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How do I mark invoices as paid without it making the bank balance and QB balance not match?

I marked the invoices as paid and then deposited the money but I split the check between two accounts. I called QB she told me to delete the deposit in my check register and now it shows the invoices as not paid. I called back and they said to add it back but it doubles my account balance in QB. How do I mark these invoices as paid without it being marked as a deposit into my account in QB? Please HELP

Best answer 10-15-2018

Accepted Solutions
Community Contributor **

Let me help you mark your invoice as paid, taurusoilfield...

Let me help you mark your invoice as paid, taurusoilfield.

We can edit your existing deposit and change its account to Accounts Receivable. This way, we can link it to your invoice without affecting the bank balance.

Here's how:

  1. Open the Deposit, and under the Add New Deposits section, select the customer's name for Received From.
  2. Change the Account to Accounts Receivable.
  3. Click Save and close.
  4. Click the Plus icon in the upper-right hand corner.
  5. Under Customers, select Receive Payment.
  6. Choose your customer's name.
  7. Under the Outstanding Transactions section, select your invoice and the Deposit under Credits
  8. Click Save and Close.

I've attached a screenshot for your reference.

If you have other questions about recording transactions in QuickBooks Online, just let me know.

16 Comments
Experienced Member

Is there a way to mark an invoice as paid and not have it...

Is there a way to mark an invoice as paid and not have it affect your bank balance? The bank information was input before the invoices were created.
Community Contributor **

Let me help you mark your invoice as paid, taurusoilfield...

Let me help you mark your invoice as paid, taurusoilfield.

We can edit your existing deposit and change its account to Accounts Receivable. This way, we can link it to your invoice without affecting the bank balance.

Here's how:

  1. Open the Deposit, and under the Add New Deposits section, select the customer's name for Received From.
  2. Change the Account to Accounts Receivable.
  3. Click Save and close.
  4. Click the Plus icon in the upper-right hand corner.
  5. Under Customers, select Receive Payment.
  6. Choose your customer's name.
  7. Under the Outstanding Transactions section, select your invoice and the Deposit under Credits
  8. Click Save and Close.

I've attached a screenshot for your reference.

If you have other questions about recording transactions in QuickBooks Online, just let me know.

Active Member

I  could not find where to deposit under credit. Do I nee...

I  could not find where to deposit under credit. Do I need to create a credits account? If i deposit under my checking it will throw my banking off.
Community Contributor **

Thank you for responding, @taurusoilfield. Your deposits...

Thank you for responding, @taurusoilfield.

Your deposits will show under the Credits section once its account is changed to Accounts Receivable. You can locate your existing deposit in the Chart of Accounts. Here's how:

1. Click Accounting in the left navigation bar.
2. Go to the Chart of Accounts tab.
3. Look for your account and click View register.
4. Find and select your deposit, then click Edit.
5. Under the Add New Deposits section, select the customer's name for Received From.
6. Change the Account to Accounts Receivable.
7. Click Save and close.

After this, follow steps 4 to 8 in the answer above.

Please let me know if you experience something else and if you have other questions, @taurusoilfield.
Not applicable

I couldn't follow from step 5 to step 7 because I don't s...

I couldn't follow from step 5 to step 7 because I don't see Add New Deposits section, can you help please?
Active Member

Re: I couldn't follow from step 5 to step 7 because I don't s...

Did you ever figure out how to do this?

QuickBooks Team

Re: I couldn't follow from step 5 to step 7 because I don't s...

Hey there, Nicolerawn.

 

If you haven't seen the Add New Deposits section as well, I can help you locate it.

 

Here's how:

  1. Click the Plus sign (+) icon.
  2. Choose Bank Deposit.
  3. The Add funds to this deposit section is under the Select the payments included in this deposit section.

You can refer to the screenshot below.

 

 

If you've found the section already, you can complete the steps my colleague provided.

 

I'm just here if you need more help. Have a great day!

 

Active Member

Re: Let me help you mark your invoice as paid, taurusoilfield...

Thanks so much for your help. I followed all the steps but seems to mess up at the end. When I select the invoice, it auto populates the total amount of invoice in the "received" box. I need it to only receive the two deposits at the bottom in accounts receivable. I tried deleting the auto-populated box, but it then removes my check boxes for the boxes below. I hope this is clear. I am so confused. HELP. Smiley Happy

Moderator

Re: Let me help you mark your invoice as paid, taurusoilfield...

Hello, @superstar.

 

Thanks for joining this conversation. Allow me to chime in for a moment and share some additional information about receiving a deposit in QuickBooks Online (QBO).

 

Yes, you're right! Selecting an invoice on the Receive Payment page will automatically populate the amount on the Amount Received box. To correct this, you need to manually edit the payment of that invoice to the total amount of the deposits.ts.

