How do you invoice a customer and record a payment against it?

How do you invoice a customer and record a payment against it?

• A. Create an Invoice from +New > Customer, then when payment is received, select Receive Payment and apply to the invoice.
• B. Create a Credit Memo; apply to the invoice.
• C. Create a Sales Receipt and link to the customer.
• D. Create a Refund Receipt against the invoice.

Answer: (A)

The idea is to bill the customer first, then record and apply their payment to that bill. In QuickBooks Online, you create an invoice to generate the amount due for the customer. When the customer pays, you use the Receive Payment function, select the customer, and apply the payment to the outstanding invoice. This keeps the accounts receivable accurate and shows the cash receipt linked to the specific invoice. Why this approach fits best: it separates the billing event from the payment event, which is exactly how invoices and payments are tracked. A Sales Receipt would record payment at the time of sale, leaving no outstanding invoice to apply to. A Credit Memo reduces what’s owed but isn’t the actual payment, and a Refund Receipt issues money back, not recording a payment against an existing invoice.

The idea is to bill the customer first, then record and apply their payment to that bill. In QuickBooks Online, you create an invoice to generate the amount due for the customer. When the customer pays, you use the Receive Payment function, select the customer, and apply the payment to the outstanding invoice. This keeps the accounts receivable accurate and shows the cash receipt linked to the specific invoice.

Why this approach fits best: it separates the billing event from the payment event, which is exactly how invoices and payments are tracked. A Sales Receipt would record payment at the time of sale, leaving no outstanding invoice to apply to. A Credit Memo reduces what’s owed but isn’t the actual payment, and a Refund Receipt issues money back, not recording a payment against an existing invoice.