Payment received for less than invoice



I hope you can provide some guidance for this situation. A client stalled me
for months about paying an invoice. Instead of continuing to waste time with
these folks, I finally agreed to knock $300 off the invoice if they would
pay the rest. I did not send them a new invoice, though. Well, I just
received the "discounted" payment. My invoice records still show the
original total with an upaid $300 balance on this invoice. Since I'm not
going to pursue collecting the $300, how should I handle it Should I simply
change the amount of the invoice to the amount I actually received and call
it quits, or can Quickbooks somehow mark the $300 as an uncollectible

I will need to send the client a statement of payments I've received from
them on this project.

Thank you.





If there is no sales tax involved:
Open the Receive Payment transaction. Click "Set Discounts". Enter a discount of $300 and choose an account.

It's slightly more complicated if you need to adjust your sales tax liability:
Issue a Credit Note, using the appropriate tax code. (If the Invoice is for an inventory item you will need to create a Service or Other Charge item which you can call "Uncollectible" or whatever you wish.) Then open Receive Payment. Select the Customer, then the Invoice. If you get a message warning that "You cannot apply an amount greater than the payment", click OK and ignore it (you'll only see that warning if you click in the left-most column, not if you click in any other column). Then click Select Credits and apply the Credit Note to the Invoice.

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question