 

 

Just in case, you can also check out this article for future reference: How to Record Bank Deposits in QuickBooks Online.

 

That should do it! Let me know how it goes in the comment section below. I'd be glad to answer if you have any follow-up questions or concerns. Have a great rest of the day.

Active Member

Re: Let me help you mark your invoice as paid, taurusoilfield...

What if you are using Quickbooks 2019 Desktop?  I found that after I already reconciled and cleared the check payment that I had not gone into Pay Bills and selected the 2 invoices to go with that check.  Either I can delete the invoices (which I'd rather not do for tracking purposes) or I mess up the previously completed reconciliation.  

QuickBooks Team

Re: Let me help you mark your invoice as paid, taurusoilfield...

There's no need to delete the transactions, SarahEC70.

 

This usually happens when the reconciled checks are not linked to the open bills. Instead, they were recorded as regular checks. To fix this, we can edit the account that is used on those checks to Accounts Payable. This way, the amount will become an available credit to the vendor.

 

Here's how:

  1. Open the reconciled check/s.
  2. In the Expenses column, change the affecting account to Accounts Payable.
  3. Click Save & Close.

Then, pay the open bills using the available credit (from the article, scroll down to the Credits section. Don't worry, this will not affect the reconciliation as long as the bank account and the amount stays the same.

 

You can always leave a reply if you need anything else. Thank you.

Highlighted
Experienced Member

Re: How do I mark invoices as paid without it making the bank balance and QB balance not match?

1) Create a fictitious bank type account called "Dummy Bank Account" in the chart of accounts. Don't worry, it's a common practice and you are not breaking any laws.

 

2) Go to Receive Payments and select the customer, then the invoice which you need to show as paid. This step is needed if you didn't receive a payment yet.

 

3) Go to Record Deposits (QB Desk) or for QBO, go to Gear Icon>Bank Deposit, and follow the same steps you normally would except this time select "deposit to account" as Dummy Bank Account". Click save. Go to step 4.

 

4) Go to "Dummy Bank Account". Here we have a balance now on this account in the amount of deposited payment and we need to take money out, so that the account shows zero. Why? When you entered the invoice, it increased the Income account for the billed product/services to a customer, and when you had money deposited into bank account from customer, which didn't match the invoice, it also went to some income account. The situation created double income  scenario. The following final steps, will help you get rid of this extra income while also show the invoice as paid. To complete this:

     a)  Go to Enter Bills ( QB Desk) or Gear Icon > Expense

     b)  Create an expense in the amount of Dummy bank deposits you just recorded. In the "Bank/Account" info, select  "Dummy Bank Account" and in Account info, select the Income account which was used in billing a customer. This expense will deduct the extra fake income.

 

The invoice will now show as paid, your income should be correct as well! Good luck!

      

Experienced Member

Re: How do I mark invoices as paid without it making the bank balance and QB balance not match?

When I do this, what date should I be using?  I am cleaning up some very old invoices fo a client that were probably paid but entered wrong.

QuickBooks Team

Re: How do I mark invoices as paid without it making the bank balance and QB balance not match?

Thanks for joining this discussion, @rikis981.

 

Allow me to provide some more details about the date to be used when cleaning up old invoices in QuickBooks Online.

 

The steps provided by KPI Accounting will help you clean up your old invoices in QuickBooks. To keep your records accurate, you'll need to use the date that the invoices were created.

 

Also, you may check out this article about reconciling accounts in QuickBooks Online for your future reference.  

 

If you need additional assistance with this process, you may reach out to our Customer Care Team. They have the ability to run a remote-viewing session that can guide you through the steps.

 

That should do it.

 

Please feel free to reach back out to me should there be anything else you need. I'd be happy to help. I look forward to hearing from you again. 

Experienced Member

Re: How do I mark invoices as paid without it making the bank balance and QB balance not match?

@rikis981

It depends on either your period is still open or closed. Let's say, you are in July of 2019 but have just recently received a bill from December 25th of prior year. If your books are closed, QB will not let you enter unless you force it, which is not a good idea anyway. Most likely you would have already closed your books and filed taxes by now. And if you do decide to force-enter old invoices in QuickBooks in prior period, you would not benefit from the reduction in taxable income when you are filing taxes next year, not to mention the fact that your books will not match your tax records.

 

So, to sum it up, if you have to enter invoices for a closed period, post date on the 1st of current period. However, if the period is still open, proceed as usual, entering the actual date. 

Experienced Member

Re: Let me help you mark your invoice as paid, taurusoilfield...

thank you!  I have spent 2 days trying to figure this out.  Your explanation was concise and easy to follow.