Understanding invoices and payments can be a little tricky if you’re new to QuickBooks Online.
In this article, we’ll quickly review the terms you’ll see in QuickBooks Online when you’re in the Sales > All Sales section of your business.
Take a look at the screenshot above.
In that image, we have 3 invoices with all three states: Paid, Overdue, and Open.
Associated with those invoices are payments (one full and one partial).
Invoice 2587 on 9/17/2019 is marked as Paid. Its associated Payment in full is on 9/18/2019, and that payment is marked as Closed. Once you receive payments, they’re generally marked as Closed.
On 9/20/2019, Invoice 2590 shows as Overdue. Whether or not an Invoice is overdue will be based on the Due date when you create the invoice.
For our purposes, Invoice 2590 is Overdue, but it also has a partial payment of 58.75 applied to it on 9/23/2019. If you take a look at the Balance for Invoice 2590, you’ll see that there’s 50.00 remaining.
Until that 50.00 balance is paid, this invoice will remain Overdue. You can click on the invoice to open it and view all associated payments and balances. While here, you can also receive payment for the remaining balance or even for a partial payment.
Finally, Open invoices are invoices that haven’t been paid and are not Overdue. Until the invoice is paid or the date passes the Due date, the status of Invoice 2589 won’t change.
How do these invoice and payment statuses affect your business? If you’re an Amazon seller, keeping track of whether or not your invoices have been paid is critical not only to maintaining accurate books, but to ensure that you’ve been paid for items you’ve sold.
You can view a quick summary of Open, Overdue, and Paid Invoices on the Sales Transactions page. Of course, the information in the bar is only as good as the data that you enter.
Amazon sales transactions can be very tricky, as most sellers well know. Customer orders may be pending for up to a week, if not longer.
Sellers who sell through Amazon Handmade may have longer fulfillment times so as to manufacture or create the item.
Finally, sellers who sell through Amazon Business to Business may have to deal with generous 90-day terms that Amazon gives to businesses.
Understanding these labels can help you track the money you’ve received and the money that you’re owed so that you can better manage your cash flow.
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