When does FlexBooks use Invoices?
What are Invoices in QBO?
In the English language, the word "Invoice" can have a lot of different meanings and it has completely different meanings in QuickBooks and in MindBody.
In the context of QuickBooks, the word "invoice" means:
- A transaction entered in QBO when a client plans to pay you in the future.
- In QBO, creating an invoice affects your bookkeeping. It creates an open balance for that customer until a "Payment" is recorded.
In the context of MindBody, the word "invoice" means:
- A way of communicating to your customer (email/paper) of what they owe – its not actually a financial transaction.
- In MBO, creating an invoice (or not) doesn't affect your bookkeeping.
What are Purchases on Account in MBO?
In the context of MindBody, we use the following terms:
- "Purchase on Account" to describe a transaction entered in MBO when a client plans to pay you in the future
- "Sales Invoice" to mean
When does FlexBooks use Invoices?
FlexBooks creates Invoices in QBO in two separate situations:
1. Whenever a client makes a "purchase on account"
MindBody allows clients to buy products and services on house credit (similar to running a tab) –and to accrue a negative account balance to be paid off at a later date. This is rung up in MBO by choosing the "Account" payment method.
Whenever the payment method "Account" is used in MBO, FlexBooks will enter that transaction as a QBO Invoice. This will create a customer balance in QBO (just like it does in MBO).
Please see this MBO Support Article for more information on the Account payment method.
2. Whenever a client pays with two payment methods (split payment method)
MindBody alllows clients to split a payment between more than one payment method (e.g. two different credit cards).
QBO does not have the ability to split a Sales Receipt between two payment methods, so to account for a split payment, FlexBooks:
- Creates an Invoice for the total amount of the sale
- Creates two Payments for each of the split payments
- Connects both Payments to the original Invoice (this closes the open balance to $0)
How do I know if my clients are making purchases on account?
Just run an Account Balances report in MBO to see all of your open balances.