A customer has sent two separate amounts, £400.00 and £470.00 to settle his invoice which is for £867.50. ow do I record these two amounts and apply to the invoice?

You can use the received payment and undeposited feature to record the amounts and apply them to your invoice, @storawayservices. Let me guide you through the process.

To record the two separate amounts, you can choose the receive payment option and deposit them into the Undeposited account. That way, you can accurately record and apply the two separate payments to settle the invoice in QuickBooks Online.

Here's how:

1. Select + New, then select Receive Payment.
2. From the Customer dropdown, select the name of the customer and payment method.
3. Click the checkbox for the invoice you’re receiving payments for.
4. From the Deposit dropdown, select Undeposited Funds.
5. Fill out the rest of the form.
6. Choose Save and send, Save and new, or Save and close.

However, if the payments are partial, follow the same steps as above but enter the specific amounts paid by the customer for each invoice.

Once done, you can combine the two payments into one deposit transaction. For detailed instructions, follow Step 2 in this article: Record and make bank deposits in QuickBooks Online.

On the other hand, since your customer overpays their invoices, you can use the balance for the next invoice or create a refund. For more information about applying for credits or refunds, you can read this article: Create and apply credit notes or delayed credits in QuickBooks Online.

Additionally, I'll be sharing these resources that will guide you in reconciling your accounts so they always match your bank and credit card statements:

• Learn the reconcile workflow in QuickBooks
• Reconcile an account in QuickBooks Online

If you require any further assistance with recording your invoice or processing your payments, please don't hesitate to let me know. I'm always here to help you, and I'll keep this thread open so you can reach out to me anytime.