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T_Arkenberg
August 16, 2021
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Need help matching a bank deposit to an invoice in QuickBooks Online

  • August 16, 2021
  • 1 reply
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I'm a volunteer rather than an accounting pro, so sometimes QuickBooks is a bit beyond me. 

 

My organization sent an invoice in July, received payment as a check a few days later, and I deposited that check along with several others in the bank on 7/26.

 

I then classified that transaction under "Banking", splitting it, with the amount of the check going to the correct category.

 

Then I remembered I needed to mark the invoice as paid, so I did.

 

Now the amount is double-counted in the category on our P&L report, once as a bank deposit and once as a paid invoice.

 

How do I convince QuickBooks that (part of the) bank deposit is the same thing as the paid invoice? 

Best answer by MirriamM

Thanks for keeping us updated with the results when performing the steps provided by my colleague above, @T_Arkenberg.

 

When matching downloaded transactions in QuickBooks Online (QBO) to manually created data, you'll need to have the exact date or details to match.

 

In your case, when receiving the invoice payment, it should deposit on the Undeposited Funds. Here's how:

  1. In the left menu, Sales.
  2. Go to the Invoices tab.
  3. Locate the invoice.
  4. From the Actions column, click the Receive Payments link.
  5. Make sure to choose Undeposited Funds in the Deposit To drop-down.
  6. Enter the full payment of the invoice.
  7. Click Save and Close.

Then, create a bank deposit and select the Bank account where the actual payment was deposited. 

  1. In the left menu, click the New (+) button.
  2. Choose Bank Deposit.
  3. Select the Bank Account where the actual payment was deposited. 
  4. Enter the date when the actual deposit was made.
  5. In the Select the payments included in this deposit section, mark invoice payment that's paid.
  6. Review the payment details. The information should exactly match the downloaded bank transactions.
  7. Click the Save and Close button.

Once done, you can now start matching the recorded invoice payments and downloaded transactions. By doing this, you'd avoid getting duplicates. Let me share this guide for the step by step process: Categorize and match online bank transactions in QuickBooks Online. 

 

For future help, here are some links that cover all the details on how to perform the following tasks in QBO.

That's it! If there's anything else you need help with, please feel free to let me know. I'm always here to help. Have a great day!

1 reply

katherinejoyceO
katherinejoyceO
August 16, 2021

Hello there, @T_Arkenberg. 

 

Let's get your deposited transactions to match invoices in QuickBooks Online (QBO) correctly to avoid double entry.

 

To do this, let's undo those added payments manually from your banking screen. Here's how:

 

  1. Go to the Banking menu, then click the In QuickBooks tab.
  2.  Find the payments and select Undo under the Action column. They will now go back to For Review tab.

 

After that, here's how to match and split payments to the invoices:

 

  1.  On the For Review tab, select the payments one-by-one.
  2. If the option in the Action column is Match, change the Find match to Categorize.
  3. Select Split next to the Add button. This opens the Split transaction window.
  4. Select the Categories (the accounts) you want to split the transaction into, then enter an amount for each split.
  5. Select a Customer for each split, then select Apply and accept.

 

Check out this article to learn more about: Add and match downloaded banking transactions.

 

For future reference, read through this article: How to Reconcile an Account in QuickBooks Online. It helps you learn about matching QuickBooks transactions with your actual bank statements. 

 

Let me know how it goes or if you need further assistance. I'm always here to help you more.

 

 

T
T_ArkenbergAuthor
August 17, 2021

Thank you, but after doing this I still have the same problem: the bank deposit plus the invoice are both being counted in the category. I cannot figure out how to match the invoice to the bank deposit so that they're counted once as a single transaction (which they are!) and not two separate transactions. The invoice does not appear in the Banking/Transactions tab, and Bank Deposits do not appear when I edit invoices. 

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