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Producing Statements in QuickBooks 2015
Producing Statements in QuickBooks 2015

A statement is a type of report that you can send your customers.   It shows all the charges and payments made to that customer during the statement period.  In other words, its purpose is much the same as the bank statement that your bank sends you. It allows your customers to view all their activity with you. Statements are usually generated and sent out once a month. However, you can do it whenever you wish.

Turning on the Statement Preference

Before you can begin to generate statements, you must first make sure that your preferences in QuickBooks is configured for it. To do this, go to Edit Preferences.

Click on Desktop View on the left, then the Company Preferences tab.


Make sure there is a check in the "Statements and Statement Charges" box. 

Click OK.

Creating a Statement Charge

A statement charge is a charge for your products and services that you sell to your customers that is added directly to the Accounts Receivable account in your chart of accounts.   These statement charges look like line items on invoices; however, they are slightly different.  

When an item is selected for a statement charge, there isn't a Sales Tax item. You also won't see percentage discount, Subtotal, or Group items in the Item dropdown list.   This is because those features aren't used in statements. Whenever you generate a statement, QuickBooks shows payments that have been made.   For that reason, you also won't see Payment items.

The types of items that you can use to create statement charges are listed below:

  • Non-inventory Part items

  •  Inventory Assembly items

  • Inventory Part items

  • Other Charge Items

To create a statement charge, go to Customers>Enter Statement Charges.


Choose the customer and the job in the Customer: Job dropdown menu.    This is the customer for which you want to assign the statement charge.


Click Time/Costs if you track billable time, cost, or mileage statement charges.


Simply select the time and expenses that you want to add, then click OK.   It sets the type to STMTCHG to show that the charges will show on a statement instead of an invoice.

Once you click OK, you're back to the Accounts Receivable register.


If you want to add a statement charge directly to the register, choose an item from the dropdown list, as shown below.


The Rate and Description Fields will be filled in for you.

Go to the QTY field by pressing Tab. Enter a quantity.

Go to the Due Date field and enter a due date.

When you're finished adding statement charges, click the Record button.

Creating Customer Statements

A statement that you send to customers will show statement charges, as well as other transactions for that particular customer. That said, before you create a statement, you want to make sure that all payments, credits, and refunds have been entered.

To create a statement, go to Customers>Create Statements.


In the Create Statements window (pictured above), select your options.

Statement Date.   Enter the date that you want shown on the statement. This might be the day after the statement period ends, or the date that you generate the statement.

Statemen Period From _ To _.    Enter your statement period starting with the date the statement period began, then enter the date the statement period ended.

All open transactions as of Statement Date.   If this option is selected, unpaid statement charges will be added to the statement, no matter when the statement charge was added.

All Customers.   This option will generate statements for all customers.

Multiple Customers.    This option allows you to specify the exact customers to whom you want to send statements. Click the Choose button to choose the customers.

One Customer .   This allows you to create a statement for just one customer. Click the downward arrow, then select the customer or job.

Customers of Type . If your customers are categorized by type, you can choose to generate statements for a certain type of customer.

Preferred Send Method . If you choose this option, you'll see a dropdown list appear. You can pick a send method. You can choose email or mail.

Create One Statement .   You can choose to create one statement per customer or per job.

Show invoice item details on statements . Select this option to include invoice details on statements. This can help your customers clarify the charges. 

Print statements by billing address zip code . Select this option if you have a bulk-mail permit.

Print due date on transactions . This option is checked automatically so the due date for each entry is shown on your statements.

Do not create statements . This allows you to skip statements if they meet a certain criteria. For example, if there is a zero balance.

Assess Finance Charges .   If you have the finance charge feature turned on, you can also assess finance charges. Click the button to assess finance charges to your statements. 

Previewing Statements

To preview statements, click the Preview button in the Create Statements window.


Click Prev Page or Next Page to view other statements you have created.

Click Close to return to the Create Statements window.

Emailing Statements

To email statements, click the E-mail button in the Create Statements window.

You will then see this message that lets you know QuickBooks is working on your statements.


