QBO Sales and Receivables Workflow 2 — Questions and Answers
Question 1: A customer pays only part of an outstanding invoice in QBO. What is the correct way to record this partial payment?
- Delete the original invoice and create a new one for the remaining balance
- Receive payment and enter the partial amount, leaving the remaining balance open (Correct answer)
- Create a credit memo for the unpaid portion
- Apply a discount to reduce the invoice to the paid amount
Correct answer: Receive payment and enter the partial amount, leaving the remaining balance open
In QBO you use Receive Payment, enter the partial amount received, and the remaining open balance stays on the invoice automatically.
Question 2: Which QBO report shows all outstanding customer balances grouped by how long they have been overdue?
- Customer Contact List
- Accounts Receivable Aging Summary (Correct answer)
- Open Invoices report
- Sales by Customer Summary
Correct answer: Accounts Receivable Aging Summary
The Accounts Receivable Aging Summary groups customer balances into buckets (Current, 1-30, 31-60, etc.) to show overdue amounts.
Question 3: In QBO, what happens to inventory quantity on hand when you save a Sales Receipt?
- Inventory is not affected until the item is shipped
- Inventory quantity decreases immediately upon saving (Correct answer)
- Inventory quantity increases because a sale was made
- Inventory is only updated when the receipt is printed
Correct answer: Inventory quantity decreases immediately upon saving
Saving a Sales Receipt in QBO immediately reduces the inventory quantity on hand for any inventory items sold.
Question 4: A company wants to give a returning customer a 10% discount on their next invoice. Where in QBO can a default discount be set at the customer level?
- Company Settings > Sales > Discounts
- The customer's profile under the Payment and billing tab (Correct answer)
- Products and Services list
- Chart of Accounts
Correct answer: The customer's profile under the Payment and billing tab
A default discount percentage for a specific customer can be stored in the customer record under the Payment and billing tab and will pre-populate on invoices.
Question 5: What is the purpose of the 'Undeposited Funds' account in QBO's sales workflow?
- It holds funds that have been deposited but not yet reconciled
- It temporarily holds payments received before they are grouped into a bank deposit (Correct answer)
- It tracks credit card refunds awaiting processing
- It records revenue that has been invoiced but not yet collected
Correct answer: It temporarily holds payments received before they are grouped into a bank deposit
Undeposited Funds acts as a holding account for received payments until you combine them into a single bank deposit matching your actual bank statement.
Question 6: In QBO, which transaction type should be used when a customer returns merchandise and you need to issue them a refund check?
- Vendor Credit
- Credit Memo followed by a Refund Receipt (Correct answer)
- Journal Entry to debit A/R
- Delayed Credit
Correct answer: Credit Memo followed by a Refund Receipt
A Credit Memo records the returned goods and reduces the customer balance, and a Refund Receipt (or refund from the credit memo) issues the actual cash refund.
Question 7: Which QBO feature allows you to automatically email an invoice to a customer on a recurring schedule without manual intervention?
- Delayed Charge
- Recurring Transactions (Scheduled) (Correct answer)
- Progress Invoicing
- Batch Invoicing
Correct answer: Recurring Transactions (Scheduled)
Setting a Recurring Transaction to 'Scheduled' type causes QBO to automatically create and send the invoice to the customer on the defined schedule.
QBO Sales and Receivables Workflow 2
A customer pays only part of an outstanding invoice in QBO.
What is the correct way to record this partial payment?