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jd34mx
August 27, 2020
Question

Quickbooks payments + bank deposit not syncing

  • August 27, 2020
  • 1 reply
  • 0 views

I created 3 invoices and received payments through Quickbooks payments which deposited into my business checking account. When my bank transactions imported from my business checking account, it shows the 3 deposits related to those invoices. Being as the payments were already applied to the invoices, the deposits have nowhere to be assigned to and in effect are duplicates. If I delete the deposits from my banking "chart of accounts" then I will have a mismatch in the bank balance in quickbooks. Deleting the quickbooks payments and applying the deposits instead seems to be the most logical step... but I receive an error message every time: "This transaction has been deposited. If you want to change or delete it, you must edit the deposit it appears on and remove it first." There are no deposits for a quickbooks payment as far as I can tell. At this point I have resolved to letting the deposits sit in A/R unassigned, which is really hurting my organization. Any help would be greatly appreciated, thanks.

    1 reply

    katherinejoyceO
    katherinejoyceO
    August 27, 2020

    Welcome to the Community, @jd34mx. Thanks for being so detailed with your concern. I'm here to help you rectify the transactions sitting in A/R unassigned. 

     

    As an insight, the invoices are marked as paid after your customers send the payment using QuickBooks Online Payments.  

     

    Since only open invoices will show on the Banking page, we can match the bank transaction to the payments instead. Here's how: 

     

    1. Go to the Gear icon, then select Account and Settings. 
    2. Select the Payments tab and go to the Chart of Accounts section.
    3. Review and ensure that the payments and fees are deposited to the right account, then click Save and Done.

     

    If these transactions were added and categorized as A/R, we can undo them first to move them back to the For review tab. Then, let's exclude them to avoid duplicate entry. Here's how: 

     

    1. Go to the Categorized tab on the Banking page. 
    2. Locate and select the deposits you'll need to exclude.
    3. Click Undo in the Action column. 

     

    Once done, go back to the For review tab and select the transaction again. Then, select Exclude. 

     

    Also, if it's a single existing entry in QBO, it won't match to multiple bank entries. You can check out this article for the detailed steps on how to handle this situation by combining multiple transactions to a single record: Record and make Bank Deposits in QuickBooks Online.

     

    Let me know if you have additional questions. We're always delighted to help you some more. 

      J
      jd34mxAuthor
      August 27, 2020

      Thank you for the quick reply Katherine! I went through those steps and I hadn't set that the payments were going to the correct account, I also unassigned the deposits from A/R..... This still however leaves me in the same boat unfortunately: I really wanted to avoid excluding those deposits from the bank account as it would have a mismatch between my actual bank balance and my quickbook balance. Is there a workaround for this? Also now that I have the correct account setup will this avoid this problem in the future or will I have to exclude every deposit like this if I continue to us quickbooks payments? Thanks!

        M
        MadelynC
        August 27, 2020

        Allow me to share some information about the flows of payments and deposits in QuickBooks Online, @jd34mx.

         

        If the invoice is paid through Merchant Service (QuickBooks Payments), the payment will be posted to the Undeposited Funds temporarily, and not directly to your bank account where the merchant deposits the money.

         

        The Undeposited Funds is an internal account that QuickBooks uses to hold payments. It's designed to work with the receive payments and bank deposit features to complete the invoicing process.

         

        This means if your bank recorded a single deposit, you should do the same in QuickBooks. You'll want to create a Bank Deposit then add the fees from there. This way, it will match your actual bank. Here’s how:

         

        1. Select the +New tab.
        2. Click Bank deposit under Other.
        3. Enter the account and select those payments.
        4. Click Add funds to this deposit.
        5. Add the fees as a negative amount. 
        6. Select Save and close.

        You can read these articles for more insight about the process:

         

        I’ve also added this reference to guide you thoroughly on how to match, add, or view multiple matches: Categorize and match the online bank transactions in QuickBooks Online.

         

        Don’t hesitate to get back on this page if you have other questions. We’re always here to lend a hand. Keep safe.

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