When it is finished, you will see this dialogue box:


On the left are the statements that you can send to your customers. Put a checkmark beside those you want to send.

On the right, is the email address that will be used to send the statements, the email addresses that the statements will be sent to, as well as the PDF statement, the template used to create the statement, and the subject line and body of the email.

Press Send Now to send the statements.

When the statements have sent, you will see this message:

Want to learn more? Take an online course in QuickBooks.

Click OK.

Printing Statements

To print statements, click the Print button in the Create Statements window.


Select the printer and the printer type.   Then, select the paper that your statements will be printed on.   This is important to your statements print correctly.

Select if you want lines printed around each file, then the number of copies that you want printed.

Click the Preview button on the right to preview before you print.

When you are ready to print, click the Print button.
 Collecting and Tracking Money from Customers

The money that customers pay you must be recorded in QuickBooks either when you create the invoice --or when they actually pay you. In this section, you are going to learn how to enter those payments into QuickBooks, deposit the money into the bank, track the amount that is owed, and even add finance charges.

Sales Receipts for Cash Sales

You record a sales receipt whenever a customer pays in full for the products or services at the time they are purchased – or for all cash sales. You don't want to enter an invoice for a cash sale simply because you already have the money.   When you enter an invoice, it changes your accounts receivable balance. This is because you invoice in order to collect money owed to you. It's not actually money that you have in your hand. However, when you make a cash sale, you have the money in your hand. Since you have the money in your hand, you issue a sales receipt. A sales receipt changes your cash balance. 

It is very important to remember that:

  • A sales receipt changes your cash balance.

  • Invoices change your accounts receivable balance. 

To create a sales receipt, go to Customers>Enter Sales Receipt. 

Now, select the customer and the job.   Filling out a sales receipt is just like filling out an invoice. 

  • Enter the date in the Date field.

  • Enter a sale number. This is optional, but handy.

  • Adjust the Sold To address if it needs to be adjusted.

  • Enter the check number if the customer is paying by check. If they pay by cash, leave it empty.

  • Enter the payment method.

  • Describe the items, the same as you did with invoices.

  • You can add a customer message if you want. You created a list for these earlier.

  • Add the sales tax information.

If you want, add a memo.

If you don't want to print the receipt, make sure that Print Later under the Main tab is selected.


When you are ready to print the receipt, click Print. 

As with invoices, select the type of sales receipt form you are going to use, then click Print.

Recording Payments: Accounts Receivable

Whenever you receive payment on an invoice, you need to record that payment in QuickBooks. Your customers may pay the invoice in full, or they may send you a partial payment.   Either way, you enter the payment into QuickBooks.

When you receive payment on an invoice from a customer and want to enter that payment into QuickBooks, go to Customers>Receive Payments.


Make sure the correct customer is showing in the Received From field. 

Enter the payment amount – or the amount that is being paid – in the Payment Amount field. 

Next, choose a payment method. This is how the customer paid. You can choose cash, check, Visa, or e-Check. You can also click More for more options.   We chose Check.

If you choose check, enter the check number in the Check # field.

Next, put a checkmark beside the invoice for which the payment will be applied.


Click Save & New if you want to receive more payments. Click Save & Close if you're finished.

Making Bank Deposits

If you record a sales receipt or payment on an invoice, QuickBooks sees that as money received by your company.   All money received by your company needs to be assigned an account.  When your company receives (or spends) money, you will assign that money to an account in your Chart of Accounts.

That said, whenever you record a payment from an invoice or create a receipt, QuickBooks takes that amount and adds it to a list of undeposited funds. You will need to take those undeposited funds and deposit them into your bank account.

Here's how to do it:

Go to Banking>Make Deposits. 


Choose the payments that you want to deposit by putting a check mark in front of it. 


Click OK.

Next, choose which bank account you want to use to deposit the money by using the Deposit To dropdown list.


Next, enter in the deposit date.


You can add a memo if you want.


Enter a cash back amount if you want some of the deposit to go somewhere else. To do this, click the downward arrow in the Cash Back Goes To box and select an account for the cash. 


