How to Mark Invoices as Paid in QuickBooks

To mark invoices as paid in QuickBooks, open the invoice, click Receive Payment, and enter the payment details such as method, date, and deposit account. QuickBooks will then update the invoice status to Paid and adjust your accounts receivable automatically. This ensures your records stay accurate, your cash flow is up to date, and you avoid confusion with unpaid or partially paid invoices.

Open QuickBooks and Log In

Log in to your QuickBooks Online or Desktop account with the correct credentials. Make sure you’re in the company file where the invoice was created.

Navigate to the Invoices Section

From the main dashboard, go to Sales (or Customers in QuickBooks Desktop). Select Invoices to view a full list of all pending, paid, and overdue invoices.

Select the Invoice You Want to Mark as Paid

Scroll through your list or use the search bar to quickly locate the customer invoice you want to mark as paid. Click the invoice to open it.

Record the Payment

Once inside the invoice, look for the Receive Payment or Record Payment option. Here you’ll need to enter:

• Payment method (e.g., credit card, cash, check, ACH).
• Payment date (the exact day the customer paid).
• Payment reference number (like a check number or transaction ID).
• Deposit account (where the payment should go, e.g., Checking Account).

Apply the Payment to the Invoice

QuickBooks will automatically apply the payment to the open invoice. If a customer has multiple invoices, you can choose whether to split the payment across several or apply it only to one.

Example: If a customer owes $1,000 on Invoice #101 and you receive $1,000, QuickBooks will close that invoice. But if they pay $500, the invoice will remain partially open.

Confirm and Save

After entering the payment details, click Save and Close (or Save and New if recording multiple payments). The invoice status will now change to Paid, and it will be reflected in your accounts receivable reports.

Double-Check Your Records

Go back to the Invoices section and confirm that the invoice now shows Paid. You can also view this by running an Accounts Receivable Aging Report to verify the customer no longer owes a balance for that invoice.

Example Table

Here’s a simple example of how invoice payment entries might look in QuickBooks:

Bonus Tip: Automate Payments with DepositFix

With DepositFix, customers can pay invoices directly online via credit card or ACH. You can even pass processing fees onto your customers, saving costs for your business. Payments made through DepositFix automatically sync with QuickBooks, so invoices are marked as paid instantly without manual data entry.