QB Issue Resolution:
Let’s start from here: “I did what you said but in the receive payments window by entering the $85,000 and it says I have a credit of $8,600 for that customer.”
You told us they have an Open AR balance of $100,000. If you use Receive Payment for $85,000, there is an Unpaid Balance, not Open Credit. The Unpaid balance is $15,000.
This is still Wrong Thinking: “The gross number is going to pay both the lawyer bill”
No; the Banking is going to pay the lawyer bill. Like this:
Process $85,000 as the Payment that is Deposited to Barter or Clearing Bank. Now you have Value to use in Paying the lawyer. Did you put something as the Expenses or Items tab on the bill or check to pay the lawyer? Do not put “AR” for the customer name on the Bill or Check to pay the lawyer. This is Lawyer Fee Expense. You can Job Track it as not billable. If you put something on the payment to the Lawyer and job track it as AR for the Customer name, this is supposed to Debit your Professional Fees expense account.
Examine your Check to pay the law firm, or the Bill you entered previously that you are now using the Barter Bank to Pay Bills from. This could be where you made this error.
“The problem lies in the deposit.”
There is no Separately entered DEPOSIT in this process. Do not use this entry.
“If I show the gross of $85,000 then the system wants to apply that entire amount to the customer account.”
Yes, the Lawyer got your Gross of $85,000 as settlement from that customer name. You use that for the Receive Payment. It deposits to Barter Bank. It is the Total Value you now get to allocate. Some is Lawyer Fees and some is To Checking.
“But I cannot do that. I need $8,600 of that $85,000 to pay lawyer bill.”
The Lawyer is paid out of Barter Bank, which is holding $85,000.
“So I’m not using all that $85,000 up or at applying it all but i am depositing it in the receive payments and that’s why it thinks there is a credit available for that customer.”
No, that is Not the error.
“I’m really only using $76,400 of the $85,000 to the single customer invoices.”
No, you are Wrong here. You are confusing Gross and Net.
Gross is $85,000
Net to real Bank is $76,400 because you need to show you Paid the Lawyer from the funds the lawyer has for you.
“Paying the lawyer from Barter bank and then transferring balance from Barter bank to bank is fine.”
And the Final Step.
“The part I find confusing is when you say later only enter the amount you need or in this case available for that customer.”
“If I do that then I would only enter the $76,400. and deposit to Barter bank. But if so, then how and where do I deposit the remaining $8,600?”
Step 1: process a Payment of $85,000 for the customer owing $100,000. They should now show they still owe $15,000.
Step 2. Make sure the $85,000 shows in Barter Bank, directly or as a result of selecting it from UF for a deposit.
Step 3. Now you have Money in Barter Bank = $85,000.
Step 4. Pay the Lawyer from the Barter Bank.
Step 5. Now you see that Barter Bank has $76,400. Use Banking menu to Transfer from Barter Bank to Real checking. Or, use Banking menu > Deposit. Put no name on this entry and the one line, is “from” Barter Bank, and top left, is Deposit To Checking.
Now Barter Bank is 0; the lawyer is Paid; the customer still owes $15,000.
Resolution for Issue 'Rec’d settlement chq from lawyer less fees.How do I record chq to pay client invoices and vendor(lawyer)billings that were already deducted from cheque? Please help.Thx' available: Yes (Solved).
Source: Intuit Community forum.
Rec’d settlement chq from lawyer less fees.How do I record chq to pay client invoices and vendor(lawyer)billings that were already deducted from cheque? Please help.Thx: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.Support for credit
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