Adrian_A
Moderator
Moderator
‎December 11, 2021 05:10 PM

Manage Suppliers and Expenses

Welcome to the Community, sheila47!

 

Iv' got the steps on how you can record payments made on behalf on your client.

 

When receiving a payment from a third-party, you can set up them up\ as a customer so you can keep track of the payments.

 

Let me guide you how:

 

  1. From the Sales menu, select Customers.
  2. Enter their information.
  3. Click Save.

 

Then, record a Journal Entry to distribute the payment from the third-party to the correct customers:

 

  1. Select Journal Entry from the + New button.
  2. Enter the Date the payment was received.

  3. On the first line, select the Account drop down and choose Accounts Receivable.

  4. In the Debit field, enter the full amount of the payment.

  5. Enter a Memo for the journal entry.

  6. Select the Name drop down and select the third-party name. 

  7. On the second line, select the Account drop down and select Accounts Receivable.

  8. In the Credit field, enter the payment amount for the client.

  9. Select the Name drop-down and choose the name of the customer where the payment is being transferred. 

  10. Click Save.

 

Now, you'll have to enter the payment from the third-party to deposit the funds and clear out their  balance you just added.

 

  1. On the + New button, select Receive payment.
  2. For Customer, select the collections agency.
  3. Enter the collection Payment date and for Amount received, enter the total of all the cleared outstanding balances.
  4. Under Outstanding Transactions, make sure the appropriate amount are checked off.
  5. If you have to deduct commission from the total amount paid, mark the deposit account as Undeposited Funds.
  6. Select Save.

 

Lastly, apply the credit created by the journal entry to close your client's charges:

 

  1. Click the + New button at the top and then Receive Payment.
  2. Select the client with the appropriate outstanding balance.
  3. Enter the Payment date you want to show the payment received by, but leave blank the Amount received field.
  4. Next to Credits, select the plus + sign and choose the journal entry entered for the collections agency.
  5. Under Outstanding balances, select the appropriate open invoices.
  6. Select Save.

 

Also, if you want to ensure that your transactions matches with what your bank recorded, you can reconcile the account. Here's an article as your guide: Reconcile an account.

 

That should do it, sheila47. Feel free to update me if you need further assistance. I'll be your personal QuickBooks guide. Have a good day!

Reply