March 31, 2020

When, Why, and How of Customer Statements

QuickBooks Online
Ronald B. Allen

The When, the Why, and the How of Customer Statements

The standard way your business bills for its services is by sending invoices. However, from time to time you may also find it necessary to create statements and send them to the same customers.

When you send an invoice for products or services, it is an informal contract. As such you are justified in expecting timely payment for what you have sold.

In general, this works and customers pay on time. But, what do you do when you send an invoice and then a reminder, or two? The customer is still ordering products or using your services and appears to be confused about the status of his orders and payments.

The answer is in QuickBooks Online. It is easy to send a statement listing transactions, payments, and credits. Here are three ways to do this.

Balance Forward: This is a document the displays the amount owed at the very top of the page. Following is the listing of sales and other transactions that occurred between the dates that you have chosen.

Open Item: In this case, you choose a date for which the statement displays every completed transaction preceding that date.

Transaction Statement: This method simply shows the amounts that you have billed and amounts received for all transactions.

How to Setting Up these Statements

Use “Balance Forward” statements to display the range of date you choose.

Here are three ways you will create these statements:

  • Click at the top of the screen on the Plus (+) icon.
  • In the customer record Dispatch one.
  • On the Customer screen Launch a batch action

Make sure that your setup in QuickBooks Online is correct before creating a statement. On the upper-right of the screen, click on the gear icon. Choose “Your Company” and “Account Settings.” Click on the Sales Tab. Then scroll on down to “Statements.” Click to choose the options you need.

You can set this up each transaction listed on a single line or List transactions by detail lines. Click on the icon by the one you choose. To show an aging table at the end of the statement, click to choose this option. It will show the customer the number of days that all transactions are overdue.

When you are done, Click “Save.”

To Create Statements

When you have been entering transaction data in QuickBooks Online, simply click in the upper right side of the screen on the Plus (+) icon.

A Tip: If you are in an active screen, QuickBooks Online will not show you the plus (+) icon. You will need to save and then click the “X” in the right upper corner to close the active screen.

Now click “Statement.” It is located beneath “Other” to the right of the screen. Down from “Statement Type” choose “Balance Forward.” Then you will see the field for “Customer Balance Status.” Your options here are these:

  • Customers having open balances
  • Customers with overdue invoices
  • All customers

Choose “All customers” to see credit memos.

Pick Your Start and End Dates

For our example, we chose April 9, 2018, through September 9, 2018. The date of the statement in the example is September 10, 2018. Choose the appropriate dates and click “Apply.” QuickBooks Online will show you a listing of customer that matches these dates. Either “Preview” or “Print” at the screen bottom to look at your statement.

In our example, there is a balance forward of $8,245.05 on April 9, 2018. It displays a catch-up payment on August 9, 2018, and a subsequent invoice sent out on September 1, 2018. This results in the “TOTAL DUE” number at the top of the page.

You will be able to “Print” statements from this page or you can “Close” and return to the previous page. From there you will be able to“Save” and “Send.”

Two Alternative Options

Here are the two alternatives we mentioned.

Click on “Sales” on the vertical toolbar on the left. Click the “Customers” tab to highlight it. Simply hover the cursor over a specific customer. The click at the end of the line on the down arrow. When the list opens, choose “Create Statement.”

Or, you can pick multiple customers to receive statements.Open the “Customers” window, click in the box in from of your choices, and click the down arrow that is located next to “Batch actions” at the top of the list. Now, select “Create Statement”

Creating statements are not to difficult, you just want to be extra careful not to send an inaccurate one to a customer – we don’t want confusion. Be sure you are up to date on your transactions and that you pay attention to the date ranges you choose.

As always, we are available to discuss any questions or concerns you might have about this specific topic -  or any other topic regarding Intuit QuickBooks Products. As Advanced Certified QuickBooks ProAdvisors we are here to help you be proactive and avoid any issues that might come up in the future.

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