QUIRK:Invoice Balances

I'm a new user and have just begun using the receive payment function, accessed from the 'Customer Navigator' screen.

Before this, I was pulling up each invoice and entering the item 'Cheque' (attached to the Undeposited funds account) or 'Cash' for cash payment. When I press Enter the balance of the invoice goes to zero.

I've noticed that when I use the rec'v pymt function, the invoices that get paid don't take on a zero value. So, if I use CTRL-F and pull up a customer it looks something like this

INVOICE A $500 -not yet paid INVOICE B $300 -paid with RCV PYMT function INVOICE C $0 -paid by 'Cheque' as an item on the invoice

When I go to receive payments, only invoice A comes up because it is the only one outstanding. I'm OK with this, but am having trouble understanding what difference Quickbooks perceives between invoices B and C which have both been paid.

Any explanations would be greatly appreciated.

Regards, A

Reply to
A
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By altering invoice C AFTER it was created, you changed the amount due on invoice C. In your example, invoice B was an invoice for $300, which was paid and has a balance of $0 due. Invoice C was an invoice for $0. From the QB helpfile: "A payment item subtracts the amount of a customer payment from the total amount of an invoice or statement. You need a payment item when you receive a partial payment toward the amount of an invoice or statement at or *BEFORE* the time you create the invoice or statement." (emphasis added)

I've rarely used payment items on invoices, as in general they are appropriate only for deposits/payments received in advance to be applied TO the specific invoice at the time of creation.

Reply to
L

"L" wrote in news:nXIEf.1299$ snipped-for-privacy@fe10.lga:

BUT, both of these payments essentially end up in the same place; undeposited funds. Correct?

Can you see any future ramifications from having done the first 6 months with invoices of $0, and recently switching to the propper method of entering the payment as a reeceived payment?

Thanks for the explanation,

Andrew

Reply to
A

Any transaction has several "elements" ("fields" in the transaction record"), including AT LEAST the date and amount. Two transactions with the same amount are not identical if the dates (and/or other elements) differ. If payment of Invoice C did not take place at the same time as the sale, then you have incorrectly recorded the payment as being part of the sale transaction when it was in fact a separate transaction at a different time/date. Moreover, you have also altered the Invoice as Lisanne explained. Conversely, if the payment DID occur at the same time as the sale then it does differ from Invoice B which was paid later.

Whether there are significant consequences may depend on several factors - one of which is the relative dates of the transactions. If payment of an Invoice occurred separately but on the same date, there is probably no significant consequence. If payment occurred in a different reporting period, then one or both transactions will be incorrectly reported in all subsequent reports - subsequent reports will show the customer owed nothing in the month of the sale (though there WAS a balance), the bank balance for that month will be incorrect, cash flows for the month of sale and the month of payment will both be wrong, etc, etc.

The ramifications of changing to the correct method of bookkeeping will be that future reports will be correct while reports for previous periods will continue to be incorrect.

"A" wrote

invoices

trouble

invoices B

invoice

statement.

create

Reply to
!-!

"!-!" wrote in news:%fPEf.15500$Sk1.332002 @news20.bellglobal.com:

That makes sense. I think I'll get away with it, but I'm happy that I doing it the correct way now.

Thank-you both for all your help.

Regards,

Andrew

Reply to
Jill

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