Here is a guide on how to invoice a customer by adding a sale and then match it to a bank receipt within Quickbooks
Adding a Sale
Click on the plus '+' sign on the top right menu and then under the 'customers' list click on 'invoice'.
You'll then need to add the following details:-
- Customer name (ABC Limited)
- Invoice date (01.01.2000)
- Invoice number - usually added automatically (1014)
- For product/service, the standard option to select is 'services'.
- Enter the amount you wish to charge - you can either enter a quantity and amount which will calculate the amount figure or enter the amount directly (1 x 100 = £100)
- Enter the VAT rate if your business is VAT registered (click here for a VAT guide). If you're not VAT registered but there is an option to add VAT, just select 'no VAT'.
- Then click the arrow pointing down in the bottom right corner and select:-
- 'Save and close' - if you don't want to add another sales invoice
- 'Save and new' - if you want to add another sales invoice
- 'Save and send' - if you want to email the invoice to your client
Matching a Sale to a Bank Receipt
IMPORTANT: DO NOT CLICK ON 'RECEIVE PAYMENT' NEXT TO THE INVOICE IN THE INVOICING TAB. Unfortunately, it's very easily done but the best way is to match the sale to the amount received in the banking tab.
Click on the 'banking' tab on the left hand menu and it will take you to a list of bank transactions downloaded from your bank account.
If given the option to match - on the right hand side of the transaction you may be given the option to match if the bank receipt exactly matches an outstanding sales invoice. If the software does this, check that the sales invoice details in the 'category or match' column are for the correct sales invoice and then click match. If the details aren't for the correct invoice follows the 'doesn't give you the option to match' steps below.
If it doesn't give you the option to match - perhaps because you're matching multiple transactions and/or there are charges associated with the transaction. You'll need to click on the amount received in the 'received column' (DO NOT CLICK ADD), then click find match and you'll be presented with a list of outstanding sales invoices. If you can't see the outstanding sales invoice(s) you want to match try changing the From/To dates. Depending on the situation you'll then need to do the following:
- Single invoice that exactly matches - select the invoice on the left hand side. The open balance should match the payment amount.
- Multiple sales invoice payments - select the invoices on the left hand side that the bank payment relates to. The open balances should match the payment amounts.
- Partial payments - enter the payment amount against the invoice it relates to. For example an open balance shows a value of £100 but we've only received £20 - enter £20 next to the £100 invoice and the balance carried forward will shows as £80 outstanding.
- Charges taken from invoice - enter the full amount of the invoice to which the bank receipt relates - even though you've received an amount less than this in the bank. At the bottom right of the screen there should be a difference highlighted in red which should equal the charge. Click 'resolve difference' and 'add new transaction'. An 'add new transactions' line will appear at the bottom of your screen. Add the category which will usually be 'bank charges' or 'iZettle fees' (you may need to add a new expense account). Then add the amount of the charge as a negative amount and bank charges aren't VATable so add it as 'No VAT (Purchases)'.
Check that the difference is 0.00 at the bottom right of the screen (you may need to scroll down) and then click 'save'.
Below is an example of a sales invoice for £55 that you've only received £50 for due to £5 in bank fees.
Once you've added a sales invoice it will become an amount owed to you by your customer. Once you have received it in the bank and matched it using the process shown above it will have been paid and so the customer will not owe you anything.
To view sales owed to you, click on the 'sales/invoicing' tab on the left hand menu and then select 'customers' - the outstanding sales should show in the 'open balance' column.
In the picture below we can see that ABC Limited owes us £100.