Now it is time to record your deposit. To do so, click the Save and Close button or the Save and New button if you want to make more deposits.

Tracking What Customers Owe

The simplest way to track what your customers owe to you is by going to Customer>Customer Center.   Just select the customer from the Customer and Jobs tab on the left side of the window. 

You can also use Income Tracker. Income Tracker is within the Customer Center, as shown below. 


The Income Tracker helps you keep track of past due and almost past due balances. 

Let's click the Income Tracker button.


The Income Tracker shows you were your income is. You can view estimates, orders, time & expenses, open invoices, overdue invoices, and invoices that have been paid.

To use the Income Tracker:

  • Double click on a transaction to open it.

  • You can filter your results by open or overdue transactions.

  • You can even use color coded bars to filter one type, such as unpaid, paid, or unbilled.

Assessing Finance Charges

Before we discuss adding finance charges, it is important that you apply payments or credit memos to unpaid invoices before adding finance charges. That way, the finance charges are accurate.

To add finance charges, go to Edit>Preferences, then click Finance Charge icon on the left.   Next, click the Company Preferences tab.


Under the Company Preferences tab:

  • Enter the interest rate you want to use.

  • If a minimum finance charge exists, enter it.

  • Enter the grace period you give. The grace period is the period after the invoice is due before you start to add finance charges.

  • Now, pick the account that you want to use to track finance charges.   There's a dropdown list next to the Activate Finance Charge Account. You can select Income or Other Income Account.

  • Decide if you want to charge finance charges on finance charges. This means if you add a finance charge to an invoice that was unpaid after 30 days, and it is still not paid after 60 days, do you want to simply add another finance charge to the principal amount owed (the original amount of the invoice) or do you want to add finance charges to the original amount owed AND the finance charges that were already added. 

  • Select if QuickBooks should calculate finance charges from the invoice due date or the invoice date. 

  • Decide if you want to print the finance charge invoice.   This is the same as printing invoices and sales receipts, so you should know how to do that by now.

Click OK. 

Next, go to Customers>Assess Finance Charges. 


Go to the Assessment Date box. Enter the date that you are adding the finance charge. 

Then, select which customers you want to assess a finance charge to by leaving the checkmark next to the customer's name. By default, QuickBooks put checkmarks next to all customers.

Now click the Assess Charges button. 

Applying Credits to Invoices

When you create an invoice for a customer, if that customer has a credit that's due, you will see an Apply Credits button on the Main tab of the Create Invoices window.


To apply the credit, go ahead and fill in the fields to create the invoice.

When you are finished, click Apply Credits, as circled in red below.


You will then see the Apply Credits dialogue box.


Select the credit you want to use, then click Done.

Click Save & Close in the Create Invoices window.

NOTE:  You can also pull up an invoice that's already been created and apply a credit to it.

Applying a Credit After You Receive Payment

If you need to apply a credit to a customer's invoice at the same time that you record payment for the invoice, go to Customers>Receive Payments.


Choose the invoice for which you are receiving payments. Enter a payment amount in the Payment field if the invoice isn't going to be paid in full, then click the Discounts and Credit button in the toolbar at the top of the Receive Payments window under the Main tab.


Enter the amount of the discount, then the account that the discount is assigned to. If you want, enter a class.

Click Done, then click Save & Close in the Receive Payments window.

Correcting Payments that Were Applied to the Wrong Invoice

When one customer has multiple invoices open with your company, it can be somewhat easy to apply a payment to the wrong invoice. The good news is that it's easy enough to fix. Simply go to Customers>Customer Center.

Under the Customers & Jobs tab, select the customer whose payment was misapplied.

Next, click on the Transactions tab and select Received Payments.  


Look for the transaction (on the right hand side of the window) that contains the misapplied payment, then double click it.

This opens the Receive Payments window.


Uncheck the invoice that's selected. This is where the payment was applied. 

Put a checkmark beside the invoice where the payment should be applied.


Click Save & Close.

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