Receiving invoices

Anil

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,

UKR

The traditional method of receiving customer payments is by recording a New Customer Payment transaction in your Customer Invoices account. You should do so before you accept downloaded payment transactions into your business checking account.

If you do it the other way and download and accept payment transactions in your checking account first, then you need to follow a slightly different procedure. This is fully documented in Quicken Help. Please search Quicken Help for "invoice payment". In the search results list click on "How do I receive a customer payment?"
In the text box click on "I want to download payment from my financial institution".
Follow this procedure and you will have your payment correctly assigned marking the invoice as paid.

NotACPA

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.

Anil

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

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?

Anil

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.

UKR

The traditional method of receiving customer payments is by recording a New Customer Payment transaction in your Customer Invoices account. You should do so before you accept downloaded payment transactions into your business checking account.

If you do it the other way and download and accept payment transactions in your checking account first, then you need to follow a slightly different procedure. This is fully documented in Quicken Help. Please search Quicken Help for "invoice payment". In the search results list click on "How do I receive a customer payment?"
In the text box click on "I want to download payment from my financial institution".
Follow this procedure and you will have your payment correctly assigned marking the invoice as paid.

Anil

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.