Handling Overpayments, Prepayments, and Security Deposits Using Journal Entries

  • Updated

This guide is designed to help you smoothly apply prepayments, overpayments, or security deposits as payments toward invoices within QuickBooks Online and Re-Leased. By leveraging Journal Entries, you can efficiently manage these transactions, ensuring your financial records remain accurate and up-to-date.


Step 1: Creating a Journal Entry in QuickBooks Online

Begin by logging into your QuickBooks Online account:

  1. Go to the Journal Entry section.
  2. Create a new entry and fill out the necessary fields: account, debit/credit amounts, description, and associate them with the appropriate name and class.
  3. Click Save and Close.

Step 1 - journal entries QBO.png

Step 1a - journal entries QBO.png

Step 2: Apply the Overpayment

When the time comes to apply the overpayment to an invoice:

  1. Create another Journal Entry in QuickBooks Online.
  2. Move the amount from the account used in the previous Journal Entry to the 'Accounts Receivable' account.

Step 2 - journal entries QBO.png

Step 3: Receiving Payment Against Invoices

Next, navigate to your customer page:

  1. Go to the Receive Payment section for any open invoices.
  2. You will be able to select the Journal Entry you created and apply it as a payment.

Step 3 - journal entries QBO.png

Step 4: Synchronize with Re-Leased

Once you've applied the Journal Entry in QuickBooks Online:

  1. Sync the information over to Re-Leased to reflect the payment.

Step 5: Confirming Payment in Re-Leased

In Re-Leased, you can verify the payment:

  1. Open the relevant invoice.
  2. Observe the Journal Entry listed under Less Payment.

The invoice in Re-Leased should now indicate the correct payment amount, including the amount applied from the Journal Entry.

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