Customers added as supplier and confused about splitting bank deposit

Hello there kiwil0ve,

Welcome to the QuickBooks Community and thanks for joining us here to seek support on this. I love that you've switched over to the QuickBooks family - we're happy to have you and I know you'll love all the awesome features that QuickBooks Online has to offer. Correctly categorizing your transactions is an important bookkeeping step, and it's important that you know how to do so. Let me give you a hand.

When you're using the bank feeds feature in QuickBooks Online, there are a few ways you can approach inputting your transactions. The first of which is to do exactly what you're doing, and record the income as a Deposit or Sales Receipt, selecting the appropriate customer from the dropdown, or entering a new customer as necessary. Be sure that you select the correct account from the Category dropdown, as well as the sales tax code in the Tax field. It's important to note that a Deposit won't appear in the All Sales tab of the Sales menu, only a Sales Receipt will. 

When it comes to adding your customers this way, you'll have to select Add new if you haven't entered them into the system just yet. Enter their name then select Customer from the Type dropdown. If you chose Suipplier from the dropdown, that'll explain why your customers are saved as such. 

Another way to go about handling your transactions through the bank feed is by adding them in as Invoices or Sales Receipts first through the + New button, then using the Find match option to match the bank feed transactions to your manual transactions. This step would involve adding your customers in during the Invoice or Sales Receipt creation process, but it follows a similar process. Check out this link so you can learn more about how to Categorize and match online bank transactions in QuickBooks Online.

On to remedying your Customers saved as Suppliers dilemma. This might be a bit time-consuming to resolve, so I hope you haven't entered too many just yet. I would approach this by first navigating to the Expenses tab, then choosing Suppliers. Use the dropdown in the Action column to make the suppliers that you'll need as customers Inactive. Next up is locating the transactions you've entered and opening them up.

You can use the Search function at the top to locate your transactions, or check out the Categorized tab of the Banking or Transactions menu. You'll be able to click the blue hyperlink from here to open it up. Next you'll want to locate the Received from dropdown and hit Add new to add a new customer, ensuring that you select Customer instead of Supplier. Hit Save and close to save the changes you've made.

If you have any open or unpaid transactions for any of these customers, QuickBooks won't allow you to make the profile inactive, so you'll have to undo or delete the transaction first, or mark it as paid, then make the supplier inactive. Then you'll re-create the customer as an actual Customer and re-enter the transaction. I have a few additional articles to help you out:

• Add and manage customers in QuickBooks Online

• Add a supplier

When it comes to deciding whether to record your transactions as Invoices first, or as Deposits or Sales Receipts from the bank feed, consulting with your accountant is a great idea. They'll be able to advise you on best practice and how these types of transactions will impact your accounts. If you're working with an accountant and you'd like to give them access to your QuickBooks account, simply navigate to the My Accountant tab and send them an invite. The Find a pro to help button on the same page will be a great resource if you're shopping around for an accountant, as it links to our database of QuickBooks-certified accountants. Check them out!

I know that it can be tricky to navigate a brand new accounting software, so feel free to drop back here if you have any other questions that I can answer. Have a great week.