When money comes in, you need to record it. That sounds simple, and with SemaQuote, it really is.
Whether you're receiving a single full payment, tracking multiple partial payments on a big project, or handling the occasional overpayment, SemaQuote keeps everything organized. Let's walk through each scenario so you're ready for anything.
Recording a Standard Payment
Most payments are straightforward: your client pays the full amount, and you mark the invoice as paid. Here's how to do it.
Step-by-Step
1. Open the Invoice
Navigate to the invoice being paid from your Invoices list.
2. Tap "Record Payment"
You'll find this button in the action bar. It appears on any invoice that has an outstanding balance.
3. Enter the Amount
Type the payment amount. SemaQuote prefills the remaining balance as a convenience, but you can change it if needed (for partial payments, for example).
4. Select the Payment Method
Choose how your client paid:
- Cash: Physical currency
- Check: Paper check (you can add the check number in notes)
- Card: Credit or debit card payment
- Bank Transfer: ACH, wire transfer, or direct deposit
- Other: Venmo, PayPal, Zelle, or other methods
5. Set the Payment Date
Defaults to today, but you can backdate if you're recording a payment received earlier. This keeps your records accurate.
6. Add Notes (Optional)
This is a great place to record check numbers, confirmation codes, or any other details you might need later. Future-you will appreciate the thoroughness.
7. Save
The payment is recorded, and the invoice balance updates automatically. If the payment covers the full balance, the invoice moves to Paid status.
Tracking Partial Payments
Larger projects often involve multiple payments. Maybe you collect a deposit upfront, a progress payment midway through, and a final payment at completion. SemaQuote handles this naturally.
How It Works
The process is identical to recording a full payment. Just enter the actual amount received instead of the full balance. SemaQuote automatically:
- Updates the invoice's paid amount
- Calculates the remaining balance
- Changes the status to "Partial" if money is still owed
- Changes the status to "Paid" when the balance reaches zero
You don't need to do anything special. Just record payments as they come in.
A Real-World Example
Let's say you complete a $3,000 bathroom remodel with this payment schedule:
| Payment | Amount | Running Balance | Invoice Status |
|---|---|---|---|
| Deposit | $1,000 | $2,000 remaining | Partial |
| Progress payment | $1,000 | $1,000 remaining | Partial |
| Final payment | $1,000 | $0 remaining | Paid |
Each payment is recorded separately, creating a clear payment history that tells the whole story.
Viewing Payment History
Want to see all payments on an invoice? Open the invoice and scroll to the Payments section. Each entry shows:
- Amount received
- Payment method
- Date received
- Any notes you added
This history is invaluable when a client questions their payment status or when you need records for tax season. Everything's documented.
Handling Overpayments
Sometimes clients pay more than they owe. Maybe they rounded up, misread the invoice, or sent payment for multiple invoices in one check. No problem. SemaQuote gives you three smart ways to handle the excess.
How to Record an Overpayment
1. Enter the Full Amount
Type what the client actually paid, even if it exceeds the balance.
2. Acknowledge the Overpayment
SemaQuote will notice the amount exceeds the balance and ask how you'd like to handle the extra.
3. Choose Your Option
You have three choices:
Option 1: Refund to Customer
Choose this when the overpayment was clearly a mistake and your client wants their money back.
What happens:
- The invoice is marked as Paid
- The overpayment amount is flagged for refund
- You'll see a reminder to process the refund
Option 2: Store as Credit
Keep the overpayment as a credit on the client's account for future work. This is ideal for clients you work with regularly.
What happens:
- The invoice is marked as Paid
- The credit is associated with the client
- You can apply this credit to future invoices
Pro Tip: Instead of processing a small $20 refund, store it as credit. Your client will appreciate having it ready for their next service call, and you save on transaction fees.
Option 3: Apply to Next Invoice
If the client has another outstanding invoice, apply the overpayment directly to it.
What happens:
- The current invoice is marked as Paid
- The excess amount is recorded as a payment on the next invoice
- Both invoices update their balances accordingly
Example Scenario
A client owes $450 on Invoice #042 and $200 on Invoice #043. They send a single check for $500.
You record the $500 against Invoice #042 (which only has a $450 balance). Choosing "Apply to Next Invoice" would:
- Mark Invoice #042 as Paid
- Apply the $50 overpayment to Invoice #043
- Update Invoice #043 to show $150 remaining
Everything stays organized without manual calculations.
Payment Methods: What to Know
Different payment methods have different characteristics. Here's what to keep in mind:
Cash
Immediate funds, but no automatic paper trail. Always provide a receipt and record the payment promptly while the details are fresh.
Check
Add the check number in the notes field, it's easy to forget later. For large amounts or new clients, consider waiting for the check to clear before recording. You can always enter a payment with a past date once funds are confirmed.
Card
If you use a separate payment processor, record the transaction ID in notes. This helps when you're reconciling with your merchant statements at month's end.
Bank Transfer
Record the confirmation number or last four digits of the transfer ID. Bank transfers rarely fail once initiated, making them one of the most reliable payment methods.
Best Practices for Payment Management
Record Payments Right Away
Don't let payments pile up. Recording them immediately keeps your books accurate and shows clients their balance in real time through the portal. If you wait, you'll forget details.
Be Consistent with Notes
Develop a habit of recording check numbers, confirmation codes, or other reference information. When tax prep rolls around or a payment dispute arises, you'll be glad you did.
Verify Before Recording (When Appropriate)
For checks from new clients or unusually large amounts, consider waiting until they clear before recording. You can always record a payment with a past date once funds are confirmed in your account.
Communicate About Overpayments
If a client overpays, let them know how you handled it. A quick message saying "I noticed you overpaid by $50 and I've applied it as a credit to your account" builds trust and prevents confusion.
Common Questions
Can I edit a payment after recording it?
Yes, you can edit payment details like notes and payment method. If you need to change the amount, you may need to delete and re-record the payment.
What if a check bounces?
If a check bounces after you've recorded it, you can delete the payment to restore the invoice balance. Add a note to the invoice explaining what happened for your records.
Can clients see their payment history?
Yes, the client portal shows all recorded payments along with the remaining balance. This transparency reduces payment-related questions.
What's Next?
Now that you know how to record payments, you might want to understand how invoice statuses change as payments come in. Check out the Invoice Statuses guide to learn how invoices flow from Sent to Partial to Paid.
Related Articles
- Understanding Invoice Statuses - See how statuses change as payments arrive
- Invoice Dashboard and Analytics - Track your overall collection performance
- Creating Invoices - Build invoices from scratch or convert quotes