QuickBooks Tip – Back Charges After a Job is 100% Complete

6 thoughts on “QuickBooks Tip – Back Charges After a Job is 100% Complete

  • Hi Wendy
    I apologize for the delay, I was out of town last week for a QuickBooks conference.

    On one hand I agree with you – that QuickBooks should be able to handle this situation without it feeling like a hack job. On the other hand, I also understand why it doesn’t – not everyone needs or wants this sort of functionality and all in all QuickBooks is still just a generic program suitable for any type of business.

    You don’t indicate what year version of QuickBooks you are using – 2013 and 2014 have a much better Credit memo feature – where you can actually choose what Item you are giving credit for as well as a dollar amount.

    I also think that perhaps you might be better off using the QB Estimate feature to enter the “budget” for your project. You would get much better reporting and things might not feel like such a chore.

  • Wendy T.

    This may be a little different from above. We don’t use estimates. This is for a residential related company. We send invoices to customer. Customer pays invoices. Occasionally customer sends a back charge for something related. Sometimes that house has been paid in full, sometimes there is still a balance due. Either way, it creates a huge headache and we have not come up with a way to enter this yet that isn’t just a patch job. It really seems this is a common occurrence and something QB should be able to handle. Any suggestions. Thanks.

  • Hi Jeannie
    If the invoice has been paid and the payment already reconciled in the bank account you’d want to be VERY CAREFUL and make a backup before doing what I suggest or you could have a bigger mess on your hands than when you started (disclaimer – that’s me be 100% totally honest!).

    • Delete the deposit (QuickBooks will yell).
    • Delete the invoice (QuickBooks will yell again).
    • Make the changes to the Estimate recommended in this post, create a new Progress Invoice
    • Go to your Open Invoice Report, the payment “should” be there as a negative – double click on it, apply it to the new invoice
    • Go to the Make Deposits window (that payment should be there – plus any other checks included in the original deposit) – redeposit the money.
    • Go into the Checking Account Register and mark the deposit as “cleared” again.

    Check your open invoice report very carefully to see if there are any other “negative amounts (payments)” displayed. And make sure that you use the original dates for progress invoices and deposits.

    Hope this helps.

  • JeannieC

    We have run into the same issue with credit memos not tying into the estimate/progress invoicing. You would think QB’s would track it if the credit memo is created from the original progress invoice which is tied to the estimate, but it doesn’t. It would be an almost perfect system if it did! I like the idea of voiding the invoice…but what happens if the invoice has already been paid and the payment has already been reconciled in the bank statement?
    Thanks for any insight you can provide!

  • Excellent post! Thanks again! You’re blog is the only one that consistently provides spot on answers. It’s not everyday you find someone that understands accounting, business and Quickbooks. And there is a lot of misinformation out there from people that do not have a clear understanding of all three. But you do and I appreciate the effort you put into this blog.

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