Receiving invoices

I have Quicken Windows for business 2019(R21.17/27.1.21.17).
I have a small business. I have a business checking account where my clients do the payments into. I setup a 'Customer Invoice' account to track my invoices and payments. So here is what I do...

1) Create an Invoice in the invoice account for the amount I am expecting. It shows up as INVC type here.
2) When i get paid in my checking account, i save it with the category of the 'Customer Invoice' account. This means the transaction shows up in the Invoice account with a type of PMT.

Now comes the tricky part.

When I open the form on the INVC and click on receive payment, it shows the outstanding invoices. When I select(Green tick) on the appropriate one and click Enter, it creates another transaction in the Customer Invoice account as PMT type. Now I have 2 transactions (one from the checking account and the other from the receiving).

What am I doing wrong? How do I link the outstanding invoice to the transaction that comes from the customer payment?

Thanks in advance,
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Answers

  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    In your Invoice register, show the payment as going to an Asset (probably Checking) type account.  I call mine "Undeposited Checks".
    Show the deposit, into your checking account, as coming from "Undeposited Checks".
    Just be sure to periodically reconcile that new account.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Anil
    Anil Member ✭✭
    I have not tried that. I heard the most efficient way is to have an Invoice account and receive them from your checking account.
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    Anil said:
    I have not tried that. I heard the most efficient way is to have an Invoice account and receive them from your checking account.
    And, How's that working for you?
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Anil
    Anil Member ✭✭
    edited September 2019
    This is what I figured out. When you receive the payment within the Customer Invoice type account, it gives you an option to link it to the transaction in your checking account. In the invoice form, you can link it to the appropriate Business Income category. This way you can use the Customer Invoice account to always reconcile your client invoices.
  • Anil
    Anil Member ✭✭
    Thanks for the information. I will follow that from the next time. So far I did not see any issue. But if it is a good practice, I will follow it for sure.
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