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certiguide
January 17, 2025
Question

Category for Intuit payment deposit into bank account

  • January 17, 2025
  • 3 replies
  • 0 views

I receive payments for invoices through the built-in Quickbooks/ Intuit payments option.

When the customer pays the invoice, Quickbooks automatically marks the invoice as paid and adds a Sales/ Deposit.

The afftected accouts are all balanced. All fine and good so far.

Then however, I need to categorize the bank transaction for the actual money coming into the bank account.

What category should I choose for this incoming money?

I am in a dilemma here:

  • Whatever category I choose, that corresponding account's balance will be off.
  • When I ignore the transaction, my bank account balance will be off.

Any hints are highly appreciated!

    3 replies

    G
    GenmarieM
    January 17, 2025

    I'll provide the specifics to help you balance your account records in QuickBooks Online (QBO), certiguide. Let's go through the details below.

     

    It is important to note that if you're using QuickBooks Payments, QuickBooks will automatically process the payment and categorize it. However, if you're trying to categorize the records under the online banking feature in QuickBooks, we don't need to edit the invoice. If you categorize the payment, it will overstate the balance.

     

    Moreover, I suggest reviewing your Undeposited Funds, as the payment may still be recorded there. You might also need to match the online bank record instead of categorizing it.

     

    Furthermore, I've added this article for detailed information on how QuickBooks Payments works: Receive and process payments in QuickBooks Online with QuickBooks Payments.

     

    Moreover, I'd recommend working with an accounting professional. If you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

     

    Additionally, you can refer to this article in case you wish to use bank rules for your online bank transactions in the future: Set up bank rules to categorize online banking transactions in QuickBooks Online.

     

    I'll keep this thread open if you have other concerns or questions regarding categorizing bank transactions in QuickBooks Online. The Community has your back always!

    C
    certiguideAuthor
    January 18, 2025

    I was able to solve this eventually, posting here for anybody else running into the same issue.

     

    This will happen when you set different target accounts for your payments in "Account and Settings"/ "Payment" for "Deposit Accounts" vs. "Chart of Accounts".

     

    I fixed this by manually moving the records for the Intuit Payments from the wrong account to the correct one in the Chart of Accounts. Afterwards, QB will allow the bank transactions to be matched against the payment.

     

    This is a similar issue to payroll, where QuickBooks also allows you so set different accounts for where the debits should be taken from vs. where the accounting record should go.

     

    I don't even know why it is possible setting it up this way.

    C
    certiguideAuthor
    January 18, 2025

    I was able to solve this eventually, posting here for anybody else running into the same issue.

     

    This will happen when you set different target accounts for your payments in "Account and Settings"/ "Payment" for "Deposit Accounts" vs. "Chart of Accounts".

     

    I fixed this by manually moving the records for the Intuit Payments from the wrong account to the correct one in the Chart of Accounts. Afterwards, QB will allow the bank transactions to be matched against the payment.

     

    This is a similar issue to payroll, where QuickBooks also allows you so set different accounts for where the debits should be taken from vs. where the accounting record should go.

     

    I don't even know why it is possible setting it up this way.

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