How to Add Payments in QuickBook Online?

When an invoice becomes payment?

Upon the completion of rendering services or delivering products to customers and issuing invoices, clients ought to understand that it does not mark the conclusion of the sales workflow. In fact, the next crucial step is to ensure that once the customer pays the open invoice, clients must enter the payment and deposit it into QuickBooks Online.

How can QuickBooks Online help?

QuickBooks Online has simplified the process for clients to obtain payments for their outstanding invoices. This is achieved by meticulously keeping track of the invoices that are open as well as the payments which have been received. By utilizing this feature, clients can effortlessly keep tabs on the payments that have been made and also determine which customers require reminders to settle their invoices.

How to receiving payment on an invoice in QBO?

To ensure accurate and efficient management of financial transactions, clients must record any payments received from customers using the Receive Payment screen. Through this process, payments can be properly applied to open invoices, resulting in an up-to-date and accurate accounts receivable balance. Additionally, these transactions will result in a decrease in accounts receivable and an increase in either bank account balance or Undeposited Funds, further streamlining financial operations.

Recording a received payment in Quickbooks Online.

Let’s see how to record a payment

1. From the + New button, select Receive payment

Alternatively, clients can also locate the invoice in the Sales Center and select the Receive payment option from the Action column.

2. On the Receive Payment screen, select the customer from the dropdown

Next, QuickBooks Online brings up all the open invoices awaiting payment from the selected customer.

To filter them, either select the Find by invoice no. option to search for a specific invoice, or use the Filter button to display invoices from a date range or only show overdue invoices.

3. Next, add the payment date

4. Choose the payment method

5. Add a reference number if applicable. This could be a check number, for example

6. From the Deposit to dropdown, select Undeposited Funds and then make the deposit

7. Then select the checkbox next to the invoice the payment is for

Note that the Payment box on the right is automatically populated and the Amount received box reflects the total of the selected invoices.