now that we've recorded rent payments and we've made invoices to indicate that we've earned the
rent now we have to make sure we apply rent payments to the proper invoices before we do
that let's quickly review a little bit about the customer balance detail now when we look
at the tenant balance detail we can see that on January 31 Holden owed Donna $5,000 in future
rent services but then on February 28th that amount decreased actually it's Dave Holden
owed Dave $5,000 if Dave moved out On January 31 Holden would have to pay him 5,000 and give him
his money back but Dave stayed another month until the end of February so at the end of February if
Dave moved out Holden would only have to pay him $4,000 same situation with Donna even though the
numbers are slightly different if Donna moved out at the end of January Holden would have to
pay her back $6,000 if Donna moved out at the end of February Holden would only have to pay
her $4,800 so the customer balance detail gives you a lot of information about your financial
relationship with your tenants in fact this report is such a good report that it would
be hard for you to believe that the open invoice report is even more important than the customer
balance detail the open invoice report should show only the net amount remaining only invoices
that are not paid or only payments that are not yet used it should not show both when we take a
look at it we can see that there's the entire payment up here even though invoices have been
applied to this payment and these two invoices are technically paid even though they're showing
up on the open invoice report so after you enter your monthly invoices you need to rectify this
problem by applying the payments to the invoices you must choose which payments to apply to which
invoices we will apply the payments in date order now if you don't apply any of the invoices to any
of the tenants payments the open invoice report will look almost the same as the customer balance
detail except the customer balance detail has the running balance so this report is useless unless
you apply them against each other to get the net amount it's very simple to apply them against
each other once you do that whichever one has the lower number will disappear and the one with the
higher number will remain on the open report so in the example with Dave when we apply these two
invoices to this payment these two invoices will no longer be on the open invoice report because
they will be marked as paid and the payment amount on the open invoice report will decrease to $4,000
because that's the amount of the payment that remains unused same thing with Donna these two
invoices will be applied to this payment that means that when we're done on this open report
these two invoices will disappear and the only thing you will see for Donna is the remaining
amount of the payment unused which i think is approximately $4,800 actually you can predict
it very accurately by looking at the net total on the bottom of each customer so it's very simple
to apply a payment double click the earliest invoice make sure the ribbon is showing make
sure you choose the main tab and then click over here apply credit now the only payment or the only
credit available is the big one that was made at the beginning of January since there's only one
QuickBooks all automatically has put the checkmark here to choose this one to be applied to invoice
number one just click done and then all you have to do is click Save and close and now notice that
invoice has disappeared and the unused payment amount has decreased to five thousand dollars
let's do it for Dave's other invoice double click apply credit it's already marked off because it's
the only credit click done click Save and close and now notice Dave's section of the
open invoice report has no invoices because both of his invoices have been paid and his remaining
unapplied payment that he has not yet used for his rent yet is four thousand dollars let's do the
same thing with Donna the tenant double-click her earliest invoice click apply credit the computer
already chose her payment click done and click Save and close and that invoice disappeared and
her unapplied payment amount has decreased let's do it one more time apply credit click done save
and close and now all of Donna's invoices have been applied to the one big payment that was
made first and this is the remaining amount of payment that dave has not yet used for his rent
and this is the remaining amount that Donna paid that she has not yet used for her future rent if
you ever need to see which payments were applied to which invoices you can open the transaction
history window at the top of every invoice so if you only look at the open invoice report there
are no invoices there there are only unapplied payments to see the invoices you should click
the tenant balance detail and notice that it remains unchanged regardless of which invoices
were - which payments now if you double click any of these invoices they're going to say paid
and you could always print this for your tenant to show the months that they did pay for but if you
want to see which specific payments were applied to this invoice you would click reports and then
transaction history and you would see a list of payments that were applied to the invoice that
you double clicked and opened in this example there's only one Cayman that because that the
tenant made on January 1 but if the tenant made several payments and several of those payments
were applied to this invoice the transaction history window would show it you can also find
which invoices were applied to which payments by opening up the payments and seeing what invoices
are listed there so again if we go back to the customer balance detail and double click on the
actual payment you will see at the bottom of the payment window the invoices that this payment is
applied to will be listed here if you ever have a situation where you have applied a payment to
the wrong invoice you can use the payments window to uh apply or reapply a payment to a different
invoice please see the supplemental videos that I have provided as part of this playlist for this
course one of them clearly shows the nuances and details of the receive payment window
and shows how to reapply a payment that has accidentally been applied to the wrong invoice
that's a very unlikely situation payments are almost always applied to invoices in date order