How to Make Partial Payments in QuickBooks

QuickBooks software is a wonderful application that takes care of all your accounting needs. Payments in QuickBooks can be managed easily with the help of multiple features available in QuickBooks. Managing a partial payment in QuickBooks includes recording payments on an invoice. In this blog, we shall understand in detail how to make a partial payment in QuickBooks. The steps involve the following:

You can follow the given step by step guide to making the partial payments to vendors as well as for receiving the partial payments from the customers.

• Fill in the credentials of your QuickBooks account.
• Choose the “+” icon and go with “receive payment.”
• Enter the name of the customer to whom the payment is to be made.
• Check the Invoice option.
• In the “payment” column, fill in the partial amount.
• Finally, Click on save and close. This will save the changes.

What is Partial Payment?

Partial payment is payment on the invoice for an amount usually less than that claimed by the creditor. Partial payments are given as down payments in business for settling a deal or as an introductory amount before the contract is signed. In this write-up, we are going to understand how to enter the partial payment in QuickBooks.

Managing Partial Payments

New users are usually confused while dealing with partial payments. Accounts Payable and accounts receivable are both dictated by certain steps. These depend on whether you are receiving money from a vendor or paying an outstanding balance.

Receiving partial payment in QuickBooks?

QuickBooks software makes it pretty easy to keep a note of all the transactions and money flow in and out of business. When you receive a payment, it must be recorded. It’s imperative to understand how to receive partial payment in QuickBooks. The steps below will definitely guide you on how to record such financial statements.

• On QuickBooks, access “customers” and choose “receive payments.”
• In the “receive from” field, fill in the name of the customer who has sent the money. This shall display a list of all invoices that are open.
• Choose the invoice to which you want to apply for the payment
• Fill in the amount and save the changes

How to do Partial Payment on an Invoice in QuickBooks?

At times, you might receive partial payment in QuickBooks on a customer invoice. These need to be recorded in the system as soon as you receive them. The following steps can guide you in this process.

• Enter the credentials and log in to your QuickBooks account.
• Go to “transactions” and choose “add transaction.”
• Fill in the date of the partial payment when you receive the payment.
• Put in the amount and choose a category.
• Select “income” and then save the changes.

It is always advisable that you do not mark the invoice as paid before you receive the full payment. It is a best practice in financial reporting and bookkeeping.

Making a Partial Payment to Vendors in QuickBooks?

• Open the QuickBooks software and then click on the Vendors > pay bills > show all bills.
• Scroll down to the bill that you want to make a partial payment. You will see the total amount due to the column; click the check mark column to select the bill for payment.
• Enter the amount of partial payment in the amount to pay column
• Click on the payment method and select the appropriate payment type for the partial payment. In case of a check, select ‘to be printed.’
• Select pay & close to record the partial payment and close the pay bills window.

Sending the Invoice Again:

Whether you are using any version of QuickBooks, it’s easy to send an invoice. Just follow below-mentioned steps:

1. Put your cursor on the “sales“ tab on the left-hand column of QuickBooks.
2. Select “Customers.”
3. Choose the name of the customer from the customer’s section.
4. Go over the “transactions” tab.
5. Find the invoice you want to resend.
6. Choose “send reminder” from the “action” column.
7. Click on “send” in the pop-up.

In case the amount has been paid in full, you should keep that as a record in QuickBooks. For that, in QuickBooks, click on “receive payment” again and fill in the full amount and save.

Avoiding Invoice and Payment Errors:

While creating invoices in QuickBooks, a number of errors can creep up. One way of ensuring that the application remains error-free is constantly running a list of all customer invoices. If most of them show paid, it means that there is some issue with this process.

These errors should be constantly scrutinized and fixed to ensure business transactions are in order. This also helps at the time when the company is being audited. Precisely, why applying for partial payment in QuickBooks is extremely crucial.

Adding a Payment Link to an Invoice in QuickBooks:

If you want your customers to easily pay you, it’s possible to guide them to an online payment method. QuickBooks has a feature that allows any business to add links to any invoice. This gives customers a chance to make that payment online.

Follow these steps to add a payment link to an invoice in QuickBooks-:

1. Turn on your payment link option in the system.

• On the QuickBooks, Go to “customers.”
• Select “create an invoice.”
• Under “customers can’t pay this invoice online,” click “turn on.”
• Select the preferred method of payment in the change invoice screen

2. On the “create an invoice” screen, enter the requisite data.

Conclusion:

Partial payments are an integral part of transactional business. It’s important to keep track of these events, if not, your bookkeeping can go for a toss. Luckily, QuickBooks has made it quite easy to both send and receive partial payments and notate them accordingly. In this blog, we have tried to show you how to make a partial payment on the invoice on the QuickBooks desktop. You are welcome to contact us for any assistance on QuickBooks. We have a team of highly skilled professionals who are always at your service. Connect with us through chat or send us a mail at info@getcontacthelp.com.