Quickbook Desktop Pro 2020 - Entering Customer Payments and more using Bank Feeds

Question

Hi Everyone!

So in 2021 I decided to be more efficient and started downloading all my business banking transactions using the Bank Feeds feature. Last fiscal year I used to manually enter each single transaction, from receiving a customer payment, registering an expense and accounting for transfers from Paypal into the bank account.

Now that I'm using Feeds it seems that I'm a little lost. Obviously assigning an expense to a category is straightforward. However, I need guidance on two particular types of transactions: receiving a customer payment and registering a transfer from Paypal into the bank account. Let me explain:

- When I manually registered a customer payment (that is without Bank Feeds), the type of account shown on the chart of is PMT, that is a Customer Payment. The Account associated with the transaction was Accounts Receivable. If I do it through Bank Feeds, the type of transaction will show as DEP. How do I convert this transaction to a Customer Payment kind, using Accounts Receivable (as I was entering before)?

- When I manually registered a transfer from Paypal into the bank account, the type of account shown on the chart is TRANSFER with Paypal as vendor. When I do it with Bank Feeds, QB creates a Deposit (DEP) instead. The "From Account" entry is Paypal. Should I leave it as is or try to replicate the journal entry as I was doing it manually before?

Thank you for your help!

AlexV · Accepted Answer

Hello!

Thank you for your help explaining how to handle Rules when importing data from the bank using Bank Feeds.

However, the issue I'm facing is a little different. When importing data, all expenses are classified ok but for payments made by customers, they are considered in Bank Feeds -understandably- like a Deposit.

In past fiscal years, when I did this manually, the Bank account ledger accounted the transaction as a Customer Payment in the "Accounts Receivable" category. If I now select "Add More Details" on a Deposit from Bank Feeds and associate the deposit to a Customer invoice, the transaction in the Bank account ledger shows up as a "Deposit" in the "Undeposited Funds" category. How can use Bank Feeds to reflect customer payments against an invoice to reflect the use of Customer Payment/Accounts Receivable format as we used before?

Thanks again!

Hi there, gnocchi.

Let me share some details about bank feeds.

We can record an invoice payment in QuickBooks Desktop so we can match it to the downloaded transaction. If you're done with this already, let's make sure to deposit it to the bank account in QuickBooks Desktop.

Go to the Banking menu and select Record Deposits / Make Deposits.
In the Payments to Deposit window, select the invoice payments you recorded. Then select OK.
Select the account you want to put the deposit into from the Deposit to dropdown.
Enter the other details needed, then tap Save & Close.

Once done, go back to the Bank Feeds Center. Instead of Add More Details, select Match to existing transaction. This will open a window where you can select an existing entry including the deposit you've made so you can match them.

I've added some articles you can check. These will explain more on how to use the Bank Feeds feature:

Keep your posts coming if you need more help. I'll be here!

RCV · Answer

Thanks for checking in with us and providing us in-depth details of your bank feeds concern, gnocchi.

QuickBooks Desktop is only dependent on the transactions that were transmitted from your financial institution. The deposit will appear in the account you transferred it to from PayPal, for example in the checking account received column in the Bank Feeds Center. When looking at the deposit, both the sale and fee are automatically taken care of for you.

Since you'll see every deposit that PayPal makes into your bank, you'll have two sales coming into the bank feeds and one will need to be “transferred” from PayPal to the checking account so that it does not duplicate income. You can also create rules to categorize transactions for things you frequently spend money on.

Here's how:

Go to the Banking menu.
Choose Bank Feeds and then Bank Feeds Center.
Select Rules, then click the Manage Rules dropdown menu.
Click Add New.
Add a Rule Name.
From the Description drop-down, make a selection, then type a word or phrase you want to use as the condition for the rule. If you need to create more conditions, select + button.
In the Do This section, make a selection, then select a payee.
Hit Save after.

From the rules page, you can also search rules based on the name, rule condition, description, payee, class, and account. For more details about adding bank rules, see the Use renaming rules for Bank Feeds article.

Feel free to visit our Banking page for more insights about managing your Bank Feeds transactions.

I'm just one post away if you need a hand with reconciling your bank accounts or any QuickBooks related. I'll be here to ensure your success. You have a good one.

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