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T
ttloper5
March 8, 2023
Question

Linking a deposit to an invoice

  • March 8, 2023
  • 1 reply
  • 0 views

I have a client who never linked her deposits to her invoices, is there a way to go back in and link them after they have been reconciled and she cleaned them out of the undeposited funds account? Now the p&l statement is double counting them so her sales income is overstated.  It looks like she went into each transaction and reclassified them from undeposited funds to sales income without linking them to the invoice. 

 

If I run a deposit detail report and go into each deposit to try to link them that way the amount of the deposit is there but it doesn't show all of the invoices to be able to click on the correct one

1 reply

M
Mich_S
March 8, 2023

I see you want to link a deposit to an invoice in QuickBooks Online, @ttloper5. I'm here to ensure you can do it with ease.

 

Yes, it's possible to link a reconciled deposit to an invoice. Simply change the deposit to an Accounts Receivable (A/R) account. Note: You can also manually unreconcile the transactions before changing. See the snapshot below to change the reconciliation status:

 

 

Then, here's how to edit the deposit to account.

 

  1. Open your bank register and locate the deposit.
  2. Select Accounts Receivable under the Deposit account drop-down.
  3. Once done, click on Save, then Yes.

 

 

Once done, you can now apply the deposit to the invoice by receiving the payment. 

 

  1. Open the invoice and click on Receive Payment.
  2. Select the deposit from the Credits section.
  3. Click on Save and close.

 

 

On the other hand, if your financial institution is connected to QBO, the downloaded deposit is likely matched to the invoice. That's why the income is overstated on the Profit and Loss report. 

 

If this is the case, you can manually unreconcile the deposit and then Undo the transaction from your bank feeds. This will put it back to the For review tab. After that, match it to the deposit coming from Undeposited Funds to a bank account. Here's a guide on how to manage transactions: Categorize and match online bank transactions in QuickBooks Online.


If you're all set, feel free to also check this additional module about personalizing invoices in QBO: Customize invoices, estimates, and sales receipts in QuickBooks Online.

 

You can always reply back for more assistance about QuickBooks, invoices, or deposits. We'll make sure to back you up as soon as we can. Take care!

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