How do I match square payments to invoices

I'm here to help you match your payments to your invoices and include the fee from Square, Useralhallman88.

First, we need to create a Receive payment transaction on the invoice. Follow the steps below:

1. Select + New.
2. Select Receive payment.
3. From the Customer dropdown, select the name of the customer.
4. From the Deposit to dropdown, select the Undeposited Funds account.
5. Select Save and Close.

You can also refer to this screenshot:

After this, we'll have to create a bank deposit transaction to apply the bank charge taken by Square. Here's how:

1. Select + New.
2. Select Bank deposit.
3. From the Account ▼ dropdown, select the appropriate account to put the money into.
4. Tick the box for the receive payment transaction we just created.
5. Under Add funds to this deposit, choose the expense account specific to bank charges taken by Square.
6. Then enter a negative amount (-2) in the Amount (AUD) column to match the total amount deposited to your bank.
7. Click save once everything is done.

I'll include this screenshot for a visual reference:

After this, you can now match the deposits. Here's how:

1. Select Transactions.
2. In the Bank Transactions tab, select the specific bank where the deposit was made.
3. It should appear in the For Review tab. locate the transaction and match it with the bank deposit we just made.

That should do the trick. Furthermore, I'd like to share this helpful article you can use as a future reference if you want to learn how to use bank rules: Set up bank rules to categorize online banking transactions in QuickBooks Online.

Should you need further assistance on recording your invoices, I'll be more than happy to help you out. This thread will be open anytime for more queries. Take care.

@useralhallman88 

Another option, you can use a 3rd party connector to reconcile Square transactions to QBO.