Creating payment items

A payment item subtracts the amount of a customer payment from the total amount of an invoice. You need a payment item when you receive a partial payment toward the amount of an invoice at or before the time you create the invoice.

If you receive full payment at the time of the sale, use a sales receipt form instead of an invoice with a payment item.

To create payment items:

  1. Choose Lists > Items.
  2. Click the + at the bottom of the list.
    Add
  3. In the Type field of the New Item window, choose Payment.
  4. Enter an item name, such as “Payment.”
  5. Enter the description that you want QuickBooks to put on your sales forms when you use the payment item.
  6. (Optional) Enter the payment method.

    Tip: If you enter a payment method, you can group the money you receive by payment method when you deposit it (all checks in one deposit, all Visa charges in another deposit, etc.). Simply create a separate payment item for each payment method your customers use.

  7. If this is the first time you are setting up a payment item, indicate how you want QuickBooks to deposit customer payments:
    • Grouped with other payments: Click “Group with other funds for later deposit.”
    • Directly to a bank account: Click “Deposit to” and enter the name of the bank account where you would like QuickBooks to deposit the payment.