There may be cases where your clients have credits or balances on their accounts.  This can be because they make deposits for future bookings, paid extra on an invoice and asked to keep the change on their account as a credit, decided to pay you next time, and so on.  There may be times when you need to zero out their account.  

Zeroing out credits

To get a list of clients with credits on their accounts, click on Reports, Revenue, Credit Balance.  We'll use Fred Bailey as an example. He has three deposits on his account, totalling $130.

Lite users

Lite users don't have access to inventory so they are unable to setup an inventory item for this procedure.  You can contact Sales if you'd like to upgrade to the Standard version to use an inventory item.  Sales@SoftwareConnectionLLC.com or 1-888-486-4343 option 1. 

Create an invoice for Fred.

Choose Mileage and change the description to Zeroing out credit, for example.

Put $130 in the Each column.  

Click Take Payment/Pay.

Click the Pay box for the invoice you created and the Pay box for the three deposits.  

Hit OK to save the receipt.  The credits have now been cleared from this account.

On your Sales report, you will see the item listed with the description for reference.

Standard Users

You can create an inventory item just for this situation and can separate it out on your sales report.

Click on File, Inventory.

Click on the Categories bubble.

Hit New, enter Zeroing out account, for example, then click Save.

Next, click on the Inventory bubble.

Hit New.

Enter Zeroing out account in the code and description fields.

Choose the Category you just created.

Hit Save when done.

Now you are ready to create the invoice for Fred.

Choose the new inventory item you just created.

Enter $130 in the Each column.

Hit Take Payment/Pay.

Check the Pay box for the invoice and the Pay box for the three deposits.  The credits have now been cleared from this account.

This will be in its own category on your Sales report.

Zeroing out balances

To get a list of clients with balances on their accounts click on Reports, Revenue, Open Invoices.  We'll use Lilith Abington as an example.

To clear out balances, you can either add a line item to the invoice as a negative amount or you can create a payment method for this situation.

If you use the QuickBooks DirectLink, QB does not allow for invoices with negative line items so you will need to use the payment method option.

Payment Method

To enter a payment method, click on File, Lists, Payment Methods.

Hit New Pay Method.  The field is small so you can call it Clear Account, for example.  Hit Save when done.

You can open the invoice through Accounting, Receipts, or through the client card.

Take Payment/Pay.  

Check the Pay box for the invoice and choose Clear Account as the payment method. 

When you hit OK, this balance will be cleared from the account.

This payment will be separated out on the receipts report.

Inventory item

Since Lite users don't have access to inventory, you will need to use an existing inventory item.  We'll use Mileage.

Open the invoice and on the next blank line, add Mileage and change the Each column to -$134, the amount of the invoice.

When you hit OK to save the invoice, the balance has now been cleared from this account.

Standard users can create an inventory item for this situation.  We'll use the same Zeroing out account created previously.

The negative amount will show on the sales report.  Remember the sales report looks at the date of the invoice so if this invoice is from a past date, you'll need to run the Sales report for the right date(s).