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Bocnuts
August 1, 2021
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Why are my Sale Receipts adding 'Payments' (i.e. debits) to my bank account?

  • August 1, 2021
  • 1 reply
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I walked through and read how to use the undeposited account flow and I then created 'bank deposits' to capture the income from the receipts but, as soon as I created a receipt for each transaction, QBO automatically added 'payments' in my checking account where the funds get deposited for each service identified in the receipt. If I delete them, the receipt gets deleted.
    Best answer by Giovann_G

    Thanks, Kristine.  If I am processing a payment or invoice via Quickbooks Payments, are the transactions through 'Undeposited Funds' done automatically such that there is no need to make a 'Bank Deposit' or 'Receive Payment'?  If so, that may be my issue of duplicates.

     

    Then I need to figure out how to undo it...


    Hi there, Bocnuts.

     

    I can share some details about the QuickBooks Payments workflow.

     

    When your customer pays you via QuickBooks Payments, the invoice automatically be marked as paid. Then, the payment will show depending on the account selected. You can check on which account the payments will be posted.

     

    Here's how:

     

    1. Go to the Gear icon.
    2. Select Account and settings.
    3. Click Payments.
    4. You can see the account in the Chart of Accounts section.

     

    If the account selected is Undeposited Funds(UF), you can create a bank deposit from the UF to your bank or checking account. This way, you can match the deposit to the downloaded bank transaction. If it's already the bank or checking account, you can directly go to the matching process.

     

    Also, you can expedite the review process for your download bank transaction by setting up bank rules: Set up bank rules to categorize online banking transactions in QuickBooks Online. Here you can find the steps to complete setup or create rules.

     

    Keep us posted If you have further questions about the QuickBooks Payment process. We're always here to help you.

    1 reply

    BettyJaneB
    BettyJaneB
    August 1, 2021

    Hello there, @Bocnuts.

     

    You've got me here to shed some light about recording payments in QuickBooks Online.

     

    When creating sales receipts, make sure not to select the checking account, so the funds won't be deposited directly to the bank. You may select the Undeposited Funds account, so you can transfer the amount when you're ready to deposit them to the bank.

     

    To do that:

    1. Select + New.
    2. Click on Sales receipt.
    3. Select the customer from the Customer dropdown. 
    4. Enter the sales info, such as the payment method and select Undeposited Funds in the Deposit to field.
    5. Enter line items for the product and service you sold.
    6. When you're done, select Save and send to email the receipt.

    Once done you're ready to deposit the funds, you can move them it from the Undeposited Funds account by making a bank deposit. All payments in the Undeposited Funds account automatically appear in the Bank Deposit window.

     

    Here's how:

    1. Go to the + New button and select Bank Deposit.
    2. From the Account ▼ dropdown, choose the account you want to put the money into.
    3. Select the checkbox for each credit card payment.
    4. Click on Save and close or Save and new once you're done. 

    For more information on how the Undeposited Funds account work, please visit this article: What’s the Undeposited Funds account?

     

    You can refer to the following link on how to combine transactions in QuickBooks with a bank deposit: Record and make bank deposits in QuickBooks Online.

     

    Please know that I'm just a post away if you have any other questions about sales receipt or about QuickBooks Online. I'll be delighted to be your guide once again. Have a great day!

    B
    BocnutsAuthor
    August 9, 2021

    Thank you, but that wasn't exactly the issue.  I found another location in 'products and services' where you can define the account into which the funds will be deposited.  That needed to be changed to 'undeposited funds'.

     

    However, now I have a follow-on issue that I discovered when I made the above correction.  Now I have duplicate entries in 'undeposited funds' listed under the Accounts Receivable Account.  I have the both the Invoice and Deposit decreasing funds in the account, and the Payment increasing the amount in the undepostied funds account.  Why is the Invoice and Deposit debiting the account?

    Kristine Mae
    Kristine Mae
    August 9, 2021

    I've replicated your concern, Bocnuts. Let me help you sort this out.
     

    In the Undeposited Funds, you can see the deposit and invoice payments. Once they're deposited into the bank account, the entries or amounts are debited from the bank account, then credited to the sales account. It's how it works.
     

    Also, I've found out that if you deposit the sales receipt or payments by bulk from the Undeposited Funds, it cause duplicate or multiple entries under the said account. 
     

     

    I'll add this reference to help you learn more about Undeposited Funds: How to Use the Undeposited Funds Account to Receive Payments in QuickBooks Online.

     

    Get back to this thread if you have additional questions. We'll reply as soon as we can. Keep safe!

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