How to Receive Payment in QuickBooks Online

Recording a customer payment applies the money against their outstanding invoices, keeping accounts receivable up to date and your records accurate. QuickBooks marks the invoice paid and posts the money to the account you choose.

Step 1 – Open the Receive Payment Form

A Create (+) – Click the Create button at the top of the left navigation bar to open the transaction menu.

B Receive payment – Select Receive payment under the Customers column.

Figure – Opening the Receive Payment form

Step 2 – Complete the Payment Details and Save

A Customer – Select the customer who made the payment. Their outstanding transactions appear below.

B Payment Date – Enter or confirm the date the payment was received.

C Reference no. – A reference such as a cheque or transaction number, to identify and trace the payment.

D Deposit To – The account where the payment is deposited — here, Absa Bank.

E Outstanding invoice – Tick the invoice or invoices the payment settles.

F Payment amount – Confirm the amount applied to each ticked invoice. Amount to Apply and Amount to Credit below should match what was received.

G Save and close – Saves the payment and updates the customer’s outstanding balance.

Figure – Completing and applying the payment