There are a few ways to record payments: payment in full, partial payment and, if there is no invoice to pay,create a credit on account.
Tip: Payments for cash, check and other direct payments are added manually. Stripe Payments are added automatically and cannot be edited. If a payment is received and there is no invoice to pay/allocate it to, a credit on the account is created.
This example shows how to add a manual payment for a check.
Client Janine Barnett received a quote for services. Before being sent an invoice, she paid by check.
- Her payment is added as an Unallocated Payment" or "cash on account."
- Unallocated payments can cause the client balance to be in credit.
- Unallocated payments are automatically allocated to invoices when they are subsequently created, but you may need to edit these allocations manually.
How Do I Add a Cash on Account Payment?
Navigation: Clients > Payments & Refunds > Payments
Step 1
- Click "Add New Payment."
Step 2
- Enter the information as follows:
- Date: Enter the date the payment was received.
- Amount: Enter the payment amount of $75.
- Enter Payment method: Such as cash, check or bank transfer.
- Details: Leave "Payment Received" or edit as needed, such as to add a Check number.
Note: Since there are no outstanding invoices to apply this payment to, it will be held as a credit on the account (cash on account) until the next invoice is created.
Step 3
- To send an email receipt, toggle "Email Client" ON.
- Select the "Receipt" Email Template from the drop-down, edit "Subject" and content if needed.
- Click "Add This Payment."
Note: The merge code ${PAYMENT_RECEIVED} inserts the payment amount ($75) into the email.
Step 4
- The payment is added to the Payments list.
- The payment is "Unallocated" because there are no outstanding invoices it can be applied to.
- The client's account is now in credit by $75.
- If the client changes their mind about the services and would like a refund, click "Create Refund" to add a refund to the client's account to document that you returned the client's payment.
Step 5
Navigation: Clients > select a Client > Orders & Invoices
- When Janine's invoice is created, the "cash on account" (credit) is automatically allocated to the invoice.
- The invoice shows as "Paid" in green.
- The account balance outstanding is automatically adjusted and the balance is $0.
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