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R
Rockmana LLC
May 15, 2024
Question

Recording customer Credit Card payments

  • May 15, 2024
  • 1 reply
  • 0 views

I'm certain I did something out of order. Two weeks into owning a business and I am just now getting a handle on the billing. My company receives many payments via credit card, however our processor deposits them in our bank in lump sums. Every morning I check the bank account vs. the quickbooks checkbook and log any entries from the former to the latter. 

However, when I want to "receive payment" on a particular invoice it moves the money into undeposited funds. I understand why, but when it is a credit card payment, I have already logged the deposit as part of the lump sum from my card processor. The problem is that many of the cc payments I get are also deposits for future gigs and those I log in liability accounts against future invoices.  so I have these cc payments against invoices just sitting in undeposited funds until I can figure out how to log them without effectively doing so twice in my QB checkbook.

 

Can anyone help? I am assuming I am making this all way more complicated than it ought to be.

1 reply

Tori B
Tori B
May 15, 2024

Hi there, @Rockmana LLC.

 

Thanks for reaching out to the QuickBooks Community. I hope your day is going great so far. 

 

By default, payments are deposited in the Undeposited Funds account. You can change the default account so the payments won't automatically go to the Undeposited Funds account. Here's how: 

 

  1. Go to the Edit menu and then select Preferences.
  2. Click on Payments from the list. Then go to the Company Preferences tab.
  3. Select and uncheck the Use Undeposited Funds as a default deposit to account checkbox.
  4. Hit OK.

 

You can also change the account right from the Sales Receipt screen. Here's how:

 

  1. On the Homepage, select Create Sales Receipt.
  2. Choose the customer from the Customer drop-down menu.
  3. From the Deposit to drop-down, hit Undeposited Funds.
  4. Fill out the rest of the form.
  5. Select Save & Close or Save & New.

 

Always keep in mind to review the “Deposit to” field so you know where your payments are going.

 

That should do the trick. For more information about recording payments and deposits check out: Deposit payments into the Undeposited Funds account in QuickBooks Desktop. 

 

Please don't hesitate to let me know if you have any additional questions or concerns. Take care! 

R
Rockmana LLCAuthor
May 15, 2024

HI, I am hanging in there, thank you.  I appreciate the response, and going forward this will be extremely helpful. my problem now, though is that I have 6 payments already in undeposited funds that I don't need to record as deposits, because I already logged the lump sum of deposits from my processor. I guess, my question is, how do I mark invoices paid without hitting the "receive payment" button?

K
KayePe
May 15, 2024

I'm here to help you with the transactions from your undeposited funds and your deposit transaction in QuickBooks Desktop. 

 

It looks like your transaction was duplicated because you received the payment in the undeposited funds and also logged a deposit. To fix this, I recommend deleting the received payment from the undeposited account and then editing the deposit. Here's how:

 

  1. From the Lists, go to Chart of Accounts.
  2. Click the Undeposited Funds. 
  3. Choose the customer and open the entry then hit Delete. 

 

 
After that, open the lump sum deposit. Then, edit the allocation and designate the portion dedicated to invoice payments towards the Accounts Receivable account.
 
    1. Go to Lists and choose Chart of Accounts.
    2. Open the register, and double-click the deposit.
    3. Locate the payment line item and choose the correct customer, then pick set Account receivable as the account.
    4. Make sure to allocate the correct amounts.
    5. Tap Save and Close.

 

 

Once you've completed these steps, go back to receive payments and apply the credit to the invoice transaction to mark it as paid. Use the following steps as a guide.

 

  1. From Customers, hit Receive payments. 
  2. Select the customer from the Received from.
  3. Pick the entry and click Apply Credits, then tap the available credits.
  4. Hit Done, then Save and Close. 

 

 

On the other hand, you can reconcile your account in QBDT to keep your QBO transactions the same as your accounts. 

 

We'll be happy to see you here again in the Community space. Feel free to post here again if you have any additional questions. We've got you covered, and we'll get back to you. Take care.

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