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If we are receiving payments on a settled acct/invoices, should the deposit be posted as a negative? Can it be applied to a specific invoice or no? (there are many)

Forum|Forum|7 years ago
December 7, 2018
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The account is a settlement, therefore the payments are going to our accounts receivable. The payments are making our bank account balance rise but they're being posted to the vendor as a negative and they aren't being applied to specific invoices.

QuickBooks Online

Best answer by KhimG

Hello there, @emilee.

Thanks for reaching out to the Community. I’m here to share some information about receiving payments in QuickBooks Online.

Once you receive payments from your client, the deposit shouldn’t post as a negative amount. However, this would show as negative on customer’s profile if there's no invoices link to this payment.

You can apply the full payment amount to your customer’s future invoices once they are available. Do that and the negative amount will no longer show on their profile.

To link the payment to an invoice, follow the steps below:
1. Go to the Plus (+) icon and select Invoice.
2. Fill in the necessary information.
3. Hit on the Save button.
4. Click Receive payment at the top right, below the invoice amount.
5. On the Credits section, select the payment which will now show as a credit.
6. Once done, click the Save and close button. (Attached screenshots)

If you’re unable to link the payment, make sure that the account selected when the payment was recorded is Accounts Receivable (A/R). To verify, here’s how:
1. Go to Accounting from the left panel and choose Chart of Accounts.
2. Select the bank account where the deposit is deposited and click View register.
3. Choose the deposit and click Edit.
4. On the Bank Deposit screen, scroll down to Add funds to this deposit section and click on the deposit.
5. Select Accounts Receivable as the Account for this transaction.
6. Hit on Save and close.

Right after that, go back to the Receive Payment screen to link the payment to the invoice. Here’s how:
1. Click the Plus (+) icon and select Receive Payment.
2. Choose a customer and select the invoice.
3. On the Credits section, place a check mark next to the deposit to link the two.
4. Once done, click Save and close.

That should be it. Don’t hesitate to reach out to me if you have further questions. I’ll be here to help. Have a good one!

K

KhimGAnswer

Hello there, @emilee.

Thanks for reaching out to the Community. I’m here to share some information about receiving payments in QuickBooks Online.

Once you receive payments from your client, the deposit shouldn’t post as a negative amount. However, this would show as negative on customer’s profile if there's no invoices link to this payment.

You can apply the full payment amount to your customer’s future invoices once they are available. Do that and the negative amount will no longer show on their profile.

To link the payment to an invoice, follow the steps below:
1. Go to the Plus (+) icon and select Invoice.
2. Fill in the necessary information.
3. Hit on the Save button.
4. Click Receive payment at the top right, below the invoice amount.
5. On the Credits section, select the payment which will now show as a credit.
6. Once done, click the Save and close button. (Attached screenshots)

If you’re unable to link the payment, make sure that the account selected when the payment was recorded is Accounts Receivable (A/R). To verify, here’s how:
1. Go to Accounting from the left panel and choose Chart of Accounts.
2. Select the bank account where the deposit is deposited and click View register.
3. Choose the deposit and click Edit.
4. On the Bank Deposit screen, scroll down to Add funds to this deposit section and click on the deposit.
5. Select Accounts Receivable as the Account for this transaction.
6. Hit on Save and close.

Right after that, go back to the Receive Payment screen to link the payment to the invoice. Here’s how:
1. Click the Plus (+) icon and select Receive Payment.
2. Choose a customer and select the invoice.
3. On the Credits section, place a check mark next to the deposit to link the two.
4. Once done, click Save and close.

That should be it. Don’t hesitate to reach out to me if you have further questions. I’ll be here to help. Have a good one!

E

emilee11Author

Thank you for all the insight! I've applied the deposits to the appropriate invoices but on the "client" screen, it still lists the total deposit amount per line item as a negative number.... is this because the "accounts receivable" account is being lessened with each payment?

HoneyLynn_G

Thanks for getting back into this thread, @emilee.

I'm here to provide some more details about resolving a negative deposit in QuickBooks Online.

To begin, let's create a journal entry. This is to move the funds from Undeposited account to the bank. Next thing to do is group the journal entry with the payments to create a $0 deposit and remove the payment from Undeposited Funds.

Here's how to create a journal entry:

Click the Plus icon.
Choose Journal Entry.
Enter the Date of the transaction.
On the first distribution line, select Undeposited Funds from the drop-down list in the Account column.
Enter the amount of the deposit in the Debits column.
On the second distribution line, select the appropriate bank account from the Account column drop-down list.
Enter the amount of the deposit In the Credits column.
Select Save.

After that, here's how to group the journal entry with the payment:

Click the Plus icon.
Choose Bank Deposit.
Select the payments and the Journal Entry you created. The total should be zero.
Select Save.

For detailed instruction, please check this article: How to resolve negative deposits.

That information should resolve the negative deposits in your QuickBooks, @emilee. Let me know if there's anything else you need. I'm always here to offer help. Have a wonderful day.

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