payment method Archives

As the name suggests, Payment Methods are a list of the ways by which a customer can make a payment. They’re maintained on the Lists->Customer & Vendor Profile Lists->Payment Methods menu selection as 1 of 9 profile lists for Customers & Vendors. This particular profile list is only used for Customers.

QuickBooks Enterprise Solutions 10 Payment Methods

A Payment Method can be one of 11 pre-defined Payment Types:

Cash
Check
American Express
Discover
MasterCard
Visa
Other credit card
Other
Debit Card
Gift Card
E-Check

These Payment Types are part of the QuickBooks program itself and can’t be maintained by a user.

The Customer’s Payment Method is specified on the Receive Payments and the Enter Sales Receipts windows, and payments are grouped by Payment Method on the Payments to Deposit window if you’ve opted to use the Undeposited Funds account.

If you have a lot of payments to deposit, you can opt to the filter the items on the Payments to Deposit window to only include 1 particular Payment Method. Therefore, you should create Payment Methods that match the way your customer payments are grouped into deposits.

QuickBooks Enterprise Solutions 10 Make Deposit Payment Methods

You can also specify a customer’s Preferred Payment Method on the Payment Info tab of the Edit Customer window.

QuickBooks Enterprise Solutions 10 Customer Preferred Payment Method

Payment Methods primarily serve the function of grouping related items on a deposit, so your firm’s approach to bank deposits should drive the methods you create and maintain on this list.

(+1 rating, 1 votes)

A Payment Item is a type of Item maintained on the Item list, which is accessed on the Lists->Item List menu selection.

See our article on all of the Item types supported by QuickBooks for more information.

A Payment Item is used to record a partial payment on an Invoice or Statement made before the original sale. Payment Items shouldn’t be used on other sale documents, such as Sales Receipts or Credit Memos.

Payment Items are typically used by firms seeking the ability to create a single customer document (the Invoice) that reflects the net balance due on the grounds that a single document showing payments deducted reduces customer confusion and improves collections.

QuickBooks Enterprise Solutions 10 Payment Item

Typically, recording a customer payment via the Customers->Receive Payments window is used to record a full or partial payment received at or after the time of sale. Recording a Payment Item on an invoice is an alternate to this approach to reduce an invoice balance. One common use of a Payment Item is to record a deposit or retainer.

A Payment Item is designed to give you the flexibility to control the account to which it is deposited and to specify the associated Payment Method to enable the payment to be grouped with other similar items into a bank deposit. To specify the deposit account, either select Group with other undeposited funds or select Deposit To and pick an account from the pull-down list of accounts.

The screenshot below shows a Payment Item being recorded in the Create Invoices window. The Payment Item is recorded as a negative number and reduces the Balance Due on the invoice.

QuickBooks Enterprise Solutions 10 Payment Item on Create Invoice

One downside to using a Payment Item is that any reference number information, such as a customer’s check number, is not recorded in the typical field for such information, the No. field. Instead, the No. field is populated with the Invoice number.

For those who favor using a Payment Item, the advantage of being able to produce a single document (the Invoice) that reflects a customer’s net balance outweighs these shortcomings.

(+1 rating, 3 votes)

payment method

Accounting

Developer

Intuit