How to Record Partial Payment Recieved at the Time of Sale-QuickBooks

 

  • When we sell products or provide services to our customers, we create an Invoice or a Sales Receipt, and that totally depends on the situation if the payment for that sale was received in full or not, at the time of sale only.
  • If the payment was made in full we create a Sales Receipt, else an invoice needs to be created. A Payment type item is used to record a partial payment on an Invoice. Payment Items should not be used on other sales related forms, such as Sales Receipts or Credit Memos.
  • Typically, recording a customer payment via the Customers > Receive Payments window is used to record a payment received before the invoice is created and later applied to the invoices or simply received against pending invoices.
  • Recording a Payment item on an invoice is to reduce an invoice balance as your customer made a partial payment at the time of that sale.

 

Note:-

  • If you receive full payment at the time of the sale, use a sales receipt form instead of an invoice with a payment item.
  • Like any other item in QuickBooks, a Payment type item is also maintained on the Item list. Let us just assume that we already have an item created to record customer’s partial payments made at the time of sale.
  • The screenshot below shows a Payment item being recorded in the Create Invoices window. The Payment item is recorded automatically as a negative number and reduces the BALANCE DUE on the invoice. To do this in QuickBooks just add Payment item in the column area in an invoice along with the products/services you are selling.

 
How to record partial payment received at the time of sale
 

  • In the screenshot mentioned above you can see that I am selling a Laptop for $600 and a Computer for $550. Customer also made a partial payment of $600, which also appears in the column area on my invoice as a separate item.
  • Now the pending amount from that invoice after adjusting the payment is $550 and that becomes the BALANCE DUE amount which customer needs to pay sometime later.

 


Techarex Networks is a trusted cloud-based QuickBooks Hosting service provider of QuickBooks Pro, QuickBooks Premier, and QuickBooks Enterprise versions. Guaranteed 99.995% uptime and 24X7 free supports enable CPAs, accountants and business owners with anytime, anywhere, multi-device access capabilities.