Customer paid outstanding invoice.Deposit made to credit card account instead of bank account.Can't transfer due to cash advance fees.How do I record this payment?

Hi there,

In QuickBooks Online we can only receive payments and make deposits through bank and asset accounts only. We can record the payment and mark the invoice as paid in QuickBooks Online using a Journal entry. Let me guide you how:

1. Click on the + New option.
2. Click on Journal Entry.
3. Select the journal date and currency.
4. Under line item 1 select the Credit card account and enter amount in debits column.
5. In line item 2 choose Accounts receivable and enter amount in credits column, and select the customer name.
6. Click on Save or Save and close after.

Then, let's link the journal entry to the invoice to mark the invoice as paid in QBO. Here's how:

1. Click on the + New.
2. Click on Receive payment.
3. Select the customer name.
4. Select the invoice under Outstanding Transactions, and under Credits select the journal entry created.
5. Click on Save and close.

That's it! You've now recorded the deposit from the credit card account and marked the invoice as paid in QBO. If there is a downloaded payment from the credit card account, you can match them to the payment created to avoid duplicates.

If you have other concerns with recording your transactions, please post here again. We are here to help you out.