How to provide a customer receipt before payment is recorded

There may be times you want to provide your customer with a receipt for their payment before that deposit appears on your Transactions page. Here’s how to issue the receipt, even if the deposit transaction hasn’t appeared on your Transactions page yet.

To issue the receipt for an invoice, you first need to mark the invoice as paid. To do so, you’ll need an account to keep track of the undeposited funds. To create this account:

  1. Navigate to Accounting > Chart of Accounts.
  2. Click Add a New Account in the top right corner.
  3. Enter a name in the Account Name field. We suggest calling it Undeposited Funds.
  4. For the account type, select Money in Transit.
  5. Click Save.

Once you’ve created this account, you can go ahead and mark the invoice as paid:

  1. Head to Sales > Invoices.
  2. Find the invoice you want to mark as paid, and click on it to view the invoice.
  3. In the Get paid section, click Record payment.
  4. Select your Undeposited Funds account as the Payment account.
  5. Fill in the remaining details, then click Submit.

Now you can send your customer a receipt, even though the deposit transaction hasn’t been recorded yet. To send a receipt:

  1. Make sure you're on the Sales > Invoices page.
  2. Click on the invoice you want to issue a receipt for.
  3. In the Get paid section, click Send a receipt.
  4. The From email address section will be filled in automatically, as well as the To section, if you have saved an email address for the customer. Otherwise, enter an email into the To section.

    You can add multiple recipients for the receipt by clicking Add recipient, and entering their email address.

  5. Click Send.

You can also send a receipt immediately after clicking Submit to mark the invoice as paid. In the following pop-up box, click Send a receipt.

What to do when you receive the payment

When the funds are deposited, and the transaction imports into your Transactions page, categorize the transaction as a Transfer from Bank, Credit Card, or Loan, and select the Undeposited Funds account.

The system will automatically create the other side of the transfer transaction to represent the money movement from Undeposited Funds, to the bank account where the funds were deposited.

This method will also work for lump sum payments for multiple invoices, as long as all of the invoices paid by the lump sum payment were marked as paid individually to the Undeposited Funds account, by following the above steps.