How to Receive Payment in QuickBooks Online

Feb 22, 2022
How to Receive Payment in QuickBooks Online

How to Receive Payment in QuickBooks Online

Once you have received the money from a customer for one or more outstanding invoices, apply the money to the open invoice(s). This closes the invoice(s) in QuickBooks Online.

If you don’t enter a Receive Payment transaction against an invoice but record a Deposit or Sales Receipt transaction instead, accounts receivable is overstated on the balance sheet. Revenue is too high on your income statement. You may pay more in income taxes!

Once you populate the Customer field on a Receive Payment transaction, a list of all open invoices appears on the Receive Payment screen. To complete the Receive Payment transaction:


  1. Enter the amount of payment received into the Amount Received field.
  2. Make sure the correct date is pre-filled in the Payment Date field.
  3. In the Deposit to field, select Undeposited Funds if this payment, along with other payments received, is deposited to the bank in a batch. Select the appropriate bank account if this payment is the only payment going to the bank and this singular amount will appear as your deposit on your bank statement. (This is a “sticky” field. Be sure to check it each time if changing where the money is deposited.)
  4. Click on the invoice(s) the payment is paying.
  5. Click Save and new or Save and close.

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Read this article to learn how to create more sales transactions.

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