Hi there, ckokaram.
In QuickBooks, payments are applied to the overall total of an invoice, not per line item. Here's how to record the partial payment.
- From the Customers menu, select Receive Payment.
- From the Received From drop-down, select the customer's name.
- Enter the Amount received.
- Make sure the date is correct, then choose a payment method.
- Select the invoice or invoices you'd like to pay.
- To add a discount or credit, select Discounts and Credits.
- Click Save & Close.
When a customer pays you for an open invoice, you need to enter the payment in QuickBooks. Recording invoices is part of the Accounts Receivable workflow.
Also, cash and accrual are two methods of reporting income and expenses. The same report can paint a different picture depending on the method you pick. Here's a link to learn how these two methods work in QuickBooks: Differentiate Cash and Accrual basis.
Keep me posted if there's anything else you need about applying a partial payment to an invoice. I'm always around to help you.
