now that we've build the client for our progress in the job it's time to record receiving payments
for those invoices if you have any questions about this topic you can leave them in the
comment section below and I'll do my best to help you and of course if you feel the video helped
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come out all the time it's nice to finally receive payment for some of the work that we've done for
the job that we made a contract for the payment schedule is usually part of the contract usually
the required periodic payments are based on an amount of work done and invoiced to the client
the down payment which is sometimes called the job deposit is a payment received in advance of work
done on the job and we will learn about this type of payment in the next video that is the video
that follows this one in this video we will assume that all payments are for the existing invoices
and immediately deposited into the bank account when we receive payment for an open invoice the
most important report that will help you manage the payments you receive from clients is the
open invoice report it shows the open or unpaid amount of each invoice it would also show any
payments you received that were not yet applied to a specific invoice once the payments have been
applied to an invoice both the invoice and the payment will be removed from the open invoice
report now before we get to the example let's take a look at what the open invoice report looks like
right now if you don't have it in front of you you can click reports click on the custom report
tab and then click open invoice and you can see these are the two invoices that we created for
the Hansen place job and they're waiting to be paid for example let's imagine on January
15th we receive cheque number 61 for a thousand dollars from Braun company for the Hansen place
job well how would we record that and what would the results be well in order to record receiving
payment we would click the new plus sign on the top left and go down to where it says receive
payment the second choice down in the leftmost column when we click receive payment it simply
asks us for the information about the payment so January 15th so we'll put January 15th and we'll
put brown company specifically for the Hansen place job and the payment method is check and
the check number is check 61 and it was deposited directly into the cash and bank bank account now
watch what happens when we put in the the field for the amount received after you type it in go
to the left side of your keyboard and push the tab key notice QuickBooks will assume that it
is the oldest invoice that the thousand dollars should be applied to and it will automatically
place the check mark on the oldest one since the oldest one is more than a thousand that means that
this invoice invoice number one zero zero one will still be open and therefore it will still
be on the open invoice report but it will be down to remaining balance of 350 dollars when we click
well you could click Save and close and then look at your open invoice now notice originally the
January 3rd invoice was one thousand three hundred and fifty dollars but since we just
applied a thousand dollar payment to it the amount that remains open is only three hundred and fifty
and the other one is still completely unpaid now watch what happens when we do our second example
imagine On January 20 we receive cheque number 74 for a thousand dollars from brown company also for
the Hanson Place job now before we record this can you predict what the numbers will be well if the
invoices are applied in date order that means the thousand dollars will completely pay off the first
invoice and the remaining six hundred and fifty dollars will decrease the second invoice let's
take a look at what will happen in the receive payments window click the plus sign in the top
left for a new transaction in the customer column go down to a receive payment and click now again
this is not only from brown company but it is specifically for the Hanson place job the date is
January 20 and the payment method again is check its check number 74 and it's deposited directly
into the bank now we're going to put in another thousand dollars in the amount received box push
tab and after you push tab notice it applies three hundred and fifty out of the thousand
to the oldest one there for six hundred and fifty dollars remain to be applied to the second oldest
one and that's exactly how the received payment window will behave so when we click Save and
close the first invoice will be completely paid and the second invoice will decrease by 650 and
there should only be 700 remaining on the open invoice report save and close and now you can see
the first invoice for January 3rd was gone and the second invoice is still open in the amount of $700