Applying Client Prepayments in QuickBooks Online

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Applying Client Prepayments in QuickBooks Online

If a client is prepaying for services, such as a monthly deposit for services incurred during the month you might choose to apply a credit to their account and then deduct invoices from that credit. Below are instructions on how to do this.

1: Click on the Quick Create menu in the upper right corner of QuickBooks Online.

Quick Create menu in QuickBooks Online

2: Click on Receive Payment under the column labeled customers.

Receive Payment option in QuickBooks Online Quick Create menu

3: Fill in the Receive Payment screen.

Filled in Receive payment screen in QuickBooks Online

NOTE: When you save the payment, QuickBooks Online will generate a warning message, this is to be expected. Click on Save As Credit.

No Invoice Selected error message in QuickBooks Online

4: Click on the Quick Create menu and then select Invoice under the column labeled customers.

Invoice selected in the Quick Create menu in QuickBooks

5: Fill in the invoice.

Filling in an invoice in QuickBooks

6: Click save in the lower right corner.

Save button in QuickBooks

If you closed the invoice and are applying the payments later, skip to step 9.

7: Now the invoice is updated to include the text Receive Payment in the upper right corner. Click on this button.

Receive Payment button in an invoice in QuickBooks

8: In the receive payment window, the amount received should be zero dollars, the invoice you just created should be checked and the credits should be checked applying a portion of the prepayment (unapplied payment) to this new invoice.

Unapplied payment in QuickBooks

9: If you closed the invoice instead of saved it, click on the Quick Create menu and then select receive payment under the column of customers.

Receive payments in Quick Create menu of QuickBooks

10: In the receive payment window, the amount received should be zero dollars, the invoice you just created should be checked and the credits should be checked applying a portion of the prepayment (unapplied payment) to this new invoice.

Unapplied payment

 

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