record payment against journal entries

Hi New User 2!

When performing transactions in Quickbooks, it's almost always easier to use the built in functionality than attempting to use 'journal entries' and reconciling things on the ledger.

Here's how I generally go about receiving a payment from a customer:

1. Receipt of payment

Based upon the payment, and the remittance provided by the customer, I'll go to the customer account and mark those payments as received.  When doing this, I receive the payments into 'Undeposited Cash' as opposed to directly into the bank account.  This allows you to use a second function to match the payments to the inbound feed from your bank account.

2. Receipt of funds

From New -> Bank Deposit you can now select the payment made as above, based on the amounts assigned to 'Undeposited Cash'.  The particularly nice thing about this is that it also affords you the opportunity to offset any bank fees.  For example, one of my customers always pays me via wire, for which my bank charges me $17.50; so in addition to the deposit from the customer, I can add the $17.50 bank charge in a way that the customer payment/invoice amount ties out, as well as the payment less bank fee tying to the deposit in my bank account.

3.  Bank Deposit

Now from my banking tab, I can update the feed based on the money coming into my account and the payment less bank charges arriving into the account should tie exactly with the amount showing up from the bank feed.

It's not precisely intuitive at first, but once you get used to it, it actually makes things a lot easier!

Leith.