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M
mattrobbs-yahoo-
December 13, 2023
Question

I set up the income account for each of my services, but when I match the payment to the invoice, it gets categorised as 'Payment:Debtors' rather than 'medicolegal'.

  • December 13, 2023
  • 1 reply
  • 0 views
I thought that if income accounts are set up for each of my services in the Products and Services section, then using 'find match' in the 'transactions for review' tab would match the payment transaction to the relevant invoice and then that payment would be categorised into the income account that I set up, for example 'Medicolegal Reports'.  But it seems to be categorised as 'Payment: Debtors' every time when I use the find match function.  Any help please?

1 reply

G
GeorgiaC
December 13, 2023

Hi mattrobbs-yahoo-, thanks for posting on the Community

 

QuickBooks Online is based on double-entry bookkeeping. 

 

When recording a sales transaction in two parts (i.e. an invoice and payment), the income account is posted on the invoice which will also debit the Debtors account.

 

The Debtors account is a default account that tracks money owed to the business by its customers. 

 

When you apply the payment (for the same amount as the invoice), this will credit the Debtors account, meaning the net impact to the Debtors account will be zero. 

 

A useful way to view which accounts a transaction is posted to is to open the transaction and select More > Transaction journal. Hope this helps!

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