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pallc
February 26, 2021
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How to fix misapplied payments without messing up the reconciliations

  • February 26, 2021
  • 1 reply
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Hello,

 

Client uses QuickBooks Desktop 2018. Currently going through line by line, and I have found that one specific company that we service several locations for, has a bunch of payments that were incorrectly applied to multiple invoices.

 

From what I can gather so far, the former bookkeeper would open up the deposit window and select the wrong invoices; and when those invoices did not match up to the actual deposit amount , she would manually adjust the "amount applied" column, so there are several deposits that look as though the client underpaid or overpaid, and the invoice balances are incorrect.

 

I am still in the process of sorting through all of it, but a lot of these transactions are from 3-8 months ago and have clearly already been reconciled. What is the best way to adjust the balances so I don't throw off the reconciliation?

Best answer by MaryLandT

Let's fix those misapplied payments in QuickBooks Desktop, pallc.

 

You can still edit those payments and allocate to the correct invoices. Just make sure not to change the amount and dates of the transaction.

 

It won't affect those reconciled transactions as long the Total amount, Date, and Bank Account are the same. 

 

If there's a need to correct all previous reconciliation, here's what you need to do: Reconcile previously deleted and re-entered checking or credit card transactions.

 

I'm also adding this link to help you with the process: Reconcile an account in QuickBooks Desktop.

 

Keep me posted if you have follow-up questions by commenting below. I'll be around to provide the information you need.

1 reply

MaryLandT
MaryLandTAnswer
February 26, 2021

Let's fix those misapplied payments in QuickBooks Desktop, pallc.

 

You can still edit those payments and allocate to the correct invoices. Just make sure not to change the amount and dates of the transaction.

 

It won't affect those reconciled transactions as long the Total amount, Date, and Bank Account are the same. 

 

If there's a need to correct all previous reconciliation, here's what you need to do: Reconcile previously deleted and re-entered checking or credit card transactions.

 

I'm also adding this link to help you with the process: Reconcile an account in QuickBooks Desktop.

 

Keep me posted if you have follow-up questions by commenting below. I'll be around to provide the information you need.

R
Ritamc
January 5, 2022

How do I fix AR payments applied to the wrong customer or invoice if I have already closed for the month?

JasroV
JasroV
January 5, 2022

I got your back, Rita.

 

You'll want to edit the closing date of your book to update it. Then, create a journal entry (JE) to apply the payment to the correct invoice. I'll show you how.

 

  1. Go to the Company menu in your QuickBooks Desktop (QBDT), and select Set Closing Date.
  2. Select Set Date/Password.
  3. Enter a Closing Date and Closing Date Password.
  4. Click OK to close the window.

 

You can also see this link for reference: Set or change a closing date and closing date password.

 

Once done, create a JE to apply the payment to the appropriate invoice. You can check out this article for the detailed steps about the process (though this article is for QuickBooks Online (QBO), the workflow also applies to QBDT): How to fix a payment applied to the wrong customer invoice.

 

I'd also recommend working with your accountant for guidance. This way, we can ensure the accuracy of your accounts after making these changes. 

 

Furthermore, you might want to utilize this resource for guidance in matching your account seamlessly: Reconcile an account in QuickBooks Desktop.

 

You can always count on me if you have any other questions about invoices. Please feel free to leave the details in your reply and I'll take care of it for you. Stay safe and have a great day ahead! 

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