle a partial payment when creating an invoice in QBO?

Case: A customer bought $105.00 worth of product and paid $80.00 in cash. You need to send an invoice to the customer for the balance. How would you handle this in QBO?

First, create a new invoice using product/service item code for $105.00. Use deposit field to post $80.00 as the prepayment on that invoice. Deposit field is located right below the total. Now, the invoice will show $25 balance due.

If you do not see “DEPOSIT” field on your invoice, go to “Company Gear” settings to enable deposit field: Gear icon (upper right corner) > Settings > Company Settings > Sales > Deposit > ON > save. See screenshot below for reference.

Click on the screenshots below to enlarge them
enable deposit setting

Once you enter deposit amount, your invoice screen will expand to show the following three fields added to the invoice form. Fill out the information appropriately:

a) Payment method
b) Reference no.
c) Deposit to

You will need to select “Deposit to” field depending on your situation. If you are depositing this deposit (prepayment) to the bank along with other payments as a batch deposit, then you should select Undeposited Funds Account. On the other hand, if you are depositing just $80.00 as a single deposit to the bank, you should select the appropriate bank account.

deposit field on invoice

The snapshot below shows what accounts are affected by this transaction:
deposit journal report
1. Accounts Receivable: $25
2. Sales Income: $105
3. Undeposited Funds or Bank Account: $80

 

#QuickBooks Online

 

Recording Daily Sales

In QBO Essentials and Plus, you can create a Recurring Sales Transaction to be used at the end of each day to record your daily sales transactions.

This YouTube video will show step by step instructions on how to record daily sales in QBO. We highly encourage you to watch the entire video. You do not want to miss a step!

 

You will need to create a few new accounts in the Chart of Accounts:

Clearing Account (Category Type = Banking)
Income Account (Category Type = Income)
Overage/Underage Expense Account (Category Type = Expense)

To create new accounts (left blue navigation bar > transactions > chart of accounts > new)
bank clearing

 

You will need to create Products/Services associated with the following account types:

Sales categories = Sales Income account (make it taxable if your charge sales tax)
Cash= Undeposited funds
Checks= Undeposited funds
Visa/MasterCard = Undeposited funds
American Express = Undeposited funds
Discover = Undeposited funds
Overage/underage (for drawer shortages) = Expense account

To create products/services list (from the home page screen > company gear (upper right corner) > lists > products/services > new (upper right corner)

products services

 

You will also need to enable sales tax settings (if needed).
Sales tax = (left blue navigation bar > sales tax > add/edit tax rates and agencies). QBO will automatically create a Sales Tax Liability account. You do not need to create sales tax account in the Chart of Accounts separately.
sales tax

 

Now you need to create recurring Sales Receipt template (from the home page screen > company gear (upper right corner) > lists > recurring transactions > new (upper right corner).
recurring sales receipt

 

Now you are ready to create a Sales Receipt for each day based on end of the day Cash Register run (from the home page screen > company gear (upper right corner) > lists > recurring transactions > use under action column).
use recurring sales receipt
Note: By recording all of the Sales as positives and all of the Payments (Expenses & Cash Shortage) as negatives, the net amount of the Sales Receipt should be Zero.

In this example, at the end of the day, you have $1,000.00 in Sales, $80.00 in Sales Tax. The cash register count for Cash is $200.00, ‘Checks’ is 300.00, Visa/MasterCard is $390.00, American Express is $80.00, Discover is $80.00 and Cash Shortage is $10.00. The sales report that day shows $1,080.00 in Sales ($1,000 sales income plus $80 sales tax).
use sales receipt from recurring

 

In case of additional expense payments from the cash register, create new products/services mapped to appropriate expense category of Chart of Accounts.
additional expense payments

 

Finally, go to Undeposited Funds and record the deposit for the amounts actually deposited in the bank.
deposits

To do this (from the home page screen > create + sign > other > bank deposit). Select deposit date in QBO based on bank posting date.
 
Note to Simple Start users: since there is no “Recurring Transactions” feature available in Simple Start, you will need to follow all the setup instructions and create a Sales Receipt for daily sales. Transactions will be recorded the same way in QBO.
 

 

How to print a deposit slip and deposit summary in new QuickBooks Online (QBO)?

In order to print, from the homepage screen

  • Select create (+) sign
  • Select “Bank Deposit” “under “Other” heading
  • Go to small clock icon on top left corner and select “Recent Deposits” slip and summary you want to print
  • Select Print at the bottom middle
  • Select “Print Deposit Slip and Summary” or “Print Deposit Summary Only”
  • Select “Setup and Alignment” feature in order to test

Note: In order to print “Printable Deposit Slips”, you will need to purchase special printed form from Intuit, which is not cheap. Print alignment feature is not available (or do not work) at this time.

Print deposit slip
Print deposit slip

New QuickBooks Online (QBO) – Print Checks help video