Payment received is less than invoiced


Joined
Aug 21, 2013
Messages
2
Reaction score
0
We received a payment of $32.00 less than what was invoiced to a client. This short payment was taken out by the bank for wiring fees. When I entered the payment received, I applied the $32.00 as a discount and used the expense account of banking fees. Is that correct? Or should I use the Discount income account?

We again received a payment from this client, $798.22 less than invoiced. This amount will not be paid. Should I edit the invoice to match what was received or write it off and use the discount income account?

Also - these invoices for the client was for all reimbursement charges, so they already in an expense account.

Thank you any help!
 
Ad

Advertisements

The Finance Writer

VIP Member
Joined
Aug 23, 2013
Messages
109
Reaction score
15
Using the invoice discount feature in QuickBooks should arrive at the correct outcome in both cases. However, you can always check to see if that's the case by reviewing the QuickBooks reports. The customer invoice balances should indicate zero on the accounts receivable report. The P&L should have the $32.00 and $798.22 amounts, respectively, in the accounts for banking fees and discount income.
 
Ad

Advertisements

Samir

VIP Member
Joined
Aug 15, 2013
Messages
363
Reaction score
38
Country
United States
If you want to differentiate between invoices that have smaller discounted items versus write-offs like the larger amount you have, you can create a 'Bad Debts' or 'Write Offs' account. This way, you can see discounts separately than write offs on reports.
 

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

Top