How to Match Multiple Payments for One Invoice in QuickBooks Online

How do you match QuickBooks Online banking transactions when they include multiple payments for one invoice?

You may be allowing a customer to make multiple payments for one invoice – perhaps it is a particularly large sale, or maybe you know they are having cash flow issues.  

It’s all very well to help out your customer, but what do you do with all those amounts showing up on your QuickBooks Online bank feed?

In this video, I walk through how to match the deposits to the correct invoice, and will show you how you can check what the customer still owes you at any point in time:

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If you are new to QuickBooks Online, or are not sure how to most effectively work with the bank feed check out my Bank Feed Training course.

— Matching Deposits on the Bank Feed Checklist

Video transcript:

Hi, Kerry here from My Cloud Bookkeeping. Do you have the situation where you sent an invoice out to somebody and they tell you they're going to make multiple payments on that invoice? Perhaps it's a large one, maybe they’re having cash flow issues, whatever, and you agree to that. But then these amounts are appearing on the bank feed and you don't quite know how to match them to the invoice. Now, one of you wonderful YouTube viewers sent me a question, asking how we resolve that, and that's what we're going to do today.

In this example, I've created an invoice for a fake customer here for an amount of $15,000. And I'm going to say that I'm allowing this particular customer to make three payments of $5,000 each to me. So I've got this invoice and here we have the bank feed. So let's pop over to here and I can see that these amounts have come through, but of course they're not matching because the invoice is for $15,000. So I'm going to pop here and I'm going to select the very first one, and I'm going to say, find a match. Now, one of the options that come up is this invoice of $15,000. So I'm going to put a check mark here and I'm going to apply $5,000 to this particular invoice and save.

So now, if I checked the customer, actually, let's just do that; we'll have a look at that, hold on. We can see here the invoice for $15,000, with the payment applied of only $5,000 and we've got $10,600 owing because there are another couple of invoices that have not been paid for, but the $10,000 relates to this $15,000 invoice. So we'll pop back to the bank feed, we'll scroll down here and we'll grab this next one and we'll click find a match and we will apply it once again to this invoice and click save. And then when we come to look at the bank feed, the bank feed’s automatically suggesting a match for the balance of that invoice. So if you have a situation where people are paying you smaller amounts against an invoice, you can still use the matching from the bank feed, but you just have to click find a match and apply that against the invoice. So if we click match here and if we pop back to our customer and refresh that page, we can see that only that $600 is owing now.

So hopefully that helps. If you have any other questions about working with the bank feed, do check out my website. I've got some courses, some free downloads; there should be some free downloads in the comments below as well. And if this was useful, do click like, subscribe to my channel, I hope to see you again soon.

Cheers.