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.
 


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

 

3: Fill in the Receive Payment screen 

 


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

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

 

5: Fill in the invoice.

 

6: Click save in the lower right corner.

 

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.

 

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.

 

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.

 

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.
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