How to Record a Payment Received in QuickBooks Online

To record a customer payment in QuickBooks Online from the desktop screen, open **Receive payment**, choose the correct customer, apply the money to the right open invoice, choose the deposit account, and save. QuickBooks Online then marks the invoice paid or partially paid, depending on the amount you entered. If the payment does not match the invoice, check the customer, invoice, and amount before you save.

Before you start, gather the invoice and payment details

Have these details ready before you enter the payment:

• Customer name exactly as it appears in QuickBooks Online
• Invoice number or another clear way to identify the invoice
• Payment amount
• Payment date
• Payment method, if you want it recorded
• Where the money was deposited: Undeposited Funds or a bank account

If the payment is meant for more than one invoice, note which invoices should receive part of the amount. If the customer paid less than the invoice total, decide how much to apply now and leave the rest open. If the customer paid more than the invoice total, decide whether the extra amount should stay as a credit or be matched to another open invoice before you save anything.

Open the Receive Payment screen

From the desktop view, go to the Sales area and open the customer payment workflow. In most QuickBooks Online layouts, that means using the New button or the Sales/Customers area and selecting Receive payment.

Choose the action that records money from a customer. Do not start a new invoice, expense, or bank deposit if your goal is to mark an invoice as paid. You need the customer payment form because that is what ties the receipt to the invoice.

Select the right customer first

Pick the customer who sent the payment before you do anything else. QuickBooks Online uses that choice to show the open invoices tied to that customer.

Once you select the customer, the form should display that customer’s unpaid invoices. If the invoice you expect does not appear, stop and check the customer name. A payment cannot be applied cleanly to an invoice that belongs to a different customer record.

Apply the payment to the correct invoice

1. Find the invoice the payment should cover and check its box.

2. If there are several open invoices for the same customer, apply the amount to the one or ones that match the payment.

3. If the payment covers the full open balance, select the invoice in full. If it only covers part of the balance, apply only the amount received.

4. If your version of QuickBooks Online shows an Amount received field, confirm that the amount matches what you plan to apply.

Do not force the payment to equal the invoice total unless the customer actually paid the full amount. The invoice balance should change to paid or partially paid after you save.

Choose the deposit account and payment method

Choose where the money was deposited. If you batch payments before taking them to the bank, select Undeposited Funds. If the payment went straight into a bank account, choose that bank account instead.

Enter the payment method only if your workflow tracks it, such as check, cash, card, or bank transfer. The deposit account must match where the money actually went. If you put it in the wrong account here, the payment may look correct on the invoice but be wrong in your bank records.

Save the payment and confirm the invoice is paid

Save the transaction after you have confirmed the customer, invoice, amount, and deposit account. QuickBooks Online should record the receipt and update the invoice status immediately.

After saving, open the invoice or look at the customer transaction list to confirm the result. You should see either Paid in full or a remaining open balance if you entered a partial payment. The invoice balance should reflect the amount you applied, and the customer balance should update the same way.

What to check if the payment does not apply to the invoice

If the payment does not attach to the invoice, check these items in order:

• The customer on the payment matches the customer on the invoice
• The invoice is still open and not already paid
• The invoice belongs to the correct account
• The payment amount is the amount you intended
• The deposit account is not the problem; account choice affects posting, not invoice matching

If the payment is for a partial amount, apply only what was received and leave the invoice partially open. Do not overstate the payment just to clear the invoice. That creates a false balance you will have to correct later.

If the payment was posted to the wrong customer or wrong invoice, edit the payment before moving on. If it was duplicated, remove the extra receipt instead of leaving both in place. If there is an overpayment, leave the extra amount unapplied or move it to the correct invoice or customer credit, depending on how your books are set up.

If the invoice still does not show as paid after you save, reopen the payment and verify that the correct invoice box is checked. In most cases, the mismatch is in customer selection or in applying the money to the wrong open item.