Overview
If you send invoices to clients using Quicken Business & Personal, knowing how to apply payments correctly is essential. Whether you're dealing with cash payments, bank transfers, or bulk deposits, this guide walks you through the steps to make sure every payment is properly recorded and linked to the correct invoice.
Things to Note
When you send an invoice, a Client Invoices account (accounts receivable) appears under Business Payments in your accounts list. The invoice amount is credited to this account, raising your accounts receivable balance.
When you apply a payment to an invoice, it creates a negative transaction that offsets the credited amount. This transaction is treated as a transfer from the account receiving the payment to the Client Invoices account. When all invoices are paid off, the Client Invoices account will show a zero balance.
There are a few different options when applying a payment to an invoice:
You can link a downloaded transaction to apply its amount as a payment toward the invoice.
If you receive a single payment for multiple invoices, you can apply the payment to multiple invoices.
You can create a manual transaction to apply the payment to the invoice.
Note: You cannot overpay an invoice. Any excess payment will be credited to the client and can be applied toward future payments.
Link a Transaction to Apply the Payment
Use this option for existing transactions in Quicken Business & Personal that are payments toward an invoice, including bank payments, Venmo transactions, or individual checks.
Instructions for Web:
Hover over the panel on the left side and select Sales & Billing > Invoices.
Locate the invoice you want to apply the payment to and click the three dots at the end of it.
Select Apply Payment.
Select Link to Transaction.
Select the transaction so it's highlighted and then click Next.
If you receive a partial payment for an invoice, you can apply that payment and then apply the rest when it is paid.
Confirm the details and then click Save.
Instructions for Mobile:
Tap the Menu (three-line icon).
Select Sales & Billing > Invoices.
Locate the invoice you want to apply the payment to and tap on it.
Tap Link to Transaction.
If you receive a partial payment for an invoice, you can apply that payment and then apply the rest when it is paid.
Confirm the details and then tap Apply.
If You Receive a Single Payment for Multiple Invoices
Instructions for Web:
Hover over the panel on the left side and select the account with the bulk deposit.
Select the transaction (single payment) and click the three dots to the right of the transaction.
Select View Transaction and click Split under Category.
Under each side of the split transaction, make sure that the category selected is Client Invoice.
Enter the payment amounts for each invoice.
Ensure that on both sides of the split, the Invoice payment box is checked.
Note: If you have multiple businesses, use the dropdown for Business to the left of the Client dropdown to ensure the payment is assigned to the correct business. If you have multiple clients or projects, use the dropdown for Clients & Projects to ensure the payment is assigned to the correct one.
Click Save Splits.
Instructions for Mobile:
Tap the Menu (three-line icon).
Select Transactions.
Locate the transaction (single payment) and tap on it to open the Transaction Detail window.
Scroll down and tap the Split button.
Use the +Add Split button to select the invoices you want to apply the payment to.
Under each side of the split transaction, make sure that the category selected is Client Invoice.
Enter the payment amounts for each invoice.
Ensure that on both sides of the split, the Invoice payment box is checked.
Note: If you have multiple businesses, use the dropdown for Business to the left of the Client dropdown to ensure the payment is assigned to the correct business. If you have multiple clients or projects, use the dropdown for Clients & Projects to ensure the payment is assigned to the correct one.
Confirm the details and then tap Apply.
Create a Manual Transaction and Apply the Payment to an Invoice
This option is perfect for cash payments! When a client pays in cash, simply apply the payment to the invoice in Quicken Business & Personal with a new transaction.
To track this payment without affecting the balances of your other accounts, consider setting up an "Undeposited Funds" account. This lets you record the payment separately.
Instructions for Web:
Hover over the panel on the left side and select Invoices.
Locate the invoice you want to apply the payment to and click the three dots at the end of it.
Select Apply Payment.
Select Create Transaction.
Select the Payment date, Deposit to account, and confirm the Payment amount.
Enter or confirm the Amount to apply and click Save when done.
Instructions for Mobile:
Tap the Menu (three-line icon).
Select Sales & Billing > Invoices.
Locate the invoice you want to apply the payment to and tap on it.
Tap Create Transaction under Apply Payment.
Select the payment date, deposit to account, and confirm the payment amount.
Enter or confirm the Amount to apply and tap Apply when done.
Apply an Existing Credit to an Invoice
If a client has overpaid, you can apply their existing credit to an invoice. You can determine how much credit a client has in the Clients & Projects section.
Instructions for Web:
Hover over the panel on the left side and select Invoices.
Locate the invoice you want to apply the payment to and click the three dots at the end of it.
Select Apply Payment.
Select Use Existing Credit.
Enter the Amount to apply and click Save.
Instructions for Mobile:
Tap the Menu (three-line icon).
Select Sales & Billing > Invoices.
Locate the invoice you want to apply the payment to and tap on it.
Tap Apply Existing Credit.
Enter the paid date, account, and amount.
Confirm or enter the Amount to apply and tap Confirm when done.
Note: Once a transaction is assigned as a payment, you cannot edit the transaction until the payment is removed.
How to Remove a Payment
Instructions for Web:
Open the account with the payment transaction and click on the three dots to the right of the transaction.
Click View transaction.
Click Edit next to the payments.
Click Edit Payment Assignment.
On the bottom left of the pop-up, click Remove Payment.
Instructions for Mobile:
Tap the Menu (three-line icon).
Select Accounts.
Select the account with the payment transaction and tap on it to open the Transaction Detail window.
Scroll down and tap the Edit Payment Assignment button.
At the bottom of the screen, click Remove Payment.