QuickBooks Online: How to Record and Process Credit Card PaymentsFriday, July 17, 2015
[Processing credit card payments in QuickBooks Online]

There are a variety of ways to record or process a credit card payment so that it will show up in your QuickBooks Online.  This article will discuss using Sales Receipt, Receive Payment and Bank Deposit to record customer payments. It will also discuss how payments received from customers using the Intuit Payment Network service will get entered into QuickBooks Online.

Process A Credit Card Payment Through The Sales Receipt Option

A sales receipt is useful when there is no invoice for the customer in QuickBooks and you don't want to create one.

Choose "+" icon > Sales Receipt.
Enter the name of the Customer.
Enter the Payment Method.   If the customer is paying by credit card, an option to Enter Credit Card Details will pop up.  Click this to enter the customer’s credit card information.

[Enter payment method]
 
Choose to either Deposit to your checking account directly or to Undeposited funds, which will put the payment in the Bank Deposit screen to be recorded as a deposit later.
Fill in the details for the sale including Product/Service, Quantity, Rate and Amount.
Click Save      

Process A Credit Card Payment Through The Receive Payment Option

Choose "+" icon > Receive Payment.
Enter the name of the Customer.
Enter the Amount, Payment Method, and the Reference #.  If recording a payment by ACH or another direct method you can choose + Add New from the drop-down. Create a name for  the method (ACH, Transfer, etc).

[Receive credit card payment]
 
Make sure that the correct invoice you want to apply the payment to is checked in the Outstanding Transactions window. You can change which invoices are checked if necessary.
Choose to either Deposit to your checking account directly or to Undeposited funds, which will put it in the Bank Deposit screen to be recorded as a deposit later.
Click Save.

Recording A Deposit Of Entries In Undeposited Funds

Choose "+" icon > Bank Deposit.
Choose the bank the deposit was sent to.
In the Select Existing Payments section, put a checkmark next to the payments that you want to group together as one deposit.
Make sure the total is correct.
If additional funds were combined with the funds from Undeposited Funds, record the additional items in Add New Deposits.  You will need the Received From, Account, Payment Method and Amount.
Once the Total matches the amount of the deposit that went to the bank, click Save.














































Partial Payments

Even if a customer only pays part of their balance owed, QuickBooks Online will keep track of the open balance due on each invoice.  You can see what is owed by each customer individually by clicking on the Customer Name from the Customer List.  Open a specific invoice by clicking on it and looking at the Balance Due line near the top right of the page.

Additionally, you can see all of your open invoices with their current balances by running the Customer Balance Detail report from the Reports menu.

Joint Payments

If you have a situation where one payment needs to be applied to invoices recorded under two different customers, you can book the payment in the following manner:

Choose "+" icon > Receive Payment.
Enter the name of the first Customer.
Enter the Amount, Payment Method, and the Reference #.   Make sure you note the check number in the Reference # field.
Make an entry in the Memo field that this payment is included with payment from another customer.
Make sure that the correct invoice is checked. You can change which invoice is checked if necessary.
Choose to Deposit To: Undeposited funds, which will put it in the Deposits screen to batch together with the other payment.
Click on Save.

Repeat these steps for the second customer’s invoice.  Make sure the check number is the same  as the first customer.  Next, group the payments so that they show as one deposit on the register:

Choose "+" icon > Bank Deposit.
In the Select Existing Payments section, put a checkmark next to the payments that you want to group together.
Make sure the total is correct. 
Click Save.

Intuit Payment Network

If you’re using the Intuit Payment Network (IPN) to invoice customers with a pay now link, QuickBooks Online will automatically update when the payment is received.  For example: you email your customer an invoice for $20. Your customer responds with an online payment for $20 from a bank account. Here's what will happen in QuickBooks Online:

A Receive Payment transaction for $20 will be recorded and automatically applied to the invoice.  “IPN” will appear in the Payment method field.
A deposit for $19.50 will appear in the bank account you define.  Your customer pays no fees to send you an online payment.
The $.50 flat fee that Intuit Payment Network charges for payments received from bank accounts is coded to the account Bank Charges.

Note: Sometimes the Receive Payment transaction and the deposit transaction are entered in QuickBooks Online on different days.

The benefit of having transactions automatically entered for you when you use the IPN is really nice.  Not only will you save yourself time but your customers as well.  They will appreciate the ease of being able to pay you electronically.

               DANIEL CULLINANE CPA                                                              Phone:          732-516-1648

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