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.
Apply a Payment from an Invoice
Use this option for existing transactions in Quicken Business & Personal that are payments toward an invoice, including bank payments, Venmo transactions, or individual checks.
Tap the Menu (three-line icon).
Tap Sales & Billing, and then select 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.
Split One Payment Across Multiple Invoices
If you received a payment for multiple invoices, you can still record that payment and split it.
Tap the Menu (three-line icon).
Select Transactions.
Locate the payment transaction and tap it.
Scroll down and tap the Split button.
Tap the Category field.
Tap the Transfer button at the top and select Client Invoice.
Select the correct business and client.
Enter the payment amounts for each invoice.
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 Clients & Projects dropdown to ensure the payment is assigned to the correct one.
Manually Apply a 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.
Tap the Menu (three-line icon).
Tap Sales & Billing, then select Invoices.
Locate the invoice you want to apply the payment to and tap on it.
Tap Create Transaction.
Select the payment date, deposit to account, and confirm the payment amount.
Enter the payment amount.
Tap Apply when done.
Apply a Payment from a Transaction
You can also apply a payment from the account register. When you do, Simplifi lets you select the invoice you want to link the transaction to, making it easy to match payments with the correct invoice.
Note: Once a transaction is assigned as a payment, you cannot edit the transaction until the payment is removed.
Tap the Menu (three-line icon).
Tap Transactions.
Find the transaction and tap it.
Tap Clients & Projects, then tap the client name.
Tap the Invoice Payment checkbox.
Tap Update.
On the Record Invoice Payment screen, click Apply Payment.
Locate the invoice and enter the amount.
Tap Save.
Track Tips Alongside Invoice Payments
With the latest update to Quicken Business & Personal, recording tips when customers pay extra is now straightforward. You can now add tips seamlessly as you apply payments, making payment handling smoother.
Tap the Menu (three-line icon).
Tap Sales & Billing, then select Invoices.
Locate the invoice you want to apply the payment and tip to, and tap on it.
Select either Link to Transaction or Create Transaction.
Confirm the Amount to apply (including the tip).
Tap the Add a tip toggle button.
Tap Save when done.
How Tips Appear in Reports:
Tips recorded during payment application are treated as income, not as invoice items or billable expenses. They will show up in your Profit and Loss report under the Income section, helping you keep an accurate picture of total earnings without affecting project costs or itemized billing.
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.
Tap the Menu (three-line icon).
Tap Sales & Billing, then select 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.
How to Remove a Payment
Sometimes you may need to remove a payment from an invoice to fix a mistake or update a transaction. Removing it restores the invoice so you can record the correct details, update the customer’s balance, and keep your accounting accurate.
Tap the Menu (three-line icon).
Select Accounts.
Locate the account with the payment transaction and tap it.
Locate the payment transaction and tap it.
Scroll down and tap the Edit Payment Assignment button.
At the bottom of the screen, click Remove Payment.
Tap Remove to confirm.
If you're looking for steps specific to the web app, please see our article How to Apply Payments to Invoices in Quicken Business & Personal.
If you have any questions or need help importing your transactions into Quicken Simplifi, reach out to our support team. Or start a live chat by clicking on the blue messenger icon in the bottom-right corner of the screen.